CSPL (Practice)

Question 1

How is impairment measured?

Answer 1

At fair value, is not accrued. Is also part of administrative expenses

Question 2

How to calculate NCI attributable to parent?

Answer 2

NCI% * S’ total comprehensive income

Question 3

What is included in S’ total comprehensive income?

Answer 3

PFY - depreciation expense for year - goodwill impairment

Question 4

Should revaluation gain be prorated?

Answer 4

No

Question 5

What represents inter-company sales?

Answer 5

Revenue and cost of sales

Question 6

What represents inter-company interest?

Answer 6

Investment income and finance cost

Question 7

Calculate dividend from subsidiary?

Answer 7

Amonut of dividend * parent %

Question 8

Since acq Intragroup trading treatment for sales from parent to subsidiary?

Answer 8

Decrease revenue

Question 9

Post-acq Intragroup trading treatment for sales from parent to subsidiary?

Answer 9

Decrease revenue
Decrease costs of sales

Question 10

PURP treatment if Parent is seller?

Answer 10

Credit/Increase in cost of sales
Credit/Decrease in inventory

Question 11

Fair value adjustments depreciation expense treatment?

Answer 11

Debit/Increase cost of sales
Decrease for NCI