EXAM - must knows

Question 1

Impairment

Answer 1

1. minus from goodwill from acquisition
2. minus from gross profit in CIS (add row under operating expenses)

Question 2

Into group sales - upstream

Answer 2

1. minus unrealised profits in analysis of equity from post and NCI
2. Add unrealised profits to CIS under cost of sales
3. Minus total sold from revenue and cost of sales in CIS
4. minus unrealised profits from subsidiary’s profit when calculating group in CIS
5. minus unrealised profits from inventories

Question 3

current accounts

Answer 3

• strip out balances
• post any differences to cash in transit/ cash at bank

Question 4

dividends

Answer 4

1. Minus from statement of changes in equity
2. Add row in CSOFP current liabilities

Question 5

unrealised profits formula

Answer 5

year end inventory x %mark up/ (%markup + 100%)

Question 6

good will (positive)

Answer 6

-

Question 7

goodwill (negative)

Answer 7

-