Financial statements (7-13)

Question 1

What costs are included as part of attributable costs?

Answer 1

Direct costs only

Question 2

How is present value calculated?

Answer 2

Expected future cost x discount factor

Question 3

How are decommissioning costs calculated?

Answer 3

Decommissioning costs are the same as present value costs

Question 4

What 3 expenses should be included in the cost of finished goods under IAS 2?

Answer 4

• Variable production overhead
• Accounting and finance overhead allocated to production
• Cost of delivering raw materials

Question 5

What kind of event is a fire that takes place after the reporting date?

Answer 5

Non-adjusting as no indicator it existed at the reporting date

Question 6

If a fire occurs before the reporting date what kind of event is it?

Answer 6

Adjusting

Settlements after date should be included

Question 7

What kind of event is a share issue?

Answer 7

Before reporting date - Adjusting

After reporting date - non-adjusting

Question 8

What kind of event is plans to acquire another entity of they take place after the reporting date?

Answer 8

Non-adjusting

Question 9

How is a dividend shown in the SOCIE?

Answer 9

As a deduction

Question 10

What is not required by IAS 1 as an item to include in the notes to the accounts?

Answer 10

Statement that the entity is a going concern

Question 11

Under IAS 1 what has to be shown on the face of SPL?

Answer 11

Revenue and Finance cost

Question 12

Where does a revaluation surplus appear under IAS 1?

Answer 12

SOFP and SOCIE

Question 13

How should an asset held for sale be treated?

Answer 13

• Shown separately under assets held for sale
• Cease depreciation when decision is made to sell

Question 14

What side is the b/f on a t account for PPE?

Answer 14

LHS

Question 15

What is not included within the initial cost of a right of use asset?

Answer 15

Total lease rentals payable under the lease agreement

Question 16

Where will the amount of loans outstanding at the end of the reporting period appear?

Answer 16

SOFP

Question 17

Where do equity dividends paid appear?

Answer 17

SOCIE

Question 18

Where do revaluation gains on property appear?

Answer 18

SOCIE

Question 19

What is included in total current liabilities?

Answer 19

• Cash and cash equivs
• Accruals
• Payables
• Tax payable

Question 20

What type of company do unconsolidated financial statements report on?

Answer 20

Parent company only

Question 21

How are decommissioning costs calculated?

Answer 21

Cost x discount factor

Question 22

What is the recoverable amount?

Answer 22

Higher of value in use and (fair value - costs of sale)

Question 23

How is a dividend shown in financial statements?

Answer 23

As a deduction in the SOCIE for the year it is PAID

Question 24

Do finance charges need to be presented on the face of SPL?

Answer 24

Yes

Question 25

Do profits, gains and losses relating to discontinued operations need to be presented on the face of SPL?

Answer 25

Yes

Question 26

What is a discontinued operation?

Answer 26

Component of an entity disposed/held for sale, represents separate major line of business/geographical area of operations

Question 27

What would require depreciation to continue after the end of the lease?

Answer 27

Ownership is taken over

Question 28

Where will the amount of loans outstanding at the end of the reporting period appear?

Answer 28

SFP

Question 29

How is excess depreciation calculated?

Answer 29

(Current value/remaining useful life) - (Old value/dep%)

Question 30

When is an impairment review required?

Answer 30

Only when there is an indication that an asset may be impaired.

Question 31

How is the balance for current liabilities calculated from the trial balance?

Answer 31

Cash + Accruals + Payables + Tax payable