Financial statements (7-13) Flashcards
What costs are included as part of attributable costs?
Direct costs only
How is present value calculated?
Expected future cost x discount factor
How are decommissioning costs calculated?
Decommissioning costs are the same as present value costs
What 3 expenses should be included in the cost of finished goods under IAS 2?
- Variable production overhead
- Accounting and finance overhead allocated to production
- Cost of delivering raw materials
What kind of event is a fire that takes place after the reporting date?
Non-adjusting as no indicator it existed at the reporting date
If a fire occurs before the reporting date what kind of event is it?
Adjusting
Settlements after date should be included
What kind of event is a share issue?
Before reporting date - Adjusting
After reporting date - non-adjusting
What kind of event is plans to acquire another entity of they take place after the reporting date?
Non-adjusting
How is a dividend shown in the SOCIE?
As a deduction
What is not required by IAS 1 as an item to include in the notes to the accounts?
Statement that the entity is a going concern
Under IAS 1 what has to be shown on the face of SPL?
Revenue and Finance cost
Where does a revaluation surplus appear under IAS 1?
SOFP and SOCIE
How should an asset held for sale be treated?
- Shown separately under assets held for sale
- Cease depreciation when decision is made to sell
What side is the b/f on a t account for PPE?
LHS
What is not included within the initial cost of a right of use asset?
Total lease rentals payable under the lease agreement
