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
Where will the amount of loans outstanding at the end of the reporting period appear?
SOFP
Where do equity dividends paid appear?
SOCIE
Where do revaluation gains on property appear?
SOCIE
What is included in total current liabilities?
- Cash and cash equivs
- Accruals
- Payables
- Tax payable
What type of company do unconsolidated financial statements report on?
Parent company only
How are decommissioning costs calculated?
Cost x discount factor
What is the recoverable amount?
Higher of value in use and (fair value - costs of sale)
How is a dividend shown in financial statements?
As a deduction in the SOCIE for the year it is PAID
Do finance charges need to be presented on the face of SPL?
Yes
Do profits, gains and losses relating to discontinued operations need to be presented on the face of SPL?
Yes
What is a discontinued operation?
Component of an entity disposed/held for sale, represents separate major line of business/geographical area of operations
What would require depreciation to continue after the end of the lease?
Ownership is taken over
Where will the amount of loans outstanding at the end of the reporting period appear?
SFP
How is excess depreciation calculated?
(Current value/remaining useful life) - (Old value/dep%)
When is an impairment review required?
Only when there is an indication that an asset may be impaired.
How is the balance for current liabilities calculated from the trial balance?
Cash + Accruals + Payables + Tax payable
