Lower of or higher of Flashcards
IFRS 16?
Lower of lease term and useful life
IAS 36?
Greater of FVLCTS & VIU
IFRS 5?
Lower of carrying amount and FV - costs of disposal
IAS 2?
Lower of original cost & NRV
Restructuring provision excluded from IFRS 5 discontinued?
Yes
Restructuring provision in IFRS 3?
Generally excluded unless already underway
Project completion?
Not relevant in recognising an intangible asset
Acquired exclusively with the intention to resell it in IFRS 3
Excluded from consolidation
Future operating losses?
No provision
Provision for onerous contract?
Yes
Replacement cost?
Added to provision
IFRS 5 criteria?
Disposal of a component of an entity
A subsidiary acquired with the intent to resell
What costs are included in valuing inventories in a manufacturing company?
Carriage inward
Depreciaiton
Dargent Co despatched goods to Latree Co with a selling price of $700,000. These were not received by Latree Co until after the year end
Debit Inventory GIT 700
Provision re mine in consolidation
Credit revenue
When control not transferred in repurchase?
Is a financing arrangement as exercise price > selling price
Repurchase price treatment in revenue?
credit revenue
Repurchase price > market value
Sale price - repurchase price
Accounted for as an operating lease
What are bill and hold arrangements all about?
About how customer obtains control of the product
Example of output method?
Survey of performance completed
Repurchase < selling price?
Is treated as an operating lease
Consingement inventory?
Nothing recognised
Is deposit recognised in signiifcant financing component?
Yes when control passes
When is revenue recognised?
When control passes
Bill and hold (identify)
Goods separately identified and ready for despatch
WHEN IS FUCKING REVENUE RECOGNISED
WHEN CONTROL IS TRANSFERRED
If third party fucks off (e.g. no control) in a consignment arrangement?
Nothing is recognised
Deferred tax liability another name?
taxable temporary differences
Deferred tax asset another name?
deductible temporary differences
Determination of proceeds of plant before year end (adjusting or non-adjusting)
Adjusting
Warranty provision inclusion in financial statements?
Warranty provision due to a change in estimate
Significant influence?
Influence between 20% and 50%
When another company holds 60% of a 30%
The 30% is no longer recognised as an associate
Costs to sell relevant in IAS 40?
No
Basic earnings for P&L adjusted for?
Preference dividends
NCI
Intangible asset acquired in a business combination?
Fair value at the date of acquisition
Development expenditure?
Expense when incurred if it does not satisfy the asset recognition criteria
Legal, training and advertising costs?
Not recognised in intangible asset
Lease liability PV calculation relevant costs?
Penalties
PV
Variable
Fixed - incentives
When calculating lease liability?
Always discount to PV
ROU asset initial cost?
Initial amount + deposit - incentives + direct costs + estimated costs to dismantle
