More QB Flashcards
1
Q
Treatment:
Lease buyback, expected to repurchase in future
A
- Add back CA to PPE
- Deduct profit on disp from revenue
- Fin cost applies (sale amount * discount rate), also going to NCL loan
It’s basically a loan
2
Q
Legal case: 20% chance that £5,000 is payable, 60% chance that £10,000 is payable, 20% chance that £20,000 is payable.
How much is prov?
A
£10,000
3
Q
Op being discon:
Cost per unit £10
NRV £12
Additional costs per unit £4
Total units 500
Additional amount to cost of sales?
A
(10-(12-4))*500= £1,000
4
Q
Government grant: where in PL should the amount received be recognised?
A
Other income
5
Q
Cap or not?
- Research activities
- Gaining license to market new product
A
No to both
6
Q
Share buyback accounting entries?
A
Cr cash
Dr treasury shares
7
Q
Pref share issue: accounting entries?
A
Value - EIR - cash = NCL
EIR = fin cost
Cash= dividend to RE
8
Q
Planning permission application: capitalise?
A
Yes
9
Q
Goodwill bargain goes where?
A
RE
