Others

Question 1

Ifrs 13 FV valuation techniques

Answer 1

1. Level 1: quoted prices for identical assets in active markets
2. Lvl 2: •observable prices that are not
   Lvl 1 inputs
   •quoted prices for similar asset
   In active market
   •quoted price for identical asset
   In less active market
3. Lvl 3: unobservable.

Question 2

Ias 21 primary factors determining functional currency

Answer 2

1. Currency that mainly influence sales price for goods
2. Competitive force & regulations mainly determine sales price
3. Currency that mainly influence labour, material and other cost of providing goods

Secondary factors(if inconclusive)
•currency in which financing activities are generated
•in which receipts from operating activities are retained

Question 3

Determining transaction price

Answer 3

•variable consideration
•significant financing component
•non-cash consideration
•consideration payable to a customer

Question 4

FV markets

Answer 4

FV calculation may differ on depending on the specific market where the transaction occurs.
1. Principle market: as per IFRS 13, fv should be measured with reference to principle market. It is a market with greatest activity for the asset.
2. Most advantageous market: used only if principle market is not available. It is the market which maximises the net amount received from sale of the asset.

Question 5

Indication of impairment

Answer 5

1. External source of info:
   •Fall in asset mkt value
   •significant change in technology, mkt, legal or economic environment
   •increase in mkt interest rate, which is likely to affect discount rates of value in use
   •CA of net assets being more than its mkt set capitalisation
2. Internal source of info:
   •evidence of obsolescence, physical damage, adverse changes in the use or assets economic performance

Question 6

Deffered tax asset offest conditions

Answer 6

•The entity has a legally enforceable right to set off current tax assets and current tax liabilities
•the deffered tax assets and liabilities relate to tax levied by the same tax authority.

Question 7

Control over investee

Answer 7

Ifrs 10 consolidated financial statements states that an investor controls an investee only if the investor has all the following:
1. Power over investee
2. Right to variable returns from its involvement with the investee
3. Ability to use its power to affect the amount of the returns.

Question 8

Unused tax losses

Answer 8

A deffered tax asset can be recognised only to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilised.
Conditions:
1. Whether an entity has sufficient taxable temporary differences
2. Whether it is probable, that will make taxable profits before the tax losses expire.
3. Whether the cause of tax losses can be identified , whether it is likey to recur.
4. Whether tax planning opportunities are available.

Question 9

Aggregation of operating segments

Answer 9

Similar economic characteristics and similar in:
1. Nature of product or service
2. Nature of production process
3. Class of customer
4. Distribution method
5. Nature of regulatory environment

Question 10

Fv of non financial asset

Answer 10

Based on its highest and best use, highest and best use- in order to maximise its value. Current use can be assumed to be the highest and best unless evidence exists contrary.
Take into account-: physically possible, legally permissible, financially feasible.