Proficiency 2 Flashcards
Gearing
What is included in debt?
What is included in equity?
Pref shares, bonds, bank borrowings
Share cap, retained earnings, share prem, reval reserve
What is the material information in integrated reporting?
Strategy, governance, performance, prospects
Diluted earnings per share
How do you calculate basic earnings per share?
How do you work out adjusted number of shares?
How do we use these to work out diluted earnings per share?
Basic earnings - profit for year
+ notional earnings (interest saved) - interest payable
-income tax - interest saved x tax rate
Basic equity shares
+ notional extra shares
Basic earnings per share/adjusted number of shares x 100
What does a decrease in impairment decrease?
Profit
NCI
How do we translate a non monetary item held under cost?
Translate the item at spot
Depreciate the translated amount
How do we measure Subs?(2)
Joint operation?
Joint venture?
Cost or FV
Line by line
Equity method
What happens if we factor receivables with recourse?
Risk of being irrecoverable
Calculating carrying value of a bond
What do we do with transaction costs?
What I’d the value of the initial costs?
How do we work out finance costs?
How do we work out interest received?
Bonds + finance costs
Initial costs x effective interest rates
NV bonds x interest paid annually
WACC
How do we work out shares value?
If given tax rate and coupon rate what di we do?
Shares x MV
Work out post tax cost of debt
How do we work out profits from associates to include in P/L?
Profits for period x n/12
% x profit for period
- unrealised profit
Share of profit
How do we work out rental income when pay a deposit and yearly payments
?
How do we work out yearly payments?
Deposit+Yearly rental total
/ total number of years
When do we include impairment NCI and what percentage?
When nci fv and their %
What does a bank bond influence?
What borrowing is repayable on demand?
Why is a fixed charge better than floating?
Future actions of directors
Overdraft
Puts front of the queue for liquidation
