Theory MC2 Flashcards
to be able to use acquisition accounting to prepare group consolidated accounts, how much of the subsidiary company must the parent company acquire
at least 51%
Which section of FRS 102 deals with accounting for leases and hire purchase
Section 20
Why is depreciation always added back to accounting profit to calculate tax adjusted profit
because it is capital in nature
which section of FRS 102 deals with accounting for construction contracts
Section 23
Under FRS 102, what is a construction contract for accounting purposes
a contract which spans for more than one accounting period
when applying the accruals concept we must
include all costs incurred in that period
the amount due from the client under a construction contract is included in the SFP in
Receivables
when accounting for a finance lease we must
include the amount owed under the lease as a liability on the SFP
WIP is accounted for on the SFP as a
current asset
according to the relevant accounting standard, inventory should always be accounted for at
selling price
when new shares are issued by a company, any amount over and above the par value is credited to which account
share premium
which one of the concepts is the basis of the accounting treatment of a finance lease
substance over form
