FR 무료 덤프문제 온라인 액세스

Gale plc has a number of subsidiary companies. On 1 January 2008 Gale plc acquired 30% of the 10,000 $1 ordinary shares of GCM Ltd for $14,000. The balance on GCM Ltd's retained earnings on that date was $30,000. Gale plc exerts significant influence over GCM Ltd. The statement of financial position of GCM Ltd at 31 December 2012 is as follows.
$
Total assets68,000
Ordinary share capital10,000
Retained earnings38,000
Liabilities20,000
Total equity and liabilities68,000
At 31 December 2012 Gale plc had identified an impairment loss of $800 in the value of its investment in GCM Ltd.
At what value will the investment in GCM Ltd be shown in the consolidated statement of financial position of Gale plc as at 31 December 2012?

• A.$14,400
• B.$15,600
• C.$16,400
• D.$20,400

The requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
result in the separation of the financial position and financial performance of those activities which will continue into the future from those which will not. This provides a clearer base for projections into the future than if the position and performance of both types of activity were merely amalgamated.
Which of the following qualitative characteristics has been reflected in the formulation of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations?

• A.Understandability
• B.Comparability
• C.Relevance
• D.Reliability

Richard Ltd and McMagoo Inc. trades in shares and securities and are close rivals for many years. Richard Ltd accuses McMagoo Inc. of providing false information related to a particular PH plc's share; though Richard Ltd knows it is not true. McMagoo Inc. sues Richard Ltd. for defamation. Richard's and McMagoo Inc's lawyers agree that it is likely that McMagoo Inc. will win the case and receive damages of an amount of $1.5m. There is no possibility of the case being resolved before the financial statements are finished.
How the above litigation will be represented in the financial statements of both Richard Ltd and McMagoo Inc.?

• A.Richard Ltd should provide for $1.5m. McMagoo Inc. should ignore as this is too remote.
• B.Richard Ltd should ignore as this is too remote. McMagoo Inc. has a contingent asset and should disclose in the financial statements.
• C.Richard Ltd should provide for $1.5m. McMagoo Inc. has a contingent asset and should disclose in the financial statements.
• D.Richard Ltd should have a contingent asset and should disclose in the financial statements. McMagoo Inc. should provide for $1.5m.

Propane pIc is undertaking an impairment review of assets following IAS 36 Impairment of Assets. Investigations have discovered the following:
Asset R has a carrying amount of $60,000, a value in use of $65,000 and a fair value less costs to sell of $30,000.
Asset Q has a carrying amount of $100,000, a value in use of $92,000 and a fair value less costs to sell of $95,000.
In accordance with IAS 36 Impairment of Assets, what amount should berecognizedas an impairment loss in relation to these assets?
RQ
$$

• A.25,0008,000
• B.-5,000
• C.5,000-
• D.30,0003,000

According to the IASB's Conceptual Framework for Financial Reporting, which one of the following statements represents the underlying assumption relating to financial statements?

• A.Users are assumed to have sufficient knowledge to be able to understand the financial statements
• B.The business is expected to continue in operation for the foreseeable future
• C.The accounts have been prepared on an accrual basis
• D.The accounting policies used have been disclosed