DFS Revision Game
Comments
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IFRS isn't examinable of included in DFS0
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IFRS isn't examinable of included in DFS
i thought IFRS 8 is now? as of this sitting?
i have a question
ABC Ltd has a 75% shareholding in a subsidiary company that was purchased for £25,000,000 on 1st April 2009. At this time the balance on the subsidiary’s retained earnings was £1,980,000.
Below is an extract from the subsidiary’s Statement of Financial Position at 31st March 2010:
Equity £000
Ordinary Share Capital 15000
Share Premium 6000
Revaluation Reserve 4000
Retained Earnings 2540
———
Total Equity 27540
There have been no issues of shares or revaluations of PPE during the year ended 31st March 2010.
The directors of ABC Ltd have concluded that at 31st March 2010 goodwill has been impaired by 20%.
What value for Goodwill should be included in the consolidated Statement of Financial Position at 31st March 2010?
a £4,765,000
b £3,476,000
c£3,812,000
d£4,345,000
i think it's b?0 -
i thought IFRS 8 is now? as of this sitting?
i have a question
ABC Ltd has a 75% shareholding in a subsidiary company that was purchased for £25,000,000 on 1st April 2009. At this time the balance on the subsidiary’s retained earnings was £1,980,000.
Below is an extract from the subsidiary’s Statement of Financial Position at 31st March 2010:
Equity £000
Ordinary Share Capital 15000
Share Premium 6000
Revaluation Reserve 4000
Retained Earnings 2540
———
Total Equity 27540
There have been no issues of shares or revaluations of PPE during the year ended 31st March 2010.
The directors of ABC Ltd have concluded that at 31st March 2010 goodwill has been impaired by 20%.
What value for Goodwill should be included in the consolidated Statement of Financial Position at 31st March 2010?
a £4,765,000
b £3,476,000
c£3,812,000
d£4,345,000
i think it's b?
i get c 3812 (25000 - 20235 = 4765 @20% = 3812)0 -
I get 3,812 too.0
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20235??? where that come from?
dont you just hate it not being tabbed correct lol
the 75% of your figures
.....................................................75%
share cap...15000................................11250
share prem...6000................................4500
reval...4000.........................................1000
post acq ...560 (2540-1980)
pre acq...1980.....................................1485
27540...................................20235
then 25000 less 20235 = 4765 x 80%(opp of 20% = 38120 -
I got 3812 too.0
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all right all right you clever lot. can you explain this one i have copied and pasted
David disposed of his unincorporated business in August 2009 and made the following gains and losses: -
Factory £300,000 gain
Warehouse £80,000 loss
Goodwill £400,000 gain.
During the 2009/10 tax year he also disposed of an antique grandfather clock and realised a gain of £10,000.
What is David's total chargeable gain, before the annual exemption?
I.£630,000
II.£285,556
III.£630,000
IV.£354,444
explain this one0 -
Stupid question, but I feel stumped, is this tax instead of DFS?0
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there it is now on BTC thread. was getting carried away0
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Going back to IFRS's!!, as I understand it, we need to know about IFRS1, IFRS3, IFRS5, and IFRS8 don't we?0
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Just asked my tutor and IFRS 8 is examinable now! First I've heard of it 3 weeks before the exam
Has anyone got a list of the IFRS's and IAS's which are examinable?0 -
Esme, the list is easiest to find if you go to My AAT to the section of DFS past exam papers and download the Unit_11_DFS_Guidance (revised feb) file.
For some reason it complaints it's too big to upload, so I can't add it here. (And I'm too lazy to retype them all)
This morning I posted a quick summary of IFRS 8 for Rachey in the FAO Rachey thread, it might be useful, it might also be completely useless to you. But have a look if you like.
I got most of the information from 2 different sites:
http://ec.europa.eu/internal_market/accounting/ias/standards_en.htm
And
http://www.accaglobal.com/members/publications/accounting_business/CPD/30269590 -
yep IFRS1 isn't assessable thanks!0
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i'm going to ask a question if I may as we've stalled?!
Co A Co B
ROCE 20% 15%
Net profit marg 25% 20%
Asset Turn 0.8:1 0.75:1
GP marg 45% 50%
Expenses/Rev 20% 30%
These two companies are potential takeover prospects for Co C, which one should Co C buy and why?0 -
i'm going to ask a question if I may as we've stalled?!
Co A Co B
ROCE 20% 15%
Net profit marg 25% 20%
Asset Turn 0.8:1 0.75:1
GP marg 45% 50%
Expenses/Rev 20% 30%
These two companies are potential takeover prospects for Co C, which one should Co C buy and why?
A as even though th GP margin is lower the others are better so it looks more positive0 -
I agree with Primble!
The return on capital employed is higher for A, the net profit margin is higher, the asset turnover is better, as it is higher and their expenses are lower compared to B.
Next question Primble?0 -
I agree with Primble!
The return on capital employed is higher for A, the net profit margin is higher, the asset turnover is better, as it is higher and their expenses are lower compared to B.
Next question Primble?
right this time i'll make sure i have the right subject this time
what is the logic behind IAS 2?0 -
IAS 2 is for inventories, I'm not sure what you mean with what the logic is behind it.
You should value inventories at the lower of cost or net realisable value, so that the inventories are valued at a true and fair value, which reflects properly in the books.
But I'm not sure if this is anywhere near what you mean....0 -
I did look in my book ....
A is better but, if co B could be made more efficient in terms of expenses and asset use by new management, given better gp it might be worth considering for takeover
so now who is going next as you were both right?0 -
Esme, the list is easiest to find if you go to My AAT to the section of DFS past exam papers and download the Unit_11_DFS_Guidance (revised feb) file.
For some reason it complaints it's too big to upload, so I can't add it here. (And I'm too lazy to retype them all)
This morning I posted a quick summary of IFRS 8 for Rachey in the FAO Rachey thread, it might be useful, it might also be completely useless to you. But have a look if you like.
I got most of the information from 2 different sites:
http://ec.europa.eu/internal_market/accounting/ias/standards_en.htm
And
http://www.accaglobal.com/members/publications/accounting_business/CPD/3026959
Thanks rinske0 -
IAS 2 is for inventories, I'm not sure what you mean with what the logic is behind it.
You should value inventories at the lower of cost or net realisable value, so that the inventories are valued at a true and fair value, which reflects properly in the books.
But I'm not sure if this is anywhere near what you mean....
yup it is0 -
Oh, in that case, was I right?
New question:
Marketing costs, would you classify them as distribution costs or administrative expenses and why?0 -
i'm guessing are they a function of distribution?0
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Distribution- not sure why though.
What is the objective of financial statements accoreding to the framework for the preperation and presentation of financial statements?0 -
Distribution- not sure why though.
What is the objective of financial statements accoreding to the framework for the preperation and presentation of financial statements?
I'd class them as administration, I suppose it's a personal judgement. It'd be a little harsh if we were to get marked down on it though.
I'm too poorly to ask / answer big questions today though sorry :-( i'll leave it for somebody else!!!0
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