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1

What are the conditions for classifying something as held for sale?

- sale is highly probably
- item must be available for immediate sale

2

What are the conditions for sale to be highly probable for HFS?

A) mgt commute meant to sell
B) actively locating buyer
C) marketed at a fair price
D) sale to occur within a year

3

Treasury shares

- Buying back own shares
- negative equity
- held at full cost to buy
- no profit or loss recognised
- SC &SP unchanged

4

AHFS are recognised at lower/higher of...

Lower of:
A) CA
B) FVLCTS

5

ROUA (leaseback)

CA x (PVFLP - financing element)/FV
Financing element= consideration - FV

6

Calculating gain for leaseback

1) gain 1 = FV - CA
2) gain 2 = gain 1 x (PVFLP - financing element)/FV
3) gain 1 - gain 2 = recognised gain (tights transferred

7

What part of a gain on a leaseback sale is recognisable?

- The percentage gain of rights transferred
- amounts paid over FV = form of financing

8

EPS - bonus issue

Treated as occurred at start of the year

9

Can customer list be revalued?

No!
Assumed not to have FV and cannot be measured against active market

10

Intangible assets need to be...

A) identifiable
B) probable future economic benefits gained
C) non-monetary assets w/o physical substance

11

Financial liability

Contractual obligation to make repayments of interest and capital

12

How do you treat convertible preference shares?

Same as convertible bonds, got equity and liability portions

13

PY error: immaterial

Correct through net P/L for current period

14

PY error: material

- Correct retrospectively
- correcting recognition, measurement and disclosure of elements of FS as if never occurred

15

When are good recognised?

When they are received

16

In SOCIE, share are to be issued in the future, they are treated by...

Including in shares to be issued in the future column

17

Investment is associate calculated by...

Add paid
Less dividends received
Less depn FV adj
Add share of profit

18

NCA- Investments line, you calc by...

Including what you paid for sub and assoc

19

Deferred/Future cash payments are displayed in FS by...

Line in SOPF liabilities, ‘Deferred Consideration’

20

P/L on disposal calc:

Proceeds
Less CA if goodwill
Less CA of NAs
Add NA of NCI
= profit/loss
2 CA’s are balances at disposal