2 Flashcards
(20 cards)
What are the conditions for classifying something as held for sale?
- sale is highly probably
- item must be available for immediate sale
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
Treasury shares
- Buying back own shares
- negative equity
- held at full cost to buy
- no profit or loss recognised
- SC &SP unchanged
AHFS are recognised at lower/higher of…
Lower of:
A) CA
B) FVLCTS
ROUA (leaseback)
CA x (PVFLP - financing element)/FV Financing element= consideration - FV
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
What part of a gain on a leaseback sale is recognisable?
- The percentage gain of rights transferred
- amounts paid over FV = form of financing
EPS - bonus issue
Treated as occurred at start of the year
Can customer list be revalued?
No!
Assumed not to have FV and cannot be measured against active market
Intangible assets need to be…
A) identifiable
B) probable future economic benefits gained
C) non-monetary assets w/o physical substance
Financial liability
Contractual obligation to make repayments of interest and capital
How do you treat convertible preference shares?
Same as convertible bonds, got equity and liability portions
PY error: immaterial
Correct through net P/L for current period
PY error: material
- Correct retrospectively
- correcting recognition, measurement and disclosure of elements of FS as if never occurred
When are good recognised?
When they are received
In SOCIE, share are to be issued in the future, they are treated by…
Including in shares to be issued in the future column
Investment is associate calculated by…
Add paid
Less dividends received
Less depn FV adj
Add share of profit
NCA- Investments line, you calc by…
Including what you paid for sub and assoc
Deferred/Future cash payments are displayed in FS by…
Line in SOPF liabilities, ‘Deferred Consideration’
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
