Flashcards in 3 Deck (20)
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1
Provision of free services from parent to sub is...
a related party transaction
2
A change in depreciation method is a...
change in accounting estimate
3
Accounting policy change
retrospective change, impacts opening balances and PY numbers
4
Accounting estimate change
Prospectively, depn the CA at the date by the new method
5
What is the purpose of highlighting RPT?
1) increases transparency
2) draws attention to performance influenced by existence/transactions w/ related parties
6
Goodwill, IFRS
1) not amortised but annual imp review
2) not changed after acqn if change in contingent consid occurs
7
Goodwill, UK GAAP
1) amortised over useful life (max 10yrs)
2) if probable and reliably measured change in contin consid, recalc using new FV
8
SOCIE: b/f NCI
NA at acqn
+ post acqn NA
+ share of imp (if FV)
9
How does addition of a sub impact SOCIE?
Add figure in NCI col only
10
Cashflow: Operating activities also includes...
~ loss on disposal (add back)
~ scrapped equipment (add back)
~ finance cost (add back)
11
Cashflow: Financing activities, payment of lease liability
Payment - interest
12
How are deferred cash and shares treated in goodwill calc?
Shares: use value at acqn
Cash: recog provision + unwind
13
Distributable reserves
ability to pay div depends on distributable profit: accumulated realised profit less accumulated realised losses
14
Distributable reserves: Public Co restrictions
~ cannot pay div if net assets below total share capital and distributable reserved
~ preserves credit buffer
15
Borrowing costs
~ that are directly attributable to acqn, construct, product of qualifying asset are capitalised
~ capitalisation starts when expenditure is incurred
16
Qualifying asset (borrowing costs)
substantial time to get ready for intended use
17
Foreign exchange translation
~ initial recog at delivery (R+R transferred)
~ recorded in functional currency
~ retranslation gain recog in P/L
18
If there is no reval surp left, recog fall in value as...
an expense in the P/L
19
Assets are held at...
their recoverable amount, higher of:
a) value in use
b) FVLCTS
20
