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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

Should trademarks be recognised at acqn of sub?

Yes, only internally brands shouldn't be