F7 Revision Questions Flashcards
Non-adjusting event? Treatment?
Conditions arose after!
Disclose of material
Exception: if affects going concern…accounts = break up basis
Investment property depreciated/not?
NOT depreciated
Government grant = intangible asset: how accounted for? 2 methods..
Net off method (cash actually paid/used)
Deferred income (release grant proportionally)
Intangible assets revalued? What do they need though..
An ACTIVE MARKET!!
What is impairment loss? (How calculated..?)
When the c.a.
What is the recoverable amount?
Higher of:
PV of future cash flows expected
or
FV - costs to sell
How is the impairment accounted for?
Expense in the P+L
How is impairment applied? (What order?)
To goodwill first!!
Then to intangible assets
How to account for derecognising revenue?
Dr. Revenue
Cr. trade receivables
then
Dr. Inventory
Cr. cost of sales
Revenue recognition on contracts/services? How measured?
Survey of work performed
or
% of work/services complete of the whole
How is deferred income accounted?
PV the value
Unwinding = finance income!
Construction contract must-do condition?
Straddle and accounting period!
NRV = ?
Cost = ?
Nrv = S.S.Comp
Cost = P.Conv.Cond
To get agricultural produce, must harvest biological asset… Through what 4 possible stages?
G.Ap.De.Pro
Growth
Production of agricultural produce
Degeneration
Procreation
Temporary timing difference is..?
Difference between asset c.a.
And
Tax base of asset (value of asset for tax purposes)
