Awkward Double Entry Last Minute Flashcards by Nick Duley

How is disposal on a factory treated?

Proceeds - CV. credit other income

carrying amonut deducted from asset

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Significant financing component double entry?

Discounted amount (credit revenue)

Income (%) (credit income)

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Loss in FV of investment when FVTOCI?

Debit OCI

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Prior period and current period correction?

Debit operating expenses
Debit prior period

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Initial, subsequent and settlement transaciton for foreign exchange? (NCA)

Debit purchases
Credit payables

Debit inventory
Credit payables
Credit SPL (gain)

Debit payables
Credit bank
Credit SPL (gain)

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Fully subscribed rights issue of 1 for 4 at $1.20 each?

(50000/0.2) * 1/5 (as it’s fully subscribed it’s 5) = 20m shares

Share Capital: 20m * 50c
Share premium: 20m * 70c

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On 1 August 20X3, Xtal Co made a fully subscribed rights issue of equity share capital based on two new shares at 60 cents each for every five shares held. The issue has been fully recorded in TB figures

56000 shares at 25 cents each?

(56000/0.25) * 5/7 = 160000

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Malta makes a profit at 20% on the cost of all goods sold to Woolwich

20/120

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Keyword for obligation?

No ability to avoid

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When debit expense?

Credit asset OR Credit liability

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Does disposal affect comparability?

Yes

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Restating operating expenses?

Debit is reduced
Credit is added

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Where is PFY and dividend paid?

Recorded in retained earnings column

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Tax refund?

Deducted in working

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Transfer to RE?

Debit: Revaluation
Credit: RE

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Bank interest?

Included in finance costs

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Is revaluation surplus included in profit in SPL?

No, it is included in comprehensive income. Won’t be included in RE figure

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Negative amount in current tax working?

Added in SPL

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Positive amount in current tax working?

Deducted in SPL

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Finance cost for convertible loan note

Effective interest - coupon interest

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PURP in consolidation working?

Negative like FVA

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FVA adjustment consolidation

Debit PPE
Credit goodwill

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PURP consolidation

Debit goodwill
Credit inventory

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NCI in CSPL?

Profit for the year is first on the statement. If NCI hasn’t been calculated in CSFP

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Revaluation surplus?

Positive in NVA working if included in TB. Parent revaluation surplus is figure in CSFP

Impairment in investment in associate?

Credit Investment in associate Debit RE

Where is deferred consideraiton in CSFP?

In current liability

FVA double entry consolidation?

Debit PPE Credit Goodwill

Reference to voting shares calculation when shares carrying 10 votes each?

Number of votes * shares

Initial lease payment?

Is subtracted from the value of the lease

Are cumulative fair value gains recognised in OCI

FVTPL (gain)?

Credit gain Debit investment Amount at year end is amount is FS

Costs of sales when markup of 30% is included?

Revenue / 1.3

Dividend paid?

Debit RE

What does progress towards completion apply to?

Revenue

Receive payment?

Amount which will be received in financial statements

Broker fees?

Added to the initial liability

Servicing element calculation for 3 years and gross profit margin of 40% for three years?

1.2 * (2/0.6) = 4

Fully subscribed rights issue at start of the year?

Deducted to get the number of shares

Repurchase agreement revenue recognition?

Revenue received + finance costs

Double entry for sale and leaseback?

Debit Proceeds in Bank Debit ROU Asset (proportion of asset kept) Credit PVFLP in lease liability Credit Carrying amount Debit/Credit SPL

Proportion of asset kept and proportion of asset that is sold calculate for SPL?

(100% - PV/FV) * (FV - CV)

Right of use asset calculation for leases?

PV* (CV/FV)

Treatment of provision in CSFP

Treated the same as a FV adjustment

Deferred income balance?

Carrying amonut of grant - depreciation

What represents finance income/finance charge?

Effective rate of interest

Unrecognised internally generated brand name in consolidation?

Put in intangible assets

FV investment gain where in working?

Credit in RE

Professional fees?

Debit RE

Intangible asset valued in consolidation?

Treated as a FVA

What is included in a disposal working in consolidation?

NCI, net assets, goodwill

Get cost of investment if not included?

Share for share working

Profit on disposal for discontinued operation?

Added in discontinued operation working

When to capitalise as an intangible asset?

Can be separately distinguished from other operations in the business

Revenue reduction in principal vs agent

Debit revenue credit trade payables

Finance costs?

Finance income - interest

Forex gain in NCA?

Credit SPL

Repurchase agreement?

Debit revenue Credit COS, debit inventory Debit finance cost, credit in substance loan

What must be done to asset held for sale?

If it was done midway throught the year, deduct depreciation before the year

Substance of a loan in year 2?

Year 1 interest + Year 2 interest

Does an agent have carrying amount for inventory?

Reversal of provision?

Credit SPL

Restructuring costs?

Not allowed in IFRS 5

Profit attributable to ordinary shareholders

Ordinary dividend + RE

What happens with ordinary dividend?

Must always be added back to RE

Asset purchased < selling price in repurchasing agreement?

It is accounted for as a lease

Initial recognition for repurchase agreement and subsequent?

Debit Bank Credit Financial liability (loan) Debit Financial liability Credit Revenue

Steps to calculate contract with a customer?

1. Contract price 2. Stand alone price 3. Get percentage from standalone price

Impairment loss on associate?

Full amount included

When is provision recognised in consolidation?

provision has been made by the company to be acquired and costs would be incurred whether or not acquisition goes ahead

Cash in transit adjusted for parent?

Not recognised

George sold goods which had cost $2m to Orwell for $3m. Orwell has not yet sold any of these goods. What is unrealised profit?

3 - 2 = 1

What does weighted average borrowing costs exclude?

FInancing from speciifc projects

WHAT MUST ALWAYS FUCKING PROCEED A FUCKING DISCOUNT?

FINANCE COST

Interest receivable on a loan elimination in consolidation?

Debit investment income Credit finance cost

Share of profit of associate?

Apart of investment income

What is always fucking included in investment in associate working?

Profit for the year

Transferred from IAS 40 to IAS 16?

Put as non-current asset and then depreciate time apportioned

Goodwill consolidation?

Always

How does consolidation affect comparability?

It eliminates intragroup, thereby maknig comparisons harder

Get PFY from discontinued operation for consolidated SFP?

PFY - (gain/loss on disposal)

Profit on disposal IFRS 5 consolidation?

credit RE Proceeds - cost of investment

When consolidation says current account?

debit payable credit receivable

Revaluation increase in deferred tax working?

Positive amount

To classify an asset as held for sale?

Sale must be highly probable

Profit after tax for associate?

Recorded as income from associate (credit entry)

Awkward Double Entry Last Minute Flashcards

(86 cards)