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CIMA F1 > Extra Flashcards > Flashcards

Extra Flashcards

1
Q

What is withholding tax?

A

This is where the foreign country keeps (withholds) some tax on the dividend leaving

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2
Q

What is underlying tax?

A

Underlying tax is the tax that has been charged on the profits which gave the dividends

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3
Q

What does IAS 1 state?

A

Financial statements shall present fairly the financial position, financial performance and cash flows of an entity

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4
Q

What is inventory value at?

A

Lower of costs and NRV

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5
Q

Is selling inventory post year-end for lower than cost price an adjusting event?

A

Yes

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6
Q

If a customer goes into liquidation is it an adjusting event?

A

Yes

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7
Q

If a court case completes after year end is it a adjusting event?

A

Yes

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8
Q

If an insurance claim completes after year end is it an adjusting event?

A

Yes

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9
Q

Is an acquisition or disposal of a subsidiary after year end and adjusting event?

A

No

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10
Q

If a company announces plans to discontinue an operation is it an adjusting event?

A

No

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11
Q

If there is destruction of an asset due to flood or fire is it an adjusting event?

A

No

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12
Q

If there is an announcement of plans to restructure is it an adjusting event?

A

No

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13
Q

Is share capital transactions after reporting date an adjusting event?

A

No

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14
Q

What is the IFRS Foundation responsible for?

A

appointing members of board
reviewing strategy of board
approving the annual budget
promoting the board
establishing and amending operating procedures

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15
Q

What is the IASB responsible for?

A

Developing standards
preparation and publication of IFRS Standards, Exposure drafts
Withdrawal of standards
Interpretations of Interpretations comittee

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16
Q

What are the objectives of the advisory council?

A

give advice to board on agenda decisions
inform board of the views of individuals
give advice to board or to the Trustees

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17
Q

What are the two main responsibilities of the interpretations committee?

A

review new financial reporting issues not specifically addressed in IFRSs
Clarify issues where unsatisfactory or conflicting interpretations have developed developed

18
Q

What is the agressive approach?

A

reduce costs by holding lowest levels of inventory. Short operating cycle.

19
Q

What is the conservative approach?

A

reduce risks by holding high levels of inventory. Long operating cycle

20
Q

When is an impairment review required?

A

When there is an indication that an asset has been impaired

21
Q

What is included in investing activities?

A

Purchase of PPE
Purchase of investments
Proceeds from sale of PPE
Proceeds from sales of investments
Interest received
Dividends received

22
Q

What is included in financing activities?

A

Proceeds from issue of ordinary shares
Proceeds from issue of preference shares
Proceeds from long-term borrowing
Redemption of long-term borrowing
Dividends paid

23
Q

What is inventories value at?

A

Lower of cost and NRV

24
Q

Is upwards revaluation of PPE shown separately in statement of changes in equity?

A

Yes

25
Q

What is the two acceptable methods of determining cost of inventory?

A

LIFO
AVCO

26
Q

Should all non-adjusting events be disclosed?

A

No

27
Q

What is the recoverable amount before impairment?

A

Higher of value in use and fair value less cost to sell

28
Q

Is decorating an office a capital expenditure?

A

No

29
Q

Do you include dividends when calculating the tax charge?

A

No

30
Q

What are the characteristics of faithful representation?

A

Completeness
Neutrality
Free from error

31
Q

When will a item be recognised in the financial statements?

A

Meets definition of one of the elements
Relevant information on element
Faithful representation on element

32
Q

What is the definition of an organisation produced by Buchanana and Huczynski?

A

Organisations are social arrangements for the controlled performance of collective goals

33
Q

What are the two types of foreign tax?

A

Withholding tax
Underlying tax

34
Q

What is the process of IFRS Standards?

A

Exposure drafts
Followed by discussion papers
completed by standard

35
Q

What are the benefits of corporate governance?

A

Facilitates achievement of objectives in a less risky way
Enables efficient conduct of business

36
Q

Ways to finance exports

A

Documentary credit
Bills of exchange
Export Factoring
Forfaiting

37
Q

In the context of stewardship the relationship, where one person has a duty of care towards someone else is known as what?

A

Fiduciary relationship

38
Q

What does GAAP stand for?

A

Generally accepted accounting practices

39
Q

What is GAAP?

A

encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time.
Includes local legislation, accounting standards and any other local regulations

40
Q

What are some types of direct tax?

A

Trading income tax
Capital tax
Property tax
Wealth tax
Employment tax

41
Q

What are examples of indirect tax?

A

Excise duties
Consumption tax
Cascade tax
VAT
Sales tax

CIMA F1 (19 decks)

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