F6

Question 1

DTA

Answer 1

Taxable income *tax rate=Income tax payable
DT Valuation Allowance=Unrealised asset *tax rate
ITE=Finacial income *tax rate+Valuation allowance

Question 2

Depreciation on lease

Answer 2

Capitalised Equipment depreciated normal depreciation policy not to exceed useful life
Unless lease does not transfer ownership or contain bargain purchase option-shorter useful life should be used

Question 3

FV hedge

Answer 3

When a hedge is effective, the change in the value of the derivative offsets the change in the value of a hedged item.

Question 4

Amortization of leasehold

Answer 4

Amortization of leasehold improvements should be over the life of the improvements or the remaining life of the lease, whichever is shorter

Question 5

Failed sale

Answer 5

Sale leaseback finance lease ,equivalent repurchase

Question 6

Discount

Answer 6

The discount is always applied on the maturity value.

Question 7

Pension liability

Answer 7

PBO-PA

Question 8

remeasurement

Answer 8

both parent and subsidiary have the same functional currency, transactions outside of that functional currency are reported by the remeasurement process. Accounts that are not monetary assets and liabilities are remeasured using the rate from the date the transaction occurred
Monetary transaction recorded at BS date

Question 9

translation

Answer 9

when the parent and subsidiary have different functional currencies, any transactions in the subsidiary’s functional currency must be reported by the translation process. Accounts that are not assets and liabilities must be translated using the exchange rate of the date or recording.
Assets and liabilities translated using current exchange rate

Question 10

Pension expense

Answer 10

PBO=opening+service cost+interest cost-benefits paid
PA=opening+actual return+annual contribution-benefits paid
Pension expense=service cost +interest cost-expected return on plan assets(opening plan assets*expected return on plan assets)+amortization of prior service cost