Uni Work

Question 1

How to Identify Revenue Recognition

Answer 1

Contact With Customer
Performance Obligations
Transactional Price
Price = Obligation
Recognise When Objectives are Met

Question 2

Where is Revenue Recognised

Answer 2

Statement of Comprehensive Income

Question 3

For Revenue Recognition - What do you do if the item ISN’T Distinct?

Answer 3

Adjust Revenues

Question 4

Revenue Recognition - What are they types of Warrenties

Answer 4

Assurance and Service

Question 5

Revenue Recognition Warrenties - How do we recognise Service based sections

Answer 5

They are treated separately

Question 6

What are the three measures of recognising PPE

Answer 6

At Cost Value
Bringing to location and making operational
Dismantling and building

Question 7

How do we recognise profit before use of PPE

Answer 7

In the Profit and loss statements
or
Statement of Financial Position

Question 8

What are the initial measurements of PPE

Answer 8

Capitalisation of the borrowing costs

Question 9

What are the subsequent measures of PPE

Answer 9

Cost Model
or
Revaluation Method

Question 10

For the Revaluation Method how do we recognise and increase or decrease

Answer 10

Increase = Revaluation surplus
Decrease = Revaluation Loss

Question 11

How do we deal with Government Grants

Answer 11

We need Reasonable assurance of economic benefit

Deferred Income and Deduction of Carrying amount

Question 12

What are the three measures of intangible assets

Answer 12

Future Economic Benefit
Measured Reliably
Measured at initial cost

Question 13

What are the types of intangible assets

Answer 13

Purchased
Internally Generated

Question 14

How do we measure Purchased intangible asset

Answer 14

At Fair Value

Question 15

How do we measure internally generated intangible assets

Answer 15

Net assets - Hard to Measure

Question 16

How do we measure Internal Research Costs

Answer 16

Expense when incurred

Question 17

How do we measure development costs

Answer 17

Intangible assets when Criteria is met

Question 18

What is the 6 criteria for capitalisation costs

Answer 18

Feasibility
Intention to complete
Intention to use and sell
Economic Benefit
Resources to complete
Measure Expenditure

Question 19

How do we measure assets with a finite life

Answer 19

Straight line depreciation method

Question 20

How do we measure assets with indefinite life

Answer 20

Revaluation method

Question 21

How do we recognise assets purchased separately

Answer 21

Good Will

Question 22

How do we recognise assets purchased separately that can be measured accurately

Answer 22

Capitalised Separately

Question 23

How do we measure Brands

Answer 23

We can capitalise them

Question 24

Can we measure internal brands

Answer 24

No - These cannot be capitalised

Question 25

How do we measure goodwill increases and decreases

Answer 25

Increase = Increase asset Decrease = Gain in income statement

Question 26

How do we measure goodwill

Answer 26

No amortisation and impairment reviews

Question 27

What is a provision

Answer 27

Contingency for a liability for uncertainty in timing and value

Question 28

How is a provision recognised

Answer 28

Present Obligation due to past event Probable transfer of economic benefit to settle Reliable estimate

Question 29

What events determine a provision

Answer 29

No realistic alternative to settle

Question 30

How do we measure a provision

Answer 30

Best estimate Likely Outcome Analysis Present Value

Question 31

When can we not do a provision

Answer 31

To prevent a future loss

Question 32

When can we do provisions

Answer 32

bad contracts and restructuring due to a change of scope

Question 33

What is a contingent Liability

Answer 33

Possible outcome from a past event

Question 34

What is a contingent asset

Answer 34

Possible outcome from a past event

Question 35

Contingent Liability - example

Answer 35

Bad payment

Question 36

When is a contingent asset not recognised

Answer 36

Economic benefit is probable or if the outcome is less than probable

Question 37

When does a contingent liability need to have happened

Answer 37

Present obligation

Question 38

How to disclose a contingent liability

Answer 38

In the notes unless probability is remote

Question 39

Give examples when an adjusting event would be necessary

Answer 39

Fraud Court Case Reciept of new information

Question 40

Give examples when an adjusting event WOULDN'T be necessary

Answer 40

Dividends Major share increases Forex changes External factors such as a pandemic Acquisition or subsidiary acquisitions

Question 41

Examples of comprehensive income changes

Answer 41

Revaluation surplus Actuarial gains or losses Translating Foreign income statements Hedging Investments

Question 42

What are the four steps to calculating EPS

Answer 42

1) Theoretical Ex Rights Price 2) Bonus element 3) WANOS 4) BEPS

Question 43

What is the formula for the Theoetical Ex Rights Price

Answer 43

Average Price of Shares AFTER Rights Issue

Question 44

What is the formula for the Bonus element

Answer 44

Market value / Theoretical Ex Rights Price

Question 45

What is the Formula for WANOS

Answer 45

Starting no. Shares + (New Shares Issued x Weight Factor) - (Shares bought back x Weight Factor)

Question 46

What is the formula for the BEPS

Answer 46

Profit or loss for shareholder / WANOS