Questions from Financial Accounting

Q: Boldwin Construction has entered into a contract with Spears Retailers to construct

Boldwin Construction has entered into a contract with Spears Retailers to construct a new department store on Spears land. The contract sum is £45 million. At 30 June 20X1 the situation is as follows:...

Q: Base plc acquired 60% of the common shares of Ball plc

Base plc acquired 60% of the common shares of Ball plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows: Note: The fair va...

Q: Applying the principles of control in IFRS 10 Consolidated Financial Statements,

Applying the principles of control in IFRS 10 Consolidated Financial Statements, as described in Section 22.3.2 of this chapter, you are required to consider whether certain investments of Austin plc...

Q: Discuss the advantages to a company of: (a)

Discuss the advantages to a company of: (a) purchasing and cancelling its own shares; (b) purchasing and holding its own shares in treasury.

Q: (a) On 1 October 2012, Paradigm acquired 75%

(a) On 1 October 2012, Paradigm acquired 75% of Strata’s equity shares by means of a share exchange of two new shares in Paradigm for every five acquired shares in Strata. In additio...

Q: In the year to 31 December 20X9, Amy bought a new

In the year to 31 December 20X9, Amy bought a new machine and made the following payments in relation to it: Required: (a) State and justify the cost figure which should be used as the basis for dep...

Q: Speedster Ltd commenced trading in 1986 as a wholesaler of lightweight travel

Speedster Ltd commenced trading in 1986 as a wholesaler of lightweight travel accessories. The company was efficient and traded successfully until 2000 when new competitors entered the market selling...

Q: Delta Ltd has been developing a lightweight automated wheelchair. The research

Delta Ltd has been developing a lightweight automated wheelchair. The research costs written off have been far greater than originally estimated and the equity and preference capital has been eroded a...

Q: Alpha Ltd makes one standard article. You have been given the

Alpha Ltd makes one standard article. You have been given the following information: 1 The inventory sheets at the year-end show the following items: 2 Manufacturing overheads are 100% of labour cos...

Q: Uptodate plc’s financial year ended on 31 March 20X8. Inventory taken

Uptodate plc’s financial year ended on 31 March 20X8. Inventory taken on 7 April 20X8 amounted to £200,000. The following information needs to be taken into account: (i) Purchases made during the seve...