Questions from Financial Reporting


Q: Floothair plc is a large international airline company with three operating segments

Floothair plc is a large international airline company with three operating segments: – International airline business – Domestic airline business – Non-airline business. The company reports segment i...

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Q: The statement of financial position of Aadvaark Trading Ltd at 30 November

The statement of financial position of Aadvaark Trading Ltd at 30 November 2018 (with comparatives for 2017) is as follows: / / The following information is also available: (i) Freehold property whi...

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Q: The following are the statements of financial position of two companies at

The following are the statements of financial position of two companies at 31 October 2018, the end of their most recent financial years: The following additional information is available: 1) On 1 N...

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Q: On 1 January 2016, G plc issued £2 million of

On 1 January 2016, G plc issued £2 million of 7% convertible loan stock. The holders of this stock may choose to convert the stock to ordinary shares on 1 January 2020, 2021 or 2022. The number of ord...

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Q: Chilwell Ltd prepares financial statements to 31 October each year. The

Chilwell Ltd prepares financial statements to 31 October each year. The company's trial balance at 31 October 2017 is as follows: The following information is also available: 1. Land is non-deprecia...

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Q: (a) Define the term "investment property". Explain why

(a) Define the term "investment property". Explain why it is not generally appropriate to charge depreciation in relation to such a property. (b) Give three examples of properties (land or buildings)...

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Q: The following information relates to three companies that use the revaluation model

The following information relates to three companies that use the revaluation model in relation to intangible assets and prepare annual financial statements to 31 December: (a) Company W acquired an i...

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Q: Stenberg plc is preparing its financial statements for the year ended 30

Stenberg plc is preparing its financial statements for the year ended 30 November 2018. On 1 May 2018, the company purchased a factory for the manufacture of optical disks, paying £24,000,000. The fac...

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Q: On 1 December 2014, Gebouw plc entered into a finance lease

On 1 December 2014, Gebouw plc entered into a finance lease requiring the company to make payments of £785,000 each on 1 December 2014, 2015, 2016, 2017 and 2018. The fair value of the leased asset on...

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Q: (a) Sparkling Pictures plc is a company which specialises in

(a) Sparkling Pictures plc is a company which specialises in video production. The company is preparing its financial statements for the financial year ended 30 April 2018. During the financial year e...

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