Questions from Financial Reporting


Q: Triangle, a public listed company, is in the process of

Triangle, a public listed company, is in the process of preparing its draft financial statements for the year to 31 March 2018. On 1 April 2017, Triangle sold maturing inventory that had a carrying va...

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Q: The main activity of J&T Ltd is to buy old

The main activity of J&T Ltd is to buy old vehicles, which are sold after converting them into a saleable condition. At 28 February 2018, the end of the company’s financial year,...

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Q: The International Accounting Standards Board (IASB) develops international standards

The International Accounting Standards Board (IASB) develops international standards by means of a "due process". The main stages of this process are listed in the Preface to International Financial R...

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Q: Assuming that today's date is 1 January 2018, calculate the present

Assuming that today's date is 1 January 2018, calculate the present value of each of the following: (a) £50,000 to be received on 1 January 2021 (b) £100,000 to be received on 1 January 2023 (c) £10,0...

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Q: The main role of the International Accounting Standards Board (IASB)

The main role of the International Accounting Standards Board (IASB) is to devise and publish International Financial Reporting Standards (IFRS Standards) and revised versions of International Account...

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Q: There are two international standards which deal with goodwill. IAS38 does

There are two international standards which deal with goodwill. IAS38 does not allow internally generated goodwill to be recognised as an asset. Goodwill acquired in a business combination is dealt wi...

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Q: IFRS16 Leases replaces IAS17 Leases for accounting periods beginning on or after

IFRS16 Leases replaces IAS17 Leases for accounting periods beginning on or after 1 January 2019. The main aim of the new standard is to improve lessee accounting so that a lessee's financial statement...

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Q: IFRS1 First-time Adoption of International Financial Reporting Standards lays down

IFRS1 First-time Adoption of International Financial Reporting Standards lays down the procedure which must be followed when an entity prepares its first financial statements that comply with IFRS Sta...

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Q: During the year to 31 December 2017, Tinderlake Ltd attempted to

During the year to 31 December 2017, Tinderlake Ltd attempted to stimulate sales and increase its profits by reducing selling prices, holding larger inventories and giving customers longer credit. All...

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Q: Related party relationships are a common feature of commercial life. The

Related party relationships are a common feature of commercial life. The objective of IAS24 Related Party Disclosures is to ensure that financial statements contain the necessary disclosures to make u...

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