Questions from Financial Reporting

Q: (a) List the main indicators of a hyperinflationary economy,

(a) List the main indicators of a hyperinflationary economy, as specified by IAS29. (b) Explain why IAS29 takes the view that conventional financial statements are not useful in a hyperinflationary ec...

Q: J Ltd has been trading for many years, preparing financial statements

J Ltd has been trading for many years, preparing financial statements to 31 March each year. As from 1 April 2017, the company decided to adopt a new accounting policy in relation to revenue recogniti...

Q: The financial statements of JJ Ltd and KK Ltd for the year

The financial statements of JJ Ltd and KK Ltd for the year to 30 June 2018 are shown below: / / The following information is also available: 1. On 1 July 2014, JJ Ltd paid £3,153,000 t...

Q: On 1 October 2017 Pumice acquired the following non-current investments

On 1 October 2017 Pumice acquired the following non-current investments: (i) 80% of the equity share capital of Silverton at a cost of £13. 6 million (ii) 50% of Silverton's 10% loan note...

Q: Western Trading plc is a company which uses a variety of component

Western Trading plc is a company which uses a variety of component parts in its manufacturing operations. One of the company's suppliers has recently gone out of business and therefore Western is now...

Q: Querk plc prepares financial statements to 31 December each year. On

Querk plc prepares financial statements to 31 December each year. On 1 January 2017 the company bought £500,000 of 6% loan stock for £490,420. Interest is receivable on 31 December each year and the l...

Q: Prentiss plc operates a defined benefit pension plan and prepares financial statements

Prentiss plc operates a defined benefit pension plan and prepares financial statements to 31 March each year. The financial statements for the year to 31 March 2017 showed that the present value of th...

Q: The statements of financial position of CC Ltd and its two subsidiaries

The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE Ltd as at 31 December 2017 are as follows: The following information is available: (a) CC Ltd acquired 60% of th...

Q: Brenda is considering an investment in the ordinary shares of either Baker

Brenda is considering an investment in the ordinary shares of either Baker plc or Grant plc. Both companies operate in the same sector of industry and both prepare accounts to 30 September each year....

Q: The profits attributable to the ordinary shareholders of F plc are as

The profits attributable to the ordinary shareholders of F plc are as follows: £000 year to 31 December 2016 …………………………….. 1,800 year to 31 December 2017 ……………………………… 2,475 For many years, th...