Questions from Financial Reporting

Q: Accounting standard IAS16 Property, Plant and Equipment makes a number of

Accounting standard IAS16 Property, Plant and Equipment makes a number of recognition, measurement and disclosure requirements with regard to tangible noncurrent assets. The term "non-current asset" i...

Q: An asset which cost £200,000 on 1 January 2016

An asset which cost £200,000 on 1 January 2016 is being depreciated on the straight line basis over a five year period with an estimated residual value of £40,000. The compan...

Q: Bakewall Ltd prepares annual financial statements to 31 December. On 1

Bakewall Ltd prepares annual financial statements to 31 December. On 1 August 2017 the company closed down one of its operations and classified the corresponding cash generating unit (CGU) as held for...

Q: A company enters into 10,000 contracts with customers, all

A company enters into 10,000 contracts with customers, all on the same date. These contracts have very similar characteristics and therefore (as a practical expedient) the company decides to apply the...

Q: On 1 January 2018, a company which prepares accounts to 31

On 1 January 2018, a company which prepares accounts to 31 December grants "share appreciation rights" to 30 of its employees. By virtue of these rights, the employees concerned will become entitled t...

Q: Petersford plc prepares accounts to 31 December each year. On 1

Petersford plc prepares accounts to 31 December each year. On 1 January 2014, the company acquired a non-current asset at a cost of £256,000 and decided to depreciate this asset on the straight-line b...