[i07ksakaria]

PASSED 70% 1st Attempt

[i07ksakaria]

Question one

Fair value of the factory a non-financial asset highest and best use after potential cost

Work out Goodwill using the proportional value of net assets and the fair value method

Discuss and explain the methods as per above ie full partial Goodwill and impairment split with NCI.

Work out impairment in goodwill

Define benefit contribution workings and adjustment to the statement of financial position.

Question two

Sales agreement identify a contract and explain why.

Explains why it is cash flow hedge requirements and how to account for the change in risk.

Ethical issues regarding issues – cryptocurrency intimidation fraud and competence of both the financial director and the chief accountant
Actions to be taken.

Question 3

Under FRS 102 distinguished between leases and whether the scenario is a finance lease or operating lease

Expected credit losses how it should be accounted for after.

Decommissioning provisions has it been correctly accounted for a potential storme which is unlikely to occur.

Question 4

Fair value measurement uncertainty using IFRS 13 forl financial assets.
Uncertainty of measurement of provisions.

How this will cause general challenges for the users of financial statements

Last requirement had various issues to the financial statements and gave descriptions on areas which require how they will be treated under IFRS
Issues included

Cash generating units
Impairment of Goodwill
Provisions
New legislation
One more forgotten

Surprisingly areas which did not come up such as

Deffered tax
Foreign transactions ie translations
Cash flow statements
No Intra company transactions ie PUP
Share based payments
APMs
Conceptual framework
No step acquisition/disposals
No associates or investments
No NCA Held for sale
No joint agreements/ventures

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