My pass or fail depends on MCQs so really want to know the answers to these. Anyone interested in discussing the MCQS just join in.
1 Which of the following is a change of accounting policy under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors?
A Classifying commission earned as revenue in the statement of profit or loss, having previously classified it as other operating income
B Switching to purchasing plant using finance leases from a previous policy of purchasing plant for cash
C Changing the value of a subsidiary’s inventory in line with the group policy for inventory valuation when preparing the consolidated financial statements
D Revising the remaining useful life of a depreciable asset
I chose C, only because I remember reading something relating to inventory in the change of policy section in the BPP book :)
Anyway, which option did you guys choose and why
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FRF7 exam (DEC 14) MCQ discussion
When will the answers to the 30mark question be posted
You're correct with this answer but I am a little confused as to why this wouldn't come under the valuation of its carrying amount as with assets held for sale?
Held for sale valuation = lower of carrying amount & fair value less costs
Carrying amount $26m
Fair value less costs $36.8m
The text agrees with you response being $36.8m however it's not clear to me why it's not 'held for sale' if they decided to sell on 1 Apr 20X4?
WOuld really appreciate anoyone who can give me clarity :)
@riskyguy said: 14 As at 30 September 2013 Dune’s property in its statement of financial position was: Property at cost (useful life 15 years) $45 million Accumulated depreciation $6 million On 1 April 2014, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42 million, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1 million. Recent market transactions suggest that actual selling prices achieved for this type of property in the current market conditions are 10% less than the price at which they are marketed. At 30 September 2014 the property has not been sold. At what amount should the property be reported in Dune’s statement of financial position as at 30 September 2014? A $36 million B $37·5 million C $36·8 million D $42 million Option C ( could be wrong though ) Dep to 1 April 2014= 45000/15=3000x6/12=1500 45000 - 3000 acc dep - 1500 = 40500 CV 37800 = 42000*0.90 (1000) = cost to sell 36800
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