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Hi Sir,
In Open tuition MCQ practice Q, https://opentuition.com/acca/fr/acca-financial-reporting-fr-practice-questions/ Thanks in advance.Chp5. IAS 40 Investment Property.
Q3. Why should it be treated as Investment Property?-> “A parcel of lands aquired many yrs ago with the intention of Load plc building an extention for manufatoring plant but the management team, shortly after the acqusition, manged the rationalise the process so the land is no longer need for expansion”
(it doesn’t match “property held for rentals or capital appreciation” so I think it shouldn’t be investment propery.?)*Also, what’s the difference between NCA held for sale and Investment Property?
(Since Investment property include propety for capital appreciation, which means selling in future, I feel that quite similar with NCA held for sale as it’s also selling in future within one yr, which’s also in future?)Chp6 Intaingible Assets (IAS38)
Q1: The Q mentioned Armotisation is Reducing basis of 30% per annum caculated on a “pro rota basis” for the first yr. Why don’t we multiply 2months/12 months to the Armotisation of the yr? (8,000,000@30%*2/12)
We can see in Q3 the Amortisation is multiply 3month/12months, why cannot we do similar caculation in Q1?Chp 7 Imparirment (IAS38)
Q: Is Net Residual Value same with Net Relisable Value? What’s the difference?
Q2: How to calculate it? (Why the answer says Carrying value of Track is 90,000? Why Carrying value of NCA is 150,000? I cannot find any clues from the question)Chp9 Accounting Policies/Change in Accounting Estimate (IAS8)
Q1. why “adoption of “gross” presentation for finance lease obligations following the entity’s decision this yr to finance assets rather than buy them” is not “Change in Accounting Policy”?
If it’s not, then what is it?Q3. why “caculating inventroy from perpetual inventory records rather than physical yearly count &valuation as in prior yrs” is not “Change in Accounting Policy”?
Why “changing the value of yr end inventory from marginal costing to absorption costing” is “change in accounting policy”?
(I think the marginal costing and absorption costing is about Management Accounting, noting regarding with Financial Reporting?)Ch.10 Inventrory (IAS2)
Q5. Why (4) it may be acceptatble for Inventory valued at Selling price less Profit Margin” is correct? (It should be “less Cost to complete/selling”. isn’t it?)Chp5. IAS 40 Investment Property.
The standard has been updated so that property to be held as IP is classified as IP, so I’ll need to update the question. Thanks
Chp6 Intangible Assets (IAS38)
If it says it is done on a pro rata basis then it should be adjusted for the number of months.
Chp9 Accounting Policies/Change in Accounting Estimate (IAS8)
Q1. You can ignore this question as it is not longer relevant under the new IFRS16.
Q3. We will still be valuing the inventory at the lower of cost and NRV, plus we aren’t changing anything from weighted average to FIFO either so there is no change in policy. It is just a change to the way we do the counting.
Ch.10 Inventory (IAS2)
Q5. This is allowed in the retail industry as it is a common way in which they value their inventory.
Hi Sir,
Thanks. There’re still some questions from OP MCQ practice mentioned earlier.Chp5. IAS 40 Investment Property.
Q: What’s the difference between NCA held for sale and Investment Property?
(Since Investment property include propety for capital appreciation, which means selling in future, I feel that quite similar with NCA held for sale as it’s also selling in future within one yr, which’s also in future?)Chp 7 Imparirment (IAS38)
Q: Is Net Residual Value same with Net Relisable Value? What’s the difference?
OP MCQ Q2: How to calculate it? (Why the answer says Carrying value of Track is 90,000? Why Carrying value of NCA is 150,000? I cannot find any clues from the question)Chp9 Accounting Policies/Change in Accounting Estimate (IAS8)
OP MCQ Q3: Why “changing the value of yr end inventory from marginal costing to absorption costing” is “change in accounting policy”?
(I think the marginal costing and absorption costing is about Management Accounting, noting regarding with Financial Reporting?)
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