In relation to accounting for positive purchased goodwill, what is the correct accounting treatment in accordance with IFRS 3 Business Combinations?

1 .Milton owns all the share capital of Keynes. The following information is extracted from the individual company statements of financial position as at 31 December 20X1.　MiltonKeynes　USDUSDCurrent assets500,000200,000Current liabilities220,00090,000Included in Milton purchase ledger is a balance in respect of Keynes of USD20,000. The balance on Milton account in the sales ledger of Keynes is USD22,000. The difference between those figures is accounted for by cash in transit.If there are no other intra-group balances, what is the value of the net current assets in the consolidated statement of financial position of Milton and its subsidiary?

A USD368,000 B USD370,000 C USD388,000 D USD390,000

题型: 单选题 提问时间: 2021-08-24

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2 .A parent company sold goods to its wholly owned subsidiary for USD1,800 representing cost plus 20%. At the year end two-thirds of the goods were still in inventory.What is the amount of unrealised profit at the year end?

A USD360 B USD300 C USD240 D USD200

题型: 单选题 提问时间: 2021-08-24

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3 .Bass acquired its 70% holding in Miller many years ago. At 31 December 20X7 Miller had inventory with a book value of USD15,000 purchased from Bass at cost plus 25%.What will be the effects on non-controlling interest and retained earnings in the consolidated statement of financial position after dealing with the consolidation adjustment required for inventory?

A Non-controlling interest:No effect；Retained earnings:Reduce by USD3,000 B Non-controlling interest:No effect；Retained earnings:Reduce by USD3,750 C Non-controlling interest:Reduce by USD900；Retained earnings:Reduce by USD2,100 D Non-controlling interest:Reduce by USD1,125；Retained earnings...

题型: 单选题 提问时间: 2021-08-24

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4 .Rugby has a 75% subsidiary, Stafford , and is preparing its consolidated statement of financial position as on 31 December 20X6. The carrying amount of non-current assets in the two companies at that date is as follows:　USDRugby260,000Stafford80,000On 1 January 20X6 Stafford had transferred an item of equipment to Rugby for USD40,000. At the date of transfer the equipment, which had cost USD42,000, had a carrying amount of USD30,000 and a remaining useful economic life of five years. The group accounting policy is to depreciate non-current assets on a straight-line basis down to a nil residual value. It is also group policy not to revalue non-current assets.What is the figure that will be disclosed as the carrying amount of non-current assets in the consolidated statement of financial position of Rugby as on 31 December 20X6?

A USD340,000 B USD332,000 C USD330,000 D USD312,000

题型: 单选题 提问时间: 2021-08-24

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5 .Huge acquired 60% of Small’s 500,000 shares on 1 January 20X2. The purchase consideration consisted of an immediate cash payment of USD3.45 per share plus a share exchange of three shares in Huge for every two shares in Small. At the acquisition date the market prices of each share in Huge and each share in small were USD6.50 and USD4.20, respectively.What amount should be included in Huge’s statement of financial position in respect of its investment in Small?

A USD3,960,000 B USD2,925,000 C USD2,335,000 D USD1,875,000

题型: 单选题 提问时间: 2021-08-24

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7 .Tom has purchased all the share capital of Jerry during the year.Which of the following items would Tom take into account when calculating the fair value of the net assets acquired in accordance with IFRS 3 Business Combinations?(1) A contingent liability dependent on the outcome of a legal case which has been provided for in Jerry’s books.(2) A provision required to cover costs of reorganising Jerry ’s departments to fit in with Tom’s structure.(3) A warranty provision in Jerry’s books to cover costs of commitments made to customers.

A 3 only B 2 and 3 only C 1 and 3 only D 1 only

题型: 单选题 提问时间: 2021-08-24

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8 .The books of Tiny contain a provision for reorganisation. The reorganisation is under way and the provision is to cover costs to be incurred in the next six months to complete the reorganisation.Huge is considering acquiring Tiny. If it does so, the reorganisation of Tiny will continue.In assessing the fair value of net assets the directors of Huge wish to make a provision for future trading losses, and include the existing provision for reorganisation costs.In accordance with IFRS 3 Business Combinations which provisions, if any, may be included?

A Provision for trading losses:Include;Provision for reorganisation costs:Include B Provision for trading losses:Exclude;Provision for reorganisation costs:Include C Provision for trading losses:Include;Provision for reorganisation costs:Exclude D Provision for trading losses:Exclude;Provision for r...

题型: 单选题 提问时间: 2021-08-24

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9 .Which of the following are required when assessing fair values on acquisition in accordance with IFRS 3 Business Combinations?(1) Valuation of non-current assets at market value where this is higher than its carrying amount.(2) Discounting trade receivables to present values where debt is not due to be recovered for two years.(3) Inclusion of a contingent liability, which is a present obligation, of the acquired company.

A 1 only B 2 only C 1 and 2 only D 1, 2 and 3

题型: 单选题 提问时间: 2021-08-24

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10 .Leeds acquired the whole of the issued share capital of Cardiff for USD12 million in cash. In arriving at the purchase price Leeds had taken into account in respect of Cardiff future reorganization costs of USD1 million and anticipated future losses of USD2 million. The fair value of the net assets of Cardiff before taking into account these matters was USD7 million.In accordance with IFRS 3 Business Combinations, what is the amount of goodwill on the acquisition?

A USD8 million B USD7 million C USD6 million D USD5 million

题型: 单选题 提问时间: 2021-08-24

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