DH has the following two legal claims outstanding:? A legal action against DH claiming compensation of $700,000, filed in February2014. DH has been advised that it is probable that the liability will materialise.? A legal action taken by DH against another entity, claiming damages of $300,000,started in March 2011. DH has been advised that it is probable that it will win thecase.How should DH report these legal actions in its financial statements for the year ended30 April 2014?Legal action against DH Legal action taken by DH
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1 .A company has $500,000 of $0.50 ordinary shares in issue. The following events occurred inthe financial year ended 31 December 2014:On 31 March, paid a final dividend of 10 cents a share which had been proposed on 31December 2013.On 31 July, paid an interim dividend of 5 cents a share.On 31 December, proposed a final dividend of 12 cents a share.What amount for dividends should be included in the statement of changes in equity forthe year ended 31 December 2014?
A $75,000 B $150,000 C $220,000 D $270,000
2 .According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors,which ONE of the following would require a prior period adjustment in JE’s financialstatements for the year ended 31 October 2014?
A Inventory at 31 October 2013 had been materially over-valued due to an error in theyear-end inventory count that caused inventory in one warehouse to be countedtwice B The straight line method of depreciation used to depreciate vehicles up to 31October 2013 was changed by JE to reducing balance me...
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A $790 B $820 C $850 D $900
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A an increase of $107,000 an increase of $107,000 B an increase of $137,000 an increase of $107,000 C an increase of $107,000 no change D no change an increase of $107,000
5 .Which TWO of the following statements are correct in accordance with InternationalFinancial Reporting Standards?(1) All non-current assets must be depreciated or amortised.(2) If a tangible non-current asset is revalued, all tangible assets of the same classshould be revalued.(3) In a company’s published statement of financial position, tangible assets andintangible assets must be shown separately.(4) An intangible asset should be recognised even if its cost cannot be measuredreliably.
A 1 and 2 only B 1 and 3 only C 2 and 3 only D 2 and 4 only
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A Credit of $2,344 B Charge of $2,344 C Credit of $42,197 D Charge of $42,197
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