CPA FR Dumps

Debra Ltd. has the following loan finance in place during the year ended 31 December 2012:

$2 million of 6% loan finance

$4 million of 8% loan finance

It constructed a new factory which cost $900,000 and this was funded out of the existing loan finance.

The factory took eight months to complete.

What borrowing costs should be capitalised in the year ended 31 December 2012?

One plc has owned 100% of Ten Ltd and 60% of Six Ltd for many years. At 31 December 2012 the trade receivables and trade payables shown in the individual company statements of financial position were as follows.

One plcTen LtdSix Ltd

$000$000$000

Trade receivable 503040

Trade payable 301520

Trade payable are made up as follows

Amount owning to

One---

Ten 2-4

Six 3--

Other suppliers251516

301520

The intra-group accounts agreed after taking into account the following.

1)An invoice for $3,000 posted by Ten Ltd on 31 December 2012 was not received by One pIc until 2 January 2013

2)A cheque for $2,000 posted by One pIc on 30 December 2012 was not received by Six Ltd until 4 January 2013.

What amount should be shown as trade receivables in the consolidated statement of financial position of One plc for the year ended 31 December 2012?

Jamal Co buys some goods from SA of France on 30 September (year end is 31 December). The invoice value is €40,000 and is due for settlement in equalinstallmentson 30 November and 31 January. The exchange rate moved as follows:

€ = $1

30-Sep1.60

30-Nov1.80

31-Dec1.90

31-Jan1.85

What are the total exchange gains / (losses) that will be included in the operating profit of Jamal Co for the year ended 31 December 2012?

View-Find Inc. manufactures and sells complex electronic microscope for scientific research projects. It usually produces standard type andcustomizedmicroscope. The sale contract states that View-find Inc. will undertake the entire installation process. During December 2012, View-find Inc. undertakes acustomizedoffer from State Metallurgical Engineering University of Nowhere. The contract states that View-Find Inc. will manufacture, install and maintain the whole consignment for a period of one year. The total cost of making the changes during the maintenance period cannot be reasonably estimated at the time of the installation.

When should the revenue from sale of this special machine berecognized?

On 30 September 2012 the directors of Diego pIc decided to sell the company's services division and the division was classified as held for sale. The sale is expected to be completed, along with the sales of related assets, in early December 2012. One item of plant within this division had originally cost $30,000 and had a carrying amount of $15,000 on 1 November 2011. Diego plc will carry on using this plant until it is sold. Diego pIc has a year end of 31 October and depreciates all plant on a monthly straight-line basis using a monthly rate of 1%.

In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what amount will berecognizedin the statement of financial position of Diego pIc as at 31 October 2012 in respect of this plant?

IAS 17 Leasesstandardizesthe accounting treatment and disclosure of assets held under lease. IAS 17 Leases requires a lessee tocapitalizea finance lease at the amount of the

A conceptual framework is a statement of generally accepted theoretical principles which form the frame of reference for financial reporting.

Which of the following is NOT a disadvantage of conceptual framework?

Arnold Ltd bought an asset on 1 October 20X1 for $200,000. It was being depreciated over 20 years on the straight-line basis. On 1 October 20X3, the asset was revalued to $270,000. Subsequently, on 30 September 20X7 the asset was classified as held for sale. Its fair value was estimated at $190,000 with costs to sell $5,000.

In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what should be the lossrecognizedin the statement of profit or loss for the year ended 30 September 20X7?

Rochester pIc has entered into a fixed price contract for the provision of services to Adele Ltd. The contract commenced in September 2012 and will be completed in 2013. The contract price is $2 million and costs are recoverable as incurred. At 31 December 2012, Rochester plc's year ends, costs of $500,000 have been incurred.

The contract has been assessed as 30% complete; however, costs to complete cannot be estimated reliably.

In accordance with IAS 18 Revenue, how much revenue should be included in Rochester plc's statement of comprehensive income for the year ended 31 December 2012 in respect of this contract?

Measurement of the elements of financial position is the process of determining the monetary amounts at which the elements of the financial statements are to berecognizedand carried in the statement of financial position and statement of comprehensive income. There are number of basis of measurement that companies use in preparing financial statements.

Which of the following best explains the ‘current cost accounting’?

A company is developing a new production process. During 2012, expenditure incurred was $100,000, of which $90,000 was incurred before 1 December 2012 and $10,000 between 1 December 2012 and 31 December 2012. The company can demonstrate that, at 1 December 2012, the production process met the criteria for recognition as an intangible asset. The recoverable amount of the know-how embodied in the process is estimated to be $50,000.

How should the expenditure be treated?

Which of the following are roles of the IFRS Foundation?

(1)To issue IFRS

(2)To examine any identified or alleged departures from IFRS

(3)To guide the International Accounting Standards Board (IASB)

(4)To secure finance