Month End Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

The legislation in Country S provides for an indexation allowance in the calculation of capital tax. STU operates in Country S where the indexation factor for the period 1 January 20X1 to 31 December 20X6 is 20%

STU purchased a building for $64,000 on 1 January 20X1, incurring legal fees of $4,000. STU sold the building for $86,000 on 31 December 20X6 before selling fees of $3,500

What is the chargeable capital gam arising on STU's disposal of the building?

Options:

S11,600

$5,700

S900

$200

Buy Now

Question 2

BC manufactures product X and on 1 February 20X4 started a project to develop a new material for use in its production. The development project is due to be completed by 31 December 20X4 with the new material being used in production from 1 January 20X5. The development project costs have been reliably estimated at $200,000 and it is anticipated that the new material will increase the margin achieved on product X by 20%.

You are a CIMA accountant within BC and are considering how to treat the development costs of $200,000 in the financial statements for the year ended 31 December 20X4.

In accordance with the ethical principle of professional competence and due care, which of the following statements correctly explains how these costs should be accounted for?

Options:

Expense to profit or loss because the development project will be completed by the end of the year.

Expense to profit or loss because the development has not changed the nature of product X.

Capitalise and amortise from 1 February 20X4 because this is the date that the project commenced.

Capitalise but do not amortise until 1 January 20X5 because this is the date that the new material will start to be used.

Question 3

A conservative policy for financing working capital is one where short-term finance is used to fund:

Options:

All of the fluctuating current assets and part of the permanent current assets.

Part of the fluctuating current assets, but no part of the permanent current assets.

All of the fluctuating current assets, but no part of the permanent current assets.

Part of the fluctuating current assets and part of the permanent current assets.

Get Free F1 Questions and Answers

Month End Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

F1 Exam Dumps : Financial Reporting

CIMA Related Exams

Verified By IT Certified Experts

CertsTopics.com Certified Safe Files

Up-To-Date Exam Study Material

99.5% High Success Pass Rate

100% Accurate Answers

Instant Downloads

Exam Questions And Answers PDF

Try Demo Before You Buy

Financial Reporting Questions and Answers

Options:

Answer:

Options:

Answer:

Options:

Answer:

CompTIA

Fortinet

Microsoft

Salesforce