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| Section | Weight | Objectives |
|---|---|---|
| Financing Capital Projects | 15% | - Sources of long-term finance - Capital structure theories - Cost of capital calculations |
| Group Accounts | 35% | - Foreign currency consolidation - Consolidated financial statements - Goodwill and non-controlling interest - Associates and joint ventures |
| Financial Reporting Standards | 25% | - Revenue recognition (IFRS 15) - IFRS framework and application - Financial instruments (IFRS 9) - Leases (IFRS 16) |
| Integrated Reporting | 10% | - Integrated reporting framework - Sustainability and non-financial disclosures |
| Analysing Financial Statements | 15% | - Limitations of financial analysis - Impact of accounting policies - Ratio analysis and interpretation |
ST acquired 80% of the equity shares of AB on 1 January 20X7. AB acquired 60% of the equity shares of UV on 1 January 20X8. Profit for the year ended 31 December 20X9 for AB is $160,000 and for UV is
$100,000.
Calculate the non-controlling interest figure to be included within ST's consolidated statement of profit or loss for the year ended 31 December 20X9.
Give your answer to the nearest whole number in $000s.
$ ?
Correct Answer:
84000, 84
Operating segments are separately reportable where they exceed 15% of revenue / profits / assets.
These must in total cover 80% of total revenue. Is this statement true or false?
Correct Answer: A 🗳️
WX acquired 60% of the equity shares of CD on 1 January 20X3. WX sold 5% of the equity shares it held for $60,000 on 31 December 20X5. At that date the net assets of CD were $120,000 and the fair value of the non-controlling interest in CD was measured at $21,000. No goodwill arose on the original acquisition of CD.
When preparing its consoldiated financial statements, WX will process which of the following adjustments to its group retained earnings?
Correct Answer: C 🗳️
On 30 November 20X9 OPQ acquires a financial asset that is classified as Available for Sale.
Which of the following describes the value of the financial asset on the date of acquisition?
Correct Answer: A 🗳️
Information from the financial statements of an entity for the year to 31 December 20X5:
The gearing ratio calculated as debt/equity and interest cover are:
Correct Answer: C 🗳️
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