All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
advanced financial accounting

Questions and Answers of Advanced Financial Accounting

Travis plc is a large grocery retailing and wholesaling organisation. It is presently drawing up its financial statements for the year ended 31 October 1993 and, mindful of the requirements of SSAP
Spreader plc is a UK parent company with a number of wholly-owned subsidiaries in the USA and Europe. Extracts from the consolidated financial statements of the group for the year ended 30 April 1997
(a) For enterprises that are engaged in different businesses with differing risks and opportunities, the usefulness of financial information concerning these enterprises is greatly enhanced if it is
You are the Management Accountant of Global plc. Global plc has operations in a number of different areas of the world and presents segmental information on a geographical basis in accordance with
FRS 3, Reporting Financial Performance, requires that earnings per share should be calculated on the profit after tax, minority interest and extraordinary items. FRS 3 permits an additional measure
A plc is a company which is listed on the UK Stock Exchange. Your client, Mr B, currently owns 300 shares in A plc. Mr B has recently received the published financial statements of A plc for the year
(a) Explain the purpose of FRS 8, Related party disclosures, its relevance to users of published financial information and the main differences to international accounting standards. (6 marks)(b) The
Newcars plc is a vehicle dealership; it sells both new and good quality second-hand cars. The company is large and has a large number of shareholders. The only large block of shares is held by
Engina, a foreign company, has approached a partner in your firm to assist in obtaining a Stock Exchange listing for the company. Engina is registered in a country where transactions between related
[Authors’ note: This question has been included for students who wish to consider the partial provision method of accounting for deferred tax, which was required by SSAP 15 but is now outlawed by
The problem of accounting for deferred taxation is one that has been on the agenda of the Accounting Standards Board for some time. In December 2000, the Accounting Standards Board published FRS 19
H plc is a major manufacturing company. According to the company’s records, timing differences of £2.00 million had arisen at 30 April 2002 because of differences between the carrying amount of
Explain how the requirements of FRS 18, Accounting policies, and FRS 19, Deferred tax, reflect the Statement of Principles.ICAEW, Financial Reporting, June 2002
‘Accounting standards should narrow differences in reporting yet acquisition accounting and merger accounting result in significantly different results in the year of combination and thereafter.You
The balance sheets of Left plc and Right plc at 31 December 1999, the accounting date for both companies, were as follows.On 31 December 1999, Left plc purchased all the equity shares of Right plc.
AB, a public limited company manufactures goods for the aerospace industry. It acquired an electronics company CG, a public limited company on 1 December 1999 at an agreed value of £65 million. The
There are currently two possible methods of preparing consolidated financial statements when two or more separate legal entities combine to form a single economic entity in the form of a group. The
Growmoor plc has carried on business as a food retailer since 1900. It had traded profitably until the late 1980s when it suffered from fierce competition from larger retailers. Its turnover and
FRS 10 – Goodwill and Intangible Assets – was issued in December 1997. At the same time, SSAP 22, the previous Accounting Standard which dealt with the subject of accounting for goodwill, was
Islay plc has acquired the following unincorporated businesses:(1) ‘Savalight’, a business specialising in the production of low-cost, energy efficient light bulbs, acquired on 1 June 1996 for
Elie plc acquired 80% of the £1 million ordinary share capital of Monans Ltd on 1 July 2001 by issuing 200 000 £1 ordinary shares. Elie plc’s ordinary shares were quoted at £17 on 1 July 2001.
FRS 11 – Impairment of fixed assets and goodwill requires that all fixed assets and goodwill should be reviewed for impairment where appropriate and any impairment loss dealt with in the financial
Acquirer plc is a company that regularly purchases new subsidiaries. On 30 June 2000, the company acquired all the equity shares of Prospects plc for a cash payment of £260 million. The net assets
The accountancy profession has developed a range of techniques to measure and present the effects of one company owning shares in another company.Briefly describe each of these techniques and how the
You are group financial accountant of a diverse group of companies. The board of directors has instructed you to exclude from the consolidated financial statements the results of some loss-making
Fair value is a concept underlying external financial reporting.You are required(a) to explain why fair value accounting is required; (4 marks)(b) to explain how the fair value concept is applied; (5
Relevant balance sheets as at 31 March 1994 are set out opposite:You have recently been appointed chief accountant of Jasmin (Holdings) plc and are about to prepare the group balance sheet at 31
Balmoral plc acquired 75% of the ordinary share capital and 30% of the preference share capital of Glenshee Ltd for £2 million on 1 November 1994. The draft profit and loss accounts for the
Highland plc owns two subsidiaries acquired as follows:1 July 1991 80% of Aviemore Ltd for £5 million when the book value of the net assets of Aviemore Ltd was £4 million.30 November 1997 65% of
Ardrossan plc acquired holdings in two companies as follows:Barmulloch Ltd – 75% of the ordinary share capital purchased on 1 August 2000 for£4 million.Cumbernauld Ltd – 25% of the ordinary
Aberdeen plc acquired shares in two other companies as follows:Additional information (1) It is group policy to amortise purchased goodwill over five years with a full year’s charge in the year of
The ASB’s Statement of Principles sets out the concepts which underpin its development of financial reporting standards.Required Discuss why the ASB has adopted this conceptual approach and whether
The Statement of Principles identifies the elements of financial statements. The measurement basis which is applied to these elements can significantly affect the reported financial performance and
The Statement of Principles deals with the presentation of financial statements i.e. disclosure in primary statements and supporting notes.Requirements(a) Discuss the purposes and usefulness of the
Your managing director has approached you saying that he is ‘confused at all the different accounting bodies that have replaced the old Accounting Standards Committee’.You are required to draft a
Before the introduction of accounting standards, accounting practices varied from enterprise to enterprise – there was inconsistency and occasionally practices were inappropriate.Intercompany and
‘At their simplest, accounts comprise a summary of cash receipts and payments. Concepts such as accruals and substance over form lead to increased complexity and may make it difficult for a user to
The following is an extract from a press note published by the Financial Reporting Review Panel (FRRP):FINDINGS OF THE FINANCIAL REPORTING REVIEW PANEL IN RESPECT OF THE ACCOUNTS OF S PLC FOR THE
It is a requirement of the Companies Acts that the accounts of limited companies must show a true and fair view of the state of affairs at the end of a period and the profit or loss for the
‘In recent years, there has been growing interest in, and efforts directed towards, the harmonisation of international accounting.’ (Advanced Financial Accounting by Taylor and Underdown
You are the chief accountant of Britain plc. Britain plc has a number of subsidiaries located in various parts of the world. One of these subsidiaries is Faraway Ltd. Faraway Ltd prepares its
‘Now that the EU has decided to harmonise financial reporting by Regulation rather than by the issue of new Directives, the financial statements of all companies in Europe will be comparable by the
Some commentators on financial reporting practices argue that financial statements produced under the historic cost convention do not provide relevant information to users of those statements in
(a) Give a brief summary of the current value replacement cost accounting system(entry values). (6 marks)(b) Give a brief summary of the current value net realisable value accounting system(exit
The balance sheet of Omega as at 30 September 1992 contained the following balances and notes:Note 1 The share premium arose on the issue of shares on 1 October 1989.Note 2 The revaluation reserve
The valuation and depreciation of fixed assets are covered by both mandatory accounting standards and the Companies Acts as sources of authority.Requirement Identify the main accounting issues
The managing director of your company has always been unhappy at depreciating the company’s properties because he argues that these properties are in fact appreciating in value.Recently he heard of
X Ltd is a retail supermarket chain which regularly constructs its own superstores. During the year ending 31 December 1995, X Ltd began work on a new site.On 1 January 1995, a leasehold interest in
C & R plc is a large company which operates a number of retail stores throughout the United Kingdom. The company makes up financial statements to 30 September each year.On 1 October 1996 the
L plc has never revalued its land and buildings. The directors are unsure whether they should adopt a policy of doing so. They are concerned that FRS 15 – Tangible Fixed Assets has an “all or
You are the management accountant of Historic Ltd. Historic Ltd makes up its financial statements to 30 September each year. The financial statements for the year ended 30 September 2000 are
K is a CIMA member who has recently established a limited company which specialises in biotechnology applications. The company has just reached the end of its first year of trading.K is working
(a) Accounting practices for fixed assets and depreciation can be said to have developed in a piecemeal manner. The introduction of FRS 11 ‘Impairment of Fixed Assets’ has meant that a standard
N Ltd is an independent company which manufactures clothing. For many years, N Ltd has worked exclusively for Store plc, a national group of department stores, manufacturing gloves. Store plc
Wick plc has produced the following trial balance as at 31 August 2002 as a basis for the preparation of its published accounts:Additional information (1) As a new venture, the company started work
G Ltd is a company specialising in the construction of sophisticated items of plant and machinery for clients in the engineering industry. Details of two contracts outstanding at 30 September 1995
Lewis plc specialises in bridge construction and had two contracts in progress at its year end, 30 April 1999.Stornoway Bridge Construction on this contract started in May 1997. Contract details
S plc is a shipbuilder which is currently working on two contracts:S plc recognises turnover and profit on long-term contracts in relation to the proportion of work completed.Required (a) Calculate
H plc is a major electronics company. It spends a substantial amount of money on research and development. The company has a policy of capitalising development expenditure, but writes off pure and
MWT plc is a company involved in the design and manufacture of aircraft. During the year ended 31 March 1995, the company had commenced the following projects.A. Project Alpha involves research into
Forfar plc is an innovative engineering company with a substantial research and development budget. It is company policy to capitalise all expenditure relevant to development work wherever possible
Amesbury plc produces and distributes computer-controlled machinery. As accountant for the company, you have been provided with the following information regarding the company’s activities in
Global plc, which prepares accounts to 31 January each year, operates in several different countries and has recently obtained government financial assistance both in the UK and abroad:(1) A foreign
Provisions are particular kinds of liabilities. It therefore follows that provisions should be recognised when the definition of a liability has been met. The key requirement of a liability is a
FRS 12 – Provisions, contingent liabilities and contingent assets was issued in September 1998.Prior to its publication, there was no UK Accounting Standard that dealt with the general subject of
FRS 12 – Provisions, Contingent Liabilities and Contingent Assets requires contingencies to be classified as remote, possible, probable and virtually certain. Each of these categories should then
L plc sells gaming cards to retailers, who then resell them to the general public. Customers who buy these cards scratch off a panel to reveal whether they have won a cash prize. There are several
(a) Explain the main reasons for the introduction of FRS 4, Capital instruments. (7 marks)(b) Explain how FRS 4, Capital instruments, deals with the accounting treatment of:(i) convertible debt;
You are the management accountant of Short plc. On 1 October 1993 Short plc issued 10 million £1 preference shares at par, incurring issue costs of £100 000. The dividend payable on the preference
Your managing director has recently read an article which referred to Financial Reporting Standard 4 (FRS 4) – Capital instruments. He has requested a report from you about FRS 4.Requirement Write
Tealing plc requires advice on the appropriate accounting treatment for the following transactions in capital instruments in the year ended 30 November 2002.(1) The company issued convertible debt on
% for the remaining years.Assume that the effective rate of interest is 10.33% per annum.(2) 250 000 5% redeemable £1 preference shares were issued on 1 June 2002. Dividends are paid annually
Standard setters have been struggling for several years with the practical issues of the disclosure, recognition and measurement of financial instruments. The ASB has issued a Discussion Paper on
One of the issues dealt with by the Accounting Standards Board in its Statement of Principles for Financial Reporting is the measurement of assets and liabilities in financial statements.The
The objective of FRS 5 – Reporting the substance of transactions, is to ensure that a reporting entity’s financial statements report the substance of the transactions into which it has
You are the management accountant of Tree plc, a listed company that prepares consolidated financial statements. Your Managing Director, who is not an accountant, has recently attended a seminar at
Financial Reporting Standard 5 Reporting the Substance of Transactions requires an entity’s financial statements to report the substance of transactions into which it has entered. The FRS sets out
FRS 5 – Reporting the Substance of Transactions – requires that a reporting entity’s financial statements should report the substance of the transactions into which it has entered. FRS 5 states
FRS 5 – Reporting the Substance of Transactions – requires that a reporting entity’s financial statements should report the substance of the transactions into which it has entered.You are the
You are the management accountant of Prompt plc, a UK company which prepares financial statements to 31 March each year. The financial statements for the year ended 31 March 1998 are due to be
S plc is a large manufacturing company. The company needs to purchase a major piece of equipment which is vital to the production process. S plc does not have sufficient cash available to buy this
You are the financial director of Pilgrim plc, a listed company. Your new group managing director, appointed from one of Pilgrim plc’s overseas subsidiaries, is reviewing the principal accounting
Flow Ltd prepares financial statements to 31 March each year. On 1 April 1998, Flow Ltd sold a freehold property to another company, River plc. Flow Ltd had purchased the property for £500 000 on 1
Leese, a public limited company and a subsidiary of an American holding company operates its business in the services sector. It currently uses operating leases to partly finance its usage of land
Accounting for leases has been a problematical issue for some years. In 1984, SSAP 21, –Leases and hire purchase contracts was issued. This Accounting Standard requires that lessee companies
Using the information from Exercise E5.1 prepare a statement of cash flows for Candyfloss for the first six months of the year 2010, using the indirect method. data Exercise E5.1Candice-Marie James
The summarised income statement for the years ended 31 March 2009 and 2010 and balance sheets as at 31 March 2009 and 31 March 2010 for Boxer plc are shown below:Required:(i) Calculate the following
Refer to note 1 in Johnson Matthey Plc’s notes on the accounts in their annual report and accounts 2011 and identify the geographical analysis by origin for 2011 and 2010 for:(a) total revenue(b)
The notes and five-year income statement extracts from the financial statements of an alcoholic drinks group are shown below.Notes:■ The group sells alcohol-based products to consumers and operates
Normal plc pays £20,000 a year interest on an irredeemable debenture, which has a nominal value of £200,000 and a market value of £160,000. The rate of corporation tax is 30%. You are required
Lucky Jim plc has the opportunity to manufacture a particular type of self-tapping screw, for a client company, that would become indispensable in a particular niche market in the engineering field.
You are required to compute the MVA for 2009, 2010, and 2011 from the estimated information for a supermarket group. 2011 2010 2009 Number of shares 6.823m 6.823m 6.776m Share price 261p 169p 177p
David (Dai) Etcoak decided to set up a drinks wholesale business, Etcoakco, on 1 December 2009. He had £100,000 available to invest, which is the amount he felt was required to set up the business.
William Mason is the managing director of Classical Gas plc, a recently formed manufacturing company in the chemical industry, and he has asked you as finance director to prepare a report that covers
Extracts from the ledgers of Hall Ltd have provided the following information for 2009 and 2010. Sales revenue 2009 Sales revenue 2010 Purchases 2009 Purchases 2010 Expenses 2009 Expenses 2010
(a) Explain why there are always problems at the year-end in the assessment of the costs associated with electricity, gas, and telephone.(b) Using the information below, prepare the appropriate
Arthur Moment set up a table-making business, Forlegco, on 1 July 2010. He had £10,000 available to invest, which is the amount he estimated was required for setting up costs. In the first month of
From the trial balance for Forlegco for 31 July 2010 (Exercise E2.3)(i) Prepare a simple income statement for July 2010.(ii) Has Forlegco made a profit in July?(iii) If Forlegco has not made a
From the trial balance for Forlegco for 31 July 2010 (Exercise E2.3) prepare a simple statement of cash flows for July 2010. DATA (Exercise E2.3)Arthur Moment set up a table-making business,
You are required to prepare the appropriate correcting entries in a company’s accounts at 31 December 2010 for the following: (i) A cheque paid for rent amounting to 2,400 has been entered into the

Showing 1000 - 1100 of 2940

First
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved