42.Applying the acquisition method requires: (i) identifying the acquirer; (ii) determining the acquisition date; (iii) recognising and measuring the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree; (iv) recognising and measuring goodwill or a gain from a bargain purchase.

Select one:

a.

i, ii and iii

b.

none of the above

c.

i, ii and iv

d.

all the above

e.

ii,iii and iv

43.Hillusion acquired 80% of Skeptik on 1 July 2012. In the post-acquisition period Hillusion sold goods to Skeptik at a price of N$12 million. These goods had cost Hillusion N$9 million. During the year to 31 March 2013 Skeptik had sold N$10 million (at cost to Skeptik) of these goods for N$15m million.

How will this affect group cost of sales in the consolidated statement of profit or loss of Hillusion for the year ended 31 March 2013?

a.

Decrease by N$11.5 million

b.

Decrease by N$9.6 million

c.

Increase by N$11.5 million

d.

Increase by N$9.6 million

44. On the day of fair value measurement, an entity must do which of the following?

Select one:

a.

An entity must be able to sell the particular asset or transfer the particular liability

b.

An entity must be able to estimate desirable price

c.

The two listed in alternative answers

d.

None of the two listed in alternative answers

e.

An entity must be able to access its principal or the most advantageous market

45. IFRS 10 - Consolidated Financial Statements sets out the requirements for the consolidation of entities under the control of the reporting entity. In which of the following scenarios is control deemed to exist according to IFRS 10? (i) The reporting entity owns 40% of the voting equity in Maddy Ltd., and has the right to appoint six directors to the board of ten. (ii) The reporting entity owns 60% of the voting equity in soappy Ltd., and appoints only four directors to the board of ten.

a.

Both (i) and (ii)

b.

Neither (i) nor (ii).

c.

(ii) only

d.

(i) on

46.Germane has a number of relationships with other companies. In which of the following relationships is Germane necessarily the parent?

(i) Foll has 50,000 non-voting and 100,000 voting equity shares in issue with each share receiving the same dividend. Germane owns all of Folls non-voting shares and 40,000 of its voting shares.

(ii) Kipp has 1 million equity shares in issue of which Germane owns 40%. Germane also owns N$800,000 out of N$1 million 8% convertible loan notes issued by Kipp. These loan notes may be converted on the basis of 40 equity shares for each N$100 of loan note, or they may be redeemed in cash at the option of the holder.

(iii) Germane owns 49% of the equity shares in Polly and 52% of its non-redeemable preference shares. As a result of these investments, Germane receives variable returns from Polly and has the ability to affect these returns through its power over Polly?

a.

(i) and(ii) only

b.

(i) only

c.

(ii) and (iii) only

d.

All three

47.MNO has a 75% owned subsidiary PQR. During the year MNO sold inventory to PQR for an invoiced price of $800,000. PQR have since sold 75% of that inventory on to third parties. The sale was at a mark-up of 25% on cost to MNO. PQR is the only subsidiary of MNO.

What is the adjustment to inventory that would be included in the consolidated statement of financial position of MNO at the year-end resulting from this sale?

a.

$40,000

b.

$120,000

c.

$160,000

d.

$50,000

48.The individual Statements of financial position of the parent and the subsidiary, as at 31st December 2017 reports their retained earnings as N$540,000 and N$297,000 respectively. The profit after tax in the year ended 31st December 2017 was N$124,000 for the parent and N$96,000 for the subsidiary. Parent acquired two third of the equity in the subsidiary on 1st January 2015 when the subsidiarys retained earnings were N$120,000. Assume that no dividends were declared or paid by either company in the year 2017. In the Consolidated statement of changes in equity for the year ended 31st December 2017:

What would be the balance b/f from the previous year for the parent?

Select one:

a.

345 000

b.

415 000

c.

416 000

49. A acquired a 60% holding in B on 1 July 2016. At this date, A gave B a $500,000 8% loan. The interest on the loan has been accounted for correctly in the individual financial statements.

The totals for finance costs for the year to 31 December 2016 in the individual financial statements are shown below.

A $200,000

B $70,000

50.What are consolidated finance costs for the year to 31 December 2016?

a.

$230,000

b.

$250,000

c.

$215,000

d.

$270,000

e.

$225,000

Under IFRS 13 Fair Value Measurement which of the following would be considered a level 1 input when assessing the fair value of an asset?

a.

The sale price of a similar asset recently sold by another entity.

b.

The sale price of an identical asset sold in an open market exchange with publicly available prices.

c.

The sale price of a similar asset recently sold by the entity.

d.

The value as determined by a valuation model commonly used in the industry to value similar assets.