An 8% GHS30m convertible loan note was issued on 1 April 2021 at par. Interest is payable in accears on 31 March each year. The loan note is redeemable at par on 31 March 2024 or sanxertible into equity shares at the option of the loan note holders on the basis of 30 shares for each GHS100 of loan. A similar instrument without the conversion option would have an interest rate of 10% per annum. The present values of GHS1 receivable at the end of each year based on discount rates of 8% and 10% are: 8% 10% End of year 10.93 0.91 20.86 0.83 3 0.79 0.75 What amount will be credited to equity on 1 April 2021 in respect of this financial instrument? 3 A GHS5,276.00e B GHS1,524.00e CGHS324,000 D GH59,000,000 9 MN Plc's draft statement of financial position as at 31 March 2022 shows financial assets at fair value through profit or loss with a carrying amount of GHS12.5m as at 1 April 2021. These financial assets are held in a fund whose value changes directly in proportion to a specified market index. At 1 April 2021 the relevant index was 1,200 and at 31 March 2022 it was 1,296. What amount of gain or loss should be recognised at 31 March 2022 in respect of these assets? A GH51,000,000 gain B GH596,000 gain C GH51.000.000 loss D GH596,000 loss 11. House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued sbare capital of Door Plc. The revenues for the year are as follows: House Plc GHC375,000 Window Plc GHC250,000 Door Plc GHC40,000 What amount for revenue should appear in the consolidated statement of profit or loss for the year? A GHC635,000 B GHC575,000 CGHC625,000 D GHC585,000 12 Grace Plc holds 80% of the ordinary shares of Paul Plc and 40% of those of Peter Plc. The three companies' profits after tax for 2017 financial year, before accounting for dividends received, and their total dividends paid for the year are as follows: 4 Profit after tax Dividend paid GHC GHC Grace Plc 40,000 20,000 Paul Plc 40,000 20,000 Peter Plc 40,000 20,000 In Grace Pic's consolidated statement of profit or loss, what amount will be disclosed as the profit for the year [before distribution to non-controlling interest]? A GHC112,000 B GHC120,000 C GHC88,000 D GHC96,000 Use the data below to answer questions 13 and 14 below: Augustine Plc acquired 60% of the ordinary shares of Nyantakiwa Plc on 1 January 2016 for GHC180,000 on which date the net assets of Nyantakxiwa, Plc were GHS250,000. Nyaptalviva, Plc subsequently [on 1 January 2017], acquired 80% interest in Evelyn Plc for GHC 90,000, on which date the net assets of Evelyn was GHC100,000. The policy of the group is to measure non-controlling interest at proportionate share of the net assets of the subsidiary. At 31 December 2017, the goodwill arising from the acquisition was tested for impairment but no impairment loss was to be recognized. 13. Determine the effective interest Augustine Plc has in Evelyn Plc and state whether Augustine can control Evelyn Effective Interest Control A 48% No B 48% Yes C 80% Yes D 60% Yes 14 Determine the consolidation goodwill to be disclosed in the consolidated statement of financial position of Augustine Plc group as at 31 December 2017 GHS36,000 Determine the consolidation goodwill to be disclosed in the consolidated statement of financial position of Augustine Plc group as at 31 December 2017 A GHS36,000 B GHC42,000 B GHC30.000 C GHC6.000 15 GCB Bank bought 4 million (out of the 10 million) shares of City Bank in January 2017 from an institutional investor at a cost of GHS12 million. The market price of a share of City bank on that date was GHS2.80. In the year ended 31 December 2017, City bank achieved a grofit after tax of GHS3 million out which it declared and paid total interim dividend of GHS1 million in November 2017. In addition to its investment in City Bank, GCB has controlling 5 interests in two savings and loans companies and therefore prepares consolidated financial statements. Determine the amount at which Investment in Associate should be presented in the consolidated statement of financial position as at 31 December 2017. A GHS11.2 million B GHS12 million C GHS12.8 million D GHS14 million 16. Amma Plc owns many subsidiaries and 25% of Kofi Plc. In the year ended 31 December 2017, Amma Plc sold goods to Kofi Plc for GHC200,000, earning a gross profit of 25% on cost. Kofi Plc held GHC60,000 of them in its inventories at the year end. By what amount should Amma Plc's cost of sales be increased when preparing its consolidated income statement? A GH3,000 17. Kofi Plc owns 45% of the ordinary shares of Amma, Plc. By this shareholding, Kofi Plc bas secured the right to participate in the financial and operating decision making process of Amma Plc. How will you describe the relationship between Kofi and Amma? A Amma is an associate entity to Kofi B Kofi is a parent to Amma C Kofi and Amma are in a joint venture relationship D Amma is a subsidiary entity to Kofi Use the following information to answer questions 18 and 19 Baba Plc has a 75% owned subsidiary, Salify Plc. During 2017, Baba Plc sold goods to Salify Plc for GHSB0,000 which was cost plus 25%. At 31 December 2017, GHS40,000 of these goods remained unsold. 18 In the consolidated statement of profit or loss for the year ended 31 December 2017, the revenue will be reduced by: A GHS40,000 B GHS80,000 CGHS30,000 D GHS60,000 19. In the consolidated statement of profit or loss for the year ended 31 December 2017, the gross profit will be reduced by: A. GHC8,000 B GHC12,000 CGHC16,000 D GHC 20,000 6 20 busta Plc holds 10% investment in Grace Plc at GHC24,000 and accounts for it in bos with IFRS 9 at amectaed cost On 1 January 2017 Novica acquired a further 50% of Grace Pic's ordinary shares at a cost of GHC160.000 On 1 January 2017 the net assets of Grace were 20 Nhyira Plc holds 10% investment in Grace Plc at GHC24,000 and accounts for it in line with IFRS 9 at amortised cost. On 1 January 2017 Nhyira acquired a further 50% of Grace Plc's ordinary shares at a cost of GHC160,000 On 1 January 2017, the net assets of Grace were assessed to have total value of GHC 200,000, the NCI was fair valued at GHC100,000 and the 10% previously held was assessed to have a fair value of GHC 26,000. Calculate the Goodwill arising from the acquisition of Grace Plc A GHC 86,000 B GHC 66,000 16. Amma Plc owns many subsidiaries and 25% of Kofi Plc. In the year ended 31 December 2017, Amma Plc sold goods to Kofi Plc for GHC200,000, earning a gross profit of 25% on cost. Kofi Plc held GHC60,000 of them in its inventories at the year end. By what amount should Amma Plc's cost of sales be increased when preparing its consolidated income statement? A GHC3,000 I 10 UV Plc had 10m ordinary shares in issue throughout the year ended 30 June 2020. On 1 July 2019 it had issued GHS2m of 6% convertible loan stock, each GHS5 of loan stock is convertible joto 4 ordinary shares on 1 July 2023 at the option of the holder. UV Plc had profit after tax for the year ended 30 June 2020 of GHS1,850,000. It pays tax on profits at 30%. What was diluted I 4 The statements of financial position of NO Plc inclun9de the following extracts: Statements of financial position as at 30 September 2021 2020 GHSM GHSM Non-current liabilities Deferred tax 310 140 Current liabilities I Taxation 130 160 The tax charge in the statement of profit or loss for the year ended 30 September 2021 is GHS270m. What amount of tax was paid during the year to 30 September 2021? A GHS300m B GHS140m CGHS200m D GHS130m