Cook Ltd purchased an item of plant for 160,000 on 1 January 2016 The plant is to be depreciated on a 20 reducing balance basis Cook Ltd sold the plant on 31 December 2018 and made a gain of 8,400 on disposal What is the amount of proceeds to be reported in the Statement of Cash Flows of Cook Ltd for the year ended 31 December 2018 81,920 90,320 102,400 110,800 Sharp owns 100 of the share capital of the following companies The directors are unsure of whether the investments should be consolidated In which of the following circumstances would the investment NOT be consolidated Blunt makes recurring losses and will be closed down within 12 months The directors believe its exclusion from consolidation would assist users in predicting the groups future profits Smooth is a retail grocer and its activity is so different from the engineering activities of the rest of the group that it would be meaningless to consolidate it Rough is located in a country where local accounting standards are compulsory and these are not compatible with IFRS used by the rest of the group Square is located in a country where martial law has been imposed by a military government and Sharp has lost control of the investment for the foreseeable future On 1 April 2018, Hearne entered into a lease agreement for an item of plant Lease rentals are an initial deposit of 12,000 plus 60,000 per annum payable at the end of each year and the term of the lease is five years At the inception of the lease, the fair value of the leased asset is 239,400 and this is the same as the present value of the minimum lease payments The leased asset has an estimated useful life of 6 years The rate of interest implicit in the lease is 10 According to IFRS 16 Leases, at what amount should the leased asset be included in the statement of financial position of Hearne as at 31 March 2019 181,920 189,500 191,520 199,500 Which ONE of the following would cause a deferred tax balance to be included in the statement of financial position for an entity, as required by IAS 12 Income Taxes An expense that is included in the statement of profit or loss and other comprehensive income but is not allowed for tax Tax depreciation being allowed on a non current asset at a different annual rate to that used for depreciation in the financial statements Income that is included in the statement of profit or loss and other comprehensive income that is not taxable Impairment of goodwill that arose on the acquisition of a subsidiary entity 10 On 1 October 2014 Shift purchased an item of plant for 225,000 At that date, the item had a useful life of 8 years and a residual value of 25,000 On 30 September 2017 the plant was reviewed for impairment and found to have a fair value less costs of disposal of 135,000 and a value in use of 120,000 The items useful life and residual value were unchanged What is the amount of the depreciation expense in profit or loss for the year ended 30 September 2018 13,750 19,000 22,000 27,000

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Cook Ltd purchased an item of plant for 160,000 on 1 January 2016. The plant is to be depreciated on a 20% reducing balance basis.

Cook Ltd purchased an item of plant for 160,000 on 1 January 2016. The plant is to be depreciated on a 20% reducing balance basis.

Cook Ltd sold the plant on 31 December 2018 and made a gain of 8,400 on disposal.

What is the amount of proceeds to be reported in the Statement of Cash Flows of Cook Ltd for the year ended 31 December 2018?
1. 81,920
2. 90,320
3. 102,400
4. 110,800.

Sharp owns 100% of the share capital of the following companies. The directors are

unsure of whether the investments should be consolidated.

In which of the following circumstances would the investment NOT be consolidated?
1. Blunt makes recurring losses and will be closed down within 12 months. The directors believe its exclusion from consolidation would assist users in predicting the groups future profits
2. Smooth is a retail-grocer and its activity is so different from the engineering activities of the rest of the group that it would be meaningless to consolidate it
3. Rough is located in a country where local accounting standards are compulsory and these are not compatible with IFRS used by the rest of the group
4. Square is located in a country where martial law has been imposed by a military government and Sharp has lost control of the investment for the foreseeable future.
On 1 April 2018, Hearne entered into a lease agreement for an item of plant. Lease rentals are an initial deposit of 12,000 plus 60,000 per annum payable at the end of each year and the term of the lease is five years. At the inception of the lease, the fair value of the leased asset is 239,400 and this is the same as the present value of the minimum lease payments. The leased asset has an estimated useful life of 6 years. The rate of interest implicit in the lease is 10%.

According to IFRS 16 Leases, at what amount should the leased asset be included in the statement of financial position of Hearne as at 31 March 2019?
1. 181,920
2. 189,500
3. 191,520
4. 199,500
Which ONE of the following would cause a deferred tax balance to be included in the statement of financial position for an entity, as required by IAS 12 Income Taxes?
1. An expense that is included in the statement of profit or loss and other comprehensive income but is not allowed for tax.
2. Tax depreciation being allowed on a non-current asset at a different annual rate to that used for depreciation in the financial statements.
3. Income that is included in the statement of profit or loss and other comprehensive income that is not taxable.
4. Impairment of goodwill that arose on the acquisition of a subsidiary entity.

10. On 1 October 2014 Shift purchased an item of plant for 225,000. At that date, the item had a useful life of 8 years and a residual value of 25,000. On 30 September 2017 the plant was reviewed for impairment and found to have a fair value less costs of disposal of 135,000 and a value in use of 120,000. The items useful life and residual value were unchanged.

What is the amount of the depreciation expense in profit or loss for the year ended 30 September 2018?