Cower Ltd has provided the following information as at 31 December 20X7 Project A 30,000 has been spent on the research phase of this project during the year Project B 100,000 has been spent on this project, among which 20,000 incurred during this year The project started to be capitalised in the previous year however it has been decided to abandon this project at the end of 20X7 Project C 80,000 was spent on this project this year It has been confirmed that the project meets the criteria of IAS38 and thus it is to be capitalised Which of the following adjustments should be made in the financial statements as at 31 December 20X7 Reduce profit by 50,000 and increase non current asset by 80,000 Reduce profit by 130,000 and increase non current asset by 80,000 Reduce profit by 50,000 and increase non currently asset by 180,000 Reduce profit by 130,000 and increase non current asset by 180,000 Hume Ltd has a cash generating unit (CGU) that suffers a large drop in income due to reduced demand for its products An impairment review was carried out and the recoverable amount of the CGU was determined at 100 million The assets of the CGU has the following carrying amount immediately prior to the impairment good will 25m initigable 60m PPE 30M Inventory 15m trade receivable 10m total 140m The inventory and receivables are considered to be included at their recoverable amounts What is the carrying amount of the intangible assets once the impairment loss has been allocated On the 1 st January 20X7, Maderian Ltd classified one of its freehold properties as held for sale At that date the property had a carrying value of 667,000 and had been accounted for according to the revaluation model Its fair value was estimated at 825,000 and the costs to sell at 3,000 In accordance with IFRS5 Non current Assets Held for Sale and Discontinued Operations, what amounts should be recognised in the financial statements for the year to 31 December 20X7 Statement of profit or loss gain 155,000 Statement of profit or loss impairment loss 3,000 Revaluation gain nil Statement of profit or loss gain 158,000 Statement of profit or loss impairment loss nil Revaluation gain nil Statement of profit or loss gain nil Statement of profit or loss impairment loss nil Revaluation gain 155,000 Statement of profit or loss gain nil Statement of profit or loss impairment loss 3,000 Revaluation gain 158,000 A company leases a motor vehicle under a finance lease The present value of minimum lease payments is 27,355 and the fair value of the vehicle is 29,000 The implicit interest rate in the lease is 10 The terms of the lease require three annual installments to be paid of 10,000 each at the start of each year At the end of the first year of the lease, what amount will be shown for the finance lease obligation in the company's statement of financial position under the headings of non current liabilities and current liabilities The following issues relate to Jackson Ltd during 20X8 Issue 1 A major receivable went into liquidation and the directors believe that they will not be able to recover the 450,000 owed to them Issue 2 A former employee is claiming compensation of 50,000 from Jackson Ltd for wrongful dismissal The solicitor has advised that he believe that the claim is unlikely to succeed The legal costs relating to the claim are likely to be in the region of 5,000 and will be incurred regardless of whether or not the claim is successful How much should be recognised by Jackson for year end 20X8 450,000 505,000 455,000 55,000 On 1 April 2017, AG Ltd acquires a lab equipment and receives a government grant of 25 towards the item's cost The lab equipment cost 463,000 with a useful life of four years and a residual value of 60,000 If the asset is depreciated on 40 diminishing basis of its carrying value, what is the amount of the grant that can be recognised according to IAS20 in the statement of financial position of year 2017 53,199 28,938 46,300 31,916 Sponger had the following loans in place at the beginning and end of 2015 The bank loan at 7 p a was taken in July 2015 to finance the construction of a new production hall (construction began on 1st March 2015) The bank loan at 8 p a and debenture stocks were taken for no specific purpose and Sponger used them to finance general spending and the construction of new machinery Sponger used 80,000 for the construction of the machinery on 1st February 2015 and 45,000 on 1st September 2015 According to IAS 23, how much is the borrowing cost that can be recognised A 2,750 B 6,457 17 C 5,202 87 D 7,597 38 On 1st January 2015, FF Ltd received delivery of a new machine, which was leased through a finance leasing company The terms of this lease are as follows The cost of the machine is 47,600 The rate of implicit interest in the lease is 10 per 6 month The estimated useful life of the machine is three years and FF Ltd provides depreciation on the straight line basis With reference to IAS 17, how much is the interest cost that should be recognised at 31 December 2015 A 4,760 B 3,736 C 3,260 D 3,500

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Cower Ltd. has provided the following information as at 31 December 20X7: Project A: 30,000 has been spent on the research phase of this project

Cower Ltd. has provided the following information as at 31 December 20X7:

Project A: 30,000 has been spent on the research phase of this project during the year.

Project B: 100,000 has been spent on this project, among which 20,000 incurred during this year. The project started to be capitalised in the previous year; however it has been decided to abandon this project at the end of 20X7.

Project C: 80,000 was spent on this project this year. It has been confirmed that the project meets the criteria of IAS38 and thus it is to be capitalised.

Which of the following adjustments should be made in the financial statements as at 31 December 20X7?

Reduce profit by 50,000 and increase non-current asset by 80,000
Reduce profit by 130,000 and increase non-current asset by 80,000
Reduce profit by 50,000 and increase non-currently asset by 180,000
Reduce profit by 130,000 and increase non-current asset by 180,000

Hume Ltd has a cash generating unit (CGU) that suffers a large drop in income due to reduced demand for its products. An impairment review was carried out and the recoverable amount of the CGU was determined at 100 million. The assets of the CGU has the following carrying amount immediately prior to the impairment:

good will 25m

initigable 60m

PPE 30M

Inventory 15m

trade receivable 10m

total 140m

The inventory and receivables are considered to be included at their recoverable amounts.

What is the carrying amount of the intangible assets once the impairment loss has been allocated?

On the 1^st January 20X7, Maderian Ltd. classified one of its freehold properties as held for sale. At that date the property had a carrying value of 667,000 and had been accounted for according to the revaluation model. Its fair value was estimated at 825,000 and the costs to sell at 3,000.

In accordance with IFRS5 Non-current Assets Held for Sale and Discontinued Operations, what amounts should be recognised in the financial statements for the year to 31 December 20X7?

Statement of profit or loss gain 155,000

Statement of profit or loss impairment loss 3,000

Revaluation gain nil

Statement of profit or loss gain 158,000

Statement of profit or loss impairment loss nil

Revaluation gain nil

Statement of profit or loss gain nil

Statement of profit or loss impairment loss nil

Revaluation gain 155,000

Statement of profit or loss gain nil

Statement of profit or loss impairment loss 3,000

Revaluation gain 158,000

A company leases a motor vehicle under a finance lease. The present value of minimum lease payments is 27,355 and the fair value of the vehicle is 29,000. The implicit interest rate in the lease is 10%. The terms of the lease require three annual installments to be paid of 10,000 each at the start of each year.

At the end of the first year of the lease, what amount will be shown for the finance lease obligation in the company's statement of financial position under the headings of non-current liabilities and current liabilities?

The following issues relate to Jackson Ltd. during 20X8:

Issue 1: A major receivable went into liquidation and the directors believe that they will not be able to recover the 450,000 owed to them.

Issue 2: A former employee is claiming compensation of 50,000 from Jackson Ltd. for wrongful dismissal. The solicitor has advised that he believe that the claim is unlikely to succeed. The legal costs relating to the claim are likely to be in the region of 5,000 and will be incurred regardless of whether or not the claim is successful.

How much should be recognised by Jackson for year end 20X8?

450,000
505,000
455,000
55,000
On 1 April 2017, AG Ltd. acquires a lab equipment and receives a government grant of 25% towards the item's cost. The lab equipment cost 463,000 with a useful life of four years and a residual value of 60,000. If the asset is depreciated on 40% diminishing basis of its carrying value, what is the amount of the grant that can be recognised according to IAS20 in the statement of financial position of year 2017?
53,199
28,938
46,300
31,916
Sponger had the following loans in place at the beginning and end of 2015:

The bank loan at 7% p.a. was taken in July 2015 to finance the construction of a new production hall (construction began on 1st March 2015). The bank loan at 8% p.a. and debenture stocks were taken for no specific purpose and Sponger used them to finance general spending and the construction of new machinery. Sponger used 80,000 for the construction of the machinery on 1st February 2015 and 45,000 on 1st September 2015.

According to IAS 23, how much is the borrowing cost that can be recognised?

A. 2,750

B. 6,457.17

C. 5,202.87

D. 7,597.38

On 1st January 2015, FF Ltd. received delivery of a new machine, which was leased through a finance leasing company. The terms of this lease are as follows:

The cost of the machine is 47,600. The rate of implicit interest in the lease is 10% per 6 month. The estimated useful life of the machine is three years and FF Ltd. provides depreciation on the straight line basis.

With reference to IAS 17, how much is the interest cost that should be recognised at 31 December 2015?

A. 4,760

B. 3,736

C. 3,260

D. 3,500