IGR-5 Please do not copy other answers. This is a different question. If copied from other answers I will downvote and report your account .

Q1.

Q2.

Delta prepares financial statements to 30 September each year. The following exhibits, available on the left-hand side of the screen, provide information relevant to 1. Share-based payment information on Delta's share-based payment scheme for senior executi 2. Sale of two properties information on the sale of surplus properties. 3. Sale of two business units - information on the sale of two of Delta's business units. This information should be used to answer the question requirements within your chosen response On 1 September 20X5, Delta decided to sell two properties which were surplus to requirements. Both properties were measured under the cost model. Property 1 Property 1 was available and advertised for immediate sale in its current condition. This property had a carrying amount of $50 million on 1 September 20X5. The property was being actively marketed at a realistic selling price of $60 million. The advertising agents have advised that a sale should be achievable within three months of 1 September 20X5. The agents will charge a commission of 5% of the selling price. Property 2 Property 2 required essential repair work to be undertaken on it prior to it being in a condition to be offered for sale. This work is planned for October 20X5 and is expected to cost $10 million. This property had a carrying amount of $40 million at 30 September 20X5. The selling agents have advised that once the work has been carried out, the property could realistically be sold for $45 million. The agents' commission will also be 5% of the selling price. Neither property 1 nor property 2 will be able to generate any income for Delta after 1 September 20x5, other than through sale. On 1 June 20X5 Delta sold two business units. The first unit was a business segment in its own right. Delta made a decision to withdraw from this particular business segment and concentrate on its 'core business. This segment generated post-tax profits of $5 million from 1 October 20x4 to 31 May 20X5. On 1 June 20x5, the net assets of the segment were $50 million. The sale proceeds were $54 million. The second sale was one of Delta's distribution centres as a result of a decision to rationalise the way in which Delta distributed its products. The net assets of the distribution centre were $10 million and it was sold for $12 million. The income tax rate applicable to Delta is 20%. On 1 October 20X3, Delta granted 3,000 share options to 50 senior executives. The options are due to vest on 30 September 20X6. In order to be entitled to exercise the options, the executives had to remain in employment until at least 30 September 20X6. On 1 October 20X3, Delta estimated that 10 executives would leave prior to 30 September 20X6. This estimate was confirmed when the financial statements for the year ended 30 September 20X4 were prepared. However, during the year ended 30 September 2005, the estimate of the total number of executives expected to leave before 30 September 20X6 was revised to 12. On 1 October 20X3, the fair value of a share option was $2-50. At 30 September 20X4 and 20x5, the fair value of the option was $2.00 and $2-80 respectively. On 1 April 20X5, because of disappointing financial results, Delta modified the terms of the arrangement with the senior executives by decreasing the exercise price. The results of this modification were to increase the fair value of a share option from $2-10 to $2.70. (a) Using the information in Exhibit 1, explain and compute the amounts that would be recognised by Delta in its financial statements for the year ended 30 September 20X5 and state where in the financial statements they should be presented. (b) Using the information in Exhibits 2 and 3, explain how each event would be measured and recognised in Delta's financial statements for the year ended 30 September 20X5. Omega has a herd of 300 cattle which are all six months old on 31 March 20x5 and a herd of 200 sheep which are all one year old at 31 March 20X5. The herd of cattle will be sold when the cattle are two years old. The herd of sheep is expected to be sold within the next 12 months. There are two markets available to Omega in which they could sell the cattle and the sheep, Market 1 and Market 2. Market 1 is the principal market in which cattle could be sold but Omega sells its sheep in both Market 1 and Market 2 in roughly equal proportions. Therefore, neither Market 1 nor Market 2 can be identified as the principal market in which Omega could sell sheep. Relevant market prices and relevant costs of sale at 31 March 20x5 are as follows: Market 1 Market 2 Cattle Sheep Cattle Sheep $ $ $ $ Gross selling price per animal 80 61 85 63 Transport costs per animal 4 3 5 4 Selling costs per animal 2 2 3 4