INJ-5 This is a different question. Please do not Plagiarize. 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 t 1. Share-based payment information on Delta's share-based payment scheme for senior executiv 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 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. 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%. (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. Q1 Alpha, a parent with one subsidiary, Beta, is preparing the consolidated statement of financial position as at 30 September 20X5. The following exhibits, available on the left-hand side of the screen, provide information relevant to the question: 1. Financial statement extracts - statements of financial position (SOFP) of Alpha and Beta at 30 September 20X5. 2. Alpha's investment in Beta - details of Alpha's investment in Beta which are relevant to the question. 3. Intra-group trading - details of intra-group trading. 4. Impairment review - details of Alpha's impairment review of the investment in Beta including goodwill. 5. Retirement plan - details of Alpha's defined benefit retirement plan. This information should be used to answer the question requirement within the response option provided. Alnhs $ 000 Batal S'000 Assets Non-current assets Frocent and Covement en Investments in Gout, instruments Exhbits and 4 250.000 110.000 TO Current assets Inventores Exhibit 3 Fraresecev Cash and cash equivalents 80.000 55.000 20010 Total assets 30.000 Equity and liabilities Share capital 31 shares Retained earnings Other comments of Total equity 160.000 190.000 ARRA SARA 2018 Non-current abilities Long-tam bomo 00.000 20.000 50.000 Personen Fit Total non-current liabilities San Current liabilities Trade and operaties Penis Totalrent liabilities 70.000 20009 100.000 30.000 20 0001 Total liabilities 280.00 100.000 AAN TOlar currer Hannes Total liabilities Total equity and liabilities 260.000 220.000 100.00 210.000 On 1 October 20X4, Alpha acquired 60 million shares in Beta and gained control of Beta. Alpha made a cash payment of $175 million to the former shareholders of Beta on 1 October 20X4. Alpha incurred acquisition costs of $5 million and has presented the total costs of $180 million as investments in equity instruments. A condition of the purchase agreement was that Alpha would make a further cash payment to the former shareholders of Beta on 30 September 20X7. The amount of this further cash payment depends on the performance of Beta in the three-year period from 1 October 20X4 to 30 September 20X7. On 1 October 20X4, the fair value of this conditional payment was $60 million. Because the performance of Beta in the year ended 30 September 20X5 was below expectations, the fair value of the conditional payment had reduced to $50 million by 30 September 20X5. Alpha has not made any entries in its own financial statements in respect of this conditional payment. On 1 October 20X4, Beta had retained earnings of $80 million and other components of equity of $45 million. On 1 October 20X4, the fair values of Beta's identifiable assets and liabilities were the same as their carrying amounts in the individual financial statements of Beta with the exception of property, plant and equipment which had a carrying amount of $150 million and a fair value of $205 million. On 1 October 20X4, the useful life of this property, plant and equipment was five years. The fair value adjustments should be regarded as temporary differences for the purposes of computing deferred tax. The relevant rate of income tax to use for this purpose is 20%. The directors of Alpha measured the non-controlling interest in Beta at its fair value at the date of acquisition. On 1 October 20X4, the fair value of the non-controlling interest was $65 million. Since 1 October 20X4, Beta has been supplying Alpha with a product. Beta earns a margin of 25% on this product. On 30 September 20X5, the inventories of Alpha included $20 million in respect of the product. There were no outstanding intra-group balances at 30 September 20X5. Alpha undertook an impairment review of its investment in Beta at 30 September 20X5. Beta comprises three cash generating units for impairment review purposes. Relevant details are as follows: Cash generating Percentage of net Recoverable amount of CGU unit (CGU) assets and goodwill at 30 September 20X5 % $'000 A 40 100,000 B 35 110,000 25 80,000 Alnha has established a defined benefit retirement plan for its current and former emplovees Alpha has established a defined benefit retirement plan for its current and former employees. Beta has not established such a plan. The statement of financial position of Alpha in Exhibit 1 shows the net defined benefit pension liability at 30 September 20X4. During the year ended 30 September 20X5, Alpha made a payment of $30 million to the plan. When making this payment, Alpha debited retained earnings and credited cash. This is the only accounting entry which has been made in relation to the plan for the year to 30 September 20X5. The current service cost for the year ended 30 September 20X5 was $25 million. The net interest cost on the pension liability for the vear ended 30 September 20X5 was $2.5 million