PLO-5 Do not Plagiarize.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 execu 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 respons 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 20X5, 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 ow right. Delta made a decision to withdraw from this particular business segment and concentrat on its 'core business. This segment generated post-tax profits of $5 million from 1 Octobe 20x4 to 31 May 20X5. On 1 June 20X5, the net assets of the segment were $50 million. The sal proceeds were $54 million. The second sale was one of Delta's distribution centres as a result of a decision to rationalis the way in which Delta distributed its products. The net assets of the distribution centre wer $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. Provide answers to the queries raised in Exhibits 1 - 3 relating to the consolidated financial statements for the year ended 30 September 20X5. These financial statements were authorised for issue on 15 November 20X5. purchased some land for $15 million. Delta uses the revaluation model to measure land in its financial statements. On 31 March 20X5, Delta estimated that t value of the land was $18 million and this amount was recognised in Delta's financial statements. Under tax legislation in the country in which Delta is located, gai on the value of land are not taxable unless or until the land is sold. Delta has no intention of disposing of this land in the foreseeable future. The rate of corporate income tax in the country in which Delta is located is per annum. The directors of Delta anticipate that Delta will make taxable profits for the foreseeable future. De had no temporary differences at 31 March 20X4. (12 marks) Note 2 - Agricultural activity Delta is a farming entity specialising in milk production. Cows are milke a daily basis. Milk is kept in cold storage immediately after milking and sold to retail distributors on a weekly basis. On 1 April 20X4, Delta had a herd of 500 cows which were all three years old. During the year, some the cows became sick and on 30 September 20X4 20 cows died. On 1 October 20X4, Delta purchased 20 replacement cows at the market for $210 each. These Cows were all one year old when they were purchased 31 March 20X5, Delta had 1,000 litres of milk in cold storage which had not been sold to retail distributors. market price of milk at 31 March 20X5 was $2 per litre When selling the milk to distributors, Delta incurs selli costs of 10 cents per litre. These amounts did not cha during March 20X5 and are not expected to change during April 20X5. Information relating to fair value an costs to sell is given below: Date Fair value of a dairy which is: Costs to sell a cow at market 1 year old 112 years old 3 years old 4 years old $ $ $ $ $ 1 April 20X4 200 220 270 250 10 1 October 20X4 210 230 280 260 31 March 2005 215 235 290 265 11 (13 marks) 7 (P.T. Required: Using the information in notes 1 and 2, expl with appropriate computations, how Delta should repo these transactions in the financial statements for the ended 31 March 20X5. 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 execu 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 respons 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 20X5, 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 ow right. Delta made a decision to withdraw from this particular business segment and concentrat on its 'core business. This segment generated post-tax profits of $5 million from 1 Octobe 20x4 to 31 May 20X5. On 1 June 20X5, the net assets of the segment were $50 million. The sal proceeds were $54 million. The second sale was one of Delta's distribution centres as a result of a decision to rationalis the way in which Delta distributed its products. The net assets of the distribution centre wer $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. Provide answers to the queries raised in Exhibits 1 - 3 relating to the consolidated financial statements for the year ended 30 September 20X5. These financial statements were authorised for issue on 15 November 20X5. purchased some land for $15 million. Delta uses the revaluation model to measure land in its financial statements. On 31 March 20X5, Delta estimated that t value of the land was $18 million and this amount was recognised in Delta's financial statements. Under tax legislation in the country in which Delta is located, gai on the value of land are not taxable unless or until the land is sold. Delta has no intention of disposing of this land in the foreseeable future. The rate of corporate income tax in the country in which Delta is located is per annum. The directors of Delta anticipate that Delta will make taxable profits for the foreseeable future. De had no temporary differences at 31 March 20X4. (12 marks) Note 2 - Agricultural activity Delta is a farming entity specialising in milk production. Cows are milke a daily basis. Milk is kept in cold storage immediately after milking and sold to retail distributors on a weekly basis. On 1 April 20X4, Delta had a herd of 500 cows which were all three years old. During the year, some the cows became sick and on 30 September 20X4 20 cows died. On 1 October 20X4, Delta purchased 20 replacement cows at the market for $210 each. These Cows were all one year old when they were purchased 31 March 20X5, Delta had 1,000 litres of milk in cold storage which had not been sold to retail distributors. market price of milk at 31 March 20X5 was $2 per litre When selling the milk to distributors, Delta incurs selli costs of 10 cents per litre. These amounts did not cha during March 20X5 and are not expected to change during April 20X5. Information relating to fair value an costs to sell is given below: Date Fair value of a dairy which is: Costs to sell a cow at market 1 year old 112 years old 3 years old 4 years old $ $ $ $ $ 1 April 20X4 200 220 270 250 10 1 October 20X4 210 230 280 260 31 March 2005 215 235 290 265 11 (13 marks) 7 (P.T. Required: Using the information in notes 1 and 2, expl with appropriate computations, how Delta should repo these transactions in the financial statements for the ended 31 March 20X5