Question 1. On 1 January 20X9, a company bought an item of plant costing $100,000. It received a government grant of $30,000 towards the purchase. The plant has a 5 year useful life. Which of the following to be reported in the financial statements for the year ended 31 December 20X9 reflects the requirements of IAS 20? A depreciation charge of $14,000 and deferred income with a carrying amount of $24,000. Grant income of nil and plant with a carrying amount of $56,000. A depreciation charge of $20,000 and deferred income with a carrying amount of $30,000. Grant income of $6,000 and plant with a carrying amount of $56,000

Question 2. IFRS 8 Operating Segments suggests that reportable segments should be identified by reference to:

The nature of the legal constitution of the group

The judgement of the Board of Directors

The nature of the geographical dispersion of the group

The chief operating decision maker's review of results

Question 3. Which of the following should be accounted for as subsidiaries in the consolidated financial statements of Seabass Co?

1. Seabass Co owns 45% of Cod Co, but has a majority of seats on the Board which gives Seabass Co power over Cod Co
2. Seabass Co owns 60% of Haddock Co, and has 49% of the voting rights. The remaining 51% of the voting rights are controlled by a single shareholder.
3. Seabass Co owns 80% of the preference share capital of Sole Co which carry no voting rights

Cod Co, Haddock Co and Sole Co

Haddock Co and Sole Co only

Cod Co only

Haddock Co only

Question 4. Which one of the following does not meet the definition of investment property included within IAS 40?

Land currently held for an undetermined use

A building owned by and leased out under an operating lease

A building that is vacant but is held to be leased out

Accommodation that is rented to staff members