QUESTION 10 During an accounting period, a parent company sells goods to one of its subsidiaries for 200,000. This represents cost plus 25%. At the end of the accounting period, one-fifth of these goods are still held in the subsidiary's inventories. The cost of sales figures reported in the parent's and the subsidiary's financial statements are 980,000 and 520,000 respectively. The parent company owns 60% of the subsidiary's ordinary shares. The cost of sales figure that should appear in the consolidated statement of comprehensive income for the year is: O A. 1,310,000 OB. 1,228,000 OC. 1,292,000 O D. 1,308,000 QUESTION 11 Goodwill does not fall within the definition of IAS 38 Intangible Assets because: . Its fair value cannot be determined due to lack of an active market OB. It may not generate future economic benefits OC. It could not be disposed of on its own OD. It does not have a determinable useful economic life QUESTION 12 The IASB's Conceptual Framework for Financial Reporting sets out the following, except for: O A. A description of the reporting entity and its boundary OB. Concepts and guidance on presentation and disclosure OC. The regulatory framework surrounding financial reporting O D. The qualitative characteristics of financial information QUESTION 13 On 1 May 2018, Poland Ltd paid 400,000 to acquire 100% of the share capital of Super Ltd. The equity of Super Ltd on that date consisted of ordinary share capital of 200,000 and retained earnings of 80,000. All of its assets and liabilities were carried at fair value. On 30 April 2020, the retained earnings of Poland Ltd and Super Ltd are 860,000 and 105,000 respectively. Goodwill arising on consolidation has suffered an impairment loss of 30% since 1 May 2018. Group retained earnings at 30 April 2020 are: O A. 849,000 OB. 965,000 OC. 933,500 O D. 860,000