The newest 20 of 31 written questions. Open one to see it on the real paper.
State one reason why a business should treat some research and development costs as revenue expenditure.
See it on the paper →Name two items, other than research and development expenditure, which might be included in a statement of financial position as an intangible asset. 1 The statements of financial position of the company recorded the following values. at 31 December 2024 2023 $ $ Non-current assets at carrying value Premises 304 000 Ma...
See it on the paper →State the conditions of recognising a provision in the financial statements in accordance with IAS 37.
See it on the paper →Explain what is meant by the term ‘recoverable amount’ when undertaking impairment reviews.
See it on the paper →State two reasons why the company should continue undertaking impairment reviews.
See it on the paper →Explain why M Limited made a prior period adjustment in information 2. Support your answer by stating the relevant International Accounting Standard and the accounting treatment.
See it on the paper →Calculate the profit for the year ended 31 December 2022.
See it on the paper →Prepare a statement of cash flows for the year ended 31 December 2022 in accordance with IAS 7. Workings:
See it on the paper →information 4 (support your answer with calculations)
See it on the paper →information 5.
See it on the paper →Explain the meaning of 8% debentures (2025–2026). Additional information The directors of R Limited provided the following information at 1 October 2021. $000 Building at valuation 120 Retained earnings 315 Revaluation reserve 40 Share capital (ordinary shares of $0.50 each) 1 200 Share premium 145 The following transa...
See it on the paper →State when an intangible asset can be recognised in accordance with IAS 38. Additional information All three companies had ordinary share capital of $400 000. It is the policy of the companies to charge a full year’s amortisation (depreciation) on any intangible asset. Information relating to one ordinary share was as...
See it on the paper →State two other matters which might be covered in the directors’ report of AB plc.
See it on the paper →Explain the correct accounting treatments of the claim and the legal cost in item 3 with reference to the relevant international accounting standard (IAS).
See it on the paper →events after the reporting period
See it on the paper →adjusting events
See it on the paper →non-adjusting events.
See it on the paper →item 3
See it on the paper →item 4. Additional information Equity of AB plc at 31 December 2020 was as follows: Ordinary share capital ($1 shares) Share premium Revaluation reserve Retained earnings $ 500 000 86 000 72 000 192 000 850 000 During the year ended 31 December 2021, the following transactions took place. 1 On 1 February, the final div...
See it on the paper →Explain the correct accounting treatments of the claim and the legal cost in item 3 with reference to the relevant international accounting standard (IAS).
See it on the paper →This question was not well answered. A limited number of candidates identified the relevant standard but very few calculated the depreciation that should have been charged or stated that there was a change in accounting policy.
— Examiner report, May/June 2023, 9706/32 Q2(a) (Cambridge)
This question was also not answered well with hardly any candidate adding the prior period adjustment. Although many candidates knew that the final and interim dividends had to be added back, relatively few calculated these dividends correctly.
— Examiner report, May/June 2023, 9706/32 Q2(b) (Cambridge)
The statement of cash flows was prepared to a reasonable standard. Presentation and layout were generally good with most candidates demonstrating their knowledge of IAS7 and placing the entries in the correct section. Very few candidates derived the correct profit from operations, many omitted the purchase of the machine and few obtained the marks for the increase in cash and the cash balance at t...
— Examiner report, May/June 2023, 9706/32 Q2(c) (Cambridge)
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