INSTURCTION
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SECTION B - CLICK HERE
1. Assets classified as ..... in accordance with IAS 1 Presentation of Financial Statements ....... they meet the criteria to be classified as held for sale in accordance with IFS 5.
2. Under which circumstances shall an entity classify a non-current asset as held for sale?
3. An integrated report is a concise communication about how an organization's strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term.
4. Adom Ltd acquired 70% of the GH¢ 100 million equity share capital of
Nkyira Ltd, its only subsidiary, for GH$200 million on 1 January 2019
when the retained earnings of Nkyira Ltd were GHc 156 million. At
31 December 2019 retained earnings are as follows.
|
| GHC million |
| Adom
| 275
|
| Nkyira | 177 |
Adom considers that goodwill on acquisition is impaired by 50%. Non-
controlling interest is measured at fair value, estimated at GHc 82.8
million. Calculate group retained earnings at 31 December 2019?
5. Golda Ltd acquired 75% of Livers Ltd's equity shares by means of a
share exchange and an additional amount payable on 1 January 2020
that was contingent upon the post-acquisition performance of Livers
Ltd. At the date of acquisition Golda Ltd assessed the fair value of this
contingent consideration at GHc 8.4 million but by 31 December 2020
it was clear that the amount to be paid would be only GHc 5.4 million.
How should Golda Ltd account for this GHc 3.0 million adjustments in
its financial statements as at 31 December 2020?
6. Which of these statements is not correct?
7. Which one of the following is not part of the definition of a discontinued operation?
8. Financial capital is defined in integrated reporting as manufactured physical objects (as distinct from natural physical objects) that are available to an organization for use in the production of goods or the provision of services.
9. Manufactured capital is defined as the pool of funds that is available to an organization for use in the production of goods or the provision of services; obtained through financing, such as debt, equity or grants, or generated through operations or investments.
10. Itellectual capital is the organizational, knowledge-based intangibles, including intellectual property, such as patents, copyrights, software, rights and licences: organizational capital, such as tacit knowledge, systems, procedures and protocols.
11. Which of the following stakeholders of a company get their interest/claim settled first if the company gets liquidated?
12. Which of the following situations would compel the management of a company to embark on a capital reduction/reorganisation scheme?
Use the following information to answer questions 13 and 14
Arise Ltd gave a loan of GH¢ 20,000,000 to Awake Itd on Jan. 1, 2020,
when the average price index was 550. On 31st December, 2020, the general
price index was 660.
13. What would be the value of the loan in the statement of financial
position of Arise Itd at the end of the year, 31s December, 2020?
(assuming no interest accrues).
14. What is the monetary gain or loss to be recognized in the books of Awake Ltd?
15. The method of accounting for price level changes that recognizes assets in the statement of financial position at their deprival values is the
16. Consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented
17. When accounting for a business combination any future losses or other costs expected to be incurred as a result of the combination are..
18. How should an associate be accounted for in the consolidated statement of profit or loss?
Use the following information to answer questions 19 and 20
JustJoy acquired 30% of the equity shares in Ruby on 1 January 2017 at a
cost of GH¢147,000 when the fair value of the net assets of Ruby was
GHc 350,000. JustJoy is able to exercise significant influence over Ruby.
On 31 December 2021, the net assets of Ruby were GHc 600,000. The after
tax profits for the year to 31 December 2021 were GH¢ 80,000.
19. What will be the value of the investment on 31 December 2021 to be
included in the statement of financial position of JustJoy.
20. How much profit of Ruby would be included in the statement of profit or loss at 31 December 2021?
