The following trial balance relates to Sandown at 30 September 2009:
The following notes are relevant:
(i) Sandown’s revenue includes $16 million for goods sold to Pending on 1 October 2008. The terms of the sale are that Sandown will incur ongoing service and support costs of $1·2 million per annum for three years after the sale. Sandown normally makes a gross profit of 40% on such servicing and support work. Ignore the time value of money.
(ii) Administrative expenses include an equity dividend of 4·8 cents per share paid during the year.
(iii) The 5% convertible loan note was issued for proceeds of $20 million on 1 October 2007. It has an effective interest rate of 8% due to the value of its conversion option.
(iv) During the year Sandown sold an available-for-sale investment for $11 million. At the date of sale it had a
carrying amount of $8·8 million and had originally cost $7 million. Sandown has recorded the disposal of the
investment. The remaining available-for-sale investments (the $26·5 million in the trial balance) have a fair value of $29 million at 30 September 2009. The other reserve in the trial balance represents the net increase in the value of the available-for-sale investments as at 1 October 2008. Ignore deferred tax on these transactions.
(v) The balance on current tax represents the under/over provision of the tax liability for the year ended 30 September 2008. The directors have estimated the provision for income tax for the year ended 30 September 2009 at $16·2 million. At 30 September 2009 the carrying amounts of Sandown’s net assets were $13 million in excess of their tax base. The income tax rate of Sandown is 30%.
(vi) Non-current assets:
The freehold property has a land element of $13 million. The building element is being depreciated on a
straight-line basis.
Plant and equipment is depreciated at 40% per annum using the reducing balance method.
Sandown’s brand in the trial balance relates to a product line that received bad publicity during the year which led to falling sales revenues. An impairment review was conducted on 1 April 2009 which concluded that, based on estimated future sales, the brand had a value in use of $12 million and a remaining life of only three years.
However, on the same date as the impairment review, Sandown received an offer to purchase the brand for
$15 million. Prior to the impairment review, it was being depreciated using the straight-line method over a
10-year life.
No depreciation/amortisation has yet been charged on any non-current asset for the year ended 30 September
2009. Depreciation, amortisation and impairment charges are all charged to cost of sales.
Required:
(a) Prepare the statement of comprehensive income for Sandown for the year ended 30 September 2009.
(13 marks)
(b) Prepare the statement of financial position of Sandown as at 30 September 2009. (12 marks)
Notes to the financial statements are not required.
A statement of changes in equity is not required.
第1题
第2题
Which of the following is NOT true about the silicon chips in trial?
A.They are as tiny as a grain of rice.
B.They will send out radio signals.
C.They will be developed for medical uses.
D.They function like identity cards.
第3题
Which of the following sentences is NOT tree?
A.Oral evidence is unnecessary in France because the judges and prosecutors read the records.
B.When trial by ordeal was finally abandoned throughout Europe, trial by jury was introduced in Britain.
C.In the adversarial system, it is the lawyers who play the leading roles.
D.Lawyers in Britain are prepared to lie in order to win their cases.
第4题
In analyzing a problem we should do all the following except_____.
A.recognize and define the problem
B.look for information to make the problem clearer
C.have suggestions for a possible solution
D.find a solution by trial or mistake
第5题
Which of the following is NOT true about the silicon chips in trial?
A.They are as tiny as a grain of rice.
B.They will send out radio signals.
C.They will be developed for medical uses.
D.They function like identity cards.
第6题
A.A jury trial
B.A church service
C.A political convention
D.An awards ceremony
第7题
A、freedom of speech
B、freedom to assemble
C、freedom to petition the government
D、freedom to a jury trial
第8题
A.结账后试算平衡
B.转回分录
C.过账
D.试算平衡表
第9题
A.blood type
B.blood test
C.blood trial
D.blood vessel
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