IFRS requires extensive use of fair values when recording the acquisition of a subsidiary.

IFRS requires extensive use of fair values when recording the acquisition of a subsidiary.

Which of the following comments, regarding the use of fair values on the acquisition of a subsidiary, is correct?

A.The use of fair value to record a subsidiary’s acquired assets does not comply with the historical cost principle

B.The use of fair values to record the acquisition of plant always increases consolidated post-acquisition depreciation charges compared to the corresponding charge in the subsidiary’s own financial statements

C.Cash consideration payable one year after the date of acquisition needs to be discounted to reflect its fair value

D.Patents must be included as part of goodwill because it is impossible to determine the fair value of an acquired patent, as, by definition, patents are unique


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  • 发布时间:2018-12-08
The following trial balance extract relates to a property which is owned by Veeton as at 1 April 2014:On 1 October 2014, following a sustained increase in property prices, Veeton revalued its property to $10·8 million.What will be the depreciation charge in Veeton’s statement of profit or loss for the year ended 31 March 2015?





The IASB’s Conceptual framework for financial reporting defines recognition as the process of incorporating in the financial statements an item which meets the definition of an element and satisfies certain criteria.Which of the following elements should be recognised in the financial statements of an entity in the manner described?

A.As a non-current liability: a provision for possible hurricane damage to property for a company located in an area which experiences a high incidence of hurricanes

B.In equity: irredeemable preference shares

C.As a trade receivable: an amount of $10,000 due from a customer which has been sold (factored) to a finance company with no recourse to the seller

D.In revenue: the whole of the proceeds from the sale of an item of manufactured plant which has to be maintained by the seller for three years as part of the sale agreement

Under certain circumstances, profits made on transactions between members of a group need to be eliminated from the consolidated financial statements under IFRS.Which of the following statements about intra-group profits in consolidated financial statements is/are correct?(i) The profit made by a parent on the sale of goods to a subsidiary is only realised when the subsidiary sells the goods to a third party(ii) Eliminating intra-group unrealised profits never affects non-controlling interests(iii) The profit element of goods supplied by the parent to an associate and held in year-end inventory must be eliminated in full

A.(i) only

B.(i) and (ii)

C.(ii) and (iii)

D.(iii) only

Which of the following statements about IAS 20 Accounting for Government Grants and Disclosure of Government Assistance are true?(i) A government grant related to the purchase of an asset must be deducted from the carrying amount of the asset in the statement of financial position(ii) A government grant related to the purchase of an asset should be recognised in profit or loss over the life of the asset(iii) Free marketing advice provided by a government department is excluded from the definition of government grants(iv) Any required repayment of a government grant received in an earlier reporting period is treated as prior period adjustment

A.(i) and (ii)

B.(ii) and (iii)

C.(ii) and (iv)

D.(iii) and (iv)



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