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    REVISION Qs FA

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    hannah ispandi
    The document discusses various International Accounting Standards including IAS 1, IAS 16, IAS 33, IAS 37, and IAS 7. It provides details of exam questions related to events after the reporting period from IAS 10 and requires preparation of a statement of cash flows in accordance with IAS 7 using financial information provided for a company. The document also references past exam questions and tutorials to provide additional context.

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    REVISION Qs FA

    Uploaded by

    hannah ispandi
    35 views12 pages
    The document discusses various International Accounting Standards including IAS 1, IAS 16, IAS 33, IAS 37, and IAS 7. It provides details of exam questions related to events after the reporting period from IAS 10 and requires preparation of a statement of cash flows in accordance with IAS 7 using financial information provided for a company. The document also references past exam questions and tutorials to provide additional context.

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    The document discusses various International Accounting Standards including IAS 1, IAS 16, IAS 33, IAS 37, and IAS 7. It provides details of exam questions related to events after the reporting period from IAS 10 and requires preparation of a statement of cash flows in accordance with IAS 7 using financial information provided for a company. The document also references past exam questions and tutorials to provide additional context.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views12 pages

    REVISION Qs FA

    Uploaded by

    hannah ispandi
    The document discusses various International Accounting Standards including IAS 1, IAS 16, IAS 33, IAS 37, and IAS 7. It provides details of exam questions related to events after the reporting period from IAS 10 and requires preparation of a statement of cash flows in accordance with IAS 7 using financial information provided for a company. The document also references past exam questions and tutorials to provide additional context.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 12

    IAS 1 (REFER TO EXCEL)

    IAS 16
    IAS 16 & IAS 40 (dah learn tak discuss)

    QUESTION 6 (SUMMER 2018 & 2016)


    IAS 10

    IAS 10 Events After the Reporting Period prescribes relevant treatment for events that occur after
    an entity’s reporting period has ended.

    a) Explain what is meant by the term “Events After the Reporting Period.” Your answer
    must clearly distinguish between an “Adjusting event” and a Non Adjusting event and
    provide one example in each case. (5 marks)

    b) EARP Ltd is finalising its financial statements for year ended 31st December 2014 has
    identified the following issues:

    1. A smaller customer who owed EARP Ltd €45,000 as at 31st December 2014 was
    declared bankrupt on 14th January 2015. (3 Marks)

    2. On 3rd January 2015 a fire broke out in one of EARP’s warehouses destroying its
    contents. The carrying value of the warehouse and its inventory was €8.5 million
    and €4 million respectively. EARP Ltd has been notified that its insurance policy
    will only cover €6.25 million of the damages. (4 Marks)

    3. Inventory stored in another warehouse was valued at its original cost of €320,000
    in the Statement of Financial Position on 31st December 2014. On 8th January
    2015 this batch of stock was sold for €167,000. (3 Marks)

    Required:

    a) Explain the treatment of the ALL above items in the financial statements for the year
    ended 31st December 2014. (Marks as indicated)
    (Total 15 Marks)
    IAS 33
    IAS 37 (REFER PDF)
    REPORT: INTERPRETATION OF FINANCIAL STATEMENTS
    Mai – liquidity & efficiency
    Atin – solvency & shareholders

    Han – profitability & (b)


    CASH FLOW

    The following extracts are from the financial statements of HydaleryeCo. for the year ended 31
    December 2020:

    Income Statement for the year ended 31 December 2020

    €m

    Sales revenue 1,162

    Cost of Sales (766)

    Gross profit 396

    Distribution costs (67)

    Administrative expenses (120)

    Profit from operations 209

    Interest receivable 9

    Interest payable (25)

    Profit before tax 193

    Income tax expense (24)

    Profit after tax 169

    Statement of Financial Position as at:

    31 Dec 2020 31 Dec 2019

    €m €m €m €m

    Non-current assets

    Property, plant and equipment 813 544

    Intangible assets 70 35

    Investments 9 8

    892 587

    Current Assets
    Inventories 96 88

    Trade receivables 160 173

    Cash 250 124

    506 385

    Total Assets 1,398 972

    Equity

    Issued share capital (25 cent nominal value) 29 24

    Share premium 112 77

    Revaluation reserve 25 -

    Retained earnings 405 326

    571 427

    Non-current liabilities

    Loan 400 300

    Current liabilities

    Trade payables 144 111

    Bank Overdraft 237 107

    Taxation 46 27

    427 245

    Total equity and liabilities 1,398 972

    Additional information:

    (i) Profit from operations is after charging depreciation on the property, plant and equipment
    of €25 million and amortisation on the intangible fixed assets of €5 million.
    (ii) The revaluation reserve relates wholly to property, plant and equipment.
    (iii) During the year ended 31 December 2020, plant and machinery costing €500 million, and
    with accumulated depreciation of €424 million at date of disposal, was sold for €70 million.
    (iv) During the year ended 31 December 2020, 20 million 25c shares were issued at a premium
    of €1.75.
    (v) Dividends paid during the year were €90 million
    Required:

    Prepare a Statement of Cash Flow for HydaleryeCo for the year ended 31 December 2020 in compliance
    with IAS 7.

    (Total 20 marks)

    Refer to past year question and tutorial question: W1 to W4

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