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F2 – Advanced Financial Reporting

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Showing 10–12 of 15 questions

Question 10

What figure will be presented in GHI's consolidated statement of changes in equity for the year ended 31 December 20X4, in respect of dividends paid to non-controlling interest?

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    $25,000
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    $125,000
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    $100,000
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    $0
Question 11

LM granted 100 share options to each of its 400 employees on 1 January 20X7. The options will only vest if employees remain with LM for 3 years from the grant date. The fair value of each share option was $5 on 1 January 20X7.

20 employees left in the year to 31 December 20X7 and at that date it was estimated that a further 35 would leave over the following two years.

Which of the following journal entries did LM process to account for the share options in the year to 31 December 20X7, in accordance with IFRS2 Share-based Payments?

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    Dr Profit or loss $57,500 ; Cr Other reserves within equity $57,500
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    Dr Profit or loss $57,500 ; Cr Liabilities $57,500
  • ○

    Dr Profit or loss $172,500 ; Cr Other reserves within equity $172,500
  • ○

    Dr Profit or loss $172,500 ; Cr Liabilities $172,500
Question 12

AB sold the majority of its operating equipment to LM for cash on 30 December 20X9 and then immediately leased it back under an operating lease.

AB used the cash proceeds from the sale to reduce its long term borrowings significantly. No early repayment charge was levied by the lender.

Which of the following statements is true in respect of AB's ratios calculated at 31 December 20X9?

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    AB's return on capital employed would be lower as a result of this sale being recorded.
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    AB's current ratio would be lower as a result of this sale being recorded.
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    AB's non-current asset turnover would be lower as a result of this sale being recorded.
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    AB's gearing ratio would be lower as a result of this sale being recorded.