CPA FR Value Pack (Frequently Bought Together)

All of the gains and losses that affect the plan obligation and plan asset must berecognized. The components of defined benefit cost must berecognizedas follows in the statement of profit or loss and other comprehensive income except:

• A. Component: Re-measurements of the net defined benefit liability;Recognizedin: Other comprehensive income
• B. Component: Net interest on the net defined benefit liability;Recognizedin: Other comprehensive income
• C. Component: Net interest on the net defined benefit liability;Recognizedin: Profit or loss
• D. Component: Service cost;Recognizedin: Profit or loss

Worcester Ltd had a balance of $2 million as its total equity at 1 January 2012. During the year ended 31 December 2012 the company:
Revalued property with a cost of $2 million and accumulated depreciation of $1,600,000 to $1.5 million
Issued shares with a nominal value of $500,000 at a premium of $100,000
Made a profit for the year of $750,000
In accordance with IAS 1 Presentation of Financial Statements, what is the closing balance on total equity in Worcester Ltd's statement of changes in equity for the year ended 31 December 2012?

• A. $3,850,000
• B. $4,200,000
• C. $4,350,000
• D. $4,450,000

Taylor buys a machine on three months credit from France for EUR50,000 on 15 December 2012. The machine has not been paid for by Taylor's year end of 31 December 2012. The exchange rates are as follows:
DateRate
15 December 2012$1: EUR1.25
31 December 2012$1: EUR1.30
What is the journal to initially recognise the transaction?

• A. DrPayables$38,462 CrNon-current assets$38,462
• B. DrNon-current assets$38,462 CrPayables$38,462
• C. DrNon-current assets$40,000 CrPayables$40,000
• D. DrPayables$40,000 CrNon-current assets$40,000

The management of Sage Ltd is considering in liquidating the company. The following assets and liabilities as at 31 March 2013 is in company's books:
(i)Plant and machinery: It represents carrying amount of $30,000 and can berealizedfor $15,000. The Plant and machinery had an estimated useful life of 10 years and have been used in business for 4 years.
(ii)Goodwill: A professional accountant has estimated the goodwill as $12,000.
(iii) Receivables: Receivables are all trade related which amounted to $15,000. It is estimated that an allowance against receivable of $1,000 would need to be made.
(iv) Cash at bank: The bank account shows a positive balance of $5,000.
(v)Payables: Trade accounts payable amounted to $6,000.
Which ONE of the following options, under breakup basis, is the correct amount that should be stated as net assets in the statement of financial position of Sage Ltd at 31 March 2013?

• A. $40,000
• B. $42,000
• C. $28,000
• D. $46,000

BEATS plc acquired 75% of the ordinary shares in JOHN Ltd on 1 April 2012. BEATS plc has prepared a consolidated statement of financial position at 31 March 2013, which shows goodwill of $200,000 and consolidated retained earnings of $400,000. However, this consolidated statement of financial position has ignored the fair value of an item of plant held by JOHN Ltdwhich at the date of acquisition was $120,000 in excess of its carrying amount. The asset has a remaining useful life of five years.
After adjusting for the above fair value, what amounts should be shown for goodwill in BEATS plc's consolidated statement of financial position as at 31 March 2013?

• A. $110,000
• B. $120,000
• C. $200,000
• D. $80,000