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Which of the following statements is true in respect of AB's ratios calculated at 31 December 20X9?
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....
What is the weighted average cost of capital of ST?
CORRECT TEXT The capital structure of ST issummarised in the table below: What is the weighted average cost of capital of ST? Give your answer as a percentage to one decimal place. ? %View AnswerAnswer: 12.7, 12.67, 12.6
Which THREE of the following describe how the cost of the reinstatement of the site should be treated in the financial statements of EF in the year ended 31 December 20X8?
EF obtained a government licence, free of charge, to operate a silver mine in 20X7 and $5 million was spent on preparing the site. The mine commenced operation on 1 January 20X8. The licence requires that at the end of the mine's useful life of 20 years, the site above...
Which of the following identifies the correct classification and subsequent measurement basis for this financial instrument?
XY purchased $100,000 of quoted 8% bonds in the current year which it intends to hold until redemption. Which of the following identifies the correct classification and subsequent measurement basis for this financial instrument?A . A loans and receivables financial asset subsequently measured at fair value with gains and losses...
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CORRECT TEXT F has profit before interest and tax of $400,000 for the year to 30 June 20X4. Extracts from F's statement of financial position at 30 June 20X4 are as follows: Calculate the gearing (debt:equity) ratio at 30 June 20X4. Give your answer to the nearest whole percentage. ?...
LM acquired 80% of the equity shares of ST when ST's retained earnings were $50 million.
LM acquired 80% of the equity shares of ST when ST's retained earnings were $50 million. The fair value of the net assets of ST included a contingent liability with a fair value of $100 million at the date of acquisition and a fair value of $40 million at 31...
Which TWO of the following are TRUE in respect of preparing a consolidated statement of cash flows where there has been an acquisition of a subsidiary part way through the year?
Which TWO of the following are TRUE in respect of preparing a consolidated statement of cash flows where there has been an acquisition of a subsidiary part way through the year?A . Investing activities will include a total cash outflow for the acquisition comprising the cash paid for the subsidiary...
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CORRECT TEXT Information extracted from JK's statement of financial position for the year ended 31 May 20X5 is as follows: Calculate the gearing ratio (Debt/Equity measured as a percentage) at 31 May 20X5. Give your answer to one decimal place. ? %View AnswerAnswer: 58.4, 58, 58.44, 59, 58.5, 58.0
How would KL account for its investment in MN in its consolidated financial statements for the year to 31 December 20X9?
How would KL account for its investment in MN in its consolidated financial statements for the year to 31 December 20X9?A . Joint ventureB . Joint arrangementC . Financial assetD . SubsidiaryView AnswerAnswer: A
Which of the following is NOT an example of an unconsolidated structured entity as defined in IFRS12 Disclosure of Interests in Other Entities?
Which of the following is NOT an example of an unconsolidated structured entity as defined in IFRS12 Disclosure of Interests in Other Entities?A . A post-employment benefit planB . A securitisation vehicleC . An asset-backed financing schemeD . An investment fundView AnswerAnswer: A
