Which of the following would be capitalized as an intangible asset in accordance with IAS 38 Intangible Assets?
On 1 January 20X6 PQR leases equipment for 3 years to use on a construction project. The total lease payments are $360,000 divided into 36 monthly instalments of $10,000 On 1 January 20X6 the present value of the lease payments is $270,000 and initial direct costs of $3,000 were incurred.
Which THREE of the following statements are true?
XYZ's accounting profit for the last reporting period is $200,000. This is after deduction of:
• Accounting depreciation of $40,000.
• Entertaining expenses of $10,000 which are disallowable for tax purposes
• Directors' salaries of 530.000
Tax depreciation allowances of $60,000 are available and the rate of corporate income tax is 20%.
What is the corporate tax liability of XYZ for the reporting period?
Which of the following is NOT a principle in the CIMA Code of Ethics for Professional Accountants?
Country Q has the following rules in respect of capital tax on the disposal of assets:
*Capital gains are subject to tax at 25%.
*Capital losses can only be carried forward and offset against future capital gains.
The following data relates to ABC:
How much capital tax will be payable on the capital gain recorded in 20X3?
Give your answer to the nearest $.
At 31 December 20X4 the directors of MNO decide to revalue its property. Before revaluation adjustments the balances relating to property are as follows:
The property has been revalued at $1,600,000.
How much will be included within MNO's statement of financial position at 31 December 20X4 for revaluation surplus?
Select THREE actions that should be taken by a business offering credit to its customers to ensure that amounts owing are collected as quickly as possible.
Which of the following is NOT a responsibility of the International Accounting Standards Board?
Statements of financial position for YZ, BC and DE at 31 March 20X2 include the following balances:
YZ purchased 90% of BC's equity shares for $508,000 on 1 January 20X2. On 1 January 20X2 BC's retained earnings were $183,000. YZ uses the proportion of net assets method to value non-controlling interest at acquisition.
YZ purchased 30% of DE's equity shares on 1 April 20X1 for $112,000. DE's retained earnings at 1 April 20X1 were $88,000.
On 1 February 20X2 YZ sold goods to BC for $28,000 at a mark up of 25% on cost. All the goods were still in BC's inventory at 31 March 20X2.
Calculate the value of the investment in associate to be recognised in the consolidated statement of financial position at 31 March 20X2.
Give your answer to nearest whole $.
TESTED 22 Feb 2025
