IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) - Snapshot

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Practice Questions: IAS 36 (Impairment of Assets)

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Example # 1 A company owns a car that was involved in an accident at the year end. It is barelyuseable, so the value in use is estimated at $1,000. However, the car is a classic and thereis a demand for the parts. This results in a fair value less costs to sell of $3,000. The opening carrying value was $8,000 and the car was estimated to have a life of eight years from the start of the year. Required : Identify the recoverable amount of the car and any impairment required.                                                           Example # 2 An entity owns a property which was originally purchased for $300,000. The property has been revalued to $500,000 with the revaluation of $200,000 being...
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Practice Questions: IAS 23 (Borrowing Costs)

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Example # 1 ADAMs has arranged a loan with Swedbank, to enable him to build a football stadium in Vilnius. He will be allowed to borrow up to $300,000,000 to be used in such amounts and at such times as he requires the funds. The bank charges interest at the rate of 7% per annum and ADAMs is able to invest any surplus funds at the rate of 5% per annum. He borrowed $100,000,000 on 1 January 2008 and immediately invested $50,000,000. On 28 Feb he withdrew $30,000,000 from the funds invested. On 1 April, he borrowed a further $120,000,000 of which he invested $70,000,000. On 31 May he spent $60,000,000 out of the funds invested. On 31 August he borrowed a further $80,000,000, spent $20,000,000 immediately and invested the remainder. On 1 November work was stopped because of a strike by the workforce. The work recommenced on 1 January 2009 and ADAMs closed all investment accounts and   spent the rest of the loan in completing the project which was ready for final inspection b...
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Practice Questions: IAS 7 (Statement of Cashflows)

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                                                                      Example # 1 The following information has been extracted from the financial statements of Trango Limited for the year ended 31 December 2015. Statement of comprehensive income for the year ended 31 December 2015                                Rs. Sales                                                                     ...
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