aloha 2

Let’s say you need 100,000 to build a house in 8 months but you’re going to use general current borrowings to fund yourself rather than getting a specific loan. Your current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance. What borrowing costs should be capitalised?

• A.4,888

• B.10,000

In a normal CGU impairment - what gets impaired first?

• A.Goodwill

• B.PPE

Your company owns 40% of another company - You have an arrangement with another investor who owns 20% that he will vote in line with you - is that company your subsidiary?

• A.Yes

• B.No

What type of goodwill is shown in the SFP as an asset?

• .Internally generated

• Purchased

P acquires S for the following amounts: 1) Cash 400; 2) Future payment of 1,000 in 2 years time (discount rate 10%); 3) A possible future payment of 1,000 if S’s profits increase by 10% each year (FV of this is 400). How much is the investment in S (the consideration figure in the goodwill calculation)?

• 1,226

• 1,626

Is a footballer's contract an intangible asset?

• Yes

• No

What should be capitalised as the cost of this intangible asset?

• A.800

• 900

• 1000

What is the minimum requirement for the number of parts of an asset that should be identified?

• Plant has a maximum of three components

• Depends on the nature and the complexity of the asset

If an IFRS disagrees with the conceptual framework - then what should be followed?

• The IFRS

• The framework

A cash flow statement provides information that enables users to evaluate the changes in:

• Solvency

• Its liquidity

• Its financial structure

• Net assets of an undertaking