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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Analysing Financial Statements | 15% | - Ratio analysis and interpretation - Limitations of financial analysis - Impact of accounting policies |
| Topic 2: Group Accounts | 35% | - Goodwill and non-controlling interest - Consolidated financial statements - Foreign currency consolidation - Associates and joint ventures |
| Topic 3: Integrated Reporting | 10% | - Sustainability and non-financial disclosures - Integrated reporting framework |
| Topic 4: Financial Reporting Standards | 25% | - IFRS framework and application - Leases (IFRS 16) - Financial instruments (IFRS 9) - Revenue recognition (IFRS 15) |
| Topic 5: Financing Capital Projects | 15% | - Capital structure theories - Cost of capital calculations - Sources of long-term finance |
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 December 20X6. No other fair value adjustments were required at the date of acquisition.
LM and ST had retained earnings of $200 million and $80 million respectively at 31 December 20X6.
The consolidated retained earnings of LM at 31 December 20X6 were:
Correct Answer: A 🗳️
XYZ had 600,000 ordinary shares in issue on 1 July 20X4. On 1 January 20X5, the entity made a 1 for 2 bonus issue. The profit attributable to ordinary shareholders for the year ended 30 June 20X5 was
$2,925,000.
What is the basic earnings per share for the year ended 30 June 20X5?
Correct Answer: D 🗳️
Which of the following principles are the basic principles followed by the consolidated income statement?
Select ALL that apply.
Correct Answer: B,D,E 🗳️
Operating segments are separately reportable where they exceed 15% of revenue / profits / assets.
These must in total cover 80% of total revenue. Is this statement true or false?
Correct Answer: B 🗳️
On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4 JK issued 600,000 ordinary shares at the market value of $2.50 a share. For the financial year ended 31 December 20X4 the statement of profit or loss shows profit before tax of $625,000 and profit after tax of $500,000.
What is the earnings per share for the year ended 31 December 20X4?
Correct Answer: A 🗳️
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