Tag (SQ): Impairment

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FR – L2 – Q97 – Business Combinations

Prepare Peak Plc's consolidated statement of financial position as at 31 March 20X4, incorporating acquisitions of Flare Plc and Crest Ltd, with adjustments for intra-group transactions and fair value.

Question

Peak Plc acquired the following non-current investments on 1 April 20X3:
(1) 4 million of Flare Plc’s 5 million equity shares, by means of an exchange of one share in Peak for every one share in Flare Plc, plus GH¢6.05 million in cash for each Flare Plc share acquired. The professional fees associated with the acquisition amounted to GH¢1 million. The market price of shares in Peak Plc at the date of the acquisition was GH¢9 per share. The market price of Flare Plc shares just before the acquisition was GH¢7. The cash part of the consideration is deferred and will not be paid until two years after the acquisition.
(2) 25% of Crest Ltd’s 6 million equity shares, at a cost of GH¢6 per share. The money to make this payment was obtained by issuing one million new shares in Peak Plc at GH¢9 per share.

None of these transactions has yet been recorded in the summary statements of financial position that are shown below.

The summarised draft statements of financial position of the three companies at 31 March 20X4 are as follows:

Statement of financial position	Peak Plc	Flare Plc	Crest Ltd
	GH¢ million	GH¢ million	GH¢ million
Assets
Non-current assets
Property, plant and equipment	60.0	31.0	16.0
Other equity investments	0.8	nil	nil
	60.8	31.0	16.0
Current assets	18.2	8.0	9.0
Total assets	79.0	39.0	25.0
Equity and liabilities
Equity shares	18.0	9.0	10.0
Retained earnings: at 1 April 20X3	36.0	16.0	8.0
– for year ended 31 March 20X4	8.0	3.0	2.0
	62.0	28.0	20.0
Non-current liabilities
6% loan notes	10.0	–	–
7% loan notes	–	6.0	3.0
Current liabilities	7.0	5.0	2.0
Total equity and liabilities	79.0	39.0	25.0

The following information is relevant:
(1) Peak Plc has chosen to value the non-controlling interest in Flare Plc using the fair value method permitted by IFRS 3 (revised). The fair value of the non-controlling interests at the acquisition date is estimated to be the market value of the shares before the acquisition.
(2) At the date of acquisition of Flare Plc, the fair values of its assets were equal to their carrying amounts.
(3) The cost of capital of Peak Plc is 10% per year.
(4) During the year ended 31 March 20X4, Flare Plc sold goods to Peak Plc for GH¢3.6 million, at a mark-up of 50% on cost. Peak Plc had 75% of the goods in its inventory at 31 March 20X4.
(5) There were no intra-group receivables and payables at 31 March 20X4.
(6) On 1 April 20X3, Peak Plc sold a group of machines to Flare Plc at their agreed fair value of GH¢3 million. At the time of the sale, the carrying amount of the machines was GH¢2 million. The estimated remaining useful life of the plant at the date of the sale was four years. Plant and machinery is depreciated to a residual value of nil using straight-line depreciation and at 1 April 20X3 the machines had an estimated remaining life of five years.
(7) “Other equity investments” are included in the summary statement of financial position of Peak Plc at their fair value on 1 April 20X3. Their fair value at 31 March 20X4 is GH¢0.65 million.
(8) Impairment tests were carried out on 31 March 20X4. These show that there is no impairment of the value of the investment in Crest Ltd or in the consolidated goodwill.
(9) No dividends were paid during the year by any of the three companies.

Required
Prepare the consolidated statement of financial position for Peak Plc as at 31 March 20X4.

Answer

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Tags: Associates, Business Combinations, Consolidated Financial Statements, Deferred Consideration, Equity Accounting, Fair Value, Goodwill, Impairment, Intra-group Transactions, Non-controlling Interest

Topic: Business Combinations (IFRS 3)

FR – L2 – Q94 – Associates and Joint Ventures

Prepare entries for Portico Ltd's 30% holding in Armand Ltd in the Year 5 consolidated financial statements, including financial position and profit or loss.

Question

Portico Ltd acquired 30% of the equity shares in Armand Ltd (which satisfies the definition of associate) during Year 1 at a cost of GH₵350,000 when the fair value of the net assets of Armand Ltd was GH₵250,000. Since that time, the investment in Armand Ltd has been impaired by GH₵4,000.
On 31 December Year 5, the net assets of Armand Ltd were GH₵400,000. Since the date of acquisition, there have been no changes in the share capital of Armand Ltd or in any reserves other than retained earnings.
In the year to 31 December Year 5, the profits of Armand Ltd after tax were GH₵50,000.

Required
Show how the holding in Armand Ltd would be reflected in the Year 5 consolidated statement of financial position and consolidated statement of profit or loss.

Answer

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Tags: Associates, Consolidated Financial Statements, Equity Accounting, Financial Position, Impairment, Investment in Associate, Profit or Loss, Unrealised Profit
Level: Level 2

Topic: Consolidated Financial Statements (IFRS 10)

FR – L2 – Q92 – Consolidated Financial Statements

Prepare consolidated financial statements for Henks Plc, including profit or loss, changes in equity, and financial position for 20X4.

Question

HENKS PLC

Statements of financial position as at 31 December 20X4

	Henks Plc GH₵000	Streen Ltd GH₵000	Scote Ltd GH₵000
Non-current assets
Property, plant and equipment	32,000	25,000	20,000
Investments	33,500	–	–
	65,500	25,000	20,000
Current assets
Cash at bank and in hand	9,500	2,000	4,000
Trade receivables	20,000	8,000	17,000
Inventory	30,000	18,000	18,000
	59,500	28,000	39,000
	125,000	53,000	59,000
Share capital	46,500	10,000	15,000
Retained earnings	55,000	37,000	27,000
	101,500	47,000	42,000
Current liabilities	23,500	6,000	17,000
	125,000	53,000	59,000

Statement of profit or loss for the year ended 31 December 20X4

	Henks Plc GH₵000	Streen Ltd GH₵000	Scote Ltd GH₵000
Revenue	125,000	117,000	82,000
Cost of sales	(65,000)	(64,000)	(42,000)
Gross profit	60,000	53,000	40,000
Distribution and administrative costs	(35,000)	(22,000)	(23,000)
Profit before taxation	25,000	31,000	17,000
Income tax expense	(10,000)	(9,000)	(5,000)
Profit after tax	15,000	22,000	12,000

Statement of changes in equity (extract) for the year ending 31 December 20X4

	Henks Plc GH₵000	Streen Ltd GH₵000	Scote Ltd GH₵000
Retained earnings brought forward	40,000	15,000	15,000
Retained profit for the financial year	15,000	22,000	12,000
Dividends	–	–	–
Retained earnings carried forward	55,000	37,000	27,000

You are given the following additional information.
(1) Henks Plc owns 80% of Streen Ltd’s shares. These were purchased in 20X1 for GH₵20.5 million cash, when the balance on Streen Ltd’s retained earnings stood at GH₵7 million.
(2) Five years ago, Henks Plc purchased 60% of the shares of Scote Ltd by the issue of shares with a market value of GH₵13 million. At that date, the retained earnings of Scote Ltd stood at GH₵3 million and the fair value of the net assets of Scote Ltd was GH₵24 million. It was agreed that any undervaluation of the net assets should be attributed to land. This land was still held at 31 December 20X4.
(3) Included in the inventory of Scote Ltd and Streen Ltd at 31 December 20X4 are goods purchased from Henks Plc for GH₵5.2 million and GH₵3.9 million, respectively. Henks Plc aims to earn a profit of 30% on cost. Total sales from Henks Plc to Scote Ltd and to Streen Ltd were GH₵8 million and GH₵6 million, respectively.
(4) Henks Plc and Streen Ltd each proposed a dividend before the year end of GH₵2 million and GH₵2.5 million, respectively. No accounting entries have yet been made for these.
(5) Henks Plc has conducted annual impairment tests on goodwill in accordance with IFRS 3 and IAS 36. The estimated recoverable amount of goodwill at 31 December 20X1 was GH₵5 million and at 31 December 20X4 was GH₵4.5 million.

Required
Prepare the consolidated statement of profit or loss and consolidated statement of changes in equity for the year ended 31 December 20X4 and the consolidated statement of financial position at that date.

Answer

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Tags: Consolidation, Dividends, Financial Statements, Goodwill, Impairment, Intra-group Transactions, Non-controlling Interest, Profit or Loss, Retained Earnings, Statement of Financial Position
Level: Level 2

Topic: Dividends

FR – L2 – Q86 – Business Combinations

Prepare Drobo Ltd's consolidated statement of financial position as at 31 March 20X4, incorporating fair value adjustments, intra-group transactions, and goodwill impairment.

Question

On 1 April 20X3, Draco Limited acquired 90% of the equity shares in Aboro Limited. On the same day Draco Limited accepted a 10% loan note from Aboro Limited for GH₵200,000 which was repayable at GH₵40,000 per annum (on 31 March each year) over the next five years. Aboro Limited’s retained earnings at the date of acquisition were GH₵2,200,000.

Statements of financial position as at 31 March 20X4

	Draco Limited		Aboro Limited
	GH₵000	GH₵000	GH₵000	GH₵000
Non-current assets
Property, plant and equipment		2,120		1,990
Intangible – software		–		1,800
Investments – equity in Aboro Limited		4,110		–
Investments – 10% loan note Aboro Limited		200
Investments – others		65		210
		6,495		4,000
Current assets
Inventories	719		560
Trade receivables	524		328
Aboro Limited current account	75
Cash	20
		1,338		888
Total assets		7,833		4,888
Equity and liabilities:
Capital and reserves
Equity shares of GH₵1 each	4,000		2,000
Retained earnings	2,900		1,955
		6,900		3,955
Non-current liabilities
10% Loan note from Draco Limited			160
Government grant			230
				390
Current liabilities
Trade payables	475		472
Draco Limited current account			60
Income taxes payable	228		174
Operating overdraft	27
		730		706
Total equity and liabilities		7,833		4,888

The following information is relevant
(i) Included in Aboro Limited’s property at the date of acquisition was a leased property recorded at its depreciated historical cost of GH₵400,000. The property had been sub-let for its remaining life of only four years at an annual rental of GH₵80,000 payable in advance on 1 April each year. The directors of Draco Limited are of the opinion that the fair value of this property is best reflected by the present value of its future cash flows. An appropriate cost of capital for the group is 10% per annum.
The present value of a GH₵1 annuity received at the end of each year where interest rates are 10% can be taken as:
3 year annuity GH₵2.50
4 year annuity GH₵3.20

(ii) The software of Aboro Limited represents the depreciated cost of the development of an integrated business accounting package. It was completed at a capitalised cost of GH₵2,400,000 and went on sale on 1 April 20X2. Aboro Limited’s directors are depreciating the software on a straight-line basis over an eight-year life (i.e. GH₵300,000 per annum). However, the directors of Draco Limited are of the opinion that a five-year life would be more appropriate as sales of business software rarely exceed this period.

(iii) The inventory of Draco Limited on 31 March 20X4 contains goods at a transfer price of GH₵25,000 that were supplied by Aboro Limited who had marked them up with a profit of 25% on cost. Unrealised profits are adjusted for against the profit of the company that made them.

(iv) On 31 March 20X4 Aboro Limited remitted to Draco Limited a cash payment of GH₵55,000. This was not received by Draco Limited until early April. It was made up of an annual repayment of the 10% loan note of GH₵40,000 (the interest had already been paid) and GH₵15,000 of the current account balance.

(v) The accounting policy of Draco Limited for non-controlling interests (NCI) in a subsidiary is to value NCI at a proportionate share of the net assets.

(vi) An impairment test at 31 March 20X4 on the consolidated goodwill concluded that it should be written down by GH₵120,000. No other assets were impaired.

Required
Prepare the consolidated statement of financial position of Draco Limited as at 31 March 20X4.

Answer

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Topic: Business Combinations (IFRS 3)

FR – L2 – Q47 – Provisions and Contingencies

Advise on accounting for an insurance claim with a debit balance and potential additional payment.

Question

ACCOUNTING TREATMENT
You have been asked to advise on the appropriate accounting treatment for the following situations arising in the books of various companies. The year end in each case can be taken as 31 December 20X4 and you should assume that the amounts involved are material in each case.
(a) At the year-end there was a debit balance in the books of a company for GH¢15,000, representing an estimate of the amount receivable from an insurance company for an accident claim. In February 20X5, before the directors had agreed the final draft of the published accounts, correspondence with lawyers indicated that GH¢18,600 might be payable on certain conditions.
(b) A company has an item of equipment which cost GH¢400,000 in 20W8 and was expected to last for ten years. At the beginning of the 20X4 financial year the book value was GH¢280,000. It is now thought that the company will soon cease to make the product for which the equipment was specifically purchased. Its recoverable amount is only GH¢80,000 at 31 December 20X4.
(c) On 30 November, a company entered into a legal action defending a claim for supplying faulty machinery. The company’s solicitors advise that there is a 20% probability that the claim will succeed. The amount of the claim is GH¢500,000.
(d) An item has been produced at a manufacturing cost of GH¢1,800 against a customer’s order at an agreed price of GH¢2,300. The item was in inventory at the year-end awaiting delivery instructions. In January 20X5 the customer was declared bankrupt and the most reasonable course of action seems to be to make a modification to the unit, costing approximately GH¢300, which is expected to make it marketable with other customers at a price of about GH¢1,900.
(e) At 31 December, a company has a total potential liability of GH¢1,000,400 for warranty work on contracts. Past experience shows that 10% of these costs are likely to be incurred, that 30% may be incurred but that the remaining 60% is highly unlikely to be incurred.

Required
For each of the above situations outline the accounting treatment you would recommend and give the reasoning of principles involved. The accounting treatment should refer to entries in the books and/or the year-end financial statements as appropriate.

Answer

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Tags: Contingent Liabilities, Financial Statements, IAS 16, IAS 2, IAS 37, Impairment, Inventories, Legal Claims, Provisions, Warranty
Level: Level 2

Topic: Financial Reporting Standards and Their Applications

FR – L2 – Q46 – Events After the Reporting Period

Explain accounting treatment for post-year-end events affecting receivables, property, inventory, subsidiaries, and other events for Earley Enterprises.

Question

Earley Enterprises is finalising its accounts for the year ended 31 December 20X3. The following events have arisen since the year end and the financial director has asked you to comment on the final accounts.

(a) At 31 December 20X3 trade receivables included a figure of GH¢250,000 in respect of NedenCorp. On 8 March 20X4, when the current debt was GH¢200,000, NedenCorp went into receivership. Recent correspondence with the receiver indicates that no dividend will be paid to unsecured creditors.

(b) On 15 March 20X4 Earley Enterprises sold its former head office building, Whiteley Grove, for GH¢2.7 million. At the year end the building was unoccupied and carried at a value of GH¢3.1 million.

(c) Inventories at the year-end included GH¢650,000 of a new electric tricycle the Oparis. In January 20X4 the European Union declared the tricycle to be unsafe and prohibited it from sale. An alternative market, in Bongaria, is being investigated, although the current price is expected to be cost less 30%.

(d) Stingray Ltd, a subsidiary in Outer Sarnia, was nationalised in February 20X4. The Outer Sarnia authorities have refused to pay any compensation. The net assets of Stingray Ltd have been valued at GH¢200,000 at the year end.

(e) Freak floods caused GH¢150,000 damage to the Southridge branch of Earley Enterprises in January 20X4. The branch was fully insured.

(f) On 1 April 20X4 Earley Enterprises announced a 1 for 1 rights issue aiming to raise GH¢15 million.

Required

Explain how you would respond to the matters listed above.

Answer

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Tags: Adjustments, Disclosures, Events After Reporting Period, Financial Statements, IAS 10, Impairment, Inventories, Subsidiaries
Level: Level 2

Topic: Events After the Reporting Period

FR – L2 – Q37 – Financial Reporting Standards and Their Applications

Redraft Saul Plc's financial statements for Year 1 to comply with IFRS 5, reflecting Division A's closure as a discontinued operation.

Question

Kofi Plc operates its business through a number of divisions. It has a year end of 31 December. Set out below are extracts from the draft financial statements of Kofi Plc for the year ended 31 December Year 1.

Statement of profit or loss for the year ended 31 December Year 1

	GH₵000
Revenue	3,900
Cost of sales	(2,500)
Gross profit	1,400
Distribution costs	(300)
Administrative expenses	(800)
Profit before tax	300
Income tax expense	(90)
Profit for the period	210

Statement of financial position at 31 December Year 1

Assets	GH₵000	GH₵000
Non-current assets
Property, plant and equipment	1,900
Intangible assets	40
		1,940
Current assets
Inventories	350
Trade and other receivables	190
Cash	90
		630
Total assets		2,570
Equity and liabilities	GH₵000	GH₵000
Equity
Share capital	600
Retained earnings	1,700
		2,300
Current liabilities
Trade and other payables	195
Current tax payable	75
		270
Total equity and liabilities		2,570

On 30 November Year 1 Kofi Plc made the decision to close Division B, which is located in a different part of the country and covers a separate major line of business. This decision was immediately announced to the press and to the workforce and, by the end of Year 1, a buyer had been found.

The directors of Kofi Plc have calculated the following:

15% of the entity’s income and expenses for the year was attributable to Division B.
No tax is attributable to Division B.
Property, plant and equipment of GH₵510,000 and payables of GH₵10,000 in the above statement of financial position relate to Division B. The fair value minus costs to sell of the property, plant and equipment is GH₵450,000.

Required
Redraft the above financial statements to meet the provisions of IFRS 5: Non-current assets held for sale and discontinued operations. Work to the nearest GH₵000.

Answer

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Tags: Discontinued operations, Division closure, Financial Statements, IFRS 5, Impairment, Non-current assets held for sale
Level: Level 2

Topic: Financial Reporting Standards and Their Applications

FR – L2 – Q36 – Impairment of Assets

Calculate and explain the accounting for an impaired plant in Ashanti-Co Group's financial statements for the year ended 30 September 20X4.

Question

Ashanti-Co Group
The assistant financial controller of the Ashanti-Co Group, a public listed company, has identified the matters below which she believes may indicate an impairment to one or more assets:
(a) Ashanti-Co owns and operates an item of plant that cost GH¢640,000 and had accumulated depreciation of GH¢400,000 at 1 October 20X3. It is being depreciated at 12½% on cost. On 1 April 20X4 (exactly half way through the year) the plant was damaged when a factory vehicle collided into it. Due to the unavailability of replacement parts, it is not possible to repair the plant, but it still operates, albeit at a reduced capacity. Also it is expected that as a result of the damage the remaining life of the plant from the date of the damage will be only two years. Based on its reduced capacity, the estimated present value of the plant in use is GH¢150,000. The plant has a current disposal value of GH¢20,000 (which will be nil in two years’ time), but Ashanti-Co has been offered a trade-in value of GH¢180,000 against a replacement machine which has a cost of GH¢1 million (there would be no disposal costs for the replaced plant). Ashanti-Co is reluctant to replace the plant as it is worried about the long-term demand for the product produced by the plant. The trade-in value is only available if the plant is replaced.

Required
(a). Prepare extracts from the statement of financial position and statement of profit or loss of Ashanti-Co in respect of the plant for the year ended 30 September 20X4. Your answer should explain how you arrived at your figures.

(b). On 1 April 20X3 Ashanti-Co acquired 100% of the share capital of Asamankese Limited, whose only activity is the extraction and sale of spa water.
Asamankese Limited had been profitable since its acquisition, but bad publicity resulting from several consumers becoming ill due to a contamination of the spa water supply in April 20X4 has led to unexpected losses in the last six months. The carrying amounts of Asamankese Limited’s assets at 30 September 20X4 are:

	GH¢’000
Brand (Vita-Cola – see below)	7,000
Land containing spa	12,000
Purifying and bottling plant	8,000
Inventories	5,000
	32,000

The source of the contamination was found and it has now ceased.
The company originally sold the bottled water under the brand name of ‘Vita-Cola’, but because of the contamination it has re-branded its bottled water as ‘PureSpring’. After a large advertising campaign, sales are now starting to recover and are approaching previous levels. The carrying amount of the brand in the statement of financial position is the depreciated amount of the original brand name of ‘Vita-Cola’.
The directors have acknowledged that GH¢1.5 million will have to be spent in the first three months of the next accounting period to upgrade the purifying and bottling plant.
Inventories contain some old ‘Vita-Cola’ bottled water at a cost of GH¢2 million; the remaining inventories are labelled with the new brand ‘PureSpring’. Samples of all the bottled water have been tested by the health authority and have been passed as fit to sell. The old bottled water will have to be relabelled at a cost of GH¢250,000, but is then expected to be sold at the normal selling price of (normal) cost plus 50%.
Based on the estimated future cash flows, the directors have estimated that the value in use of Asamankese Limited at 30 September 20X4, calculated according to the guidance in IAS 36, is GH¢20 million. There is no reliable estimate of the fair value less costs to sell of Asamankese Limited.

Required
Calculate the amounts at which the assets of Asamankese Limited should appear in the consolidated statement of financial position of Ashanti-Co at 30 September 20X4. Your answer should explain how you arrived at your figures.

Answer

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Tags: Brand, Cash-Generating Unit, Consolidated Financial Statements, IAS 36, Impairment, Intangible assets, Inventories
Level: Level 2

Topic: Impairment of Assets

FR – L2 – Q35 – Financial Reporting Standards and Their Applications

Explain accounting treatment for revalued properties of Peak Limited, including depreciation and impairment for the year ended 31 March 20X4.

Question

Peak Limited conducts its activities from two properties, a main office in the centre and a property in the rural area where staff training is conducted. Both properties were acquired on 1 April 20X1 and had estimated lives of 25 years with no residual value. The company has a policy of carrying its land and buildings at current values. However, until recently property prices had changed for some years. On 1 October 20X3 the properties were revalued by a firm of surveyors. Details of this and the original costs are:

Land	Main office	Training premises
Cost 1 April 20X1	500	300
Valuation 1 October 20X3	700	350
Buildings	Main office	Training premises
Cost 1 April 20X1	1,200	900
Valuation 1 October 20X3	1,350	600

Required
Show the effect of the above transactions on the statement of profit or loss and statement of financial position of Peak Limited for the year ended 31 March 20X4.

Answer

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Tags: Depreciation, Financial Statements, IAS 16, Impairment, Non-current Assets, Profit or Loss, Property Valuation, Revaluation, Revaluation Reserve
Level: Level 2

Topic: Financial Reporting Standards and Their Applications

FR – L2 – Q34 – Impairment of Assets

Calculate the impact of impairment, revaluation, and sale of three machines on profit or loss, OCI, and revaluation reserve for Chantelle (Ghana) Ltd in Year 7.

Question

The following is relevant to three tangible non-current assets held by Chantelle (Ghana) Ltd.

Machine 1 was purchased on 1 January Year 1 for GH¢420,000. It had an estimated residual value of GH¢50,000 and a useful life of ten years and was being depreciated on a straight-line basis. On 1 January Year 6 Chantelle (Ghana) Ltd revalued this machine to GH¢275,000 and reassessed its total useful life as fifteen years. On 1 January Year 7 an impairment review showed machine 1’s recoverable amount to be GH¢100,000 and its remaining useful life to be five years.

Machine 2 was purchased on 1 January Year 1 for GH¢500,000. It had an estimated residual value of GH¢60,000 and a useful life of ten years and was being depreciated on a straight-line basis. On 1 January Year 7 this machine was classified as held for sale, at which time its fair value was estimated at GH¢200,000 and costs to sell at GH¢5,000. On 31 March Year 7 the machine was sold for GH¢210,000.

Machine 3 was purchased on 1 January Year 1 for GH¢600,000. In Year 1 depreciation of GH¢30,000 was charged. On 1 January Year 2 this machine was revalued to GH¢800,000 and its remaining useful life assessed as eight years. On 1 January Year 7 this machine was classified as held for sale, at which time, its fair value was estimated at GH¢550,000 and costs to sell at GH¢5,000. On 31 March Year 7 the machine was sold for GH¢550,000.

Tax is at the rate of 30%.

Required
For each machine show the effect of the above on profit or loss, other comprehensive income and revaluation reserve of Chantelle (Ghana) Ltd in Year 7. You should also show the brought forward balance on the revaluation reserve (at 1 January Year 7) in respect of machines 1 and 3.

Answer

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Tags: Depreciation, Held for Sale, IAS 36, IFRS 5, Impairment, Non-current Assets, Other Comprehensive Income, Profit or Loss, Revaluation, Revaluation Reserve
Level: Level 2

Topic: Impairment of Assets

Tag (SQ): Impairment

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FR – L2 – Q97 – Business Combinations

Prepare Peak Plc's consolidated statement of financial position as at 31 March 20X4, incorporating acquisitions of Flare Plc and Crest Ltd, with adjustments for intra-group transactions and fair value.

FR – L2 – Q94 – Associates and Joint Ventures

Prepare entries for Portico Ltd's 30% holding in Armand Ltd in the Year 5 consolidated financial statements, including financial position and profit or loss.

FR – L2 – Q92 – Consolidated Financial Statements

Prepare consolidated financial statements for Henks Plc, including profit or loss, changes in equity, and financial position for 20X4.

FR – L2 – Q86 – Business Combinations

Prepare Drobo Ltd's consolidated statement of financial position as at 31 March 20X4, incorporating fair value adjustments, intra-group transactions, and goodwill impairment.

FR – L2 – Q47 – Provisions and Contingencies

Advise on accounting for an insurance claim with a debit balance and potential additional payment.

FR – L2 – Q46 – Events After the Reporting Period

Explain accounting treatment for post-year-end events affecting receivables, property, inventory, subsidiaries, and other events for Earley Enterprises.

FR – L2 – Q37 – Financial Reporting Standards and Their Applications

Redraft Saul Plc's financial statements for Year 1 to comply with IFRS 5, reflecting Division A's closure as a discontinued operation.

FR – L2 – Q36 – Impairment of Assets

Calculate and explain the accounting for an impaired plant in Ashanti-Co Group's financial statements for the year ended 30 September 20X4.

FR – L2 – Q35 – Financial Reporting Standards and Their Applications

Explain accounting treatment for revalued properties of Peak Limited, including depreciation and impairment for the year ended 31 March 20X4.

FR – L2 – Q34 – Impairment of Assets

Calculate the impact of impairment, revaluation, and sale of three machines on profit or loss, OCI, and revaluation reserve for Chantelle (Ghana) Ltd in Year 7.

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FR – L2 – Q97 – Business Combinations

Prepare Peak Plc's consolidated statement of financial position as at 31 March 20X4, incorporating acquisitions of Flare Plc and Crest Ltd, with adjustments for intra-group transactions and fair value.

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FR – L2 – Q94 – Associates and Joint Ventures

Prepare entries for Portico Ltd's 30% holding in Armand Ltd in the Year 5 consolidated financial statements, including financial position and profit or loss.

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FR – L2 – Q92 – Consolidated Financial Statements

Prepare consolidated financial statements for Henks Plc, including profit or loss, changes in equity, and financial position for 20X4.

You're reporting an error for "FR – L2 – Q92 – Consolidated Financial Statements"

FR – L2 – Q86 – Business Combinations

Prepare Drobo Ltd's consolidated statement of financial position as at 31 March 20X4, incorporating fair value adjustments, intra-group transactions, and goodwill impairment.

You're reporting an error for "FR – L2 – Q86 – Business Combinations"

FR – L2 – Q47 – Provisions and Contingencies

Advise on accounting for an insurance claim with a debit balance and potential additional payment.

You're reporting an error for "FR – L2 – Q47 – Provisions and Contingencies"

FR – L2 – Q46 – Events After the Reporting Period

Explain accounting treatment for post-year-end events affecting receivables, property, inventory, subsidiaries, and other events for Earley Enterprises.

You're reporting an error for "FR – L2 – Q46 – Events After the Reporting Period"

FR – L2 – Q37 – Financial Reporting Standards and Their Applications

Redraft Saul Plc's financial statements for Year 1 to comply with IFRS 5, reflecting Division A's closure as a discontinued operation.

You're reporting an error for "FR – L2 – Q37 – Financial Reporting Standards and Their Applications"

FR – L2 – Q36 – Impairment of Assets

Calculate and explain the accounting for an impaired plant in Ashanti-Co Group's financial statements for the year ended 30 September 20X4.

You're reporting an error for "FR – L2 – Q36 – Impairment of Assets"

FR – L2 – Q35 – Financial Reporting Standards and Their Applications

Explain accounting treatment for revalued properties of Peak Limited, including depreciation and impairment for the year ended 31 March 20X4.

You're reporting an error for "FR – L2 – Q35 – Financial Reporting Standards and Their Applications"

FR – L2 – Q34 – Impairment of Assets

Calculate the impact of impairment, revaluation, and sale of three machines on profit or loss, OCI, and revaluation reserve for Chantelle (Ghana) Ltd in Year 7.

You're reporting an error for "FR – L2 – Q34 – Impairment of Assets"

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