Đề mẫu 2018

Câu 1:
Q2
1/10/20x8 ===============> 1/4/20x9=======================> 30/9/20x9

As at 1/4/20x9
Brand - at cost 30,000
Less: Acc dep
+ Acc dep 1/10/20x8 9,000
+ Acc dep from 1/10/20x8 => 1/4/20x9 3,000 12,000
(30,000/5/12*6)
Carrying amount at 1/4/20x9 18,000
Recoverable amount at 1/4/20x9
+ Value in use 12,000
+ FV - cost to sell 15,000
=> RA 15,000
Impairment loss (15,000 - 18,000) - 3,000
Amortization expense from 1/4/20x9 => 30/9/20x9 2,500
(15,000/3/12*6)

For amortization expense (3,000 + 2,500)

Dr Amortization expense 5,500
Cr Acc amortization 5,500

For impairment loss

Dr Expense - impairment loss 3,000
Cr Brand 3,000

Câu 5:

1
2
 Question 5
a, The building will be treated as NCA accordance to IAS 16 PPE
From 1.1.20W4 to 31.12.20X3, the lenngth of time should be: 10years
Annual depreciation should be: =800,000*2% per year 16000
CA of asset at 31.12.20X3 should be =800,000-16000*10 640000
CA of asset at 31.12.20X4 should be =640,000 - 16,000 624000
On 31.12.20X4 a revaluation to 1.2m (=> it made the value of asset increase, an amount of revaluation surplus was recorded in other comp
Journal entry
revaluation
Dr asset 1.2m
Cr revaluation surplus 1.2m
depreciation
Dr P&L (depreciation expense) 16,000
Cr asset 16,000
The value of asset was recognized at the year end: 1824000

b,
i.
1, the project should be recorded as Intangible asset accordance to IAS 38
Commence date 1.9.20X1
From 1.9.20X1 to 31.3.20X2 (7months), the project would be still in research and development stage hence all expenses were recorded in C
Research and development cost should be = 40,000*7 280000
Journal entry:
Dr COS 280,000
Cr Cash/payable 280,000

Depreciation of plant and equipment are charged to COS:

CA of asset at 1.4.20X1 should be: =47,500 - 33,500 14000
Depreciation of asset for the year ended =14000*20% 2800
CA of asset for the year ended =14000-2800 11200
Journal entry:
Dr expense (COS) 2,800
Cr asset (plant and equipment) 2,800

Total COS is presented in SOP&L should be = 280,800 + 2,800 + 280,000 563600

ii.
Admin expense
Depreciation of building is charged to administration expense
Building (20 years) => annual depreciation = 48,000/20 2400
CA of building at 1.4.20X1 =48,000 - 16,000 32000
CA of building at the year ended 31.3.20X2 =32,000 - 2,400 29600
Journal entry:
Dr expense (admin exp) 2,400
Cr building 2,400

Total admin exp is presented in SOP&L should

=30,560
be + 2,400 32960

iii. Total NCA on SOFP

CA of building 29600
CA of plant and equipment 11200
Total NCA on SOFP =29,600 + 11,200 40800

3
Câu 2: A non-current asset (cost $15,000, depreciation $10,000) is given in part
exchange for a new asset costing $20,500. The agreed trade-in value was $5,500.
Required: What are the journal entries to record the transaction? (5 marks)
SOLUTION:

Cost of received asset (new asset) 20.500

Proceed from exchange 5.500

Less: CA of given asset (15.000 – 10.000) 5.000

Gain on exchange = 500

DR PPE new machine 20.500

DR Acc dep 10.000

CR PPE – old machine 15.000

CR Cash ( 20.500 – 5.500) 15.000

CR Gain on exchange 500

4
Question 2
a.
Contract ~ performance obligations ~ satisfied over time => long term => contract liability or contract asset

B1 Determine contract value 8m

Less Cost incurred/Cost to date 1.6m
Less Cost to complete 2.4m
Estimated P&L =8m-1.6m-2.4m =4m >0 => Estimated profit
B2: Determine % complete 40%
B3: For the year ended
Revenue = %complete x contract value
=40% * 8m 3.2m
COS= Revenue - Profit
=3.2m - 1.6m = 1.6m or = total cost * 40% = (1.6m+2.4m)*40% = 1.6m
Profit = Estimated P&L * % complete
=40% * 4m 1.6m

B4 Cost to date 1.6m

Add Profit or loss 1.6m
Less Invoice to date 2m
= 1.6m + 1.6m - 2m = 1.2m >0 => contract asset
(If <0 => contract liability)
Journal entry
COS Dr COS 1.6m
Cr contract asset 1.6m

Dr cost to date 1.6m

Cr contract asset 1.6m

invoiced Dr Account receivable (A/R) 2m

Cr contract asset 2m

payment Dr Cash 1.8m

Cr A/R 1.8m

Dr contract asset 3.2m

Cr revenue 3.2m

* Contract asset
Rev: 3.2m 1.6m COS
cost incurred 1.6m 2m invoiced
=> balance 1.2m

b. NCA (15,000 ; 10,000) exchange new asset 20,500 => trade in vale 5,500

CA of given asset = 15,000 - 10,000 5000

Exchange with value 5,500
Proceeds from exchange is higher than CA of given asset => there is a gain on exchange
The amount of gain on exchange =5,500 - 5,000 =500

Dr new asset 20,500

Cr old asset 5,000
Cr cash = 20,500 -5,500 = 15,000
Cr gain on exchange 500

5
 SFM – TEST 8
Question 1 (20 marks)
A,
Required: Following transactions are adjusting or non-adjusting events. If it is
adjusting event explain how account in financial statement (journal entry)?
1, A valuation of property providing evidence of impairment in value at the reporting
period
o Provide evidence conditions existed at reporting date => Adjusting events
o Determine impairment loss => Journal entry
o DR Impairment loss (expense)
▪ CR Property

2, Sale of inventory held at the end of the reporting period for less than cost
o Provide evidence conditions existed at reporting date => Adjusting events
o Expense: Cost >< NRV
o DR COS (expense)
o Cr Inventory

3, Discovery of fraud or error affecting the financial statements

o Provide evidence conditions existed at reporting date => Adjusting events
o Base on fraud or error => relevant adjusting entries

4, The insolvency of a customer with a debt owing at the end of the reporting
period which is still outstanding
o Provide evidence conditions existed at reporting date => Adjusting events
o Determine bad debt
o DR Bad debt expense
▪ Cr A/R

6
5, The bankruptcy of a major customer, with a substantial debt outstanding at the
end of the reporting period
o Provide evidence conditions existed at reporting date => Adjusting events
o Determine bad debt
o DR Bad debt expense
▪ Cr A/R

6, An issue of shares to finance expansion after reporting date

o Not provide evidence conditions existed at reporting date => Non Adjusting
events
o Disclosure

7, Sale for less than cost of some inventory held at the end of the reporting period
o Provide evidence conditions existed at reporting date => Adjusting events
o Expense: Cost >< NRV
o DR COS (expense)
o Cr Inventory

8, Sale for MORE than cost of some inventory held at the end of the reporting period
o IAS 02 => No adjusting events

9, A customer who owed $180,000 at the end of the reporting period went bankrupt in
July 20X4.
o Provide evidence conditions existed at reporting date => Adjusting events
o DR bad debt expense (administration expense) $180.000
o Cr Receibable $180.000

10, The sale after reporting date for $400,000 of some inventory items valued
in the statement of financial position at $500,000.
o Provide evidence conditions existed at reporting date => Adjusting events

7
 o Expense: Cost >< NRV
o DR COS (expense)
o Cr Inventory

A factory with a value of $3,000,000 was seriously damaged by a fire after reporting
date. => Non-adjusting events => Need disclosure on financial statement
5, The company issued 1,000,000 ordinary shares after reporting date. => Non –
Adjusting events
B,
A business which comprises a single cash-generating unit has the following assets.
$'m
Patent 5
Property 10
Plant and equipment 15
Net current assets 2
Following an impairment review it is estimated that
• the value of the patent is $4 million
• one of the building has carrying amount of $6m with value of $4m.
• The recoverable amount of the business is $24 million.
Required: Explain, with journal entry, how to account for above transactions in
accordance to IAS 36: Impairment of asset?
Q1 CA RA Impairment
B/ $'m $'m $'m $'m
Patent 5 4 1
Property 10 7.37 5*(10/(10+9) 2.63
Plant and equipment 9 6.63 5*(9/(10+9) 2.37
Building (specific) 6 4 2
Net current assets 2 2 -
32 24 8

RA 24 Dr Impairment loss (expense) 8

Impairment loss 8 Cr Patent 1.00
less: Allocated to Patent - 1 Cr Property 2.63
Remaining impairment 7 Cr Buildings 4.37
less: allocated to buildings - 2
Remaining impairment allocated to 5

(2 marks per items – Total 10 marks)

8
Question: What is the difference between adjusting events and non-adjusting
events in accordance with IAS10. Give one example for each type of event.
SOLUTION:
• Adjusting events:
o Definition
o Accounting treatment: Adjusting entry
• Non-adjusting event
o Definition
o Accounting treatment:
▪ No adjusting
▪ Disclosure: event

B,
At 30 September 20X9 Sanjohn's trial balance showed a brand at cost of $30 million, less
accumulated amortisation brought forward at 1 October 20X8 of $9 million.
Amortisation is based on a five-year useful life.
An impairment review on 1 April 20X9 concluded that the brand had a value in use of
$12 million and a remaining useful life of three years. However, on the same date Sanjohn
received an offer to purchase the brand for $15 million.
Required: Explain, with journal entry, how to account for above transations for the
financial statement ended 30.9.20X9 in accordance to IAS 36: Impairment of asset? (10
marks)

Question 2 (25 marks)

A,

9
A mobile phone company gives customers a free handset when they sign a two-year
contract for provision of network services. The handset has a stand-alone price of $100
and the contract is for $20 per month.
Required: Explain, with journal entry, how to record the transaction above in accordance
to IFRS 15: Revenue from contract with customer for the first year (15 marks)
B,
Alpha sells machine B for cash on 30 April 20X4 and has loss on disposal of the machine
was $10,000. Machine B cost $130,000 (Nguyen giá) when it was purchased and has a
carrying amount of $65,000 at the date of disposal.
Required: What are the journal entries to record the disposal of machine B? (5 marks)
VD: Gain (loss) from dispose = Proceed from dispose – CA  -10,000 = Proceed from
dispose – 65.000 => Proceed from dispose
SOLUTION:

At the disposal

CA (cost – acc dep) 65.000

Proceed from disposal (65.000 – 10.000) 55.000

DR Acc dep (130,000 – 65,000) 65.000

DR Cash 55.000

DR loss on disposal 10.000

CR PPE – Machine 130.000

C,
A non-current asset (cost $15,000, depreciation $10,000) is given in part exchange for a
new asset costing $20,500. The agreed trade-in value was $5,500.
Required: What are the journal entries to record the transaction? (5 marks)

10
SOLUTION:

Cost of received asset (new asset) 20.500

Proceed from exchange 5.500

Less: CA of given asset (15.000 – 10.000) 5.000

Gain on exchange = 500

DR PPE new machine 20.500

DR Acc dep 10.000

CR PPE – old machine 15.000

CR Cash ( 20.500 – 5.500) 15.000

CR Gain on exchange 500

B,
Gusna Co purchased a building on 31 December 20X1 for $750,000. At the date of
acquisition, the useful life of the building was estimated to be 25 years and depreciation
is calculated using the straight-line method. At 31 December 20X6, an independent
valuer valued the building at $1,000,000 and the revaluation was recognized in the
financial statements. Guna’s accounting policies state that excess depreciation
arising on revaluation of non-current assets can be transferred from the revaluation
surplus to retained earnings.
Required:
i, What is the depreciation charge on the building for the year ended 31 December
20X7? (4 marks)
ii, What is the journal entry to record the transfer of excess depreciation from the
revaluation surplus to retained earnings? (5 marks)

11
iii, Prepare extract financial statement for the year ended 31.12.20X5 and
31.12.20X6 and 31.12.20X7 (5 marks)
SOLUTION:

(I) the depreciation charge on the building

31/12/20x1 ==➔ 31/12/20x6 ==➔ 31/12/20x7

Cost: 750.000 Revalued amount: 1.000.000

Useful life: 25 years Remaining useful life: (25-5) 20 years

Straight line:

31/12/20x6:

Revalued amount 1.000.000

CA (750.000 -750.000/25 years*5) 600.000

Revalued surplus (1.000.000 – 600.000) =400.000

Dep expense for the year ended 31/12/20x7 (1.000.000/20) 50.000

DR Dep expense 50.000

CR acc dep 50.000

Amount transferred from revaluation surplus

=> RE (400.000/20) 20.000

DR Revaluation surplus 20.000

CR RE 20.000

P/L

12
Dep expense 50.000

B/S

Building – CA (1.000.000 – 50.000) 950.000

Revaluation surplus (400.000 – 20.000) 380.000

3. Question 3 (25 marks)

A,
ABB entered into a contract in respect of which performance obligations are satisfied
over time on 1 January 20X4. The contract is expected to last 24 months. The price which
has been agreed for the contract is $8 million. At 30 September 20X4 the costs incurred
on the contract were $1.6 million and the estimated remaining costs to complete were
$2.4 million. On 20 September 20X4 ABB received a payment from the customer of $1.8
million which was equal to the total of the amounts invoiced. ABB calculates the stage
of completion of its performance obligations on contracts on the basis of amounts
invoiced to the contract price.
Required: Required: Explain, with journal entry, how to record transaction above
in accordance with IFRS 15 the year ended 30 September 20X4? (15 marks)
B,
At 31 December 20X3 Q, a limited liability company, owned a building that had cost
$800,000 on 1 January 20W4.

It was being depreciated at 2% per year.

On 1 January 20X4 a revaluation to $1,000,000 was recognised. At this date the building
had a remaining useful life of 40 years.

Required: Explain with journal entry how to account for transaction above in
accordance to IAS 16 for the year ended 31 December 20X4 (10 marks)

13
SOLUTION:

1/1/20W4 ==➔ 31/12/20W5 …W6…W7…W8…W9…X0…X1…X2…31/12/20X3

(Có 9 khoảng cách => 9 Năm)

At 31/12/20X3

Cost 800.000

Acc dep from 1/1/20W4 ==➔ 31/12/x3 (9 năm) 144.000

(800.000 x 2% x 9)

CA 656.000

Revalued amount 1.000.000

Revalued surplus 344.000

Dep expense for the year ended 31/12/20X4 (1.000.000/40*1) 25.000

1/1/20x4

DR PPE building 344.000

CR Revaluation surplus 344.000

31/12/20x4

DR PPE building 25.000

CR Revaluation surplus 25.000

If revaluation surplus transferred to RE => amount transferred = 344.000/40 = 8.600

DR Revaluation surplus 8.600

CR RE 8.600

14
Question 4 (20 marks)

A,

A company values its inventory using the weighted average (period) method. At 1 May
20X2 the company had 750 engines in inventory, valued at $180 each.

During the year ended 30 April 20X3 the following transactions took place:

1 July 20X2 Sold 400 engines for $160,000

1 November 20X2 Purchased 500 engines at $220 each

1 February 20X3 Sold 250 engines for $125,000

15 April 20X3 Purchased 300 engines at $230 each

At year end, the inventory of the entity has impaired. All closing inventory has expected
selling price of $120 with expected cost to sell $40.

Required:

i, Determine value of the company’s closing inventory of engines at 30 April 20X3?

(4 marks)

ii, Determine cost of sale and gross profit of the entity for the year ended 30.4.20X3
(4 marks)

SOLUTION

Quantity Cost per unit Cost

Opening Balance 750 180 =750x1800 = 135.000

Purchase

- 1st of purchase 500 220 = 500 x 220 = 110.000

- 2nd of purchase 300 230 = 300 x 230 = 69.000

15
 800 179.000

Inventory =750+800=1550 =135.000+179.000 =

available for sale 314.000

Weighted average =
cost/unit 314.000/1.550=
(tiền/inventory) 202.58

Unit of closing 900

inventory (1.550 –
400 -250)

Cost of closing 182.323

inventory
(202.58*900)

NRV (900*120 – 900*4 ) = 104.400

=> Value of ending inventory = 104.400

=> COS increased as Cost < NRV (182.323 – 104.400 = 77.923

Cost of good sold = Beg + Purchase – Ending ( 314.000 – 182.323) = 131.677

Add: Adjusted amount as Cost < NRV (77.923)

Total COS after adjusted = 131.677 + 77.923 = 209.600

Gross profit = Sales revenue – COS = (160.000+125.000) - 209.600 = 75.400

B,

This statement true or false:

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I, “The production cost of the item has been increasing is an indicator that NRV of closing
inventory lower than cost” (1 marks)

Ii, “The selling price of the item has been decreasing is an indicator that NRV of closing
inventory lower than cost” (1 marks)

SOLUTION:

(i) Production cost increases => cost increases => cost > NRV => TRUE
(ii) Selling prices decreases. NRV = selling prices – cost to complete – cost to
sell => NRV decrease => TRUE

C,

Follow financial statements related to company A for the year ended 31.12.20X1 and
31.12.20X2

$'000
Sales revenue
2,553
Cost of sales
(1,834)
Gross profit
719
Distribution costs
(125)
Administrative expenses
(264)
Change in fair value of investment property
(8)

17
Operating profit
322
Interest received
25
Interest expense
(85)
Profit before tax
262
Income tax expense
(240)
Profit for the year
22

Statement of financial position 20X2 20X1

$'000 $'000
Non-current assets
Tangible assets 415 305
Intangible assets 295 245
710 550
Current assets
Inventories 150 102
Receivables 390 315
Short-term investments 15 2
Cash in hand 2 4
557 423
1,267 973

18
 Equity and liabilities
Share capital ($1 ordinary shares) 200 150
Share premium account 160 140
Revaluation surplus 100 91
Retained earnings 120
142
602 501
Non-current liabilities
Long-term loan 100 10
Current liabilities
Trade payables 127 119
Bank overdraft 85 98
Interest payable 63 5
Taxation 290 240
665 472
1,267 973

The following information is available.

1, The proceeds of the sale of non-current asset investments amounted to $35,000.
2, Fixtures and fittings, with an original cost of $85,000 and accumulated depreciation of
$45,000, were sold for $42,000 during the year.
3, Depreciation of the asset during the year $80,000.
5, During the year, an asset has impaired and impairment cost has recorded in financial
statement. The asset has carrying amount of 300,000 and recoverable amount of
$250,000.
Required: Prepare extract cash flow from investing activity (10 marks)
Total 20 marks

19
Question 5: (10 marks)
Fresco : Trial balance as at 31 March 20X2
$'000 $'000
Equity shares of 50 cents each 45,000
Share premium 5,000
Retained earnings at 1 April 20X1 5,100
Building (20 years) – at cost 48,000
Plant and equipment – at cost 47,500
Accumulated depreciation of building at 1 April 20X1 16,000
Accumulated depreciation of plant and equipment at 1 33,500
April 20X1
Inventory at 31 March 20X2 25,200
Trade receivables 28,500
Bank 1,400
Trade payables 27,300
Revenue 350,00
0
Cost of sales 280,80
0
Distribution costs 16,100
Administrative expenses 26,900
Bank interest 300
The following notes are relevant:
1, Revenue as shown in its draft statement of profit or loss includes $10 million for a
consignment of goods sold on 31 March 20X2 on which the entity will incur ongoing
service and support costs for three years after the sale. The supply of the goods and the
provision of service and support are separate performance obligations under the terms of

20
IFRS 15 Revenue from contracts with customers. The cost of providing service and
support is estimated at $450,000 per annum. The entity applies a 20% mark-up to all
service costs.
2, Plant and equipment is depreciated at 20% per annum using the reducing balance
method.
3, Depreciation and amortisation are charged to cost of sales.
Required: Determine following information in financial statement of the entity for
the year ended 31 March 20X2 (with appropriate working):
a, Revenue (4 marks)
b, Cost of sale (4 marks)
c, Total non-current asset on statement of financial position (2 marks)
Q9
a/ Revenue per trial balance 350,000
Less: Service revenue for next years 1,620

(450,000 *3 * 120%)
Revenue after adjusted 348,380

b/ Dep expense of building

(48,000 - 16,000)*20% 6,400
Dep expense of P & E
(47,500 - 33,500)*20% 2,800
COS per trial balance 280,800

COS after adjusted 290,000

21
c/ Building - at cost 48,000
Less: Acc dep - building (16,000 + 6,400) -22,400 25,600
P&E - at cost 47,500
Less: acc dep - P&E (33,500 + 2,800) -36,300 11,200

Total NCA 36,800

22
Question 4 (15 marks)
A,
The inventory value for the financial statements of Global Co for the year ended 30
June 20X3 was based on a inventory count on 7 July 20X3, which gave a total
inventory value of $850,000.
Between 30 June and 7 July 20X6, the following transactions took place.
$
Purchase of goods 11,750
Sale of goods (mark up on cost at 14,950
20%)
Goods returned by Global Co to 1,500
supplier
Required: Determine value of inventories in financial statement at 30 June
20X3, show your working (5 marks)
SOLUTION:

Mark up => Selling price = COS + COS x T% mark up

Margin % => Selling price = COS + margin % x selling price
Gross profit on sale %
Gross profit = Selling price – COS
Gross profit on sale % = Gross profit / Sales revenue %

Sales revenue 14.950

COS X
Gross profit (14.950 x X) 14.950 - X

 (14.950 – X) / 14.950 x 100% = 20%

=> X = 11960

23
Question 3
A mobile phone company sell telephone handset, sim card, memory card and service contract
with following information:
The handset has a standard alone price (SAP) of $150, memory card has (SAP) of $30, memory
card has SAP of $50 and three year service contract has SAP $50 per months.
If the customer buy all of them, the price will be $1,500 and the customer must paid I
mmediately $1,500.
A customer buy this product and service at 1.7.20X8..
Required: Explain, with journal entry, how to record the transaction above in accordance to
IFRS 15: Revenue from contract with customer for the year ended 31.12.20X8. (15 marks)
Q3
1/1/20x8 ================> 1/7/20x8 =====================> 31/12/20x8
Stand alone T% Allocated revenue
Handset (Obligation 1) 150 7.39% 111
Sim card (Obligation 2) 30 1.48% 22
Memory card (Obligation 3) 50 2.46% 37
Service (Obligation 4) 1,800 88.67% 1,330
2,030 1,500
Journal entry at 1/7/20x8
Dr Cash 1,500
Cr Sales revenue - handset 111
Cr Sales revenue - sim card 22
Cr Sales revenue - memory card 37
Cr Unearned service revenue 1,330

Journal entry at 31/12/20x8

Service revenue for 6 months (1,330/36*6) 221.67
Dr Unearned service revenue 222
Cr Service revenue 222

Question 4
A manufacturing company receives an invoice on 28 February 20X2 for work done on one of its
machines. $25,500 of the cost is actually for a machine upgrade, which will improve efficiency.
The accounts department do not notice and charge the whole amount to maintenance costs.
Machinery is depreciated at 25% per annum on a straight-line basis, with a proportional charge
in the years of acquisition and disposal.
Required:
a, What is the impact on this error in financial statement of the entity for financial statement
ended 31.12.20X2 and 31.12.20X3? (8 marks)
b, What are the journal entries to correct misstatement for the financial statement ended
31.12.20X3? (2 marks)

24
Q4
For the year ended 31/12/20x2
Should be done Did
Dr machine 25,500 Dr Maintenance expense 25,500
Cr A/P 25,500 Cr A/P 25,500

Dep expense from 28/2/20x2 => 31/12/20x2 5,313

(25,500*25%/12*10)

Dr Dep expense 5,313

Cr Acc dep 5,313

If not correcting => Expense overstated (25,500 - 5.313): 20,188

=> Machine understated (25,500 - 5.313) 20,188

If correcting => Journal entry

Dr Machine 25,500
Cr Maintenance expense 25,500

Dr Dep expense 5,313

Cr Acc dep 5,313

For the year ended 31/12/20x3

Should be done Did
Dep expensse for the year (25,500*25%) 6,375 no entry
Dr Dep expense 6,375
Cr Acc dep 6,375

If not correcting => expense understated: 6,375 => net income 6,375
=> Machine understated: (25,500 - 5,313 - 6,375) 13,812
=> RE at beg understated ( 25,500 - 5,313) 20,187

Question 5
ABB entered into a contract in respect of which performance obligations are satisfied over time
on 1 January 20X4. The contract is expected to last 24 months. The price which has been agreed
for the contract is $8 million. At 30 September 20X4 the costs incurred on the contract were
$1.6 million and the estimated remaining costs to complete were $200,000 per months in next
12 months. On 20 September 20X4 ABB received a payment from the customer of $1.8 million
which was below to the total of the amounts invoiced $35,000. ABB calculates the stage of
completion of its performance obligations on percentage of cost incurred.
Required: Required: Explain, with journal entry, how to record transaction above in
accordance with IFRS 15 the year ended 30 September 20X4? (15 marks)

25
Q5
Cost to date at 30/9/20x4 1,600
Estimated costs to complete (200*12) 2,400
4,000
T% completion (1,600/4,000)*100% 40.00%

P/L B/S
Revenue (8,000*40%) 3,200 Cost to date 1,600
Less: costs 1,600 Add: Net income to date 1,600
Net income 1,600 3,200
Amount invoiced (1,800 + 1,835
35)
Amount from customer 1,365
A/R (1,835 - 1,800) 35

Dr Contract assets 1,600

Cr Cash, A/P.... 1,600

Dr Contract assets 3,200

Cr Revenue 3,200
1,365
Dr A/R 1,835
Cr Contract assets 1,835

Dr Cost (P/L) 1,600

Cr Contract assets 1,600

Dr Cash 1,800
Cr A/R 1,800

26
Question 6
ABM converted an office building for administration purpose and let it out to a third party on
30 June 20X8. The building had an original cost of $900,000 on 1 January 20X0 and was being
depreciated over 50 years. It was judged to have a fair value on 30 June 20X8 of $950,000. At
the year end date of 31 December 20X8 the fair value of the building was estimated at $1.2
million.
The entity uses the fair value model for investment property.
Required: Explain, with journal, how to treatment with the property for the financial
statement ended 31 December 20X8? (10 marks)

Q6
1/1/20x0 ===========================> 1/1/20x8 =============> 30/6/20x8 =======> 31/12/20x8

CA of office building at 30/6/20x8

Cost 900,000
Less: Acc dep from 1/1/20x0 => 30/6/20x8 153,000
(900,000/50*8.5)
CA of office building at 30/6/20x8 747,000
FV of building at 30/6/20x8 950,000
Revaluation surplus 203,000

Dr Dep expense (900,000/50*0.5) 9,000

Cr Acc dep 9,000

Dr IP 950,000
Dr Acc dep 153,000
Cr Office building 900,000
Cr Revaluation surplus 203,000

FV of IP at 31/12/20x8 1,200,000
FV of IP at 30/6/20x8 950,000
Gain on change of FV 250,000

Dr IP 250,000
Cr Gain on change of FV 250,000

Question 4
A,
A company values its inventory using the FIFO method.
A firm has the following transactions with its product R.
1 January 20X1 Opening inventory: nil
1 February 20X1 Buys 10 units at $300 per unit
11 February 20X1 Buys 6 units at $200 per unit
1 April 20X1 Sells 8 units at $400 per unit
1 August 20X1 Buys 12 units at $250 per unit
1 December 20X1 Sells 12 units at $400 per unit

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Required:
a, Determine value of the company's closing inventory of engines at 30 April 20X3? (2
marks)
b, Determine cost of sale and gross profit of the entity for the year ended 30.4.20X3 (4
marks)
c, Prepare extract financial statement of the entity related to items above. (4 marks)
Q3
$'000 Land PPE Others
Land 1,200 1,200
Materials 2,400 2,400
Labour 3,000 3,000
Architect's fees 25 25
Apportioned administrative overheads 150 150
Testing of fire alarms 10 10
Business insurance for first year 12 12
Insurance during construction of plant 1,200 5,435 162

Land => separate => land is not depreciated

PPE: Cost of PPE
Admin cost is period cost, excluded from cost PPE
Insurance expense

b) Q3 of Chapter 4

Q4
a/ FIFO => pepertual or periodic
Unit of ending inventory (0 + 28 - 20) 8 units 250
COST of ending inventory (250*8) 2,000

b/ Ending inventory + COS = Beg + Purchases

Beg -
Purchases (300*10 + 200*6 + 250*12) 7,200
7,200
Less: ending - 2,000
COS 5,200

Revenue (400*8 + 400*12) 8,000

Less: COS 5,200
Gross profit 2,800
c/

true => obsolete => FV decreases => NVR decreases => NRV < COST
increasing demand => FV increases => NRV increases => NRV > COST

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