financial accounting revision question

Revision question on IASB conceptual framework and qualities of financial information

The IASB’s conceptual framework for financial reporting states that the qualitative characteristics of financial statements are the attributes that make financial information useful.

Required: Explain the fundamental qualitative characteristic Relevance”.                               Read the rest

Revision question on how to perform the bank reconciliation

The following is a summary from the cash book of BW Ltd for July 2015:

Opening balance 1,530
Receipts 23,104
Payments (23,005)
Closing balance 1,629

On investigation, it was discovered that:

i)   Bank charges of TZS 15 shown on the bank statement have not been entered into the cash book.

ii)  A cheque … Read the rest

Revision question on financial accounting conceptual framework NBAA, B2, Nov 2018.

(a)  Identify the main users of the financial statements and describe the adequacy of the general purpose financial statements to cater for the reasonable needs of its major users.                                                                 

(b)       The  International   Accounting   Standards   Board   (IASB)   issued the Conceptual Framework which among other purposes assists the Board in the development of future IFRSs and … Read the rest

Revision question on IFRS 5 – non-current assets held for sale and discontinued operations.

Atta Kay Ltd has the following assets which it would like to classify under IFRS 5 Non- Current Assets Held for Sale and Discontinued Operations today:

  Carrying Amount today (GH¢million) Open market value today (GH¢million) Estimated selling costs (GH¢million)
Investment properties (at fair value through profit or loss) 62.3 30.9 0.5
Land used as company car park
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Revision question on IAS 16

Once an entity has recognized an item of Property, Plant and Equipment as an asset in its books, the entity can choose between two models (or methods) to account for the asset in subsequent measurement periods, that is, the period(s) after the asset has been acquired and before its disposition. The two models are the cost model and the revaluation Read the rest