QUESTION: 149

When accounting for a finance lease under IAS 17 Leases, which TWO of the following are recognised in the statement of profit or loss?

Finance cost element of the lease payments
Depreciation of the leased asset
Lease payments paid
Lease payments payable
Capital repayment element of the lease payments

Answer(s): A,B

Reveal Solution Next Question

QUESTION: 150

Which TWO of the following are true in relation to IAS21 The Effects of Changes in Foreign Exchange Rates when consolidating an overseas subsidiary?

A current period exchange gain or loss is shown within the consolidated statement of comprehensive income within other comprehensive income.
Goodwill is re-translated at the end of each reporting period and reflected at the period end exchange rate in the consolidated statement of financial position.
Assets and liabilities of the subsidiary are translated at each reporting date using the average exchange rate for the period.
Goodwill is reflected in the consolidated statement of financial position translated at the exchange rate on the date of acquisition.
The statement of profit or loss of the subsidiary is translated for the reporting period using the closing exchange rate.

Answer(s): A,B

Reveal Solution Next Question

QUESTION: 151

Which of the following is a related party according to the definition of a related party in IAS24 Related Party Disclosures?

Major customer
Provider of finance
Managing Director
Major supplier

Answer(s): C

Reveal Solution Next Question

The dividend yield of ST has fallen in the year to 31 May 20X5, compared to the previous year. The share price on 31 May 20X4 was $4.50 and on 31 May 20X5 was $4.00. There were no issues of share capital during the year.
Which of the following should explain the reduction in the dividend yield for the year to 31 May 20X5 compared to the previous year?

The dividend paid in the year was reduced in order to pay for new assets.
Surplus cash was used to pay a special dividend in addition to the normal dividend in the year.
The profit for the year fell significantly and the dividend per share stayed the same.
To compensate investors for the reduction in share price a higher dividend per share was paid.

Answer(s): A

Reveal Solution Next Question

Free F2 Exam Braindumps (page: 38)

QUESTION: 149

QUESTION: 150

QUESTION: 151

QUESTION: 152