QUESTION: 33

ST acquired 70% of the equity shares of DE for $87,500 on 30 September 20X5. At the date of acquisition the net assets of DE were $54,700 and the fair value of the non controlling interest was measured at $19,700. There has been no impairment of goodwill. On 30 September 20X9 ST disposed of its entire investment in DE for $262,500 when the net assets of DE were $96,250.
What is the gain or loss on disposal of DE that will be included in ST's consolidated profit or loss for the year ended 30 September 20X9?

$113,750 loss
$166,250 loss
$166,250 gain
$113,750 gain

Answer(s): D

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QUESTION: 34

AB acquired 90% of the equity of YZ on 31 December 20X2. On the same date YZ acquired 60% of the equity shares of VW for $750,000. AB has no other subsidiaries. The following information regarding YZ and VW was available:

What amount will AB include in its consolidated statement of financial position in respect of non controlling interest at 31 May 20X6?

$816,400
$741,400
$840,600
$811,000

Answer(s): B

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QUESTION: 35

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?

23.8 cents
36.8 cents
26.3 cents
29.4 cents

Answer(s): D

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QUESTION: 36

When preparing a consolidated statement of cash flows, which of the following describes the correct presentation of an associate's dividends?

Dividends received from the associate in cash flows from investing activities
Dividends received from the associate in cash flows from operating activities
Dividends paid by the associate in cash flows from financing activities
Dividends paid by the associate in cash flows from investing activities

Answer(s): A

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