QUESTION: 125

AB acquired 10% of the equity share capital of XY on 1 January 20X7 for $180,000 when the fair value of XY's net assets was $190,000. On 1 January 20X9 AB purchased a further 50% of the equity share capital for $550,000 when the fair value of XY's net assets was $820,000. The original 10% investment had a fair value of $200,000 at the date control of XY was gained. The non controlling interest in XY was measured at its fair value of $300,000 at 1 January 20X9.
Which of the following represents the correct value of goodwill arising on the acquisition of XY that would have been included by AB when it prepared its consolidated financial statements at 31 December 20X9?

$230,000
$30,000
$210,000
$40,000

Answer(s): A

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QUESTION: 126

CORRECT TEXT
XY owned 60% of the equity share capital of AB at 1 January 20X6. XY acquired a further 20% of AB's equity share capital on 31 December 20X6 for $500,000. The non controlling interest in AB was measured at $720,000 immediately prior to the 20% acquisition. Calculate the amount that XY debited to non controlling interest when it accounted for the 20% acquisition in its consolidated financial statements at 31 December 20X6.
Give your answer to the nearest $000.

360, 360000

Answer(s): A

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QUESTION: 127

AB, a listed entity, prepared its financial statements to 31 December 20X7, in accordance with international accounting standards.
Which THREE of the following were disclosed as related parties of AB in its financial statements?

AB's defined benefit pension plan.
The wife of the Managing Director of AB, to whom AB sold a motor vehicle in the year to 31 December 20X7.
ST, an entity that was jointly established by AB and CD, and that is accounted for as a joint venture in AB's financial statements to 31 December 20X7.
AB's bank that provides more than 60% of the entity's loan finance.
AB's main supplier, GH, who supplies more than 70% of AB's goods for manufacture.

Answer(s): A,B,C

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QUESTION: 128

CORRECT TEXT
ST acquired two financial investments in the year to 31 December 20X8. One of these investments was initially classified as held for trading, the other as available for sale. ST remeasured both investments at fair value at 31 December 20X8 in accordance with IAS 39 Financial Instruments:
Recognition and Measurement. The resulting gains were calculated as follows:
- Gain on held for trading investment $50,000
- Gain on available for sale investment $40,000
What was the value of the gain that ST presented in its other comprehensive income when it prepared its financial statements for the year to 31 December 20X8? Give your answer to the nearest $000.

40, 40000

Answer(s): A

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QUESTION: 125

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QUESTION: 128

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