The tax benefit on a company's asset is £180,000 and the useful life on that asset is five years. The company creates a deferred tax provision to spread this benefit over the asset's useful life.
What entry is needed to reduce this deferred tax provision in the company's year two accounts?

• A.DR Deferred tax liability (SOFP) £36,000
• B.DR Corporation tax (income statement) £36,000
• C.DR Deferred tax liability (SOFP) £144,000
• D.CR Corporation tax (income statement) £36,000
• E.CR Deferred tax liability (SOFP) £144,000
• F.CR Deferred tax liability (SOFP) £36,000
• G.CR Corporation tax (income statement) £144,000
• H.DR Corporation tax (income statement) £144,000

Comment: *

Name: *

Email: *

Verification: *

Which TWO of the following statements about bonds and their issue are true?

• A.Credit rating agencies assign risk categories to bond issues.
• B.A bond issue is never underwritten because the return is fixed and guaranteed.
• C.Bonds are a form of loan capital, traded on stock exchanges.
• D.Bonds are a risk-free form of investing because they will always be repaid.
• E.All bonds have the same terms and conditions when issued.

Comment: *

Name: *

Email: *

Verification: *

ST acquired 80% of the equity shares of AB on 1 January 20X7. AB acquired 60% of the equity shares of UV on 1 January 20X8. Profit for the year ended 31 December 20X9 for AB is $160,000 and for UV is
$100,000.
Calculate the non-controlling interest figure to be included within ST's consolidated statement of profit or loss for the year ended 31 December 20X9.
Give your answer to the nearest whole number in $000s.
$ ?

Comment: *

Name: *

Email: *

Verification: *

Which THREE of the following statements are true in relation to financial assets designated as fair value through profit or loss under IAS 39 Financial Instruments: Recognition and Measurement?

• A.Once the asset has been subsequently measured to fair value an impairment review is undertaken.
• B.The gain or loss on the subsequent measurement of these assets is recorded within profit for the year.
• C.The gain or loss on the subsequent measurement of these assets is recorded within other comprehensive income.
• D.Transaction costs in relation to these assets are expensed to profit or loss on acquisition.
• E.Shares in another entity held for short term trading purposes fall within this category.
• F.Transaction costs in relation to these assets are added to the initial cost of the asset on acquisition.

Comment: *

Name: *

Email: *

Verification: *

How would KL account for its investment in MN in its consolidated financial statements for the year to
31 December 20X9?

• A.Joint venture
• B.Joint arrangement
• C.Financial asset
• D.Subsidiary

Comment: *

Name: *

Email: *

Verification: *