IFRS 3 – Business combination (concept)

The board of Exp Limited is considering the following acquisitions: 1. Acquiring all the assets and assuming all the liabilities of Sky Limited. It has been determined that the collection of assets acquired and liabilities assumed constitute a business. 2. Acquiring a 50% interest in Balloning Limited. It has been determined that this acquisition will […]

Rights issue

Exp Limited (Exp) had 2,200,000 ordinary shares on issue on 1 July 2019. On 1 December 2019, Exp made a rights issue of one new share for every five held, at $2.00 per share. The pre-rights issue market price was $2.80 per share. Profit attributable to the ordinary shareholders was $1,000,000 for the year ending […]

IFRS 2 – share based payments (concept)

The board of Exp Limited (Exp) is considering three different non-cash remuneration-based schemes for its executive committee members. Under each scheme, Exp will issue 2,000 shares to each member of its executive committee on 1 July 20X9, conditional on the executive remaining employed by the company during the two-year vesting period. Other conditions of the […]

IFRS 16 – calculation of interest expense

Exp Limited (Exp) enters into a lease on 1 July 20X8 for the use of equipment. The First lease payment of $10,150 was made in advance. Three further payments of $10,150 are due each 30 June. If Exp exercises a $13,150 purchase option at the expiration of the lease term on 30 June 20Y2 it […]

Provisions – Warranty

Exp Limited (Exp) manufactures mobiles. Its most popular selling model is GX20. These mobiles carry a 12-month warranty therefore only items sold in the current year will still be within the warranty period in the following year (i.e. any warranty claims relating to items sold in the previous year will have been fully settled by […]

IFRS 16 lease (concept)

Consider the following scenarios relating to four lessees: i. Exp Limited (Exp) has entered into a lease for the use of a jet to operate its tandem diving business in Victoria for a period of two years. The cost of the jet ski is US$2500 when Exp commenced the lease. The monthly lease payments of […]

FIN – UNIT 12 course recording

CA -FIN module -Units 11-12 Slides – click to download Video

Prepare the statement of changes in equity

Exp Limited (Exp) is the parent entity of the Exp group (the Group). All subsidiaries are wholly owned. The Group uses Australian dollar as its presentation currency. The Group is preparing its consolidated financial statements for the year ended 30 June 20Y0. The equity section of the consolidated statement of financial position at 30 June […]

Cash flow hedge accounting(CFHR)

Exp Limited (Exp) is the parent entity of the Exp group (the Group). All subsidiaries are wholly owned. The Group uses Australian dollar as its presentation currency. 4. On 1 June 20×9 Exp ordered an item of equipment from a supplier based in the United States. The contract price was US$ 5 million. The equipment […]

Calculate the closing FCTR balance

Exp Limited (Exp) is the parent entity of the Exp group (the Group). All subsidiaries are wholly owned. The Group uses Australian dollar as its presentation currency. 3. Exp has one foreign subsidiary, Sky DIH (Sky). Euro is Sky’s functional currency. An extract from Sky’ financial statements at 30 June 20Y0 is as follows: Euro […]