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Exam Name: Financial Reporting
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FR Exam Cram Pdf Total Q&A: 80 Questions and Answers
Last Update: 2017-05-09
FR Valid Test Questions Detail: FR Exam Cram Pdf
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NO.1 Which of the following items would appear in the reconciliation of profit before tax to cash
generated from operations in a statement of cash flows prepared in accordance withIAS 7 Statement
of Cash Flows?
(i)Increase in provision for warranty costs
(ii)Decrease in income tax payable
(iii) Depreciation charge
(iv)
Dividends paid
A. (i) and (iii)
B. (i) and (ii)
C. (ii) and (iii)
D. (ii) and (iv)
Answer: A
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NO.2 Bony plc purchased equipment on 1 April 2010 for $100,000. The equipment was depreciated
using the reducing balance method at 25% per annum.
Bony plc prepares accounts to 31 March annually. Depreciation was charged up to and including 31
March 2012. At that date, the recoverable amount of this equipment was $42,000.
According to IAS 36 Impairment of Assets, what was the impairment loss on this equipment
calculated on 31 March 2012?
A. $8,000
B. Nil
C. $25,000
D. $14,250
Answer: D
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