Questions from Financial Accounting

Q: In your capacity as chief assistant to the financial controller, your

In your capacity as chief assistant to the financial controller, your managing director has asked you to explain to him the differences between tax planning, tax avoidance and tax evasion. He has also...

Q: A non-current asset (a machine) was purchased by

A non-current asset (a machine) was purchased by Adjourn plc on 1 July 20X2 at a cost of £25,000. The company prepares its annual accounts to 31 March in each year. The policy of the company is to dep...

Q: The following information is given in respect of Unambitious plc:

The following information is given in respect of Unambitious plc: (a) Non-current assets consist entirely of plant and machinery. The net book value of these assets as at 30 June 2010 is £...

Q: For the following years, capital allowances are likely to continue to

For the following years, capital allowances are likely to continue to be in excess of depreciation for the foreseeable future. (d) Corporation tax is to be taken at 21%. Required: Calculate the defer...

Q: Discuss the arguments for and against discounting the deferred tax charge.

Discuss the arguments for and against discounting the deferred tax charge.

Q: Infinite Leisure Group owns and operates a number of pubs and clubs

Infinite Leisure Group owns and operates a number of pubs and clubs across Europe and South East Asia. Since inception the group has made exclusive use of the cost model for the purpose of its annual...

Q: The Blissopia Leisure Group consists of three divisions: Blissopia 1,

The Blissopia Leisure Group consists of three divisions: Blissopia 1, which operates mainstream bars; Blissopia 2, which operates large restaurants; and Blissopia 3, which operates one hotel â&#...

Q: International Financial Reporting Standards (IFRS) support the use of fair

International Financial Reporting Standards (IFRS) support the use of fair values when reporting the values of assets wherever practical. This involves periodic re measurements of assets and the conse...

Q: On 1 January 20X8, Grabbit plc entered into an agreement to

On 1 January 20X8, Grabbit plc entered into an agreement to lease a widgeting machine for general use in the business. The agreement, which may not be terminated by either party to it, runs for six ye...

Q: (a) When accounting for leases, accountants prefer to overlook

(a) When accounting for leases, accountants prefer to overlook legal form in favour of commercial substance. Required: Discuss the above statement in the light of the requirements of IFRS 16 Leases. (...