Questions from Financial Accounting


Q: A plc issues 50,000 share options to its employees on

A plc issues 50,000 share options to its employees on 1 January 2008 which the employees can only exercise if they remain with the company until 31 December 2010. The options have a fair value of £5 e...

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Q: On 30 September 20X0 Gold plc acquired 75% of the equity

On 30 September 20X0 Gold plc acquired 75% of the equity shares, 30% of the preferred shares and 20% of the bonds in Silver plc and gained control. The balance of retained earnings on 30 September 20X...

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Q: Prop and Flap have produced the following statements of financial position as

Prop and Flap have produced the following statements of financial position as at 31 October 2008: The following information is relevant to the preparation of the financial statements of the Prop Gro...

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Q: On 1 January 20X0 Hill plc purchased 70% of the ordinary

On 1 January 20X0 Hill plc purchased 70% of the ordinary shares of Valley plc for £1.3 million. The fair value of the non-controlling interest at that date was £0.5 million....

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Q: The following accounts are the consolidated statement of financial position and parent

The following accounts are the consolidated statement of financial position and parent company statement of financial position for Alpha Ltd as at 30 June 20X2: Notes: 1 There was only one subsidiar...

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Q: Hyson plc acquired 75% of the shares in Green plc on

Hyson plc acquired 75% of the shares in Green plc on 1 January 20X0 for £6 million when Green plc’s accumulated profits were £4.5 million. At acquisition, t...

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Q: The following are the summarized financial statements of two companies, Peel

The following are the summarized financial statements of two companies, Peel and Caval, for the financial year ended 31 October 2011. The following information is available: (i) Peel purchased 90%...

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Q: Forest plc acquired 80% of the ordinary shares of Bulwell plc

Forest plc acquired 80% of the ordinary shares of Bulwell plc some years ago. At acquisition, the fair values of the assets of Bulwell plc were the same as their carrying value. Bulwell plc manufactur...

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Q: Bill plc acquired 80% of the common shares and 10%

Bill plc acquired 80% of the common shares and 10% of the preferred shares in Ben plc on 31 December three years ago when Ben’s retained profits were €45,000. During...

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Q: Morn Ltd acquired 90% of the shares in Eve Ltd on

Morn Ltd acquired 90% of the shares in Eve Ltd on 1 January 20X1 for £90,000 when Eve Ltd’s accumulated profits were £50,000. On 10 January 20X1 Morn Ltd re...

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