Exco’s articles of association require a 80% majority to

approve decisions regarding Exco’s relevant activities. Each shareholder is

entitled to vote in proportion to the number of shares held.

There are no facts that suggest that any of the shareholder

has rights to Exco’s assets or obligations

for Exco’s liabilities.

Which of the following statements is correct:

(i) 

A plc should use the equity method of

accounting to recognise Exco plc in its consolidated financial statements

Acquirer

plc is preparing its consolidated statement of financial position at 31

December 20X1 and the following information is available:

At the date of acquisition, Acquirer plc chose to measure

the non-controlling interest in Target plc at fair value.

Assuming no goodwill impairments have been taken since the

acquisition date, the amount of

The following information is also available:

• Big

  plc purchased its investment in Small plc on 22 April 20X0. The goodwill

  measured at acquisition date was £90,000 and no impairment has been taken since

  that date.

• On 11 November

  20X1, Big plc sold goods to Small plc for a price of £9,000 (payable by 20

  February 20X2). The goods had been included in Big plc’s inventory at a cost of

  £5,000. On 31 December 20X1, Small plc held 50% of these goods in its inventory.

  Small plc paid for the goods on 30 January 20X2.

Compute the total assets

reported in Big plc’s

consolidated statement of financial position at 31 December 20X1.

The following information is also available:

• The

  non-controlling interest arising on the acquisition of Joy plc was calculated

  using the share of acquiree’s net assets method.

• On 10

  January 20X2, Bliss plc’s accountants determined that an impairment loss of £1,000

  should be recognised in respect of Bliss plc's investment in Joy plc.

• Bliss

  plc recognises £1,600 of dividend income from Joy plc within ‘financial income (expense)’ in its income

  statement.

What is the

profit

after tax attributable to Bliss plc’s shareholders

Quick acquired 80% of the 1m issued £1 ordinary shares of Spec on 1 January 20X1 when Spec’s retained earnings were £1,540,000.

The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI of Spec as at 1 January 20X1 was £1,200,000.

An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of Spec had impaired by £400,000.

The retained earnings of Spec at 31 December 20X1 were £2,620,000.

The NCI to be included in the consolidated statement of financial position at 31 December 20X1 will be:

There were 2 events:

1. On 10 February 2022, Unilever announced a dividend of €1,137 million.

2. On 23 February 2022, Unilever issued £300 million 2.125% notes maturing in 2028.

Which of the following statements is CORRECT?

Large plc purchased 80% of the equity shares in Little plc on 1 January 20X1. During the year ended 31 December 20X1, Large sold inventory to Little at a sales price of £500,000. All of the goods remained in Little’ inventory. Large applied a margin of 20%.

Extracts from the statement of profit or loss for the two entities are shown below:

What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1?

Answer to the nearest £000

At the date of acquisition, the fair value of Jamboree

plc’s inventories was £270,000, the fair value of Jamboree plc’s properties was

£840,000 and the fair value of the non-controlling interest was £115,000.

Using the share of acquiree’s net assets method to account

for the non-controlling interest in Jamboree plc, calculate the

The following information is available about the financial

year ending 31 December 20X3:

• Brendon

  plc received a dividend of £5,000 from Randy plc on 30 March 20X3.

• Randy

  plc sold goods to Brendon plc for £3,000 on 30 September 20X3. The goods had

  cost Randy plc £2,000. One-half of these goods were unsold by Brendon plc at 31

  December 20X3.

• Randy

  plc’s retained earnings amounted to £75,000 at 31 December 20X3.

 What is the associate asset

reported in Brendon plc’s

consolidated statement of financial position on 31 December 20X3?

ABC plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1:

The following information is available about ABC’s profit before tax:

• Revenue includes a government grant of £10,000, which is not taxable.
• Expenses include fines of £4,000 paid by ABC plc during the period. The government does not allow tax-deductibility of fines.

The tax rate for the period is 20%.

 What is the current tax expense reported on ABC plc’s P&L for the year ended 31 December 20X1?