CO3
Discuss and apply comprehensively the concepts, properties
and theorems of functions, limits, continuity and the
derivatives in determining the derivatives of algebraic
functions
COVERAGE
Limits:
disposal as far the consolidated income statement is
concerned. In the remaining period and the
balance sheet the requirement of IAS 32 and 39 will apply.
(v) Full disposal (IFRS 5)
We shall now move
OBJECTIVES
After this chapter, the student will know how to
account for:
Leases (IAS 17)
Impairment of assets (IAS 36)
Assets that are used in exploring Mineral Resources (IFRS
6)
Financial Instrument
The fair value of the consideration is normally the
transaction price or market prices. If market
prices are not reliable, the fair value may be estimated
using a valuation technique (for example,
by
this type also, the lessee makes contract for periodical
payments over the lease period and in
turn is entitled to use the asset over the period of time. Legal
ownership of the leased asset
remains wi
method. H Ltds accountant erroneously used the selling
price for depreciation
purposes, however, the cost of assets reflected the correct
amounts.
Required:
A consolidated balance sheet of M Ltd. and
cash generating unit under review. In testing a cash
generating unit for impairment, an enterprise
should identify all the corporate assets that relate to the cash
generating unit. Then the same test
Value of contract at 1.11.x2 (60,000,000/1.0) 60,000,000
Value of contract at 31.12.x1 (60,000,000/1.24) 48,387,097
Gain on contract 11,612,903
Compare to movement in value of asset (unrecognised):
In
is established at fair value, any profit or loss should be
recognised immediately. If a sale price
is below fair value, any profit or loss should be recognised
immediately except that, if the loss
is
40
270
200
100
300
(210)
60
UAL
Sh/Millions
UCL
Sh/Millions
Proceeds
Dividends sold
Cost of investment
Gain/loss as per Holding company
Goodwill amortised
Increase in value of net assets
UAL (260 38)
What should be the value of the drilling platform in the
balance sheet, and what if anything is the
impairment loss?
Solution 1
Net sales price = Kshs.2.8m
Value in use = PV of cash flows from use les
has been recognised directly in equity: the amount
recognised during the period; and the
amount transferred from equity to profit or loss during
the period.
Terms, conditions and accounting policies
T
year term, and are issued at par with a face value of
KSh.1,000 per bond, giving total proceeds
of KSh.2,000,000.interest is payable annually in arrears at a
nominal annual interest rate of 6%.
Each b
right to use in return for rent, an asset for an agreed period
of time.
Lessee: this is a person, who under an agreement obtains
from another person (the lessor) the
right to use, in return for rent,
value, the excess over fair value is deferred and amortised
over the useful life of the asset.
ACCOUNTING FOR ASSETS AND LIABILITIES (PART A)
A D VA N C E D 8 6 FINANCIAL REPORTING
STUDYTEXT
Presentat
After three years, the entity makes a technological
breakthrough of its own, and the recoverable
amount of the cash generating unit decreases to Kshs.90m.
the carrying amount of the tangible
long term
Hedge effectiveness is the degree to which changes in the
fair value or cash flows of the
hedged item attributable to a hedged risk are offset by
changes in the fair value or cash flows
of the hedging
DIVISION OF A LINE SEGMENT
DIVISION OF A LINE SEGMENT
POINT OF DIVISION is a point which
divides a line segment to a given ratio.
By Similar Triangles:
x x1 = rx2 rx
rx + x = x1 + rx2
x( 1 + r ) = x1
ANGLE BETWEEN TWO
INTERSECTING LINES
Prepared by:
Prof. Teresita P. Liwanag Zapanta
B.S.C.E., M.S.C.M., M.Ed. (Math-units), PhD-TM (on-going)
y
Examples:
1.The line through the points (-1, 6) and (5,
AN EQUATION OF A LOCUS
FINDING AN EQUATION OF A LOCUS
Since an equation of a curve is a
relationship satisfied by the x and y coordinates of
each point on the curve (but by no other point),
we need me
Market risk. There are three types of market risk: current
risk, interest rate risk and
price risk.
a) Currency risk is the risk that the value of a financial
instrument will fluctuate due
to changes
The cash flows used in the calculation should be pre-tax
cash flows and a pre-tax discount rate
should be applied to calculate the present value. Calculating
a value in use therefore calls for
estimat
474 474
Current Liabilities A/C
Intra-group trading
CBS
28
262
USL
UDL
210
80
290 290
69
STUDYTEXT
CHAPTER SUMMARY
Consolidated financial statements: The financial
statements of a group presented as t
Workings for opening Net assets
Non-Monetary
Assets
TA M Exchange
Rate
Kshs.
Land & Buildings 1803.2
257.6
Equipment 100.8
14.4
Motor Vehicles 80
8
Stock 537
58
Net Monetary
Items
Balancing figure
Alternatively a firm can present the results as follows and the
detail break down given by way of
notes to the accounts:
Shm
Revenue X
Cost of Sales (X)
Gross Profit X
Other Incomes X
X
Distribution C
B Ltd. owed E Ltd. Sh. 36 million and Sh.32 million
respectively. E Ltd.s net profit for
the year, after tax but before dividends, was Sh.240 million;
this profit accrued evenly
over the year.
4. Neit
It becomes probable that the borrower will enter bankruptcy
The disappearance of an active market for that financial
asset because of financial
difficulties.
Where there is objective evidence of imp
Interest rate implicit in the lease: the discount rate
that, at the inception of the lease, cause
the aggregate present value of the minimum lease payments,
from the standpoint of the lessor,
to be eq
b) i) a sale and repurchase transaction where the repurchase
price is a fixed price or
the sale price plus a lenders return
ii) a sale of a financial asset together with a total return swap
that trans