ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau.
Trang 11 On 1 July 2019, A Ltd pays £870,000 to acquire the entire share capital of B Ltd The equity of B Ltd
on that date consists of ordinary share capital of £400,000 and retained earnings of £210,000 The fair value of the non-current assets of B Ltd on 1 July 2019 exceeds their carrying amount by £35,000 Tax rate 20% The amount paid for goodwill by A Ltd is:
a £232,000 b £470,000 c £260,000 d £225,000
2 On 1 May 20X4, C Ltd paid £430,000 to acquire the entire share capital of D Ltd The equity of D Ltd
on that date consisted of ordinary share capital of £200,000 and retained earnings of £90,000 All of its assets and liabilities were carried at fair value On 30 April 20X6, the retained earnings of C Ltd and D Ltd are £970,000 and £115,000 respectively Goodwill arising on consolidation has suffered an impairment loss of 25% since 1 May 20X4 Group retained earnings at 30 April 20X6 are:
a £1,085,000 b £960,000 c.£ 980,000 d £1,050,000
(The amount paid for goodwill was £140,000 (£430,000 – £290,000) So the impairment loss is £35,000 (25% of £140,000) The retained earnings of D Ltd have increased by £25,000 since acquisition Therefore group retained earnings at 30 April 2016 are (£970,000 +£25,000 – £35,000) = £960,000)
3 On 1 January 2009, P Ltd paid £480,000 to acquire 65% of the ordinary share capital of Q Ltd The equity of Q Ltd on that date consisted of ordinary share capital of £200,000 and retained earnings of
£150,000 The fair value of the non-current assets of Q Ltd on 1 January 2009 exceeded their carrying amount by £250,000 Goodwill arising on consolidation has suffered an impairment loss of 40% between
1 January 2009 and 31 December 2016 The goodwill figure which should be shown in the consolidated statement of financial position at 31 December 2016 is:
be shown in the consolidated statement of financial position at 31 December 2016 is:
Trang 2a £1,662,000 b £1,725,000 c £1,645,000 d £1,708,000
(The amount paid for goodwill was £200,000 (£560,000 – 80 % of (£300,000 + £150,000)) so the
impairment loss is £140,000 (70 % of £200,000) The retained earnings of F Ltd have decreased by
£85,000 since acquisition 80 % of this is £68,000 Therefore group retained earnings at 31 December
2016 are (£1,870,000 – £68,000 – £140,000) = £1,662,000.)
5 Which of the following is not an example of an intra-group balance?
a A loan made by one subsidiary to another
b A trade receivable owing to a subsidiary by an individual who is one of its customers
c A loan made by a parent company to a subsidiary
d A trade payable owing to a subsidiary by its parent company
6 G Ltd owns 90% of the ordinary share capital of H Ltd The inventories of H Ltd on 30 November 2015 include goods purchased from G Ltd for £300,000 These goods had been sold to H Ltd by G Ltd at a markup of 50% The amount of unrealised profit which should be subtracted from group inventories and from group retained earnings is: a £90,000 b £150,000 c £100,000 d.£135,000
7 During an accounting period, a parent company sells goods to one of its subsidiaries for £10,000 These goods cost the parent company £6,000 At the end of the accounting period, three-quarters of the goods have been sold by the subsidiary to customers outside the group but the remaining one-quarter of the goods are still held in inventories The adjustments required when preparing the group statement of comprehensive income are:
a Subtract £10,000 from group sales revenue and subtract £6,000 from group cost of sales
b Subtract £10,000 from group sales revenue and subtract £11,000 from group cost of sales
c Subtract £10,000 from group sales revenue and subtract £9,000 from group cost of sales
d Subtract £10,000 from group sales revenue and subtract £10,000 from group cost of sales
8 During an accounting period, a parent company sells goods to one of its subsidiaries for £200,000 This represents cost plus 25% At the end of the accounting period, one fifth of these goods are still held in the subsidiary's inventories The cost of sales figures reported in the parent's and the subsidiary's financial statements are £890,000 and £530,000 respectively The parent company has a 60% interest in the
Trang 3subsidiary's ordinary shares The cost of sales figure that should appear in the consolidated statement of comprehensive income for the year is:
a £1,228,000 b £1,260,000 c £1,212,000 d £1,096,000
9 A parent company owns 73% of a subsidiary's ordinary shares The non-controlling interest in the group statement of financial position is measured at the appropriate proportion of the subsidiary's identifiable net assets An impairment loss in relation to goodwill arising on consolidation should be accounted for
in the group statement of comprehensive income as follows:
a Recognise 100% of the impairment loss as a group expense
b Recognise 73% of the impairment loss as a group expense and subtract the remaining 27% from the profit attributable to the non-controlling interest
c Recognise 73% of the impairment loss as a group expense but make no further adjustments
d Do nothing
10 The amount of profit attributable to the non-controlling interest in a 90% subsidiary is generally equal to:
a 10% of the subsidiary's profit before tax c 10% of the group profit before tax
b 10% of the group profit after tax d 10% of the subsidiary's profit after tax
11 When preparing a set of group financial statements, the correct treatment of dividends paid by a subsidiary company to its non-controlling shareholders is to:
a Cancel them against dividends received by the parent company
b Ignore them completely
c Add them in the non-controlling interest column in the group statement of changes in equity
d Deduct them in the non-controlling interest column in the group statement of changes in equity
12 In an accounting period, a parent company has pre-tax profits of £5m Its 75% subsidiary has pre-tax profits of £2m The tax expense for both companies is equal to 30% of profit before tax The profit attributable to the non-controlling interest is:
a £1,750,000 b £1,225,000 c £500,000 d £350,000
Trang 413 (5.1)On 1 July 20X7, Investor Ltd (Investor) acquired all of the ordinary shares in Investee Ltd
(Investee) by paying cash At that date, the equity of Investee was as follows:
Issued capital (100.000 shares issued) : 100.000 $
Retained earnings: 80.000 $
Total equity: 180.000$
Acquisition – related coast totaled 2.000$
On acquisition, Investor revalued the asset of Investee to fair value, resulting in a revaluation increment
of 20.000$ The revaluation led to the recognition of a deferred tax liability of 6.000$ The amount of goodwill included in the consolidated statement of financial position was 10.000
What was the amount of the consideration paid by Investor for the shares in Investee?
a 202.000 $ b 204.000 $ c 210.000$ d 212.000 $
14 (5.2) On the acquisition of a subsidiary by an investor, purchased goodwill should be:
a Recorded in a consolidation adjusting entry
b Recognised separately in the financial statements of the investor only
c Recorded separately in the financial statements of the subsidiary only
d Recognised in the financial statements of either the subsidiary or investor
15 (5.3) On 8 August 20X3, Alpha Ltd (Alpha) acquired 20.000 shares in the Beta Ltd (Beta) that gave Alpha control over Beta in return for 10.000 of its own shares At that date, Alpha’s shares had a market value of 2,7 $ each, while Beta’s shares had a market value of 1,3 $ each Fees paid to legal advisers for
the transaction totalled 2.000$ What is the fair value of the consideration transferred?
a 26.000 $ b 27.000$ c 28.000$ d 29.000$
16 (5.4) In relation to goodwill arising from a business combination, which of the following statements in
accordance with IFRS 3 Business Combination
a Goodwill should be measured as cost less accumulated amortization
b Goodwill should be amortised on a straight – line basis over its useful life
c Goodwill should be measured at cost less accumulated impairment losses
d Goodwill is only tested for impairment if circumstances indicate it may be impaired
17 (5.5) Which of the following statements is not a key feature of the acquisition method?
Trang 5a An acquirer being identified for each business combination
b The acquired identifiable net assets being measured at the fair value
c The cost of business combination being measured at fair value of the net assets received from the acquiree
d The goodwill being measured as the consideration transferred plus the amount of any NCI interest plus
the fair value of any previously held equity intersest in the acquire less the fair value of the identifiable
net assets acquired
18 (5.6) On 1 july 20X7, Big Ltd (Big) agreed to purchase the assets and liabilities of Smal Ltd (Small) for
400.000$ cash, plus 1 million shares in Big At this date, the fair value of each share in Big was 1.2$
Costs directly attributable to the business combination totaled 5.000$
The statement of financial position of Small as at the date of purchase is presented bellow:
Small Ltd: Statement of financial position as at 1 July 20X7
Land & Buildingd (net book value) 1.000
What is the amount of goodwill purchased by Big on 1 July 20X7:
a 160.000 $ b 165.000 $ c 380.000$ d 385.000$
19 (5.7) On 1 August 20X2, Parent Ltd (parent) acquired a 70% interest in Sub Ltd (Sub) At the date the entity section of Sub’s statement of financial position revealed the following (1.000 $): Issued capital:
500; general reserve: 100; retained earnings: 50
At acquisition date, Sub revalued its non-current, non-depreciable assets to fair value (an increase of 200.000$ over the carrying amounts) Assume a tax rate of 30%
Trang 6Parent determined that it had paid 100.000$ for goodwill Non-controlling interest is measured at the proportionate share of the fair value of the identifiable net asset of Sub
Which of the following proforma entries would be processed in the consolidation worksheet for the year ended 30 June 20X3
A Dr- Share capital : 350
Dr- General reserve : 70
Dr- Retained earnings : 35
Dr- Asset revaluation surplus: 98 Dr- Goodwil : 100
Cr- Investment in Sub : 653
B Dr- Share capital : 350
Dr- Genaral reserve : 70
Dr- Retained earnings : 98
Dr- Business combination reserve: 98 Dr- Goodwil : 100
Cr- Investment in Sub : 653
C Dr- Share capital : 350
Dr- Genaral reserve : 70
Dr- Retained earnings : 35
Dr- Goodwil : 100
Cr- Investment in Sub : 555
D Dr- Share capital : 500
Dr- Genaral reserve : 100
Dr- Retained earnings : 140
Dr- Goodwil : 100
Cr- Investment in Sub : 890
20 (5.8) Small Ltd (Smal) is a wholly owned subsidiary of Large Ltd (Large) During the fiannacial year ended 30 June 20X3, Small declared and paid an interim dividend of 10.000$ and declared a final dividend of 20.000$ (which remains payable at year end) Large recognizes dividends as revenue when they are declared by Small Which of the following proforma entries would be processed in the consolidation worksheet for the financial year ended 30 June 20X3 in relation to the dividends provided by Small A A Dr- Dividend income : 30
Cr- Interim income :10
Cr- Final dividend (retained earning):20 B B Dr- Final dividend payable :20
Dr- Dividend income :30
Cr-Interim dividend (Retained earnings): 10 Cr- Final dividend (retained earnings) :20
Cr- Devidend receivable :20
C C Dr- Dividend income :20
Dr- final dividend payable :20
Cr- Final dividend (retained earnings) :20
D D Dr- Final dividend payable :30
Dr- Dividend income :30 Cr-Interim dividend (Retained earnings): 10
Trang 7Cr- Devidend receivable :20 Cr- Final dividend (Retained earnings) :20
Cr- Devidend receivable :30
21 (5.9) In accordance with IFRS 10 – Consolidated financial statements, a consolidated statement of financial position (or note thereto) would not present information relating to which of the following?
a Investments in subsidiaries c goodwill acquired by the group
b Loans to entities not related to the group d NCI’share of consolidated net assets
22 (5-10) On 15 August 20X2, Parent Ltd (parent) obtained control of a subsidiary via the acquisition of a 60% shareholding During the year ended 30 June 20X5, the subsidiary declared and paid an interim dividend of 10.000$
On 30 June 20X5, the subsidiary declared a dividend of 20.000$ Parent recognizes dividend as revenue when they are declared by the subsidiary Assume that Parent is exempt from income tax on dividends received from group entities Tax rate is 30%
Which of the following proforma entries would be processed in the consolidation worksheet for the year ended 30 June 20X5
A Dr- Dividend income : 30.000
Dr- dividend payable : 20.000
Cr- Interim dividend (RE) :10.000
Cr- Final dividend (RE) :20.000
Cr- Dividend receivable : 20.000
B Dr- Deferred tax asset :9.000 Dr- Dividend income :30.000 Dr- Dividend payble: 20.000 Cr-Income tax expense :9.000 Cr- Interim dividend (RE) :10.000 Cr- Final dividend (RE) :20.000 Cr- Devidend receivable :20.000
Trang 823 (5.11) IFRS 10- Consolidated financial statement sets out how to determine whether one entity has control over another entity Which of the following statements is in accordance with either IFRS 10 definition control or with the guidance prescribed to help identify whether control exists over another entity?
a The investor must be the only party that receives variable returns from the other entity
b The investor must be have greater than 50% of the voting rights in the other entity
c The investor must be represented on the board of directors or governing body of the other entity
d The investor must have existing rights that give the current ability to direct relevant activities of the other entity
24 (5-12) On 1 July 20X2, Holding Ltd (Holding) purchased all the issued capital of Subsidiary Ltd (Subsidiary) for 400.000$ cash At the acquisition date, the entity section in the statement of financial
position of Subsidiary contained the following information (1.000 $): Issued capital: 200; retained
earnings: 110 In addition, Holding determined that Subsidiary held equipment with a fair value of 60.000$, which was recorded in the statement of financial position of Subsidiary at a cost of 80.000$ and accumulated depreciation of 40.000$ Subsidiary decided not to revalue the equipment in tits own accounts The tax rate: 30% Which of the following consolidation adjusting entries would be processed
on acquisition date?
A Dr- Share capital : 200
Dr- Retained earnings : 110
Dr- Deferred tax Asset : 6
Dr- Accumulated depreciation: 40 Dr- Goodwil : 64
Cr- Equipment : 20
Cr- Investment in Sub : 400
B Dr- Share capital : 200
Dr- Retained earnings : 110
Dr- Accumulated depreciation: 40 Dr- Goodwil : 76
Cr- Equipment : 20
Cr- Deferred tax liability : 6
Cr- Investment in Sub : 400
C Dr- Share capital : 200
Dr- Retained earnings : 110
Dr- Accumulated depreciation: 40 Dr- Goodwil : 70
Cr- Equipment : 20
Cr- Investment in Sub : 400
D Dr- Share capital : 200
Dr- Retained earnings : 110
Dr- Goodwil : 90
Cr- Investment in Sub : 400
Trang 925 (5.13) Which of the following statements is consistent with the principle of control as defined by IFRS
10 Consolidated Financial Statements?
a The investor must be exposed to a return from the investee
b The investor has the ability to use its power over the investee to affect the amount of the returns from the investee
c An investor’s power over investee relates to its ability to determine the amount of variable returns received from investee
d If two or more investors have existing rights to direct different relevant activities, no investors can have control over the investee
26 (5.19) Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0 During the financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $ The original cost
to Subsidiary was 6000$ Half of the inventory was still on hand with Parent at 30 June 20X1
Assume a tax rate of 30%
Which of the following proforma journal entries would be processed in the consolidated worksheet for the financial year ended 30 june 20X1?
27 (5.20) Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0 During the financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $ The original cost
to Subsidiary was 6000$ Half of the inventory was still on hand with Parent at 30 June 20X1 During the year ended 20 June 20X2, the remainder of the inventory was sold to parties external to the group
Trang 10Assume a tax rate of 30% Which of the following proforma journal entries would be processed in the consolidated worksheet for the financial year ended 30 june 20X2?
a Dr- Retained earnings : 700
Dr- Income tax expense: 300
Cr- COGS : 1.000
b Dr- Retained earnings : 1.000 Dr- Income tax expense : 300 Cr- COGS : 1.000 Cr- Deferred Tax asset : 300
c Dr- Retained earnings : 1.400
Dr- Income tax expense : 600
Cr- COGS : 2.000
d Dr- Sale : 8.000 Cr- COGS : 8.000
28 (5.21) Big Ltd (Big) owns 80% of Little Ltd (Little) On 1 July 20X3, Litle sold equipment to Big for 40.000$ At the time of the sale, the carrying amount of the equipment in the books of Little was 30.000$ The profit on this transaction was taxable The tax rate was 30% Both entities depreciate equipment at 10% on cost The equipment is still on hand with Big at 30 June 20X5
The consolidation worksheet for the financial year ended 30 june 20X5 contains the following:
Retained earning (closing balance) 225.000 40.000
Note: the tax rate was 30%
Which of the following proforma journal entries would be processed in the consolidated worksheet for the financial year ended 30 june 20X5 in regard to the equipment sold on 1 july 20X3?
c C Dr- Accumulated depreciation: 1.000 d D Dr- Accumulated depreciation: 2.000
Trang 11Dr- Income tax expense : 300
Dr- Deferred tax asset: 2.700
Cr- Equipment : 10.000
29 IFRS 3:
a Allows either the unitings of interest method, or the acquisition method
b Allows only the unitings of interest method
c Allows only the acquisition method
d Allows only the acquisition method or merger method
30 Under IFRS 3, acquired contingent liabilities are:
a Always included in the cost of combination
b Included in the cost of combination, only if they can be reliably measured
c Included in goodwill
d Included in NCI
31 Goodwill should be:
a Tested annually for impairment b.Tested for impairment annually, or more frequently, if required
c Amortised d.Tested annually for impairment or amortised
32 Negative goodwill should be:
a Matched to future losses C Allocated to non-current assets
b Recorded in the income statement D Ignore
34 A combination may involve:
(i) The purchase of the equity of another undertaking
(ii) The purchase of all the net assets of another undertaking
(iii) The assumption of the liabilities of another undertaking
(iv) The purchase of some of the net assets of another undertaking, that together form one or more
businesses
Trang 12(v) The purchase of assets from a firm in liquidation
a i – v b i – iii c ii – iii d i – iv
35 Applying the acquisition method involves the following steps: (i)Identifying an acquirer; (ii)Measuring the cost of the combination (iii)Allocating, at the acquisition date, the cost of the combination to the assets acquired and liabilities and contingent liabilities assumed (iv)Amortising the goodwill
a i – ii b i – iii c ii – iii d i – iv
36 Control is the power:
a To govern the financial and operating policies of an undertaking
b To control more than 40% of the ordinary shares
c Appoint board members in proportion to your shareholding
d To control more than 50% of net assets
37 The cost of a combination includes: (i)Liabilities incurred or assumed by the acquirer.; (ii)Professional fees paid to accountants (iii)Legal advisers’ fees (iv)Valuers’ fees (v)General
administrative costs: a I b ii – iii c i – iv d.i – v
38 For an adjustment to the cost of the combination contingent on future events, the acquirer must include the amount of that adjustment in the cost of the combination at the acquisition date, if the adjustment is:
a Probable and can be measured reliably C Certain and exactly measurable
b Payable within one year D Receivable within one year
39 A building has a cost in the books of the acquiree of $200m It is being depreciated over 20 years, the length of the lease After 15 years, you buy the company and fair value the property at $400m In the consolidated books of account, annual depreciation will be recorded as:
a $10m b $20m c $27m d $80m
Trang 1340.Which of the following companies would qualify to be regarded as subsidiaries of Alpha?
i) Beta in which Alpha has 15% votes and a place on the board of directors
ii) Delta in which Alpha has 52% votes but no place on the board of directors
iii) Gamma in which Alpha has 25% shares and two places on the board of directors
iv) Theta in which Alpha holds 100% votes and all places on the board of directors
a (ii) & (i) b ii&iii c.ii&iv d i&iii
41 Which of the following would qualify a company to be regarded as a parent of another?
a. A parent and the subsidiary should both have the same persons as their directors
b A parent should own majority shares in the subsidiary
c A parent it and its subsidiary must both be in the same line of business
d A parent should control the majority of the votes at subsidiary’s shareholders’ meetings
42 Which of the following statement(s) is / are correct with regard to preparation of consolidated financial Statement?
i) To be a subsidiary a parent should hold 100% of its equity shares
ii) Consolidation merely addition together of two Statements of financial position
iii) In consolidation a subsidiary and an associate are treated identically
iv) Consolidated balance sheet excludes assets not owned by the group
a None b i&ii c ii&iii d.ii&iv
43 Which of the following statement(s) apply when consolidating statements of financial position i) All inter-company balances should be cancelled
ii) The group share of the whole of subsidiary’s profit is included within group profit
Trang 14iii) Inter company profit should be eliminated unless it is realised by sale to an outsider
iv) Subsidiary’s asset values need to be updated at the end of each accounting period
a i & iii b i & ii c ii & iv d ii & iii
45 With regard to preparing consolidated statements of financial position which of the following statements is / are correct?
i) the consolidated statement of financial position reports only parent’s goodwill
ii) Any unrealized profit made by a subsidiary should be eliminated from its profit
iii) An amount owed to each other within the group needs to be cancelled
iv) Only the group portion of any unrealised profit need be eliminated
a i & iii b i & ii c ii & iii d iii & iv
46 When preparing a consolidated statement of financial position the identifiable non monetary assets
of the subsidiary need to be fair valued for which of the following reason / reasons?
i) To inform the acquired company what its assets are worth in the market
ii) To comply with the practice followed over the years
iii) To report each of the subsidiary’s assets at what it cost the group to acquire
iv) To identify the amount paid for goodwill as the residual not attributed to other assets
a ii & iii; b ii & iv; c iii & iv d i & iii
47 When preparing a consolidated Statement of financial position the identifiable non monetary assets
of the subsidiary need to be fair valued Which of the following assets of the subsidiary need to be fair valued?
i) Land and building appearing in the books of the subsidiary
ii) Trade receivables reported on the subsidiary’s balance sheet
iii) Brand name the cost relating to which the subsidiary has already fully written off
iv) Inventory reported on the subsidiary’s statement of financial position
a i, iii & iv b ii & iii & iv c i, ii & iii d ii & iii
48 Which of the following statements are incorrect with regard to preparation of a consolidated
statement of financial position?
Trang 15a) Gain on fair valuation of a subsidiary’s asset is a pre-acquisition profit
b) Non controlling interest does not deserve any portion of fair valuation gain
c) If an asset is not reported in the subsidiary’s ledger it need not be fair valued
d) Gain on fair valuation of subsidiary’s asset inflates the cost of goodwill
a ii & iii b ii, iii & iv c i & ii & iii d i & iv
49 When preparing a consolidated statement of financial position any profit made by one member of the group against another should be eliminated unless it has been realised by disposal to some one outside the group Which of the following is / are the reason(s) for this?
i) Because an entity cannot make a profit against its own self
ii) Because it is fashionable to do so
iii) Because subsidiary’s assets needs to be reported at the amount each cost the group
iv) Because the unsold goods may have to be returned to the party purchased from
a i & ii b ii & iii c iii& iv d i & iii
50.A parent owns two third of the subsidiary’s equity As at a year end the subsidiary’s inventory includes goods sent to it by the parent invoiced at £360,000 Parent has purchased these goods for
£300,000 Which of the following are the correct entries for eliminating unrealised profit?
a Debit the parent’s retained earnings and credit the subsidiary’s inventory with £60,000
b Debit the parents retained earnings and credit subsidiary’s inventory with £45,000
c Debit the subsidiary’s retained earnings and credit the subsidiary’s inventory with £45,000
d Debit the subsidiary’s retained earnings and credit the subsidiary’s inventory with £60,000
51 What is the amount of the unrealised profit to be eliminated if the parent’s year-end inventory includes at £540,000 goods invoiced to it by its 60% owned subsidiary at cost plus 25%
a £135,000 b.£108,000 c £81,000 d 64,800
52 Subsidiary’s inventory at the year end included £180,000 purchased from its parent Further goods invoiced by the parent at £45,000 were in transit The parent invoices the subsidiary at cost plus 20% The amount of unrealised profit that needs to be eliminated from the parent’s retained earnings would
be: a £38,333 b £38,333 c £37,500 d £36,000