CIMAPRA19-F02-1 Exam Dumps

RST sells computer equipment and prepares its financial statements to 31 December.

On 30 September 20X5 RST soldcomputer software along with a two year maintenance package to a customer. The customer is given the right to return the goods within six months and claim a full refund if they are not satisfied with the computer software. The risk of return is considered to be insignificant for RST.

How should the revenue from this transaction and the right of return be recognised in thefinancial statements for the year ended 31 December 20X5?

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The financial statements ofST at 31 December 20X9 include the following balances in respect of shares classed as equity:

The profit after tax for the yearended 31 December 20X9 is $200,000.

What is ST's basic EPS for the year to 31 December 20X9?

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STacquired 70% of the equitysharesofDE for $87,500 on 30 September 20X5. Atthe date of acquisition the net assets of DE were $54,700 and the fair value of the non controlling interest wasmeasured at $19,700. There has been no impairment of goodwill.

On 30 September 20X9 ST disposedofits entire investmentinDE for $262,500 whenthe net assets of DEwere $96,250.

What is the gain or loss on disposal of DEthat will be included in ST'sconsolidated profit or lossfor the year ended30 September 20X9?

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The following information relates to DEF for the year ended 31 December 20X7:

* Property, plant and equipment has a carrying value of $3,500,000 and a tax written down value of $2,500,000.

* There are unused tax losses to carry forward of $1,250,000. These tax losses have arisen due to poor trading conditions which are not expected to improve in the foreseeable future.

* The corporate income tax rate is 25%.

In accordance with IAS 12 Income Taxes,the financial statements of DEF for the year ended 31 December 20X7 would recognisedeferred tax balances of:

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Which of the following actions would be most likely to improve an entity's gross profit margin?

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