Finance lease: This is a lease that transfers substantially all the risks and rewards incident to ownership of an asset. Title may or may not eventually be transferred.
Wilfykil answered the question on February 8, 2019 at 07:10
- In the context of the International Accounting Standards Board’s Framework for the Preparation and Presentation of financial statements, identify and briefly explain any four qualitative...(Solved)
In the context of the International Accounting Standards Board’s Framework for the Preparation and Presentation of financial statements, identify and briefly explain any four qualitative characteristics of financial statements
Date posted: February 8, 2019. Answers (1)
- With reference to IAS 36 (Impairment of Assets), identify any four circumstances that may indicate that an asset has been impaired(Solved)
With reference to IAS 36 (Impairment of Assets), identify any four circumstances that may indicate that an asset has been impaired
Date posted: February 8, 2019. Answers (1)
- Determine Balance sheet extracts using two methods: Muniu Ltd received a 20 % grant towards the cost of new item of machinery that cost ksh. 100,000 kshs.The machinery her on expected life...(Solved)
Muniu Ltd received a 20 % grant towards the cost of new item of machinery that cost ksh. 100,000 kshs.The machinery her on expected life of 4yrs and nil residual value. The expected profits of the co. before accounting for deprecation of the new machinery amounts to 50,000 p. a in each year of the machinery life
Determine Balance sheet extracts using two methods
Date posted: February 8, 2019. Answers (1)
- Determine Profit and Loss Account Extract: Muniu Ltd received a 20 % grant towards the cost of new item of machinery that cost ksh. 100,000 kshs.The machinery her on expected life...(Solved)
Muniu Ltd received a 20 % grant towards the cost of new item of machinery that cost ksh. 100,000 kshs.The machinery her on expected life of 4yrs and nil residual value. The expected profits of the co. before accounting for deprecation of the new machinery amounts to 50,000 p. a in each year of the machinery life
Determine Profit and Loss Account Extract
Date posted: February 8, 2019. Answers (1)
- Jenga Ltd. had a deferred tax liability balance brought forward of Sh.2 million. As at 31 December 2008, the firm hand the following assets(Solved)
Jenga Ltd. had a deferred tax liability balance brought forward of Sh.2 million. As at 31 December 2008, the firm hand the following assets
Temporary difference due to revaluation of buildings in the year was Sh. 1,000,000.
Compute the deferred tax liability as at 31 December 2008 and show the relevant journal
entry.
Date posted: February 8, 2019. Answers (1)
- Highlight four circumstances under which a legacy may fail(Solved)
Highlight four circumstances under which a legacy may fail
Date posted: February 8, 2019. Answers (1)
- In the context of IAS 16 property, plant and equipment,Outline any two disclosure requirement for items of property, plant and equipment which are stated at...(Solved)
In the context of IAS 16 property, plant and equipment,Outline any two disclosure requirement for items of property, plant and equipment which are stated at revalued amounts
Date posted: February 8, 2019. Answers (1)
- In the context of IAS 16 property, plant and equipment, Briefly describe the accounting treatment with respect to the increase in the carrying amount of...(Solved)
In the context of IAS 16 property, plant and equipment,Briefly describe the accounting treatment with respect to the increase in the carrying amount of an asset as a result of revaluation
Date posted: February 8, 2019. Answers (1)
- In the context of IAS 16 property, plant and equipment, Explain when the cost of an item of property ,plant and equipment should be recognized...(Solved)
In the context of IAS 16 property, plant and equipment, Explain when the cost of an item of property ,plant and equipment should be recognized as an asset
Date posted: February 8, 2019. Answers (1)
- With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets,Describe the accounting treatment of contingent liabilities in the financial statements(Solved)
With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets,Describe the accounting treatment of contingent liabilities in the financial statements
Date posted: February 8, 2019. Answers (1)
- With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets,Identify the three circumstances under which a provision should be recognized in
the...(Solved)
With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets, Identify the three circumstances under which a provision should be recognized in the financial statements
Date posted: February 8, 2019. Answers (1)
- With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets, Distinguish between “provisions” and “Contingent liabilities”(Solved)
With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets, Distinguish between “provisions” and “Contingent liabilities”
Date posted: February 8, 2019. Answers (1)
- Outline the four main categories of financial instruments in the context of International Accounting Standard (IAS) 39(Solved)
Outline the four main categories of financial instruments in the context of International Accounting Standard (IAS) 39
Date posted: February 8, 2019. Answers (1)
- Determine Extracts of the statement of financial position as at December 2009 and 2010(Solved)
On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.
Determine Extracts of the statement of financial position as at December 2009 and 2010
Date posted: February 8, 2019. Answers (1)
- Determine Extracts of the statement of comprehensive income for the years ended 31 December 2009 and 2010(Solved)
On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.
Determine Extracts of the statement of comprehensive income for the years ended 31 December
2009 and 2010.
Date posted: February 8, 2019. Answers (1)
- Distinguish between "deferred tax liabilities" and "deferred tax assets".(Solved)
Distinguish between "deferred tax liabilities" and "deferred tax assets".
Date posted: February 8, 2019. Answers (1)
- Calculate The value of the assets: Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the...(Solved)
Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the two projects as follows:
Calculate The value of the assets in the books of Assure Ltd as at 30 June 2012
Date posted: February 8, 2019. Answers (1)
- Calculate Borrowing costs: Calculate Borrowing costs: Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the...(Solved)
Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the two projects as follows:
Calculate Borrowing costs to be capitalized for each of the projects as at 30 June 2012
Date posted: February 8, 2019. Answers (1)
- Calculate the Deferred tax account: Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate...(Solved)
Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.
During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowed
wear and tear charges for tax purpose were as follows:
Calculate the Deferred tax account
Date posted: February 8, 2019. Answers (1)
- Calculate the Temporary differences: Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate...(Solved)
Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.
During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowed
wear and tear charges for tax purpose were as follows:
Calculate the Temporary differences
Date posted: February 8, 2019. Answers (1)