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On initial recognition, a foreign currency transaction is recorded in the functional currency by applying to the foreign currency amount, the spot exchange rate between the functional currency and the foreign currency at the date of the transaction
Non monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of transaction. Non-monetary items that are measured at fair value in foreign currency are translated using the exchange rate when the fair value was determined.
Wilfykil answered the question on February 13, 2019 at 05:25
- The following information was extracted from the books of a government entity for the year ended 30 June 2011:
Prepare Statement of financial performance for the...(Solved)
The following information was extracted from the books of a government entity for the year ended 30 June 2011:
Prepare Statement of financial performance for the year ended 30 June 2011
Date posted: February 13, 2019. Answers (1)
- The following information was compiled by the Ministry of Finance for the fiscal year ended 30 June 2012.
Prepare Budget out-turns for the Ministry of Finance...(Solved)
The following information was compiled by the Ministry of Finance for the fiscal year ended 30 June 2012.
Prepare Budget out-turns for the Ministry of Finance in accordance with International Public Sector Accounting Standard (IPSASs 24).
Date posted: February 13, 2019. Answers (1)
- List the circumstances under which a subsidiary should be excluded from the consolidated financial statement(Solved)
List the circumstances under which a subsidiary should be excluded from the consolidated financial statement
Date posted: February 12, 2019. Answers (1)
- Explain four circumstances in which a parent company is exempted from consolidating investments in subsidiaries in accordance with International Accounting Standards (IAS)27- Consolidated and separate...(Solved)
Explain four circumstances in which a parent company is exempted from consolidating investments in subsidiaries in accordance with International Accounting Standards (IAS)27- Consolidated and separate financial statements
Date posted: February 12, 2019. Answers (1)
- Auma Ltd. acquired 80% of the ordinary shares of Sakwa Ltd. on 31 October 2009 for Sh. 117 million. At this date, the net assets...(Solved)
Auma Ltd. acquired 80% of the ordinary shares of Sakwa Ltd. on 31 October 2009 for Sh. 117 million. At this date, the net assets of Sakwa Ltd. were Sh. 127.5 million. The fair value of the non-controlling interest on the acquisition date was Sh.28.5 million.
Calculate the value of goodwill using the two methods
Date posted: February 12, 2019. Answers (1)
- Distinguish between the full method and the partial method of determining goodwill arising on acquisition of a subsidiary company(Solved)
Distinguish between the full method and the partial method of determining goodwill arising on acquisition of a subsidiary company
Date posted: February 12, 2019. Answers (1)
- Briefly explain three circumstances in which a parent company need not present consolidated financial statements in accordance with International Accounting Standard (IAS ) 27 ,Consolidated...(Solved)
Briefly explain three circumstances in which a parent company need not present consolidated financial statements in accordance with International Accounting Standard (IAS ) 27 ,Consolidated and Separate financial Statements
Date posted: February 12, 2019. Answers (1)
- Differentiate between full consolidation and equity method of accounting for subsidiaries and associate companies(Solved)
Differentiate between full consolidation and equity method of accounting for subsidiaries and associate companies
Date posted: February 12, 2019. Answers (1)
- International Accounting Standard (IAS) 28, Investment in Associates prescribes the use of the equity method of accounting for investments in associates over which the investor...(Solved)
International Accounting Standard (IAS) 28, Investment in Associates prescribes the use of the equity method of accounting for investments in associates over which the investor has significant influence.
Required:
i) Describe the term "significant influence" in the context of IAS 28.
ii) Explain four circumstances under which the investor is exempted from use of the equity method.
Date posted: February 12, 2019. Answers (1)
- Explain the circumstances in which an entity is permitted to change its accounting policies.(Solved)
Explain the circumstances in which an entity is permitted to change its accounting policies.
Date posted: February 12, 2019. Answers (1)
- What meetings of creditors must be held and for what purpose in the course of a creditors’ voluntary winding up?(Solved)
What meetings of creditors must be held and for what purpose in the course of a creditors’ voluntary winding up?
Date posted: February 12, 2019. Answers (1)
- The following trial balance was extracted from the books of ABC Retirement Benefits Scheme for the year ended 30 September 2003:
Prepare:
(i) Statement of changes in...(Solved)
The following trial balance was extracted from the books of ABC Retirement Benefits Scheme for the year ended 30 September 2003:
Date posted: February 12, 2019. Answers (1)
- Briefly explain the meaning of the term “abatement”(Solved)
Briefly explain the meaning of the term “abatement”
Date posted: February 12, 2019. Answers (1)
- The following trial balance was extracted by the trustees of XYZ Retirement Benefit Scheme as at 31 May 2007
Prepare:
(i) Statement of changes in net assets...(Solved)
The following trial balance was extracted by the trustees of XYZ Retirement Benefit Scheme as at 31 May 2007
Date posted: February 12, 2019. Answers (1)
- Prepare:
i) Statement of changes in net assets for the year ended 31 March 2011.
ii) Statement of net assets as at 31 March 2011(Solved)
The following trial balance was extracted from the books of Juhudi Retirement Benefits Scheme as at 31 March 2011:
Date posted: February 11, 2019. Answers (1)
- In the context of International Accounting Standard (IAS) 19, explain the term "multiemployer plans".(Solved)
In the context of International Accounting Standard (IAS) 19, explain the term "multiemployer plans".
Date posted: February 11, 2019. Answers (1)
- Outline four categories of expenses that should be recognized in the income statement in accordance with International Accounting standard (IAS) 19 “Employee benefits”(Solved)
Outline four categories of expenses that should be recognized in the income statement in accordance with International Accounting standard (IAS) 19 “Employee benefits”
Date posted: February 11, 2019. Answers (1)
- Prepare:
(a) Detailed trading and profit and loss accounts of the Head Office and the Branch for the year ended 30 June 2000.
(b) A Balance Sheet...(Solved)
Mwenyeji Limited exported some of its products through an overseas branch whose currency is “Kove”. The trial balances of the Head Office and the Branch as at 30 June 2000 are as follows:
Date posted: February 11, 2019. Answers (1)
- Determine:
(a) A stock account and a mark-up account for each branch in column format
(b) A profit and loss account for each branch and combined total...(Solved)
Trendsetters Limited operates two branches, one in Nairobi and one in Mombassa. These two branches are supplies from a warehouse in Athi River town where the Head Office of the Company is situated. All purchases are made at the head office. Goods are charged to both branches all selling price, which is head office cost plus 50%. All cash receipts in the branches are banked daily. The following figures relate to the company’s performance for the year ended 30 September 2000 and financial position as at that date.
Date posted: February 11, 2019. Answers (1)
- Determine:
(a) The cost of the inventories at the branch and the head office
(b) The trading profit and loss account for the year ended 31 March...(Solved)
Joshua set up a business on 1 April 2000 in Nairobi with a branch in Mombasa. Purchases are made exclusively by Nairobi office where goods are weighed and packed before sale. The branch handles packed goods only from Nairobi and these are charged thereto at packed cost plus 10%. All sales by both branches are at a uniform gross profit of 25% on the packed cost.
The following balances have been extracted from the books of the business as at 31 March 2001
Date posted: February 11, 2019. Answers (1)