Conceptual Framework and Structural Accounting Relationships
Autor: Jannisthomas • January 13, 2019 • 4,740 Words (19 Pages) • 774 Views
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- Control
P owns 30% of company A shares P owns 10% of company B shares A owns 90% of company B shares
There are no shareholders agreements in relation with any of the companies.
1. P’s percentage of interest in B is 37% and voting rights are 10%
X
2. P’s percentage of interest in B is 30% and voting rights are 100%
3. P’s percentage of interest in B is 10% and voting rights are 37%
- Long term contract accounting
1. The margin on a long term construction contract has to be booked based
on the percentage of completion method even if the margin is negative
2. The margin on a long term construction contract has always to be booked
on a prorata temporis basis
3. The negative margin on a long term construction contract has to be fully
recognized in profit and loss as soon as it is identified.
X
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- Deferred taxes
1. Deferred taxes are computed using the tax rate applicable in the year
during which the temporary difference item was generated;
2. Deferred taxes are computed using the tax rate expected to be applicable in the year(s) during which the temporary difference item will become tax
deductible or taxable;
X
3. This choice of rate is up to the company’s management, as part of its
decision on accounting policies;
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Question 2 – Consolidated Statement of Cash Flows
Buissonville prepares its financial statements in accordance with IFRS. Its statement of comprehensive income, statement of changes in equity and statement of financial position are as follows (all amounts in EUR):
Statement of comprehensive income for the year ended 31st December 2016
31-12
-2016
Revenue
Sales revenue
1.600.000
Interest
10.000
Share of profits of associate
10.000
Gain on sale of plant
_ 8.000
1.628.000
Expenses
Cost of goods sold
960.000
Wages and salaries
240.000
Depreciation - plant
40.000
Impairment - intangibles
30.000
Interest
12.000
Other expenses
_ 140.000
_ 1.422.000
Profit before taxes
206.000
Income tax expense
_ 65.000
Profit for the year
141.000
Statement of changes in equity for the year ended 31st December 2016
Balance at 31 December 2015
660.300
Profit for the year
141.000
Dividends paid
-36.300
Dividends contributed in
-30.000
capital
Cash share issue
50.000
Dividends contributed in
30.000
capital
[pic 8]
Balance at 31 December 2016
815.000
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Statements of financial position as at 31 December 2015 and 2016
31-12-2015
31-12-2016
Cash
60.000
69.800
Short-term deposit (less than 3 months)
120.000
140.000
Accounts receivable
140.000
190.000
Inventory
130.000
155.000
Prepayments
16.000
19.000
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