The following information relates to questions On 1 July 20X3 Alpha Ltd acquired a 25% share of Beta Ltd. At that date the following assets had carrying amounts different to their fair values in Beta's books: $\begin{array}{|l|l|l|} \hline \text { Asset } & \begin{array}{c} \text { Carrying } \\ \text { amount } \end{array} & \text { Fair value } \\ \hline \text { Inventory } & \$ 12,000 & \$ 15,000 \\ \hline \text { Machinery } & \$ 24,000 & \$ 30,000 \\ \hline \end{array}$ All inventory was sold to third parties by 30 June 20X4. On 1 July 20X3, the machinery had a remaining useful life of 3 years. The tax rate is 30%. -The adjustment required to the investment in associate account at 30 June 20X4 in relation to the above assets is:

A) $875 B) $1250 C) $3500 D) $5000 A) $875 B) $1250 C) $3500 D) $5000

The following information relates to questions On 1 July 2013 Joey Ltd acquired 25% of the shares of Leao Ltd for $100 000. At that date the equity of Leo Ltd was $400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows: $\begin{array}{|c|c|} \hline \begin{array}{c} \text { Year ended } \\ 30 \text { June } \end{array} & \begin{array}{c} \text { Profit/(Loss) } \\ \$ \end{array} \\ \hline 20 \mathrm{X} 5 & 20,000 \\ \hline 20 \mathrm{X} 6 & (200,000) \\ \hline 20 \mathrm{X} 7 & (250,000) \\ \hline 20 \mathrm{X} 8 & 16,000 \\ \hline 20 \mathrm{X} 9 & 20,000 \\ \hline \end{array}$ There have been no dividends paid or movements in reserves since the date of acquisition. -At 30 June 20X5 the equity accounted balance of the investment in Leo was:

A) $50 000 B) $55 000 C) $100 000 D) $105 000 A) $50 000 B) $55 000 C) $100 000 D) $105 000

Exam 30: Associates and Joint Ventures

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Where an investor sells inventory to an associate in a prior year and the inventory is sold by the associate during the current year the investment in associate account is:

(Multiple Choice)

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Question 21

The following information relates to questions On 1 July 20X3 Alpha Ltd acquired a 25% share of Beta Ltd. At that date the following assets had carrying amounts different to their fair values in Beta's books: Asset Carrying amount Fair value Inventory \ 12,000 \ 15,000 Machinery \ 24,000 \ 30,000 All inventory was sold to third parties by 30 June 20X4. On 1 July 20X3, the machinery had a remaining useful life of 3 years. The tax rate is 30%. -The adjustment required to the investment in associate account at 30 June 20X4 in relation to the above assets is:

(Multiple Choice)

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Question 22

Investments in associates accounted for using the equity method are presented in the statement of financial position amongst:

(Multiple Choice)

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Question 23

When goodwill is acquired by an investor in an associate, the amortisation of goodwill is:

(Multiple Choice)

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Question 24

Clovelly Ltd owns 25% of Bronte Ltd. Bronte's profit after tax for the year ended 30 June 20X5 is $30 000. The tax rate is 30%. On 1 July 20X3, Bronte Ltd sold an item of plant to Clovelly Ltd for $8000. The carrying amount of the asset on this date in Bronte Ltd's records was $3000. The plant had a remaining useful life of 5 years. Clovelly's share of Bronte's profit for the year ended 30 June 20X5 is:

(Multiple Choice)

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Question 25

The following information relates to questions On 1 July 2013 Joey Ltd acquired 25% of the shares of Leao Ltd for $100 000. At that date the equity of Leo Ltd was $400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows: Year ended 30 June Profit/(Loss) \ 205 20,000 206 (200,000) 207 (250,000) 208 16,000 209 20,000 There have been no dividends paid or movements in reserves since the date of acquisition. -At 30 June 20X5 the equity accounted balance of the investment in Leo was:

(Multiple Choice)

4.8/5

(76)

Question 26

Showing 21 - 26 of 26

Where an investor sells inventory to an associate in a prior year and the inventory is sold by the associate during the current year the investment in associate account is:

Investments in associates accounted for using the equity method are presented in the statement of financial position amongst:

When goodwill is acquired by an investor in an associate, the amortisation of goodwill is:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

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