Acca financial Accounting (FA) Study Text ac ca (FA)

PRACTICE QUESTIONS 

510

 

KAPLAN PUBLISHING

 

Task 3 

(a)

What amount should be included in the consolidated statement

of financial position for the non-controlling interest as at

31 December 20X7? 

(2 marks) 

$000 

(b)

What amount should be included in the consolidated statement

of financial position for retained earnings as at 31 December

20X7? (2 marks)

$000 

Task 4 

State whether each of the following statements is true or false.  

(3 marks)

True/False 

(i) 

The income and expense of an associate are cross-

cast with those of the parent and subsidiary on a 

line-by-line basis for inclusion in the consolidated 

statement of profit or loss 

(ii) 

If an entity made a rights issue of shares during the 

year, with all other factors remaining unchanged, 

this would have a detrimental impact upon the 

current ratio 

(iii)  If an entity revalued its land and buildings from 

$1 million to $1.6 million during an accounting 

period, with all other factors remaining unchanged, 

this would reduce the gearing ratio