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CR – Nov 2024 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated statement of financial position for Okaekwei PLC, considering acquisitions and fair value adjustments.

Question

The following financial statements relate to Okaekwei PLC (Okaekwei), Ablekuma PLC (Ablekuma), and Katamanso PLC (Katamanso), three companies operating in the manufacturing industry.

Statement of Financial Position as at 31 October 2024

Description	Okaekwei (GH¢’000)	Ablekuma (GH¢’000)	Katamanso (GH¢’000)
Non-current assets:
Property, plant and equipment	88,307	53,657	82,875
Investments	102,500	78,095	–
Total Non-current Assets	190,807	131,752	82,875
Current assets:
Inventory	9,492	4,618	14,642
Trade receivables	4,573	8,101	18,085
Cash and Bank	11,625	4,599	30,056
Total Current Assets	25,690	17,318	62,783
Total Assets	216,497	149,070	145,658
Equity & Liabilities:
Share capital (GH¢1)	106,250	63,750	61,625
Retained earnings	38,607	42,361	27,025
Other component of equity	3,825	3,060	2,678
Total Equity	148,682	109,171	91,328
Liabilities:
Non-current liabilities	40,851	20,327	31,582
Current liabilities	26,964	19,572	22,748
Total Liabilities	67,815	39,899	54,330
Total Equity & Liabilities	216,497	149,070	145,658

Additional Information:

Acquisition of Katamanso:
- On 1 November 2023, Ablekuma acquired 60% of the ordinary shares of Katamanso at a cost of GH¢55 million.
- Due diligence costing GH¢0.25 million was undertaken and included in the investment cost.
- Retained earnings and other components of equity of Katamanso at acquisition were GH¢21.6 million and GH¢1.65 million, respectively.
Fair Value Adjustments:
- A fair value exercise was conducted, with a building’s fair value exceeding its carrying value by GH¢1.2 million (remaining useful life: 20 years).
- The financial statements of Katamanso do not yet reflect this adjustment.
- Non-controlling interest is measured using the proportionate share of identifiable net assets.
Acquisition of Ablekuma by Okaekwei:
- On 1 November 2022, Okaekwei purchased 80% of the ordinary shares of Ablekuma for GH¢92 million.
- The investment value reflects the fair value of the subsidiary at 31 October 2024.
- Retained earnings and other equity components at acquisition: GH¢29.6 million and GH¢2.32 million.
Deferred Tax on Fair Value Adjustments:
- Deferred tax is to be provided at 25% on temporary differences arising from fair value adjustments.
Intragroup Transactions:
- On 1 June 2024, Ablekuma sold inventory (cost: GH¢2 million) to Katamanso for GH¢1.8 million.
- As of 31 October 2024, these goods were still in Katamanso’s inventory, valued at the purchase cost. The fair value of the inventory at year-end was GH¢1.78 million.
Intragroup Transfer of PPE:
- On 1 August 2024, Okaekwei transferred a production machine to Ablekuma at GH¢2 million (carrying value: GH¢2.4 million).
- The remaining useful life was five years, but Ablekuma depreciates it over four years.
- Okaekwei harmonizes accounting policies upon consolidation.

Required:

Prepare the Consolidated Statement of Financial Position of Okaekwei PLC as at 31 October 2024.

(All workings are to be rounded to the nearest thousand).

Answer

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Tags: Consolidation Adjustments, Goodwill, Group Accounts, Intragroup Transactions, Non-Controlling Interest
Level: Level 3

Topic: Business Combinations (IFRS 3), Consolidated Financial Statements
Series: Nov 2024

FR – Nov 2024 – L2 – Q1- Group Financial Statements

Preparation of the consolidated statement of profit or loss and statement of financial position for Yarkpawolo Group, including goodwill calculation and intra-group adjustments.

Question

Yarkpawolo LTD, a company in the healthcare industry, purchased 80% of the ordinary shares of Weah LTD on 1 January 2023. There are three elements to the purchase consideration: an immediate payment of GH¢1,400,000 and two further payments of GH¢100,000 on 31 December 2023 and GH¢120,000 on 31 December 2024 if the return on capital employed (ROCE) exceeds 15% in each of the financial years. All indicators have suggested that the ROCE for the company will be 17% and 16% for the financial years ending 31 December 2023 and 31 December 2024 respectively.

Yarkpawolo uses a discount rate of 10% in any present value calculations. The present value of GH¢ 1 receivable based on 10% are as follows:

Year	Present Value
1	0.909
2	0.826

The draft financial statements of both companies as at 31 December 2023 are as follows:

Statement of Profit or Loss for the year ended 31 December 2023

Yarkpawolo (GH¢’000)	Weah (GH¢’000)
Sales revenue	14,000
Cost of sales	(10,000)
Gross profit	4,000
Operating expenses	(2,050)
Profit before tax	1,950
Income tax expense	(450)
Profit for the year	1,500
Retained earnings brought forward	3,500
Retained earnings to statement of financial position	5,000

Statement of Financial Position as at 31 December 2023

Yarkpawolo (GH¢’000)	Weah (GH¢’000)
Non-current assets:
Property, Plant & Equipment	4,500
Patents	500
Investment in Weah	1,400
Total Non-current assets	6,400
Current assets:
Inventories	5,500
Trade and other receivables	2,000
Cash and cash equivalents	1,200
Total Current assets	8,700
Total Assets	15,100
Equity:
Share capital (GH¢0.20 per ordinary share)	1,500
General reserve	3,000
Retained earnings as at 31 December 2023	5,000
Total Equity	9,500
Non-current liabilities:
Long-term borrowings	1,600
Current liabilities:
Trade and other payables	4,000
Current portion of long-term borrowings	–
Total Liabilities	5,600
Total Equity and Liabilities	15,100

Additional Information:

Fair Value Adjustments on PPE:
- Property: Increase from GH¢200,000 to GH¢250,000 (Depreciation rate 10%)
- Plant: Increase from GH¢80,000 to GH¢100,000 (Depreciation rate 20%)
- Equipment: Decrease from GH¢120,000 to GH¢80,000 (Depreciation rate 20%)
- Weah has not adjusted its PPE values for the fair value assessment.
Intra-Group Trading:
- Since acquisition, Weah purchased GH¢50,000 worth of goods from Yarkpawolo. Half of these goods remained in inventory at year-end. Yarkpawolo makes a mark-up on cost of 25%.
- Yarkpawolo also purchased GH¢50,000 of goods from Weah, with one-third remaining in inventory. Weah sells at a margin of 20%.
Intercompany Balances:
- Yarkpawolo’s trade receivables include GH¢5,000 owed by Weah. The current accounts do not balance due to GH¢2,000 in transit from Weah.
Impairment:
- A goodwill impairment review identified a loss of GH¢100,000. No adjustment has been made yet.
Non-controlling Interest Valuation:
- Yarkpawolo values non-controlling interest at fair value at the acquisition date. The share price for Weah was GH¢0.75 per share.

Required:
Prepare for Yarkpawolo LTD:
(a) Consolidated Statement of Profit or Loss for the year ended 31 December 2023
(b) Consolidated Statement of Financial Position as at 31 December 2023

Answer

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Tags: consolidated financial statements, Financial Reporting Standards, Goodwill, Group Accounting, IFRS, Intra-group Transactions, Non-Controlling Interest
Level: Level 2

Topic: Group Financial Statements and Consolidation
Series: Nov 2024

FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements

Prepare the profit or loss and appropriation account and financial position statement for a partnership at retirement and admission of partners.

Question

Atsu, Baba, and Chawe are in partnership, providing management services, sharing profits in the ratio 5:3:2 after charging annual salaries of GH¢18,000 each. Current accounts are not maintained. On 30 June 2024, Atsu retired.

Dua was admitted on 1 July 2024 to the partnership and is entitled to 30% of the profits of the current partnership, with the balance being shared equally between Baba and Chawe.

The previous partnership trial balance as of 30 June 2024 was as follows:

Description	GH¢	GH¢
Capital accounts – Atsu		12,519
Capital accounts – Baba		65,844
Capital accounts – Chawe		33,618
Trade receivables	138,615
Inventories at 1 July 2023	6,000
Operating expenses	419,166
Investment	300
Bank overdraft		33,510
Trade payables		52,218
Revenue		565,296
Total	663,543	663,543

Additional Information:

Inventory remains at GH¢6,000.
Full provision is required for an irrecoverable debt of GH¢3,450.
Adjustments agreed by partners:
- The investment is to be included at GH¢4,500.
- Goodwill, which remains in the books, is valued at GH¢72,000.
On 1 July 2024, GH¢30,000 due to Atsu was transferred to Dua. The balance due to Atsu is to be repaid over three years, commencing on 1 July 2024.
Dua introduced cash of GH¢22,500 to the partnership.

Required:
i) Prepare the statement of profit or loss and appropriation account of the previous partnership for the year ended 30 June 2024 and a statement of financial position at that date. (9 marks)
ii) Prepare the statement of financial position for the current partnership as of 1 July 2024. (6 marks)

Answer

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Tags: Appropriation, Capital Accounts, Financial Position, Goodwill, Partnership, Profit or Loss
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: Nov 2024

CR – May 2016 – L3 – Q1 – Presentation of Financial Statements (IAS 1)

Explain earnings management, calculate goodwill, and prepare a consolidated statement of cash flows for Joy-land Group.

Question

Given that accrual accounting tends to mask actual cash flow performance, stock analyst and rating agencies are generally more interest in cash flow. The directors of Joy-land Plc have called for the cash flow statement of the group so as to have a view of earnings performance devoid of accruals. The following draft group financial statements relate to Joy-land Plc.
Joy-land Plc Group: Statement of financial position as of November 30

Joy-land Group: Statement of comprehensive income for the year ended November 30, 2015.

Joy-land Group: Statement of changes in equity for the year ended November 30, 2015

The following additional information relates to the financial statements of Joy-land
(i) On December 1 2013, Joy-land acquired 8% of the ordinary shares of Talk peace. Joy-land had treated this investment as available for sale in the financial statement to November 30, 2014. On December 1, 2014. Joyland acquired a further 52% of the ordinary shares of Talk-peace and gained control of the company, the consideration for the acquisitions was as follows:

At December 1, 2014 the fair value of the 8% holding in talk peace held by Joy-land at the time of the business combination was N20 million and the fair value of the noncontrolling interest in Talk-peace was N80million. no gain or loss on the 8% holding in Talk-peace had been reported in the financial statement at December 1, 2014, the
purchase consideration at December 1, 2014 comprised cash of N60 million and share of N60million.
The fair value of identifiable net assets of Talk-peace at the date of acquisition comprised the following:

(ii) Goodwill Impairment

Goodwill for all subsidiaries has undergone impairment testing for the financial year ending November 30, 2015.
Impairment losses identified were specific to subsidiaries 100% owned by Joy-land.

(iii) Purchase of Research Project (IAS 38)

On December 1, 2014, Joy-land purchased a research project from a third party for ₦32 million, which was recognized as an intangible asset under IAS 38.
Additional costs incurred during the year include:
- ₦8 million to complete the research phase.
- ₦16 million for product development (capitalizable).
- ₦4 million for initial marketing costs (not capitalizable; already accounted for correctly).
No other additions to intangible assets were recorded, except those from the acquisition of Talk-peace.

(iv) Rights Issue by Talk-peace

On November 30, 2015, Talk-peace issued new shares on a 1 for 4 basis.
The issue was fully subscribed and raised ₦20 million in cash.

(v) Investment Property (IAS 40)

Joy-land uses the fair value model to measure its investment properties.
During the year:
- Part of the air-conditioning system (carrying value: ₦2 million) was replaced with a new system costing ₦4 million.
- The replacement aligns with the treatment under IAS 40.

(vi) Sale of Surplus Land

Joy-land sold surplus land with a carrying value of ₦40 million for:
- ₦60 million in cash, and
- Plant valued at ₦16 million (part of the consideration).
The resulting gain on disposal has already been included in the income statement.
Depreciation for property, plant, and equipment (PPE) for the year totaled ₦108 million.

(vii) Defined Benefit Scheme

Joy-land operates a defined benefit pension scheme for select top executives and expatriates (in addition to its contributory pension scheme).
Current-year figures for the defined benefit scheme:

Description ₦’m

Opening Balance (Dec 1, 2014) 88

Current Year Charge to P&L 16

Contributions Paid (28)

Actuarial Loss to OCI 24

Closing Balance (Nov 30, 2015) 100

Description	₦’m
Opening Balance (Dec 1, 2014)	88
Current Year Charge to P&L	16
Contributions Paid	(28)
Actuarial Loss to OCI	24
Closing Balance (Nov 30, 2015)	100

(viii) The associate company did not pay any dividends in the year.
(ix) Deferred tax of N40illion arose on the gains on available for sale investments in the year

Required
(a) As the CFO of the group, briefly explain to the legal and engineer directors what is meant by earnings management giving TWO examples of how accruals could be employed in the earning management. (3 marks)
N’m
Balance at the beginning, December 1, 2014 88
Charge to profit or loss for the year 16
Pension contributions paid during the year (28)
Actuarial loss to other comprehensive income 24
Balance at the end, November 30 2015 100
(b) Determine the goodwill arising on the acquisition of the subsidiary on December 1, 2014 and total goodwill impairments of the group as at November 30, 2015 statement of cash flow on the assumption that it is the policy of Joyland Plc to value Non-controlling interest at full fair value. (3 marks)
(c) Prepare a consolidated statement of cash flows for the Joy-land Group for the year ended November 30, 2015 using the indirect method under IAS 7 ‘statement of Cash flow.
Note; Ignore deferred taxation other than where is mention in the question.

Answer

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Tags: Cash Flow Statement, consolidated financial statements, Earnings Management, Goodwill, Impairments, Non-Controlling Interest
Level: Level 3

Topic: Presentation of Financial Statements (IAS 1)

CR – May 2017 – L3 – Q4 – Revenue Recognition (IFRS 15)

Advise on the correct accounting treatment for transactions involving contracts, licences, and purchase of components.

Question

Dango Plc is a conglomerate company operating in Nigeria with diverse interests across Africa. It prepares its financial statements in accordance with International Financial Reporting Standards with a year-end of September 30. The following transactions relate to Dango Plc.

(a) In February 2016, Dango Plc won a significant new contract to supply large quantities of rice to the government of Guyama, a small West African country, for the next two years. Under the terms of the arrangement, payment is made in cash on delivery once goods have been cleared by customs. The rice will be delivered in batches four (4) times every year, on April 1, July 1, October 1, and January 1. The batches for April 1, 2016, and July 1, 2016, amounting to N250 million and N380 million respectively, were delivered and paid. Dango incurred significant costs on customs duties for the first batch of delivery. The October 1 batch, valued at N520 million, was shipped prior to the year-end but delivered and paid for on October 1, 2016.

(b) On October 1, 2010, a 12-year licence was awarded to Dango Plc by the Federal Government to be the sole manufacturer of a chemical used in the Nigerian pharmaceutical industry. The licence was recognised on that date at its fair value of N196 million. The award of the licence motivated Dango Plc in 2011 to purchase a division of another Nigerian competitor company making similar products. Goodwill of N240 million was recognised on the purchase of the division. Dango Plc merged the activities of the newly acquired division with its own to create a specialist chemical sub-division, which it now classifies as a separate cash-generating unit. By 2016, the revenue of this cash-generating unit now amounts to 5% of the Group’s revenue.

(c) Dango Plc buys raw materials from overseas suppliers. It has recently taken delivery of 1,000 units of component X, used in the production of chemicals. The quoted price of component X was N1,200 per unit, but Dango Plc has negotiated a trade discount of 5% due to the size of the order. The supplier offers an early settlement discount of 2% for payment within 30 days, and Dango Plc intends to achieve this. Import duties of N60 per unit must be paid before the goods are released through customs. Once the goods are released, Dango Plc must pay a delivery cost of N5,000 to have the components taken to its warehouse.

Required:
Write a report to the directors advising them on the correct accounting treatment of the above transactions in the financial statements for the year ended September 30, 2016, in accordance with the provisions of the relevant standards.

Note: You may consider the relevance of the following standards to the transactions: IAS 20, IAS 2, IAS 38, IFRS 3, and IFRS 15.

Answer

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Tags: Accounting Standards, Customs Duties, Discounts, Goodwill, Licenses, Revenue
Level: Level 3

Topic: Revenue Recognition (IFRS 15)

CR – May 2017 – L3 – Q3c – Impairment of Assets (IAS 36)

Allocate an impairment loss across assets in a cash-generating unit based on IAS 36.

Question

A cash-generating unit holds the following assets:

Asset	Value (N’Million)
Goodwill	160
Patent	320
Property, Plant and Equipment	480

An annual impairment review is required as the cash-generating unit contains goodwill. The most recent review assesses its recoverable amount to be N720 million. An impairment loss of N240 million has been incurred and has been recognised in profit or loss.

Required:
Show how the value of the assets held by the cash-generating unit will change after the impairment test based on the information provided above.

Answer

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Tags: Asset Allocation, CGU, Goodwill, IAS 36, Impairment Loss
Level: Level 3

Topic: Impairment of Assets (IAS 36)

CR – May 2017 – L3 – Q1 – Foreign Currency Transactions and Translation (IAS 21)

Assess functional currency and prepare a consolidated statement of financial position under IFRS.

Question

Rapuya Plc. is a Nigerian public limited company operating in the mining industry. The draft Statements of Financial Position of Rapuya Plc., and its two subsidiaries, Puta Limited and Soma Limited as at April 30, 2017, are as follows:

The following information is relevant to the preparation of the group financial statements:

(i) On May 1, 2016, Rapuya acquired 52% of the ordinary shares of Soma Limited, a foreign subsidiary. The retained earnings of Soma Limited on this date were 220 million defas. The fair value of the identifiable net assets of Soma Limited on May 1, 2016, was 990 million defas. The excess of the fair value over the net assets of Soma Limited is due to an increase in the value of non-depreciable land.

Rapuya Plc. wishes to use the ‘full goodwill’ method to consolidate the financial statements of Soma. The fair value of the non-controlling interest in Soma Limited at May 1, 2016, was 500 million defas.

Soma Limited is located in Tome, a small country in West Africa, and operates a mine. The income of Soma Limited is denominated and settled in defas. The output of the mine is routinely traded in defas, and its price is determined initially by local supply and demand. Soma Limited pays 30% of its costs and expenses in naira, with the remainder being incurred locally and settled in defas. Soma’s management has a considerable degree of authority and autonomy in carrying out the operations of Soma Limited and is not dependent upon group companies for financial support. The Finance Controller is not certain from the above whether the defas or naira should be taken as the functional currency of Soma Limited.

There have been no issues of ordinary shares and no impairment of goodwill since acquisition.

(ii) Also on May 1, 2016, Rapuya Plc. had acquired 70% of the equity interests of Puta Limited. The purchase consideration amounted to N226 million, which Rapuya Plc. paid through bank transfer in compliance with the cashless policy of the Federal Government of Nigeria. The fair value of the identifiable net assets recognized by Puta Limited was N240 million, excluding the patent below. The identifiable net assets of Puta Limited at May 1, 2016, included a brand with a fair value of N8 million. This had not been recognized in the financial statements of Puta Limited. The brand is estimated to have a useful life of four years. The retained earnings of Puta Limited were N98 million, and other components of equity were N6 million at the date of acquisition. The remaining excess of the fair value of the net assets is due to an increase in the value of non-depreciable land.

Rapuya Plc. wishes to use the ‘full goodwill’ method in consolidating the financial statements of this subsidiary. The fair value of the non-controlling interest in Puta Limited was N92 million on May 1, 2016. There have been no issues of ordinary shares since acquisition, and goodwill on acquisition is not impaired.

(iii) The following exchange rates are relevant for the preparation of the group financial statements:

Defas to Naira	Exchange Rate
May 1, 2016	3:1
April 30, 2017	2.5:1
Average for year to April 30, 2017	2.9:1

Required:

(a) Advise the Finance Controller on what currency should be taken as the functional currency of Soma Limited, applying the principles set out in IAS 21 – The Effects of Changes in Foreign Exchange Rates. (5 Marks)

(b) Prepare a consolidated statement of financial position of the Rapuya Group as at April 30, 2017, in accordance with International Financial Reporting Standards (IFRS). (Show all workings) (25 Marks)

(Total: 30 Marks)

Answer

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Tags: Consolidation, Foreign Operations, Full Goodwill Method, Functional Currency, Goodwill, Non-Controlling Interest, Translation
Level: Level 3

Topic: Foreign Currency Transactions and Translation (IAS 21)

CR – Nov 2016 – L3 – SA – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare a Consolidated Statement of Financial Position for Bata Plc and subsidiaries; explain IAS 21 principles for translating foreign subsidiaries.

Question

a. Bata Plc, which operates in the manufacturing sector, has been surviving the challenges operating in the Nigerian economic environment. The draft Statements of Financial Position of Bata Plc and its subsidiaries as at October 31, 2016, are as follows:

Bata	N’million	Jewe	N’million	Gaba	N’million
Non-current assets		Property, plant, and equipment	4,320	360	420
Investments in subsidiaries	1,110	600	–
Financial assets	500	–	–
Total Non-current assets	5,930	960	420
Current assets	1,050	570	540
Total assets	6,980	1,530	960
Equity		Share capital – N1 ordinary shares	2,400	600	300
Retained earnings	3,410	540	390
Other components of equity	450	–	–
Total equity	6,260	1,140	690
Current liabilities	720	390	270
Total liabilities and equity	6,980	1,530	960

Additional Information:

Acquisition of Subsidiaries:
- Bata Plc acquired 60% of the share capital of Jewe Plc on November 1, 2012, and 10% of Gaba Plc on November 1, 2013. The costs of the combinations were N852 million and N258 million, respectively.
- Jewe Plc acquired 70% of the share capital of Gaba Plc on November 1, 2013.
Retained Earnings Balances:

Date	Jewe Plc (N’million)	Gaba Plc (N’million)
November 1, 2012	270	–
November 1, 2013	360	240

Fair Value Adjustments:
- At acquisition dates, the fair value of the net assets was N930 million for Jewe Plc and N660 million for Gaba Plc. The difference in the fair value and book value relates to non-depreciable land.
- The fair value of non-controlling interest (NCI) was N390 million for Jewe Plc and N330 million for Gaba Plc. Bata Plc adopts the full goodwill method under IFRS 3 to account for NCI.
Impairment Testing:
- Jewe Plc suffered an impairment loss of N60 million.
- Gaba Plc did not suffer any impairment loss.
Intra-group Inventory Sales:
- During the year ended October 31, 2016, Bata Plc sold inventory to Jewe Plc and Gaba Plc.
- The invoiced prices of the inventories were N480 million and N360 million, respectively.
- Bata Plc invoices goods to achieve a markup of 25% on cost to all third parties, including group companies.
- At the year-end, half of the inventory sold to Jewe Plc remained unsold, but the entire inventory sold to Gaba Plc had been sold to third parties.
Financial Asset:
- Bata Plc purchased a deep discount bond for N500 million on November 1, 2015.
- The bonds will be redeemed in 3 years for N740.75 million and are carried at amortized cost in line with IAS 39.
- The Accountant has not passed the correct entries to reflect amortized cost valuation at year-end, and the financial asset is shown at N500 million.

Compound sum of N1: (1 + r)^n

Year	12%	14%
1	1.1200	1.1400
2	1.2544	1.2996
3	1.4049	1.4815
4	1.5735	1.6890

Required:

Prepare a Consolidated Statement of Financial Position for Bata Plc and its subsidiaries as at October 31, 2016. (25 Marks)
Explain to the directors of Bata Plc how the assets, liabilities, income, and expenses of a foreign subsidiary, including the resulting goodwill, are translated for consolidation purposes under IAS 21. (5 Marks)

(Total: 30 Marks)

Answer

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Tags: Consolidation, Exchange Rate Effects, Foreign subsidiary, Goodwill, Group Accounting, Impairment testing
Level: Level 3

Topic: Consolidated Financial Statements (IFRS 10)
Series: NOV 2016

CR – May 2019 – L3 – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare the consolidated statement of financial position for a group with a foreign subsidiary and inter-company transactions as at September 30, 2017.

Question

Oyin Plc. a Nigerian company acquired 960 million equity share capital of Kemy Plc., a foreign subsidiary based in Brazil, on 1 October, 2015 for 1.08 billion Brazilian real (BRL). The functional and presentation currency of Kemy Plc. is the BRL. Since acquisition, Kemy Plc., has operated autonomously of Oyin group.

The statements of financial position of Oyin Plc. and Kemy Plc. as at 30 September, 2017 are as follows:

Additional Information:

It is the policy of Oyin Plc. group to recognize non-controlling interest at acquisition at the proportionate share of the net assets. The retained earnings of Kemy Plc., at the date of acquisition were 390 million BRL.
Kemy Plc. sells goods to Oyin Plc. at cost plus a mark-up of 33 1/3%. At 30 September, 2017, Oyin Plc. held N15 million of the goods. The goods were purchased at an exchange rate of N1 to 5 BRL. On 28 September, 2017, Oyin Plc. sent Kemy Plc., a payment for N15 million to clear the intra-group payables. Kemy received and recorded the cash on 2 October, 2017.
On 1 October, 2016, Kemy Plc. purchased a leasehold building for 375 million BRL, taking out a loan note payable after five years to finance the purchase. The estimated useful life of the building on 1 October, 2016 was 25 years with no estimated residual value. The building is to be depreciated on a straight-line basis. The building was professionally revalued at 450 million BRL on 30 September, 2017 and the directors have included the revalued amount in the statement of financial position.Both companies adopt a policy of revaluation for their properties. There was no difference between the carrying amount and fair value of the property of Oyin Plc. at 30 September, 2017.
Exchange Rates:

Date	BRL to N1
1 October, 2015	6.0
30 September, 2015	5.5
30 September, 2017	5.0
Average for the year to 30 September, 2016	5.2

Required:
Prepare the consolidated statement of financial position of Oyin group at 30 September, 2017.

Answer

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Tags: Consolidation, Financial Statements, Foreign subsidiary, Goodwill, Intra-group Transactions, Non-Controlling Interests, Revaluation, Translation, Unrealized Profits
Level: Level 3

Topic: Consolidated Financial Statements (IFRS 10)

CR – Nov 2014 – L3 – SB – Q4a – Income Taxes (IAS 12)

Compute the impact of deferred tax on retained earnings and advise Lagos Plc on IAS 12 compliance.

Question

The following is the statement of financial position of Lagos Plc as at 31 December, 2013, with its immediate two comparative years.

The management of Lagos Plc is not sure of the impact of IAS 12 (Income Taxes) on its retained earnings as at 31 December, 2013, as well as what the new deferred tax balance will be on migrating to IFRS.

The following information was also available as at the year-end:

Details	Value (N’000)
Tax written down value of PPE	40,300
Tax written down value of goodwill	4,300
Tax base of trade receivables	29,800
Tax base of trade payables	13,000

Assume that current tax has been correctly computed in line with the applicable tax laws at 30%.

Required:
Using relevant computations, advise the management of Lagos Plc on the impact of deferred tax calculated on retained earnings in accordance with IAS 12.

Answer

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Tags: Deferred Tax, Financial Reporting, Goodwill, IAS 12, Income Taxes, Plant & Equipment, Property, Retained Earnings, Tax Base
Level: Level 3

Topic: Income Taxes (IAS 12)
Series: NOV 2014

CR – Nov 2024 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated statement of financial position for Okaekwei PLC, considering acquisitions and fair value adjustments.

Question

The following financial statements relate to Okaekwei PLC (Okaekwei), Ablekuma PLC (Ablekuma), and Katamanso PLC (Katamanso), three companies operating in the manufacturing industry.

Statement of Financial Position as at 31 October 2024

Description	Okaekwei (GH¢’000)	Ablekuma (GH¢’000)	Katamanso (GH¢’000)
Non-current assets:
Property, plant and equipment	88,307	53,657	82,875
Investments	102,500	78,095	–
Total Non-current Assets	190,807	131,752	82,875
Current assets:
Inventory	9,492	4,618	14,642
Trade receivables	4,573	8,101	18,085
Cash and Bank	11,625	4,599	30,056
Total Current Assets	25,690	17,318	62,783
Total Assets	216,497	149,070	145,658
Equity & Liabilities:
Share capital (GH¢1)	106,250	63,750	61,625
Retained earnings	38,607	42,361	27,025
Other component of equity	3,825	3,060	2,678
Total Equity	148,682	109,171	91,328
Liabilities:
Non-current liabilities	40,851	20,327	31,582
Current liabilities	26,964	19,572	22,748
Total Liabilities	67,815	39,899	54,330
Total Equity & Liabilities	216,497	149,070	145,658

Additional Information:

Acquisition of Katamanso:
- On 1 November 2023, Ablekuma acquired 60% of the ordinary shares of Katamanso at a cost of GH¢55 million.
- Due diligence costing GH¢0.25 million was undertaken and included in the investment cost.
- Retained earnings and other components of equity of Katamanso at acquisition were GH¢21.6 million and GH¢1.65 million, respectively.
Fair Value Adjustments:
- A fair value exercise was conducted, with a building’s fair value exceeding its carrying value by GH¢1.2 million (remaining useful life: 20 years).
- The financial statements of Katamanso do not yet reflect this adjustment.
- Non-controlling interest is measured using the proportionate share of identifiable net assets.
Acquisition of Ablekuma by Okaekwei:
- On 1 November 2022, Okaekwei purchased 80% of the ordinary shares of Ablekuma for GH¢92 million.
- The investment value reflects the fair value of the subsidiary at 31 October 2024.
- Retained earnings and other equity components at acquisition: GH¢29.6 million and GH¢2.32 million.
Deferred Tax on Fair Value Adjustments:
- Deferred tax is to be provided at 25% on temporary differences arising from fair value adjustments.
Intragroup Transactions:
- On 1 June 2024, Ablekuma sold inventory (cost: GH¢2 million) to Katamanso for GH¢1.8 million.
- As of 31 October 2024, these goods were still in Katamanso’s inventory, valued at the purchase cost. The fair value of the inventory at year-end was GH¢1.78 million.
Intragroup Transfer of PPE:
- On 1 August 2024, Okaekwei transferred a production machine to Ablekuma at GH¢2 million (carrying value: GH¢2.4 million).
- The remaining useful life was five years, but Ablekuma depreciates it over four years.
- Okaekwei harmonizes accounting policies upon consolidation.

Required:

Prepare the Consolidated Statement of Financial Position of Okaekwei PLC as at 31 October 2024.

(All workings are to be rounded to the nearest thousand).

Answer

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Tags: Consolidation Adjustments, Goodwill, Group Accounts, Intragroup Transactions, Non-Controlling Interest
Level: Level 3

Topic: Business Combinations (IFRS 3), Consolidated Financial Statements
Series: Nov 2024

FR – Nov 2024 – L2 – Q1- Group Financial Statements

Preparation of the consolidated statement of profit or loss and statement of financial position for Yarkpawolo Group, including goodwill calculation and intra-group adjustments.

Question

Yarkpawolo uses a discount rate of 10% in any present value calculations. The present value of GH¢ 1 receivable based on 10% are as follows:

Year	Present Value
1	0.909
2	0.826

The draft financial statements of both companies as at 31 December 2023 are as follows:

Statement of Profit or Loss for the year ended 31 December 2023

Yarkpawolo (GH¢’000)	Weah (GH¢’000)
Sales revenue	14,000
Cost of sales	(10,000)
Gross profit	4,000
Operating expenses	(2,050)
Profit before tax	1,950
Income tax expense	(450)
Profit for the year	1,500
Retained earnings brought forward	3,500
Retained earnings to statement of financial position	5,000

Statement of Financial Position as at 31 December 2023

Yarkpawolo (GH¢’000)	Weah (GH¢’000)
Non-current assets:
Property, Plant & Equipment	4,500
Patents	500
Investment in Weah	1,400
Total Non-current assets	6,400
Current assets:
Inventories	5,500
Trade and other receivables	2,000
Cash and cash equivalents	1,200
Total Current assets	8,700
Total Assets	15,100
Equity:
Share capital (GH¢0.20 per ordinary share)	1,500
General reserve	3,000
Retained earnings as at 31 December 2023	5,000
Total Equity	9,500
Non-current liabilities:
Long-term borrowings	1,600
Current liabilities:
Trade and other payables	4,000
Current portion of long-term borrowings	–
Total Liabilities	5,600
Total Equity and Liabilities	15,100

Additional Information:

Fair Value Adjustments on PPE:
- Property: Increase from GH¢200,000 to GH¢250,000 (Depreciation rate 10%)
- Plant: Increase from GH¢80,000 to GH¢100,000 (Depreciation rate 20%)
- Equipment: Decrease from GH¢120,000 to GH¢80,000 (Depreciation rate 20%)
- Weah has not adjusted its PPE values for the fair value assessment.
Intra-Group Trading:
- Since acquisition, Weah purchased GH¢50,000 worth of goods from Yarkpawolo. Half of these goods remained in inventory at year-end. Yarkpawolo makes a mark-up on cost of 25%.
- Yarkpawolo also purchased GH¢50,000 of goods from Weah, with one-third remaining in inventory. Weah sells at a margin of 20%.
Intercompany Balances:
- Yarkpawolo’s trade receivables include GH¢5,000 owed by Weah. The current accounts do not balance due to GH¢2,000 in transit from Weah.
Impairment:
- A goodwill impairment review identified a loss of GH¢100,000. No adjustment has been made yet.
Non-controlling Interest Valuation:
- Yarkpawolo values non-controlling interest at fair value at the acquisition date. The share price for Weah was GH¢0.75 per share.

Answer

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Tags: consolidated financial statements, Financial Reporting Standards, Goodwill, Group Accounting, IFRS, Intra-group Transactions, Non-Controlling Interest
Level: Level 2

Topic: Group Financial Statements and Consolidation
Series: Nov 2024

FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements

Prepare the profit or loss and appropriation account and financial position statement for a partnership at retirement and admission of partners.

Question

Dua was admitted on 1 July 2024 to the partnership and is entitled to 30% of the profits of the current partnership, with the balance being shared equally between Baba and Chawe.

The previous partnership trial balance as of 30 June 2024 was as follows:

Description	GH¢	GH¢
Capital accounts – Atsu		12,519
Capital accounts – Baba		65,844
Capital accounts – Chawe		33,618
Trade receivables	138,615
Inventories at 1 July 2023	6,000
Operating expenses	419,166
Investment	300
Bank overdraft		33,510
Trade payables		52,218
Revenue		565,296
Total	663,543	663,543

Additional Information:

Inventory remains at GH¢6,000.
Full provision is required for an irrecoverable debt of GH¢3,450.
Adjustments agreed by partners:
- The investment is to be included at GH¢4,500.
- Goodwill, which remains in the books, is valued at GH¢72,000.
On 1 July 2024, GH¢30,000 due to Atsu was transferred to Dua. The balance due to Atsu is to be repaid over three years, commencing on 1 July 2024.
Dua introduced cash of GH¢22,500 to the partnership.

Answer

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Tags: Appropriation, Capital Accounts, Financial Position, Goodwill, Partnership, Profit or Loss
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: Nov 2024

CR – May 2016 – L3 – Q1 – Presentation of Financial Statements (IAS 1)

Explain earnings management, calculate goodwill, and prepare a consolidated statement of cash flows for Joy-land Group.

Question

Joy-land Group: Statement of comprehensive income for the year ended November 30, 2015.

Joy-land Group: Statement of changes in equity for the year ended November 30, 2015

(ii) Goodwill Impairment

Goodwill for all subsidiaries has undergone impairment testing for the financial year ending November 30, 2015.
Impairment losses identified were specific to subsidiaries 100% owned by Joy-land.

(iii) Purchase of Research Project (IAS 38)

On December 1, 2014, Joy-land purchased a research project from a third party for ₦32 million, which was recognized as an intangible asset under IAS 38.
Additional costs incurred during the year include:
- ₦8 million to complete the research phase.
- ₦16 million for product development (capitalizable).
- ₦4 million for initial marketing costs (not capitalizable; already accounted for correctly).
No other additions to intangible assets were recorded, except those from the acquisition of Talk-peace.

(iv) Rights Issue by Talk-peace

On November 30, 2015, Talk-peace issued new shares on a 1 for 4 basis.
The issue was fully subscribed and raised ₦20 million in cash.

(v) Investment Property (IAS 40)

Joy-land uses the fair value model to measure its investment properties.
During the year:
- Part of the air-conditioning system (carrying value: ₦2 million) was replaced with a new system costing ₦4 million.
- The replacement aligns with the treatment under IAS 40.

(vi) Sale of Surplus Land

Joy-land sold surplus land with a carrying value of ₦40 million for:
- ₦60 million in cash, and
- Plant valued at ₦16 million (part of the consideration).
The resulting gain on disposal has already been included in the income statement.
Depreciation for property, plant, and equipment (PPE) for the year totaled ₦108 million.

(vii) Defined Benefit Scheme

Joy-land operates a defined benefit pension scheme for select top executives and expatriates (in addition to its contributory pension scheme).
Current-year figures for the defined benefit scheme:

Description ₦’m

Opening Balance (Dec 1, 2014) 88

Current Year Charge to P&L 16

Contributions Paid (28)

Actuarial Loss to OCI 24

Closing Balance (Nov 30, 2015) 100

Description	₦’m
Opening Balance (Dec 1, 2014)	88
Current Year Charge to P&L	16
Contributions Paid	(28)
Actuarial Loss to OCI	24
Closing Balance (Nov 30, 2015)	100

(viii) The associate company did not pay any dividends in the year.
(ix) Deferred tax of N40illion arose on the gains on available for sale investments in the year

Answer

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Tags: Cash Flow Statement, consolidated financial statements, Earnings Management, Goodwill, Impairments, Non-Controlling Interest
Level: Level 3

Topic: Presentation of Financial Statements (IAS 1)

CR – May 2017 – L3 – Q4 – Revenue Recognition (IFRS 15)

Advise on the correct accounting treatment for transactions involving contracts, licences, and purchase of components.

Question

Note: You may consider the relevance of the following standards to the transactions: IAS 20, IAS 2, IAS 38, IFRS 3, and IFRS 15.

Answer

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Tags: Accounting Standards, Customs Duties, Discounts, Goodwill, Licenses, Revenue
Level: Level 3

Topic: Revenue Recognition (IFRS 15)

CR – May 2017 – L3 – Q3c – Impairment of Assets (IAS 36)

Allocate an impairment loss across assets in a cash-generating unit based on IAS 36.

Question

A cash-generating unit holds the following assets:

Asset	Value (N’Million)
Goodwill	160
Patent	320
Property, Plant and Equipment	480

Required:
Show how the value of the assets held by the cash-generating unit will change after the impairment test based on the information provided above.

Answer

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Tags: Asset Allocation, CGU, Goodwill, IAS 36, Impairment Loss
Level: Level 3

Topic: Impairment of Assets (IAS 36)

CR – May 2017 – L3 – Q1 – Foreign Currency Transactions and Translation (IAS 21)

Assess functional currency and prepare a consolidated statement of financial position under IFRS.

Question

The following information is relevant to the preparation of the group financial statements:

There have been no issues of ordinary shares and no impairment of goodwill since acquisition.

(iii) The following exchange rates are relevant for the preparation of the group financial statements:

Defas to Naira	Exchange Rate
May 1, 2016	3:1
April 30, 2017	2.5:1
Average for year to April 30, 2017	2.9:1

Required:

(Total: 30 Marks)

Answer

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Tags: Consolidation, Foreign Operations, Full Goodwill Method, Functional Currency, Goodwill, Non-Controlling Interest, Translation
Level: Level 3

Topic: Foreign Currency Transactions and Translation (IAS 21)

CR – Nov 2016 – L3 – SA – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare a Consolidated Statement of Financial Position for Bata Plc and subsidiaries; explain IAS 21 principles for translating foreign subsidiaries.

Question

Bata	N’million	Jewe	N’million	Gaba	N’million
Non-current assets		Property, plant, and equipment	4,320	360	420
Investments in subsidiaries	1,110	600	–
Financial assets	500	–	–
Total Non-current assets	5,930	960	420
Current assets	1,050	570	540
Total assets	6,980	1,530	960
Equity		Share capital – N1 ordinary shares	2,400	600	300
Retained earnings	3,410	540	390
Other components of equity	450	–	–
Total equity	6,260	1,140	690
Current liabilities	720	390	270
Total liabilities and equity	6,980	1,530	960

Additional Information:

Acquisition of Subsidiaries:
- Bata Plc acquired 60% of the share capital of Jewe Plc on November 1, 2012, and 10% of Gaba Plc on November 1, 2013. The costs of the combinations were N852 million and N258 million, respectively.
- Jewe Plc acquired 70% of the share capital of Gaba Plc on November 1, 2013.
Retained Earnings Balances:

Date	Jewe Plc (N’million)	Gaba Plc (N’million)
November 1, 2012	270	–
November 1, 2013	360	240

Fair Value Adjustments:
- At acquisition dates, the fair value of the net assets was N930 million for Jewe Plc and N660 million for Gaba Plc. The difference in the fair value and book value relates to non-depreciable land.
- The fair value of non-controlling interest (NCI) was N390 million for Jewe Plc and N330 million for Gaba Plc. Bata Plc adopts the full goodwill method under IFRS 3 to account for NCI.
Impairment Testing:
- Jewe Plc suffered an impairment loss of N60 million.
- Gaba Plc did not suffer any impairment loss.
Intra-group Inventory Sales:
- During the year ended October 31, 2016, Bata Plc sold inventory to Jewe Plc and Gaba Plc.
- The invoiced prices of the inventories were N480 million and N360 million, respectively.
- Bata Plc invoices goods to achieve a markup of 25% on cost to all third parties, including group companies.
- At the year-end, half of the inventory sold to Jewe Plc remained unsold, but the entire inventory sold to Gaba Plc had been sold to third parties.
Financial Asset:
- Bata Plc purchased a deep discount bond for N500 million on November 1, 2015.
- The bonds will be redeemed in 3 years for N740.75 million and are carried at amortized cost in line with IAS 39.
- The Accountant has not passed the correct entries to reflect amortized cost valuation at year-end, and the financial asset is shown at N500 million.

Compound sum of N1: (1 + r)^n

Year	12%	14%
1	1.1200	1.1400
2	1.2544	1.2996
3	1.4049	1.4815
4	1.5735	1.6890

Required:

Prepare a Consolidated Statement of Financial Position for Bata Plc and its subsidiaries as at October 31, 2016. (25 Marks)
Explain to the directors of Bata Plc how the assets, liabilities, income, and expenses of a foreign subsidiary, including the resulting goodwill, are translated for consolidation purposes under IAS 21. (5 Marks)

(Total: 30 Marks)

Answer

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Tags: Consolidation, Exchange Rate Effects, Foreign subsidiary, Goodwill, Group Accounting, Impairment testing
Level: Level 3

Topic: Consolidated Financial Statements (IFRS 10)
Series: NOV 2016

CR – May 2019 – L3 – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare the consolidated statement of financial position for a group with a foreign subsidiary and inter-company transactions as at September 30, 2017.

Question

The statements of financial position of Oyin Plc. and Kemy Plc. as at 30 September, 2017 are as follows:

Additional Information:

It is the policy of Oyin Plc. group to recognize non-controlling interest at acquisition at the proportionate share of the net assets. The retained earnings of Kemy Plc., at the date of acquisition were 390 million BRL.
Kemy Plc. sells goods to Oyin Plc. at cost plus a mark-up of 33 1/3%. At 30 September, 2017, Oyin Plc. held N15 million of the goods. The goods were purchased at an exchange rate of N1 to 5 BRL. On 28 September, 2017, Oyin Plc. sent Kemy Plc., a payment for N15 million to clear the intra-group payables. Kemy received and recorded the cash on 2 October, 2017.
On 1 October, 2016, Kemy Plc. purchased a leasehold building for 375 million BRL, taking out a loan note payable after five years to finance the purchase. The estimated useful life of the building on 1 October, 2016 was 25 years with no estimated residual value. The building is to be depreciated on a straight-line basis. The building was professionally revalued at 450 million BRL on 30 September, 2017 and the directors have included the revalued amount in the statement of financial position.Both companies adopt a policy of revaluation for their properties. There was no difference between the carrying amount and fair value of the property of Oyin Plc. at 30 September, 2017.
Exchange Rates:

Date	BRL to N1
1 October, 2015	6.0
30 September, 2015	5.5
30 September, 2017	5.0
Average for the year to 30 September, 2016	5.2

Required:
Prepare the consolidated statement of financial position of Oyin group at 30 September, 2017.

Answer

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Tags: Consolidation, Financial Statements, Foreign subsidiary, Goodwill, Intra-group Transactions, Non-Controlling Interests, Revaluation, Translation, Unrealized Profits
Level: Level 3

Topic: Consolidated Financial Statements (IFRS 10)

CR – Nov 2014 – L3 – SB – Q4a – Income Taxes (IAS 12)

Compute the impact of deferred tax on retained earnings and advise Lagos Plc on IAS 12 compliance.

Question

The following is the statement of financial position of Lagos Plc as at 31 December, 2013, with its immediate two comparative years.

The following information was also available as at the year-end:

Details	Value (N’000)
Tax written down value of PPE	40,300
Tax written down value of goodwill	4,300
Tax base of trade receivables	29,800
Tax base of trade payables	13,000

Assume that current tax has been correctly computed in line with the applicable tax laws at 30%.

Required:
Using relevant computations, advise the management of Lagos Plc on the impact of deferred tax calculated on retained earnings in accordance with IAS 12.

Answer

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Tags: Deferred Tax, Financial Reporting, Goodwill, IAS 12, Income Taxes, Plant & Equipment, Property, Retained Earnings, Tax Base
Level: Level 3

Topic: Income Taxes (IAS 12)
Series: NOV 2014

Question Tag: Goodwill

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CR – Nov 2024 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated statement of financial position for Okaekwei PLC, considering acquisitions and fair value adjustments.

Statement of Financial Position as at 31 October 2024

Additional Information:

Required:

FR – Nov 2024 – L2 – Q1- Group Financial Statements

Preparation of the consolidated statement of profit or loss and statement of financial position for Yarkpawolo Group, including goodwill calculation and intra-group adjustments.

Additional Information:

FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements

Prepare the profit or loss and appropriation account and financial position statement for a partnership at retirement and admission of partners.

CR – May 2016 – L3 – Q1 – Presentation of Financial Statements (IAS 1)

Explain earnings management, calculate goodwill, and prepare a consolidated statement of cash flows for Joy-land Group.

(ii) Goodwill Impairment

(iii) Purchase of Research Project (IAS 38)

(iv) Rights Issue by Talk-peace

(v) Investment Property (IAS 40)

(vi) Sale of Surplus Land

(vii) Defined Benefit Scheme

CR – May 2017 – L3 – Q4 – Revenue Recognition (IFRS 15)

Advise on the correct accounting treatment for transactions involving contracts, licences, and purchase of components.

CR – May 2017 – L3 – Q3c – Impairment of Assets (IAS 36)

Allocate an impairment loss across assets in a cash-generating unit based on IAS 36.

CR – May 2017 – L3 – Q1 – Foreign Currency Transactions and Translation (IAS 21)

Assess functional currency and prepare a consolidated statement of financial position under IFRS.

CR – Nov 2016 – L3 – SA – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare a Consolidated Statement of Financial Position for Bata Plc and subsidiaries; explain IAS 21 principles for translating foreign subsidiaries.

CR – May 2019 – L3 – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare the consolidated statement of financial position for a group with a foreign subsidiary and inter-company transactions as at September 30, 2017.

CR – Nov 2014 – L3 – SB – Q4a – Income Taxes (IAS 12)

Compute the impact of deferred tax on retained earnings and advise Lagos Plc on IAS 12 compliance.

CR – Nov 2024 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated statement of financial position for Okaekwei PLC, considering acquisitions and fair value adjustments.

Statement of Financial Position as at 31 October 2024

Additional Information:

Required:

FR – Nov 2024 – L2 – Q1- Group Financial Statements

Preparation of the consolidated statement of profit or loss and statement of financial position for Yarkpawolo Group, including goodwill calculation and intra-group adjustments.

Additional Information:

FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements

Prepare the profit or loss and appropriation account and financial position statement for a partnership at retirement and admission of partners.

CR – May 2016 – L3 – Q1 – Presentation of Financial Statements (IAS 1)

Explain earnings management, calculate goodwill, and prepare a consolidated statement of cash flows for Joy-land Group.

(ii) Goodwill Impairment

(iii) Purchase of Research Project (IAS 38)

(iv) Rights Issue by Talk-peace

(v) Investment Property (IAS 40)

(vi) Sale of Surplus Land

(vii) Defined Benefit Scheme

CR – May 2017 – L3 – Q4 – Revenue Recognition (IFRS 15)

Advise on the correct accounting treatment for transactions involving contracts, licences, and purchase of components.

CR – May 2017 – L3 – Q3c – Impairment of Assets (IAS 36)

Allocate an impairment loss across assets in a cash-generating unit based on IAS 36.

CR – May 2017 – L3 – Q1 – Foreign Currency Transactions and Translation (IAS 21)

Assess functional currency and prepare a consolidated statement of financial position under IFRS.

CR – Nov 2016 – L3 – SA – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare a Consolidated Statement of Financial Position for Bata Plc and subsidiaries; explain IAS 21 principles for translating foreign subsidiaries.

CR – May 2019 – L3 – Q1 – Consolidated Financial Statements (IFRS 10)

Prepare the consolidated statement of financial position for a group with a foreign subsidiary and inter-company transactions as at September 30, 2017.

CR – Nov 2014 – L3 – SB – Q4a – Income Taxes (IAS 12)

Compute the impact of deferred tax on retained earnings and advise Lagos Plc on IAS 12 compliance.

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