General notes: Semester 2

Question 1

1. Impact of restructuring amount owed on FS -IFRIC 19

Answer 1

1. • No impact in SCF
     - Impact EPS amount
     - Shares do not carry voting votes
     - Issuing additional shares_Further disclosure in share capital note of FS
     - Disclosure ito IFRS 12 in consolidated AFS

Question 2

I.T.O IFRS 12 consolidation

Answer 2

• Investment in x is classified as interest in sub. Therefore disclose information to enable users of FS to understand why x is a sub
• Significant judgement and assumptions: controls another another entity even though it holds less than half of voting rights
• The size of voting rights relative to size and dispersion of holdings of other vote holders
• Other sh/h hold less 1% are widely dispersed so…..

Question 3

IAS 24 Related parties

Answer 3

• State who controls who
• Key management personnel
• Close family member
• Jointly controlled
• Therefore Co should disclose any trxns and balances with xx in the related party note

Question 4

Exam notes

Answer 4

• Compulsory convertible it is a compound financial instrument
• If IA not yet ready for use, test impairment annually and for goodwill or if the asset has indefinite UL
• T+OR impairment use lifetime if no significance.
• If significant use LECL or 12 months
• VIU use it for asset in current form

Question 5

Something new do not know how to account for it

Answer 5

• IAS 8 and CFM

Question 6

Investment note in terms of IFRS 12

Answer 6

Notes to FS for year 31/12/17
Investment in associate
X has 33.33% interest in Y
Y operates in construction and materials sector