CPA FR Exam With Confidence Using Practice Dumps

A conceptual framework is a statement of generally accepted theoretical principles which form the frame of reference for financial reporting.

Which of the following is NOT a disadvantage of conceptual framework?

Arnold Ltd bought an asset on 1 October 20X1 for $200,000. It was being depreciated over 20 years on the straight-line basis. On 1 October 20X3, the asset was revalued to $270,000. Subsequently, on 30 September 20X7 the asset was classified as held for sale. Its fair value was estimated at $190,000 with costs to sell $5,000.

In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what should be the lossrecognizedin the statement of profit or loss for the year ended 30 September 20X7?

On 30 September 2012 the directors of Diego pIc decided to sell the company's services division and the division was classified as held for sale. The sale is expected to be completed, along with the sales of related assets, in early December 2012. One item of plant within this division had originally cost $30,000 and had a carrying amount of $15,000 on 1 November 2011. Diego plc will carry on using this plant until it is sold. Diego pIc has a year end of 31 October and depreciates all plant on a monthly straight-line basis using a monthly rate of 1%.

In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what amount will berecognizedin the statement of financial position of Diego pIc as at 31 October 2012 in respect of this plant?