F1 Exam Dumps : Financial Reporting

OP holds an investment property purchased on 1 January 20X3 for $700,000 with a useful economic life of 25 years.

At 31 December 20X5 the fair value of the investment property was $750,000 with a revised useful economic life of 25 years from that date.

OP has been carrying the investment property using the cost model until 31 December 20X5.

The directors wish to change their valuation method to fair value in accordance with IAS 40 Investment Property.

Which of the following is the correct treatment of the revaluation gain and the value of the property in the statement of financial position at 31 December 20X5?

You work in the finance department of an entity. A director has approached you and asked you to falsify sales invoices which would significantly inflate revenue. The CIMA Code of Ethics suggests that you should deal with such an ethical dilemma by following a number of stages.

Place each of the stages identified below into chronological order.

Country Q has the following rules in respect of capital tax on the disposal of assets:

*Capital gains are subject to tax at 25%.

*Capital losses can only be carried forward and offset against future capital gains.

The following data relates to ABC:

How much capital tax will be payable on the capital gain recorded in 20X3?

Give your answer to the nearest $.