t w ss a yca s a w aa Sc A aa a J 2009was. t w b a a ss sc A.A ss Sc A w b w w aks ac.1
Aye and Bee are in partnership sharing profits and losses in the ratio 3:2 respectively. The partners’ capital and currentaccount balances at the beginning of the year were as follows:
Aye Bee$ $
Current accounts 7,500CR 2,100CRCapital accounts 12,000CR 9,000CR The partnership made a profit of $100,000 for the year. Aye’s drawings were $9,200, and Bee’s were $7,320.
Wa s Ay’s c acc baac b a ya?A
At 1 May 2009 Tibor purchased six million of Kinnot’s ten million $1 ordinary shares for $6,000,000. At that dateKinnot had net assets with a fair value of $8,450,000 and its share price was $1.10. It is group policy to value thenon-controlling interest at the fair value of the subsidiary’s identifiable net assets using the market value of the sharesat acquistion.
Wa s a w acs K?A
(2 aks)3 Wc w sas a cc?A
If all the conditions specified in IAS 38 Intangible assets are met, the directors can chose whether to capitalise thedevelopment expenditure or not.
Amortisation of capitalised development expenditure will appear as an item in a company’s statement of changesin equity.
Capitalised development costs are shown in the statement of financial position as non-current assets.
Capitalised development expenditure must be amortised over a period not exceeding five years.
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