MOCK SOLUTION FAR-2

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a)

b)

c)
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(i) (c) Income tax payable

(ii) (c) only when the conditions are met
(iii) (b) IFRS and Fifth Schedule
(iv) (c) No change in sales revenue and increase in finance income
(v) (c) capitalized and amortized over 15 years
(vi) (a) IAS 16 as a combined asset
(vii) (a) only in the consolidated financial statements
(viii) (b) Expenses charged in the statement of profit or loss but not allowable in tax
(ix) (a) Accrued expenses that have already been deducted in determining the current tax
(c) Accrued income that will never be taxable
(x) (d) Rs. 552,000
(xi) (b) at the point of harvest
(xii) (b) initial adoption of revaluation model for property, plant and equipment
(xiii) (c) Total assets upto Rs. 100 million
(xiv) (d) Gross lease rentals payable under the lease agreement
(xv) (d) Rs. 39.55 million

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 (b)

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