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FAR-2 Test IAS-21
FAR-2 Test IAS-21
Time: 40 mins
FAR-II
Q-1
1) Balloon Limited functional currency is Pak Rupees. It bought a property in New York for $5 million on 2
July 2019. The 25% amount was paid immediately and remaining is to be paid on 31 October 2019.
Balloon Limited financial year ends on 30 September each year.
Relevant exchange rates are:
Rs. ___________
(3)
2)
Despacito Limited has overseas freehold land which it bought for $2 million on 1 March 2019. It uses
revaluation model under IAS 16 for this property. The fair value of land is $2.5 million on 31 December
2019 (year-end).
Which of the following is correct for its financial statements for the year ended 31 December 2019?
(a) PPE Rs.412.5 million, Revaluation surplus Rs. 82 million, Profit or loss Rs. 42.5 million
(b) PPE Rs. 288 million, Revaluation surplus Rs. 82 million, Profit or loss Rs. 42.5 million
(c) PPE Rs. 412.5 million, Revaluation surplus Rs. 124.5 million, Profit or loss Rs. Nil
(d) PPE Rs.288 million, Revaluation surplus Rs. 124.5 million, Profit or loss Rs. Nil
(3)
Note:
• Use the black ballpoint to attempt the test and start each new question on a
new page.
• Solution must be submitted in PDF format. Otherwise it will not be accepted
by LMS.