AFACR SL 1 DECEMBER ATTEMPT 2023

1. Offsetting a financial asset and a financial liability

IAS 32 states that a financial asset and a financial liability may only be offset in very
limited circumstances. The net amount may only be reported when the entity:

has a legally enforceable right to set off the amounts; and

intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously. (2 NUMBER MCQ)

2.

3. Explain non-market condition with example? (4 Mark Descriptive)

4.

5.
6. Angel has a 36% Or 30% (Picture Not Clear) holding in Dust. It sells 75% of its
holding for Rs. 15 million. The carrying value of the associate including goodwill
at the date of the sale is Rs. 18 million and Dust has available for sale reserve of
Rs. 1 million. The fair value of the remaining holding in Dust is Rs. 5 million. As a
result, the gain on disposal is ____________.

a. Rs. 4.5 million b. Rs. 2.5 million

c. Rs 2 million d. Rs. 3 million

7. a) What are the arguments against a mandatory Management Commentary?

b) Why did the IASB decide to issue a Practice Statement rather than an IFRS?
(04)

8. Three accounting standards namely IAS 32, IFRS 7 and IFRS 9 deal with
financial instruments. What matters do they deal with? (05)

9. Jawed Limited, a public limited company, has granted 20 share appreciation

rights to each of its 500 employees on January 1, 20X4. The rights are due to vest
on December 31, 20X7, with payment being made on December 31, 20X8.
Assume that 80% of the awards vest. Share prices are: (3 Mark)

Rs.
January 1, 20X4 15
December 31, 20X4 18
December 31, 20X7 21
December 31, 20X8 19

How should the settlement of the transaction be accounted for on December 31,
20X8?

a. Payment to employees of Rs. 32,000, no gain recorded

b. Payment to employees of Rs. 48,000, no gain recorded
c. Payment to employees of Rs. 32,000, gain of Rs. 16,000 is recorded
d. Payment to employees of Rs. 16,000, gain of Rs. 32,000 is recorded

10.

11.
12.

2014 salary 400k

2015 salary 160k
Req 2016 Mai %increase in salary KY 3 year ka avg. 400k ajain
Opt 400%
300%
240%
320%shyd

Answer:
13. PBT 1680
Income from associate 180
Finance cost 240
Other incomes 90
Impairment goodwil 240
Loss on exhange 15
Dep 660

Question Confusing No Options In Answer.

14. .Define financial Assets

.Historical financial assets and liabilities
.Non market based vesting condition with example
Treasure shares accounting transaction
Seperate financial statement of parent company

15. IFRS 12 disclosures

16. Define qualifying insurance policies.

17. In the presence of financial statements and other reports, why management
commentary being felt? IFRS 19 transfer of financial asset without..... Is tRha ka
ak question tha

18. Consolidation srf gudwll nci reserves net assets inki workings no theory
question
Ifrs9 mn s 5 marks theory pora ifrs summarize krna tha in short
Ifrs 2 mn se ek question bh nahi aya
Ratios se ek aya tha 4 marks ka
Operating segment ka recognition criteria straight 5 marks ka
Irfs 13 fair valuation techniques
Eps se convertible bonds ka aya tha
full disposal of subsidiary

19. Ak coverage ratio ka mcqs tha 5 marks ka

20. 5 Elements of sustainability report

21. A co purchased 150k liters of oil @ 120 per liter and later on entered in
forward contract where it committed to 45000 liters @ 132. At year end liter
rate was 138.