IAS 34 Interim Financial Report contains either a complete set of financial statements or a set of condensed financial statements for an interim period.
The treatment for non-mandatory intangible assets and depreciation during interim period should therefore be:
(i)Non-mandatory intangible assets: Costs of an intangible asset should be deferred and treated as an expense in the interim statement.
(ii)Depreciation: Depreciation should be charged on all non-current assets.
State whether the above treatments are either correct or incorrect.

• A. (i) is incorrect but (ii) is correct
• B. Both (i) and (ii) are correct
• C. Both (i) and (ii) are incorrect
• D. (i) is correct but (ii) is incorrect

The summarised statements of financial position of Track plc and Way plc at 31 December
2012 were as follows:
Track plcWay plc $'000 $'000 Total assets 60,000 29,000
Share capital 20,000 10,000 Retained earnings 24,000 4,000 Equity 44,000 14,000 Current liability 16,000 15,000 Total equity and liabilities 60,000 29,000
On 1 January 2013 Track pIc bought all the share capital of Way plc for $17,000,000 in cash. The carrying amounts of Way plc's assets are considered to be fair values. The amount of retained earnings to be included in the consolidated statement of financial position as at 1 January 2013 is __________.

• A. $28,000,000
• B. $25,000,000
• C. $21,000,000
• D. $24,000,000

On 30 September 2012 the directors of Diego pIc decided to sell the company's services division and the division was classified as held for sale.
The sale is expected to be completed, along with the sales of related assets, in early December 2012. One item of plant within this division had originally cost $30,000 and had a carrying amount of $15,000 on 1 November 2011.
Diego plc will carry on using this plant until it is sold. Diego pIc has a year end of 31 October and depreciates all plant on a monthly straight-line basis using a monthly rate of 1%.
In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what amount will berecognizedin the statement of financial position of Diego pIc as at 31 October 2012 in respect of this plant?

• A. $11,400 in current assets
• B. $11,400 in non-current assets held for sale
• C. $11,700 in non-current assets
• D. $11,700 in non-current assets held for sale

According to IAS 1 Presentation of Financial Statements, which of the following statements is / are correct?
(i)The accounting policies adopted by a company must be disclosed in the notes to the financial statements
(ii)Inappropriate accounting policies can be rectified by disclosure of the policies used or by the inclusion of explanatory material
(iii)
Companies may choose to prepare their financial statements (except for the statement of cash flows) on either the accrual basis or the cash basis

• A. (ii) and (iii) only
• B. (i), (ii) and (iii)
• C. (i) and (ii) only
• D. (i) only

Debra Ltd. has the following loan finance in place during the year ended 31 December 2012:
$2 million of 6% loan finance
$4 million of 8% loan finance
It constructed a new factory which cost $900,000 and this was funded out of the existing loan finance.
The factory took eight months to complete.
What borrowing costs should be capitalised in the year ended 31 December 2012?

• A. $30,000
• B. $36,000
• C. $65,970
• D. $43,980