ACA FAR - UK GAAP Exam with All Correct & 100%
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1. Format of -FRS 102 financial statements are prepared in accordance with the
finan- cial
statements Companies Act.
-Terminology used: balance sheet and profit and loss account
although income statement and SFP are permitted.
-Companies reporting under FRS102 can present a single SOCI or a
separate income statement and SOCI. IFRS is the same.
-FRS 102 sometimes allows companies to present a single statement
of income and retained earnings instead of the SOCI and statement of
2. Discontinued op-
erations changes in equity.
FRS 102:
-Shown in separate income statement.
-Discontinued operations should be depreciated up to the date of
disposal and classified as a tangible fixed asset.
IFRS 5:
-Discontinued operations must be presented in a single amount on the
face of the profit or loss.
-Depreciation stops when an asset is classified as held for sale and are
classified to current assets.
3. Borrowing costs FRS102:
-An entity can choose whether or not to capitalise borrowing costs.
IAS 23:
-Requires all eligible borrowing costs to be capitalised.
4. PPE FRS 102 has no held for sale category. They continue to be held as
part of fixed assets and are depreciated up to the date of disposal.
5. Intangible assets FRS 102:
-An entity can choose whether to capitalise development costs.
-Intangible assets are treated as having a finite useful life with a
rebuttable presumption that this should not exceed 5 years.
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, ACA FAR - UK GAAP Exam with All Correct & 100%
Verified Answers |Latest Version |Already Graded A+
IFRS (IAS38):
-IAS38 requires all eligible development costs to be capitalised.
-Intangible assets can have an indefinite life.
6. Governmen Under both FRS 102 and IAS 20 grants related to assets are recognised
t grants in income over the UEL of the asset.
IAS 20 allows this to be done either by recognising the grant as
deferred income or by deducting the amount of the grant from the
carrying amount of the asset.
FRS 102 requires government grants to be recognised based on either
7. Financial the perfor- mance or accrual model. There is no option to deduct the
instru- ments
grant from the carrying amount of the asset.
FRS 102:
-Financial instruments are measured at transaction price, unless
they are mea- sured at FV through PL.
IFRS:
-IAS 39 measures financial instruments at fair value.
8. Goodwill FRS 102:
-Goodwill is required to be amortised over its useful life and there is a
rebuttable
presumption that this should not exceed 10 years.
-Acquisition related costs are added to the cost of the combination.
-Negative goodwill is presented in the SFP as a negative asset
under positive goodwill.
-Changes to contingent considerations are treated as a change in
accounting estimate.
IFRS:
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Verified Answers |Latest Version |Already Graded A+
1. Format of -FRS 102 financial statements are prepared in accordance with the
finan- cial
statements Companies Act.
-Terminology used: balance sheet and profit and loss account
although income statement and SFP are permitted.
-Companies reporting under FRS102 can present a single SOCI or a
separate income statement and SOCI. IFRS is the same.
-FRS 102 sometimes allows companies to present a single statement
of income and retained earnings instead of the SOCI and statement of
2. Discontinued op-
erations changes in equity.
FRS 102:
-Shown in separate income statement.
-Discontinued operations should be depreciated up to the date of
disposal and classified as a tangible fixed asset.
IFRS 5:
-Discontinued operations must be presented in a single amount on the
face of the profit or loss.
-Depreciation stops when an asset is classified as held for sale and are
classified to current assets.
3. Borrowing costs FRS102:
-An entity can choose whether or not to capitalise borrowing costs.
IAS 23:
-Requires all eligible borrowing costs to be capitalised.
4. PPE FRS 102 has no held for sale category. They continue to be held as
part of fixed assets and are depreciated up to the date of disposal.
5. Intangible assets FRS 102:
-An entity can choose whether to capitalise development costs.
-Intangible assets are treated as having a finite useful life with a
rebuttable presumption that this should not exceed 5 years.
1/
6
, ACA FAR - UK GAAP Exam with All Correct & 100%
Verified Answers |Latest Version |Already Graded A+
IFRS (IAS38):
-IAS38 requires all eligible development costs to be capitalised.
-Intangible assets can have an indefinite life.
6. Governmen Under both FRS 102 and IAS 20 grants related to assets are recognised
t grants in income over the UEL of the asset.
IAS 20 allows this to be done either by recognising the grant as
deferred income or by deducting the amount of the grant from the
carrying amount of the asset.
FRS 102 requires government grants to be recognised based on either
7. Financial the perfor- mance or accrual model. There is no option to deduct the
instru- ments
grant from the carrying amount of the asset.
FRS 102:
-Financial instruments are measured at transaction price, unless
they are mea- sured at FV through PL.
IFRS:
-IAS 39 measures financial instruments at fair value.
8. Goodwill FRS 102:
-Goodwill is required to be amortised over its useful life and there is a
rebuttable
presumption that this should not exceed 10 years.
-Acquisition related costs are added to the cost of the combination.
-Negative goodwill is presented in the SFP as a negative asset
under positive goodwill.
-Changes to contingent considerations are treated as a change in
accounting estimate.
IFRS:
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