Pasing Grades
  • Start Selling
  • Blog
  • Contact
  • Help Center
  • 0

    Your cart is empty!

English

  • English
  • Spanish
  • Arabic
Create Account Sign In
  • All Items
    • Recent Items
    • Featured Items
    • Free Exam Prep Guides
    • Top Authors
  • General
  • Nursing
    • Research Paper
    • Case Study
    • Discussion Post
    • Assignment
    • Exam
    • Practice Questions and Answers
    • Test Bank
    • solutions manual
  • Accounting
    • Case Study
    • Thesis
    • Study Guide
    • Summary
    • Research Paper
    • test bank
  • English
    • Creative Writing
    • Research Paper
    • Summary
    • Rhetorics
    • Literature
    • Journal
    • Exam
    • Grammar
    • Discussion Post
    • Essay
  • Psychology
    • Hesi
    • Presentation
    • Essay
    • Summary
    • Study Guide
    • Essay
    • Solution Manual
    • Final Exam Review
    • Class Notes
    • test bank
  • Business
    • Lecture Notes
    • Solution Manual
    • Presentation
    • Business Plan
    • Class Notes
    • Experiment
    • Summary
    • Practice Questions
    • Study Guide
    • Case Study
    • test bank
    • Exam
  • Pages
    • About Us
    • Selling Tips
    • Delivery Policy
    • Faq
    • Privacy Policy
  • Flash Sale
  • Home
  • International Financial Reporting A Practical Guide 5th Edition Melville Solutions Manual

International Financial Reporting A Practical Guide 5th Edition Melville Solutions Manual

Add To Favorites

Share this item Share this item

  • Item Details
  • Comments (0)
  • Reviews (0)
  • Support
INTERNATIONAL FINANCIAL REPORTING A PRACTICAL GUIDE 5TH EDITION MELVILLE SOLUTIONS MANUAL International Financial Reporting A Practical Guide 5th Edition Melville Solutions Manual Instructor’s Manual International Financial Reporting: A Practical Guide Fifth Edition Alan Melville Melville: International Financial Reporting: A Practical Guide, Fifth Edition, Instructor’s Manual Contents Preface Acknowledgements v vi Chapter 1 The regulatory framework Solutions 1.8 and 1.9 1 Chapter 2 The IASB conceptual framework Solutions 2.8 and 2.9 3 Chapter 3 Presentation of financial statements Solution 3.7 5 Chapter 4 Accounting policies, accounting estimates and errors Solution 4.7 8 Chapter 5 Property, plant and equipment Solutions 5.7 and 5.8 9 Chapter 6 Intangible assets Solutions 6.8 and 6.9 12 Chapter 7 Impairment of assets Solutions 7.7 and 7.8 14 Chapter 8 Non-current assets held for sale and discontinued operations Solution 8.7 15 Chapter 9 Leases Solutions 9.7 and 9.8 16 Chapter 10 Inventories Solutions 10.5 and 10.6 18 Chapter 11 Financial instruments Solution 11.6 20 Chapter 12 Provisions and events after the reporting period Solution 12.8 22 Chapter 13 Revenue from contracts with customers Solutions 13.7 and 13.8 23 Chapter 14 Employee benefits Solution 14.6 24 Chapter 15 Taxation in financial statements Solution 15.7 26 Chapter 16 Statement of cash flows Solutions 16.7 and 16.8 27 Chapter 17 Financial reporting in hyperinflationary economies Solution 17.5 30 Chapter 18 Groups of companies (1) Solutions 18.6 and 18.7 31 Chapter 19 Groups of companies (2) Solution 19.5 36 Chapter 20 Associates and joint arrangements Solution 20.5 39 Chapter 21 Related parties and changes in foreign exchange rates Solution 21.4 41 Chapter 22 Ratio analysis Solutions 22.5 and 22.6 42 Chapter 23 Earnings per share Solutions 23.6 and 23.7 45 Chapter 24 Segmental analysis Solution 24.6 46 Chapter 1 The regulatory framework 1.8 (a) The objectives of the IASB are: (i) to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles; these standards should require high quality, transparent and comparable information in financial statements and other financial reporting to help investors, participants in the world's capital markets and other users of financial information to make economic decisions; (ii) to promote the use and rigorous application of those standards; (iii) in fulfilling objectives (i) and (ii), to take appropriate account of the needs of a range of sizes and types of entities in diverse economic settings; (iv) to bring about convergence of national accounting standards and international standards. (b) The Preface states that IFRSs and IASs are designed to apply to the general purpose financial statements and other financial reporting of profit-oriented entities, whether these are organised in corporate form or in other forms. (c) The main stages in the IASB due process are: – identification and review of all the issues associated with the topic concerned – consideration of the way in which the IASB's Conceptual Framework applies to these issues – a study of national accounting requirements in relation to the topic and an exchange of views with national standard-setters – consultation with the Trustees and the Advisory Council about the advisability of adding this topic to the IASB's agenda – publication of a discussion document for public comment – consideration of comments received within the stated comment period – publication of an exposure draft for public comment – consideration of comments received within the stated comment period – approval and publication of the standard. 1.9 (a) The objective of IFRS1 is to ensure that an entity's first financial statements that comply with inter- national standards should contain high-quality information that: – is transparent for users and comparable for all periods presented – provides a suitable starting point for accounting under international standards – can be generated at a cost that does not exceed the benefits to users. (b) An entity's "first IFRS reporting period" is the reporting period covered by the first IFRS financial statements. The first IFRS financial statements are the first financial statements in which the entity adopts international standards and makes an explicit and unreserved statement of compliance with those standards. The "date of transition to IFRS" is the date at the beginning of the earliest period for which an entity presents comparative information in its first IFRS financial statements. (c) The company's first IFRS reporting period is the year to 31 October 2016. The earliest period for which comparative figures are presented in the first IFRS financial statements is the year to 31 October 2011. Therefore the date of transition is 1 November 2010. The company must: (i) prepare an IFRS statement of financial position as at the start of business on 1 November 2010 (i.e. as at the close of business on 31 October 2010) (ii) use identical accounting policies in this "opening" IFRS statement of financial position and in the financial statements for the year to 31 October 2016 and in the comparative figures provided for the previous five years; these accounting policies must comply with international standards in force for periods ending on 31 October 2016 (iii) provide a reconciliation of equity as reported under previous GAAP with equity reported under IFRS, for 31 October 2010 and 31 October 2015 (iv) provide a reconciliation of total comprehensive income as reported under previous GAAP with total comprehensive income as it would have been reported under IFRS, for the year to 31 October 2015. Chapter 2 The IASB conceptual framework 2.8 (a) £1 invested at 7% per annum will become £1 × 1.07 × 1.07 × 1.07 after three years. So the present value on 1 January 2016 of an amount to be received on 1 January 2019 (assuming a discount rate of 7%) is equal to that amount divided by (1.07) 3 . This is the same as multiplying the amount by a discounting factor (to three decimal places) of 0.816 (1/1.07 3 ). So the present value of £50,000 to be received on 1 January 2019 is £40,800 (£50,000 × 0.816). (b) Similarly, the discounting factor over a five-year period is 0.713 (1/1.07 5 ) and so the present value of £100,000 to be received on 1 January 2021 is £71,300 (£100,000 × 0.713). (c) With a discount rate of 7%, discounting factors for one, two, three and four years are 0.935, 0.873, 0.816 and 0.763 respectively (the calculation of these factors is left to the reader). So the present value of £10,000 to be received on 1 January each year from 2017 to 2020 inclusive is £33,870 (£9,350 + £8,730 + £8,160 + £7,630). 2.9 (a) The Conceptual Framework sets out the concepts that underlie the preparation and presentation of general purpose financial statements prepared for the benefit of external users. The main purposes of the Conceptual Framework are: – to assist in the development of future international standards and review of existing standards – to provide a basis for reducing the number of alternative accounting treatments permitted by international standards – to assist national standard-setters in developing national standards – to assist preparers of financial statements in applying international standards and in dealing with topics which are not yet covered by international standards – to assist auditors in forming an opinion as to whether financial statements conform with international standards – to assist the users of financial statements in interpreting the information contained in financial statements prepared in accordance with international standards – to provide information about the IASB approach to the formulation of international standards. (b) The Conceptual Framework states that the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. (c) The primary users of general purpose financial reports are existing and potential investors, lenders and other creditors. Further user groups include employees, customers, governments (and their agencies) and the public. Examples of the types of information that each user group would be seeking from financial reports are given in Chapter 2 of the textbook. (d) Financial statements are normally prepared on the "going concern" basis. It is assumed that the reporting entity will continue to operate for the foreseeable future and has neither the intention nor the need either to close down or materially reduce the scale of its operations. But if an entity is not a going concern, the financial statements will have to be prepared on a different basis and that basis should be disclosed. (e) The fundamental qualitative characteristics are relevance and faithful representation. The enhancing characteristics are comparability, verifiability, timeliness and understandability. A full explanation of each characteristic is given in Chapter 2 of the textbook. (f) Reporting financial information imposes costs and these costs should be justified by the benefits which users obtain from this information. This means that there is a cost constraint on the extent to which financial statements can attain all of the qualitative characteristics that are listed in the Conceptual Framework. Chapter 3 Presentation of financial statements 3.7 (a) Chilwell Ltd Statement of comprehensive income for the year to 31 October 2015 £ Sales revenue (£1,025,420 - £27,110) 998,310 Cost of sales (W1) 465,900 ——— Gross profit 532,410 Distribution costs (W2) 173,610 Administrative expenses (W3) 259,250 432,860 ———- ——— 99,550 Other income 10,270 ——— 109,820 Finance costs (£6,220 + £3,600) 9,820 ——— Profit before taxation 100,000 Taxation (£20,000 + £8,400) 28,400 ——— Profit for the year 71,600 Other comprehensive income for the year: Items that will not be reclassified to profit or loss: Gain on revaluation of land 30,000 ——— Total comprehensive income for the year 101,600 ———- (b) Chilwell Ltd Statement of changes in equity for the year to 31 October 2015 Share capital Revaluation reserve Retained earnings Total equity £ £ £ £ Balance at 31 October 2014 80,000 75,000 247,060 402,060 Total comprehensive income 30,000 71,600 101,600 Dividend paid (35,000) (35,000) Bonus issue 40,000 (40,000) ———- ———- ———- ——— Balance at 31 October 2015 120,000 105,000 243,660 468,660 ———- ———- ———- ———- (c) Chilwell Ltd Statement of financial position as at 31 October 2015 £ £ Assets Non-current assets Property, plant and equipment (W4) 565,550 Current assets Inventories 92,280 Trade receivables (£69,500 × 98%) 68,110 160,390 ———- ——— Total assets 725,940 ———- Equity Share capital 120,000 Other reserves 105,000 Retained earnings 243,660 468,660 ———- Liabilities Non-current liabilities Long-term borrowings 120,000 Current liabilities Trade and other payables (£103,290 + £3,600) 106,890 Bank overdraft 10,390 Current tax payable 20,000 137,280 ———- ——— Total equity and liabilities 725,940 ———- Workings W1 Cost of sales £ Opening inventory 87,520 Purchases 483,230 Returns outwards (12,570) Closing inventory (92,280) ——— 465,900 ———- W2 Distribution costs £ Per trial balance 107,050 Wages and salaries (50%) 51,200 Buildings depreciation (W4) (30%) 2,400 Equip't depreciation (W4) (60%) 10,710 Loss on disposal (W4) 2,250 ——— 173,610 ———- W3 Administrative expenses £ Per trial balance 143,440 Directors' fees 50,000 Wages and salaries (50%) 51,200 Buildings depreciation (W4) (70%) 5,600 Equip't depreciation (W4) (40%) 7,140 Bad debts Reduction in allowance for receivables: (2% × £69,500) - £1,520 2,000 (130) ———- 259,250 ——— W4 Property, plant and equipment £ £ £ Land at valuation 280,000 Buildings at cost 300,000 Depreciation to 31/10/2014 60,000 Depreciation for year (£240,000 ÷ 30) 8,000 68,000 232,000 ———- ———- Equipment at cost (£197,400 - £64,000) 133,400 Depreciation to 31/10/2014 (£105,750 - £43,750) 62,000 Depreciation for year (25% × £71,400) 17,850 ———- 79,850 ——— 53,550 ———- Notes re sold vehicle: (i) WDV of sold vehicle was £64,000 × 75% × 75% × 75% × 75% = £20,250. (ii) Accumulated depreciation was £43,750 (£64,000 - £20,250). (iii) The loss on disposal was £2,250 (£20,250 - £18,000). 565,550 ———- Chapter 4 Accounting policies, accounting estimates and errors 4.7 (a) IAS8 permits a change of accounting policy only if the change is required by an international standard (or interpretation) or if the change results in reliable and more relevant information being provided to the users of the financial statements. A change in accounting policy which arises from the initial application of an international standard or interpretation should be accounted for in accordance with the transitional provisions of that standard or interpretation. A change in accounting policy which has been made voluntarily so as to improve the relevance of the financial statements should be accounted for retrospectively. Comparative figures for the previous period(s) must be adjusted and presented as if the new policy had always been applied. (b) (restated) 2016 2015 £000 £000 Revenue 5,200 5,400 Operating expenses 4,100 3,900 ––––– ––––– Profit before taxation 1,100 1,500 Taxation 220 300 ––––– ––––– Profit after taxation 880 1,200 ––––– ––––– (c) Retained earnings £000 Balance b/f as previously reported 1,605 Change in accounting policy (950 × 80%) 760 ––––– Restated balance 2,365 Profit for the year to 31 March 2016 880 ––––– Balance c/f 3,245 ––––– (d) The draft statement of comprehensive income suggests that revenue and profits both increased in the year to 31 March 2016. The revised statement improves comparability between 2015 and 2016 and makes it clear that revenue and profits actually fell in the year to 31 March 2016. The provision of more comparable information is the main aim of IAS8 in relation to changes in accounting policy and is, of course, one of the qualitative characteristics identified by the Conceptual Framework. International Financial Reporting A Practical Guide 5th Edition Melville Solutions Manual Full Download: https://alibabadownload.com/product/international-financial-reporting-a-practical-guide-5th-edition-melville-s Melville: International Financial Reporting, Instructor's Manual, 5th edition Chapter 5 Property, plant and equipment 5.7 (a) Non-current assets Broadly, a non-current asset is an asset which is acquired for long-term use within a business. Such an asset is not acquired for sale to a customer (though it may be sold at the end of its useful life) but for use in the business over a number of accounting periods. Strictly speaking, a non-current asset is any asset which does not qualify as a current asset. The full definition of a current asset is given below. Typical examples of non-current assets are property, plant and equipment, intangible assets (such as patents and trademarks) and long-term investments. Current assets Broadly, current assets comprise short-term assets which continually flow through the business and are constantly being realised. IAS1 defines a current asset as an asset which satisfies any of the following criteria: (i) it is expected to be realised, or is intended for sale or consumption, within the entity's normal operating cycle (ii) it is held primarily for the purpose of being traded (iii) it is expected to be realised within twelve months after the reporting period (iv) it is cash or a cash equivalent as defined by international standard IAS7, unless it is restricted from being exchanged or from being used to settle a liability for at least twelve months after the reporting period. Typical examples of current assets are inventories, trade receivables and cash. (b) Capital expenditure is expenditure which results in the acquisition of a non-current asset or in an improvement to the earning capacity of an existing non-current asset. For example, expenditure on acquiring business premises (or building an extension to existing premises) would be classed as capital expenditure. Revenue expenditure is expenditure which results in the acquisition of a current asset (e.g. inventory) or expenditure on items such as selling and distribution expenses, administrative expenses and finance charges. The cost of repairs or maintenance to a non-current asset (but not the cost of improvements) would be classed as revenue expenditure. (c) In general, capital expenditure is shown initially in the statement of financial position and is then transferred to the statement of comprehensive income over a period of years by means of depreciation charges. In contrast, revenue expenditure is wholly written off to the statement of comprehensive income in the year to which it relates. Therefore, if an item of capital expenditure is incorrectly classified as revenue expenditure, this will reduce the reported profit of the company for the year in which the expenditure is incurred and will also reduce the non-current assets figure shown in the statement of financial position. However, assuming that the asset is depreciable, the absence of depreciation charges in future years will increase the reported profit of those years so that the company's total profits over the entire useful life of the asset will in fact be unaffected by the error. 9 This sample only, Download all chapters at: AlibabaDownload.com

Contact the Author

Please Sign In to contact this author.


  • 👎  Report Copyright Violation

Frequently Asked Questions

What Do I Get When I Buy This Study Material?

+

When you buy a study material on Passing Grades, an instant download link will be sent directly to your email, giving you access to the file anytime after payment is completed.

Is Passing Grades a Trusted Platform?

+

Yes, Passing Grades is a reputable students’ marketplace with a secure payment system and reliable customer support. You can trust us to ensure a safe and seamless transaction experience.

Will I Be Stuck with a Subscription?

+

No, all purchases on Passing Grades are one-time transactions. You only pay for the notes you choose to buy, with no subscriptions or hidden fees attached.

Who Am I Buying These Study Materials From?

+

Passing Grades is a marketplace, which means you are purchasing the document from an individual vendor, not directly from us. We facilitate the payment and delivery process between you and the vendor.

Does Passing Grades Offer Free Study Materials?

+

Yes, sellers on Passing Grades have uploaded numerous free test banks, exams, practice questions, and class notes that can be downloaded at no cost.

Pasinggrades - Quality Study Materials

USD 17

    • Quality checked by Pasing Grades
    • Future updates
    • 6 months support from Eddah-Nafula
Download PDF $17

Author Information

Eddah Nafula

Eddah-Nafula

Member since June 2021

  • icon
  • icon
  • icon
View Profile
  • total sales

    0
  • Favourites

    0
  • Comments

    0
    ( 0 Ratings )

Item Information

  • Uploaded

    07 April 2023

  • Updated

    21 April 2025

  • Category

    Business

  • Item Type

    questions & answers

  • Tags

    International Financial Reporting A Practical Guide 5th Edition Melville Solutions Manual

More Related Items by Eddah-Nafula

2020-2021 HESI Pharmacology V2 – Practice Questions (120)
More Info

2020-2021 HESI Pharm...

  • Eddah-Nafula

    Eddah-Nafula

  • exam review

...

15 USD

0

0

AIN2601 ASSIGNMENT 1 QUESTIONS AND ANSWERS 100 CORRECT (2021)
More Info

AIN2601 ASSIGNMENT 1...

  • Eddah-Nafula

    Eddah-Nafula

  • exam review

AIN2601 ASSIGNMENT 1 QUESTIONS AND ANSWERS 100 CORRECT (2021)...

7 USD

0

0

Ashley Davis patho objectives 5,6,7,20
More Info

Ashley Davis patho o...

  • Eddah-Nafula

    Eddah-Nafula

  • exam review

Ashley Davis patho objectives 5,6,7,20...

7 USD

0

0

Purchase

Download link will be sent to this email immediately after purchase.

IMPORTANT LINKS

  • How To Upload Class Notes
  • Selling Tips
  • Passing Grades's Study Materials
  • Scholarships for International Students 2025

POPULAR CATEGORIES

  • Religious Studies
  • Philosophy
  • Science
  • Sociology
  • History
  • Mathematics
  • Chemistry
  • Physics
  • Biology
  • Engineering
  • Statistics
  • Economics
  • General
  • Computer Science
  • Nursing
  • Business
  • Psychology
  • English
  • Accounting
  • Law

More Info

  • Blog
  • Contact
  • Delivery Policy
  • Latest Scholarships Around the World
  • How to Pass Bar Exams: Passing Grades’ Strategies
  • How to Study and Pass the CPA Exam
  • Faq
  • Copyright Claims
  • Privacy Policy
  • Terms of Use
  • Sitemaps

KNOWLEDGE BASE

  • How to Write A+ Grade Good Research Paper
  • How to Manage Stress During Exam Period
  • Best Time to Study
  • How to Pass NCLEX-RN Exam
  • How To Effectively Utilize Test Banks
  • Popular Shadow Health Exam Assessments
  • Popular HESI Case Studies
  • How to Prepare for a Nursing Career
  • The Importance Of Summaries in Exam Revisvion

© 2025 Pasing Grades. All rights reserved.