Belsen Purchased Inventory on December 1, 2010

question 90

Multiple Choice

Belsen purchased inventory on December 1, 2010. Payment of 200,000 stickles was to be made in sixty days. Also on December 1, Belsen signed a contract to purchase §200,000 in sixty days. The spot rate was §1 = .35714, and the 60-day forward rate was §1 = $.38462. On December 31, the spot rate was §1 = .34483 and the 30-day forward rate was §1 = .38168. Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901. In the journal entry to record the establishment of a forward exchange contract, at what amount should the Forward Contract account be recorded on December 1?

• A) $71,428.
• B) $76,924.
• C) $588.
• D) $582.
• E) $0, since there is no cost, there is no value for the contract at this date.

Locate the placement of NCI on the statement of financial position under IAS 27.

Differentiate between reasons for acquiring less than a 100% interest in a subsidiary.

Understand and apply the elimination entries for intercompany transactions.

Calculate non-controlling interest (NCI) on the consolidated statement of financial position.

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Definitions:

Functional Play

Play activities that involve simple, repetitive activities typical of infants and young children, which help in developing physical and cognitive skills.

Formal Play

Structured play activities that are governed by rules and often involve social interactions or competition.

Rejecting-neglecting

A parenting style characterized by a lack of responsiveness to a child's needs and a general disengagement from the child's life.

Permissive-indulgent

A parenting style characterized by high responsiveness but low demands, leading to fewer boundaries and rules.