(iii) Tyre has entered into two new long lease property agreements for two major retail outlets. Annual rentals are paidunder these agreements. Tyre has had to pay a premium to enter into these agreements because of the outlets’location. Tyre feels that the premiums paid are justifiable because of the increase in revenue that will occurbecause of the outlets’ location. Tyre has analysed the leases and has decided that one is a finance lease andone is an operating lease but the company is unsure as to how to treat this premium. (5 marks)Required:Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended31 May 2006.(The mark allocation is shown against each of the above items)
(iii) Tyre has entered into two new long lease property agreements for two major retail outlets. Annual rentals are paid
under these agreements. Tyre has had to pay a premium to enter into these agreements because of the outlets’
location. Tyre feels that the premiums paid are justifiable because of the increase in revenue that will occur
because of the outlets’ location. Tyre has analysed the leases and has decided that one is a finance lease and
one is an operating lease but the company is unsure as to how to treat this premium. (5 marks)
Required:
Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended
31 May 2006.
(The mark allocation is shown against each of the above items)
相关考题：
All of the following statements define the role of a meeting chairperson except:A Initiates and concludes discussionB Controls irrelevant discussionC Resolves strong disagreementsD Produces meeting agendaE Consolidates agreements.
We can learn from the text that Fitzsimons’s invention .A. kept the tyre as a whole pieceB. was made into production soonC. left little room for improvementD. changed our views on bag design
She should stop working; she has a headache because she ________ too long. A.has been readingB.had readC.is readingD.read
It is over two years since my brother ______the army.A. joinsB. joinedC. has joinedD. had joined
2 Tyre, a public limited company, operates in the vehicle retailing sector. The company is currently preparing its financialstatements for the year ended 31 May 2006 and has asked for advice on how to deal with the following items:(i) Tyre requires customers to pay a deposit of 20% of the purchase price when placing an order for a vehicle. If thecustomer cancels the order, the deposit is not refundable and Tyre retains it. If the order cannot be fulfilled byTyre, the company repays the full amount of the deposit to the customer. The balance of the purchase pricebecomes payable on the delivery of the vehicle when the title to the goods passes. Tyre proposes to recognisethe revenue from the deposits immediately and the balance of the purchase price when the goods are deliveredto the customer. The cost of sales for the vehicle is recognised when the balance of the purchase price is paid.Additionally, Tyre had sold a fleet of cars to Hub and gave Hub a discount of 30% of the retail price on thetransaction. The discount given is normal for this type of transaction. Tyre has given Hub a buyback option whichentitles Hub to require Tyre to repurchase the vehicles after three years for 40% of the purchase price. The normaleconomic life of the vehicles is five years and the buyback option is expected to be exercised. (8 marks)Required:Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended31 May 2006.(The mark allocation is shown against each of the above items)
(ii) The property of the former administrative centre of Tyre is owned by the company. Tyre had decided in the yearthat the property was surplus to requirements and demolished the building on 10 June 2006. After demolition,the company will have to carry out remedial environmental work, which is a legal requirement resulting from thedemolition. It was intended that the land would be sold after the remedial work had been carried out. However,land prices are currently increasing in value and, therefore, the company has decided that it will not sell the landimmediately. Tyres uses the ‘cost model’ in IAS16 ‘Property, plant and equipment’ and has owned the propertyfor many years. (7 marks)Required:Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended31 May 2006.(The mark allocation is shown against each of the above items)
(iv) Tyre recently undertook a sales campaign whereby customers can obtain free car accessories, by presenting acoupon, which has been included in an advertisement in a national newspaper, on the purchase of a vehicle.The offer is valid for a limited time period from 1 January 2006 until 31 July 2006. The management are unsureas to how to treat this offer in the financial statements for the year ended 31 May 2006.(5 marks)Required:Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended31 May 2006.(The mark allocation is shown against each of the above items)
—How long will your trip take? —_______A.It’will start tomorrow.B.It has two days.C.It took two weeks.D.It will take about two weeks.
The old man _____ two days after he had been sent to hospital. A diedB would dieC had diedD has died
Which statement about Belgium is NOT true?A.it is twice as big as Beijing.B.it has two major ethnic groups.C.it has gone through quite a few threats of division.D.it has no government.
She ought to stop working.She has a headache because she( )too long. A.has been reading B.had read C.is reading D.read
Ireland has a bipolar political party system with two major parties:（）.ASinn Fein and Fianna FailBFianna Fail and Fine GaelCSinn Fein and Fine GaelDIRA and Sinn Fein
She has been working hard day and night during these years（）she could pay for the lost necklace.A、in order thatB、as long asC、the momentD、because
The construction of the new bridge has been（）for two weeks because of the bad weather.A、devotedB、developedC、dependedD、delayed
So far the construction of the two new bridges over the river （）.A、have been completedB、has been completedC、has completedD、have completed
单选题Jim, ______ two of his colleagues, ______ for the annual garden competition.Atogether with; have joinedBalong with; has enteredCexcept for; has taken partDapart from; have participated
单选题Jackson ______ school two years ago and he ______ for two years.Aleaves; has goneBleft; has been awayCleaves; has been awayDleft; has gone
单选题This company has two branches: one in Paris and ______ in New York.AAnotherBone otherCthe otherDother
单选题The book “Kids Are From Mars, Parents Are From Venus” is mentioned in the third paragraph because______.Ait has the opposite opinion to the book written by the two girls.Bit has ranked first on the list of best sellers for several times.Cit has the same theme with the book written by the two girls.Dit is another book that the two girls have ever written.
单选题A: If I were you, I’d ride a bike to work. Taking a crowded bus during rush hours is really terrible. B: ______AYeah, riding a bike is a healthful activity. Don’t you think?BYes, you’re right. Buses are always very crowded during the rush hours.CThank you for your advice. But my bike has got a flat tyre.DCertainly. I don’t see why so many people go to work by bus rather than by bike.
单选题It has been quite a long time _____ the two companies established a business relationship.AalthoughBbecauseCifDsince