Economics Answers

IFRS 11 - Classifying Joint Arrangement Practice Exercise 2

For each of the following scenario, identify which type of joint arrangement qualifies based on the given facts.

 1.        Entities A and B (the parties) set up a separate vehicle (entity X) together with a JOA4.2.

Shareholders' agreement and JOA establish rights and obligations and expressly specify that

- Each party has a 50% interest in entity X and appoints one director

- Unanimous consent is required for all resolutions to be passed

- The rights and obligations arising from the activities of entity X are to be allocated directly to parties A and B in specified proportions.

IFRS 11 - Classifying Joint Arrangement Practice Exercise 2

For each of the following scenario, identify which type of joint arrangement qualifies based on the given facts.

1.        Two parties enter into a joint arrangement which is structured through an incorporated entity in which each party has a 50% ownership interest. There are no other contractual arrangements in place between the parties.

2.       Two parties enter into a joint arrangement which is structured through an incorporated entity in which each party has a 50% ownership interest.

The parties have also modified the features of the corporation through a separate contractual arrangement so that each has an interest in the assets of the incorporated entity, and each is responsible for settling its liabilities in a specified proportion

IFRS 11 - Classifying Joint Arrangement Practice Exercise 2

For each of the following scenario, identify which type of joint arrangement qualifies based on the given facts.

  1.        Parties A and B are real estate companies and set up a separate vehicle (entity X) for the purpose of acquiring and operating a shopping centre.

According to entity X's legal form it has rights to its own assets, and obligations for its own liabilities, relating to the arrangement. Entity X also owns the shopping centre.

Parties A and Bare not liable in respect of the individual debts, liabilities or obligations of entity X. Parties A and Beach receive a share of the income from operating the shopping centre.

IFRS 11 - Classifying Joint Arrangement Practice Exercise 2

For each of the following scenario, identify which type of joint arrangement qualifies based on the given facts.

1.         Parties A and B provide many types of construction services, and jointly enter into a contractual arrangement to design/build a road. The parties set up a separate vehicle (entity Z) to facilitate this arrangement.

Entity Z enters into a contract with the government for the road and holds the assets and liabilities relating to the road contract, as well as invoicing the government for the construction services.

The main feature of entity Z's legal form is that the parties (not entity Z in its own right) have rights to the assets, and obligations for the liabilities, of entity Z.

Entities A and B appoint an operator, who will be an employee of one of the parties.

A company has borrowed K800,000 from a bank. The loan is to be repaid by level instalments, payable annually in arrears for 10 years from the date the loan is made. The annual repayments are based on an effective rate of interest of 8% per annum. I. Calculate the amount of the level annual payment which will be paid over the 10-year term. 

Suppose the production function is given by Q=L3\4K1\4 find APL and MPL function

Today labour is considered as one of the most important factor of production. Discuss the way it's interest can be protected

Which of the following qualitative characteristic mandates provided below is complete, free from material error or bias and prudent?  

Select one:

a. 

Relevance 

b. 

Understandability

c. 

Comparability 

d. 

Reliability

The cost function of a monopoly firm is TC = 10 + 2Q where TCq is the total cost of producing the quantity. The demand in this market is expressed by the equation Q 14 = 14 – P where P denotes the price. Estimate the profit to be made by the monopolist.