ACCA 历年真题f7int_2012_dec_q
acca9月F7考试题及答案
acca9月F7考试题及答案ACCA 9月 F7考试题及答案1. 题目一：财务报表分析问题：请解释财务报表分析的目的，并给出两个常用的财务比率。
答案：财务报表分析的目的是评估企业的财务状况、业绩和盈利能力，以便做出明智的投资和信贷决策。
两个常用的财务比率包括：- 流动比率：衡量企业短期偿债能力，计算公式为流动资产除以流动负债。
- 资产负债率：衡量企业财务杠杆水平，计算公式为总负债除以总资产。
2. 题目二：资本成本问题：说明如何计算加权平均资本成本（WACC）。
答案：加权平均资本成本（WACC）的计算公式为：\[WACC = \frac{E}{V} \times Re + \frac{D}{V} \times Rd\times (1 - Tc)\]其中：- \( E \) 代表企业市场价值的股权- \( V \) 代表企业资本的市场价值总和（\( E + D \)）- \( Re \) 代表股权要求的回报率- \( D \) 代表企业市场价值的债务- \( Rd \) 代表债务的税后成本- \( Tc \) 代表公司税率3. 题目三：财务风险管理问题：描述两种财务风险管理策略。
答案：财务风险管理策略包括：- 对冲：通过使用衍生金融工具（如期货、期权）来减少价格波动对企业财务状况的影响。
- 多元化：通过投资不同行业和地区的资产来分散风险，减少单一资产或市场对企业整体财务状况的负面影响。
4. 题目四：现金流量表问题：解释现金流量表中的经营活动、投资活动和融资活动。
答案：现金流量表分为三个部分：- 经营活动：涉及企业日常运营产生的现金流入和流出，如销售收入和运营支出。
- 投资活动：涉及企业购买或出售资产、投资等产生的现金流，如购买固定资产或出售投资。
- 融资活动：涉及企业筹资活动产生的现金流，如发行债券、支付股息或偿还债务。
5. 题目五：财务规划和预算问题：描述财务规划和预算过程的步骤。
答案：财务规划和预算过程包括以下步骤：- 目标设定：确定企业的财务目标和战略。
ACCA资料 真题 f4chn_2012_dec_a
Fundamentals Level –Skill Module, Paper F4 (CHN)Corporate and Business Law (China) December 2012 Answers1This question requires candidates to state the procedural ways to deal with the various situations when an assignment of contract takes place and a dispute, between the assignee and the other party to the contract, is brought to the people’s court under the Judicial Interpretation on Contract by the Supreme People’s Court.(a)In accordance with Article 27 of the Judicial Interpretation, where an obligee has assigned his rights to a third party and adispute between the obligor and the assignee regarding the performance of contract is brought to the people’s court, the court may add the original obligee as the third party in the litigation if the obligor raises a protest against the rights of the original obligee.(b)In accordance with Article 28 of the Judicial Interpretation, where an obligor has assigned his obligations to a third party,with the consent of the obligee, and a dispute between the assignee and the obligee regarding the performance of contract is brought to the people’s court, the court may add the obligor as the third party in the litigation if the assignee raises a protest concerning the right of the obligor against the obligee.(c)In accordance with Article 29 of the Judicial Interpretation, where after one party has assigned both his rights and obligationsunder the contract to an assignee and a dispute between the other party and the assignee regarding the performance of contract is brought to the people’s court, the court may add the assignor as the third party if the other party raises a protest concerning the rights or duties under the original contract.2This question requires candidates to explain the non-competition clause, and state the persons who are subject to non-competition obligations and the conditions for a labour contract to include a non-competition clause under the Labour Contract Law of China.(a)The non-competition clause refers to a clause contained in a labour contract or a confidentiality agreement, under which anemployee agrees to maintain the trade secret of the employer and the confidentiality of matters relating to the industrial properties of the employer for a period of time after the termination or dissolution of a labour contract.(b)In accordance with Article 24 of the Labour Contract Law, the persons who are subject to non-competition obligations includethe employer’s senior management, senior technicians and other personnel with confidentiality obligations.(c)In accordance with Articles 23 and 24 of the Labour Contract Law, where a labour contract contains a non-competitionclause, the same contract shall also stipulate that the employer pays monetary compensation to the employee on a monthly basis during the term of non-competition after the termination or dissolution of the labour contract. The term, counted from the termination or dissolution of the labour contract, shall not exceed two years.3This question requires candidates to explain a pre-contractual liability, distinguish between this and liability for breach of contract and state the conduct of a party that will result in pre-contractual liability under the Contract Law of China.(a)Pre-contractual liability refers to the liability incurred by a party’s conduct, as prescribed in the Contract Law, which causesa loss or damages to the other party during the process of negotiating a contract but the contract is finally not concluded.The major difference between the pre-contractual liability and the liability for breach of contract is: under the pre-contractual liability there is no contract by the two parties who have negotiated to conclude a contract; while under the liability for breach of contract an effective contract has been concluded but one of the parties breaches it. Under pre-contractual liability the form of liability is compensation for loss while under liability for breach of contract the form of liability includes specific performance, liquidated damages and damages.(b)In accordance with Article 42 of the Contract Law, a party with the following conduct in negotiating a contract shall be liablefor the losses caused to the other party:(i)under the pretext of concluding a contract, to negotiate in bad faith;(ii)deliberate concealment of the important facts relating to concluding a contract or providing false information;(iii)other conduct in violation of the principle of good faith.4This question requires candidates to state the composition of the board of directors in different forms of limited liability companies, and the ways to deal with the situation where the number of directors is less than a quorum under the Company Law of China.(a)In accordance with Article 45 of the Company Law, a general limited liability company shall set up a board of directors whichshall be composed of 3 to 13 members, unless otherwise stipulated by the law. The method of the creation of the chairman and vice-chairman of the board of directors shall be stipulated in the articles of association of the company.(b)In accordance with Article 45 of the Company Law, where a limited liability company is invested and established by two ormore state-owned enterprises, its board of directors shall include representatives of the employees of the company. Such representatives of employees shall be elected by the employees of the company through the staff and workers congress, workers’ assembly or other forms of election.(c)In accordance with Article 46 of the Company Law, where the members of the board of directors are/is less than the quorumbecause re-election is not conducted upon expiry of the term of office of a director, or a director resigns during his term of office, the said director shall still perform his functions as a director.5This question requires candidates to explain the term rectification, and state the legal effect of rectification on the right of guarantee during the period of rectification and the ways to deal with the situation that may damage the rights of a guarantor under the Enterprise Bankruptcy Law of China.(a)The term rectification refers to such a system under which a debtor or an investor whose investment accounts for 10% ormore of the registered capital of the debtor, after the application for bankruptcy has been accepted and before the declaration of bankruptcy of the debtor by the court, may apply to the court to rectify debts of the debtor. Under the conditions of acceptance of such application by the court and the suspension of the bankruptcy procedures, the debtor may continue its business operations, so as to avoid bankruptcy of the debtor and resume its ability of normal business operations.(b)In accordance with Article 75 of the Enterprise Bankruptcy Law, in the period of rectification, the right of guarantee on theparticular property of the debtor shall be suspended. However, if there is a possibility for the secured property to suffer damages or significant depreciation of value so that the right of guarantee is endangered, the guarantee may apply to the court for recovering the right to guarantee. A bankruptcy administrator may set a guarantee for a new loan for the purpose of continuing the debtor’s business operations.6This question requires candidates to explain a takeover by offer of a listed company, state the ways to deal with the shares of a listed company purchased after the expiration of the duration of takeover and the ways to deal with the legal status of the listed company purchased after the completion of takeover under the Securities Law of China.(a)In accordance with Article 88 of the Securities Law, takeover by offer refers to the form of taking over a listed company wherean investor comes to hold or jointly hold with others, through a stock exchange, 30% of the issued shares of a listed company and continues to buy such shares, the investor shall comply with the law to issue to all the shareholders of the listed companya takeover offer for buying the whole or part of the shares of the listed company.(b)In accordance with Article 97 of the Securities Law, the trading of the shares of the stock company under takeover shall beterminated on the stock exchange when the distribution of shares does not meet the requirements for listing, upon the expiration of the term of the takeover offer. The holders of the remaining shares of the target company shall be entitled to sell their shares to the purchaser on the same conditions as those in the takeover offer; while the purchaser is under an obligation to buy up these shares. The listed company taken over shall change its enterprise form where this company no longer meets the requirement for a joint stock company, upon the completion of the takeover.7This question requires candidates to describe various acts relating to the capital of a company that shall be regarded as fraudulent corporate behaviour, and state the reasons why such acts shall be regarded as fraudulent corporate behaviour.(a)In corporate management, the following acts relating to the capital of a company, committed by any personnel, shall beregarded as fraudulent behaviour:(i)to provide a false statement of the registered capital during the process of establishing a company;(ii)to make false capital contributions;(iii)to withdraw the capital, contributed during the process of incorporation, after the establishment of the company.(b)Due to the following reasons, the above-described acts are to be regarded as illegal and fraudulent behaviour:(i)providing a false statement of registered capital and making false capital contributions will result in a situation in whichthe registered capital of the company, as stipulated in the articles of association and registered with the governmentagency, cannot reflect its genuine situation of capital;(ii)withdrawal of the capital contributed in the process of incorporation after the establishment of the company will reduce its ability to satisfy debts with its own assets, which will increase the risks of other parties doing business with it.8This question requires candidates to deal with the legal issues relating to the transfer of contract under the Contract Law of China.(a)There was a contract between Aishen Garment Co and Conka Sales. The reasons to support this conclusion include:(i)In accordance with Article 89 of the Contract Law, where the rights and duties are transferred together, provisions ofArticles 79, 81 to 83 and 85 to 87 shall apply. This means that a party may, subject to the conditions as set in theprovisions, transfer its rights and obligations to a third party.(ii)In accordance with the relevant provisions listed in Article 89 of the Contract Law, a creditor shall notify the debtor in the case of the transfer of his credit and a debtor shall obtain the consent from the creditor in the case of the transfer ofhis obligations. Bulinger Store was a creditor to receive the goods and as a debtor to pay the price. Therefore, BulingerStore should notify the transfer to and obtain consent from Aishen Garment Co. In this case, Bulinger Store issued awritten notice to Aishen Garment Co. Therefore, the transfer of rights satisfied the requirements of the law.(iii)Bulinger Store Co issued a written notice to Aishen Garment Co, but failed to obtain consent from the latter. However, Aishen Garment Co sent a fax to advise Conka Sales to receive the goods, and actually delivered 10,000 piecesof sportswear as well as receiving the price paid by Conka Sales. This meant that Aishen Garment Co acknowledged thetransfer of contractual rights and obligations to Conka Sales.(b)In accordance with Article 81 of the Contract Law, where a creditor transfers his rights, the transferee acquires rightsaccessory to the creditor’s rights, unless the accessory right is exclusive for the creditor himself. Conka Sales, as a transferee, acquired the accessory right when it acquired the right to the goods. Hence, it was entitled to claim damages against Aishen Garment Co for the defects of the goods.9This question requires candidates to deal with the legal issues relating to derivative litigation under the Company Law of China.(a)Ms E was entitled to bring a lawsuit against Mr A. The legal basis for this conclusion is Articles 21, 150 and 152 of theCompany Law. The controlling shareholders, actual controllers or directors of a company shall not, by taking advantage of their affiliate relationship, damage the interests of the company. Where any of the above-mentioned persons violates laws or articles of association of a company and causes damages to a company, such person shall be liable for the damages. If sucha situation occurs, any shareholder may directly bring a lawsuit against the director, subject to the conditions as prescribedby the Company Law.(b)In accordance with Article 152 of the Company Law, the following conditions shall be satisfied:(i)Ms E requests the supervisory board in writing to bring a lawsuit against the director who causes the damage;(ii)the supervisory board, upon its receipt of Ms E’s request, fails to file a lawsuit within 30 days upon the receipt of such request;(iii)Ms E brings a lawsuit against the Mr A for the interests of the company, in her own name.(c)Assuming Ms E was granted a favourable judgement by the court, the beneficiary should be T enda Co Ltd. Although Ms Ebrought the lawsuit in her own name, the legal action was for the interests of the company. Therefore, the result of such a legal action should be attributed to the company.10This question requires candidates to deal with the legal issues relevant to the declaration of credits and the legal effect of bankruptcy procedures on the pending case under the Enterprise Bankruptcy Law of China.(a)In accordance with Article 20 of the Enterprise Bankruptcy Law, after the people’s court accepts an application for bankruptcy,any pending civil action involving the relevant debtor shall be suspended. Hence, the pending case between Construction Company and Dalie Co should be suspended. The action can be resumed after a bank takes over Dalie’s assets.(b)Industry Bank should declare its credit with the court accepting the bankruptcy application, submit relevant legal documentsto prove its credit and clarify the amount of credit as well as the existence of guarantee on part of the credit. Among its total credit of RMB 20 million yuan, Industry Bank was a general creditor for RMB 8 million yuan.(c)Merchant Bank was entitled to declare its credit and join the bankruptcy procedure. In accordance with Article 50 of theEnterprise Bankruptcy Law, the joint and several creditors may choose one from among them to declare their creditors’ right or may jointly declare the creditors’ right together. Dalie Co provided guarantee for a loan to Merchant Bank, but the principal, Jiqing Company, failed to settle the debt. Merchant Bank, as a creditor and guarantee, was entitled to choose Dalie Co to declare its credit.Fundamentals Level –Skills Module, Paper F4 (CHN)Corporate and Business Law (China) December 2012 Marking Scheme 18–10 A thorough answer which states the ways to deal with the situations in which an assignment of contract takes place, anda dispute between the assignee and the other party of the contract is brought to the people’s court. Especially the answercorrectly states that this is a procedural action during the litigation.6–7An answer which states correctly any two parts among the three parts and the nature of such a way to deal with the said situation, but fails to state the remaining part.3–5An answer which states correctly any one of the three parts, but fails to give any points for other two parts.0–2An answer which does not state any point or states very limited points in part (a) or part (b) or part (c).28–10 A thorough answer which explains a non-competition clause in a labour contract, and states the persons who are subject to non-competition obligations and the conditions and term of duration for a clause of non-competition in a labour contract.6–7An answer which explains a non-competition clause, and states some points in part (b) and part (c). As an alternative, an answer which fails to explain a non-competition clause but states all points in part (b) and part (c).3–5An answer which explains the basic meaning of a non-competition clause in part (a), but fails to state or states very limited points in part (b) and part (c). As an alternative, an answer which fails to explain a non-competition clause in part (a),but states some points both in part (b) and part (c), or states all points in part (c) but no point in part (b).0–2An answer which shows little or no knowledge of this area. As an alternative, an answer which fails to explain a non-competition clause, and fails to state any points both in parts (b) and (c), or states limited points in part (b) or (c). 38–10An answer which explains a pre-contractual liability and its difference with the liability for breach of contract, and states the conduct that will result in pre-contractual liability.5–7An answer which explains the basic meaning of a pre-contractual liability and its major difference with the liability for breach of contract in part (a), and states some points in part (b). As an alternative, an answer which explains some pointsto pre-contractual liability and its major difference with the liability for breach of contract in part (a), but fails to state anypoint in both part (b).3–4 An answer which explains some points in part (a), and fails to state or states very limited points in part (b). Alternatively, an answer which fails to explain the term and its major difference with the liability for breach of contract in part (a), butstates some points in part (b).0–2An answer which shows little or no knowledge of this area.48–10An answer which states the composition of the board of directors of a general limited liability company and that of a limited liability company incorporated by two or more state-owned enterprises, as well as the way to deal with the situation inwhich the numbers of directors are less than a quorum due to various causes.5–7An answer which states correctly parts (a) and (b), or correctly states parts (b) and (c). As an alternative, the answer states some points in any one of the three parts.3–4An answer which shows a limited understating of the rules on the composition of directors in different limited liability companies in parts (a) and (b), fails to state the ways to deal with the situation in which the numbers of directors are lessthan a quorum in part (c). Alternatively, the answer fails to state the composition of the board of directors in a generallimited liability company in part (a), but states major points in part (b) or (c).0–2An answer which shows little or no knowledge of this area.58–10An answer which explains the term rectification, and states correctly the legal effect of the rectification on the right of guarantee during the period of rectification and the possibility of setting a guarantee during the period of rectification by abankruptcy administrator.5–7An answer which explains the term rectification, states some points in part (b). As an alternative, an answer which fails to explain the term rectification, but states correctly the legal effect of rectification against the right of guarantee and thepossibility of setting a guarantee by a bankruptcy administrator in the period of rectification.3–4An answer which explains the term rectification, but fails to state any points in part (b). Alternatively, an answer which fails to explain the term in part (a), but states some points in part (b).0–2An answer which shows little or no knowledge of the area.68–10An answer which explains a takeover by offer, states correctly the ways to deal with the shares of a listed company purchased after the expiration of the duration of takeover by offer and the way to deal with the enterprise form of a listedcompany purchased after the completion of takeover.5–7An answer which explains a takeover by offer, states some points in part (b). As an alternative, an answer which fails to explain a takeover by offer, but states all or most of points in part (b).3–4An answer which gives a correct answer to any one of part (a) or (b). As an alternative, the answer gives limited points in both part (a) and (b).0–2An answer which shows little or no knowledge of the area.78–10An answer which describes the acts that shall be regarded as fraudulent behaviour, states correctly the reasons why such acts shall be regarded as fraudulent behaviour.5–7An answer which describes any two kinds of acts that shall be regarded as fraudulent behaviour, states some reasons in part (b). As an alternative, an answer which describes all the acts that shall be regarded fraudulent behaviour in part (a),but fails to state the reasons in part (b).3–4 An answer which describes any one kind of the acts that shall be regarded as fraudulent behaviour, states limited points in part (b). Alternatively, an answer which describes any two kinds of the acts that shall be regarded as fraudulentbehaviour, but fails to state any reasons in part (b).0–2An answer which shows little or no knowledge of the area.88–10An answer which correctly deals with the legal issues relating to the conditions for the transfer of contract and the accessory rights along with the transfer of rights.5–7An answer which correctly states that there was a contract between Aishen Garment Co and Conka Sales and the rules relating to accessory rights but states merely some reasons to support the answer. Alternatively, an answer which correctlystates the existence of a contract between Aishen Garment Co and Conka Sales and the reasons to support such aconclusion, but fails to answer the question in part (b).3–4An answer which shows some understanding of the legal issues and gives only a correct conclusion of part (a) or (b), but fails to give any reasons to support the conclusion.0–2The answer is very weak, showing no, or very little, understanding of the question.98–10An answer which shows a complete understanding of the rules as to the issues of derivative litigation in parts (a), (b) and(c), and gives reasons to support the conclusions to the question.5–7An answer which gives correct conclusions to any two parts among parts (a), (b) and (c), and gives relevant reasons to support such conclusions. Alternatively, an answer which gives correct conclusions to three parts, but fails to state, orstates limited, points of reasons to support such conclusions.3–4An answer which gives merely one correct conclusion among three parts, and states the reasons to support such conclusion.0–2An answer which shows no, or very little, understanding of the question.108–10An answer which gives a complete answer to each part of the question and gives correct reasons to support the answer.5–7An answer which shows a good understanding of the rules to deal with the pending case where the court accepts an application of bankruptcy against a debtor, and any one of the ways to deal with various forms of debts due by the debtor.Or as an alternative, an answer which shows a sound understanding of any one part among the three parts and gives acorrect reason to support such conclusion.3–4An answer which shows limited understanding of the rules to deal with the pending case in part (a) or the ways to deal with the debts secured by mortgage in part (b), or the ways to deal with the debts under a personal guarantee in part (c),but with very limited reasons.0–2An answer which shows very little or no understanding of the question.。
ACCA_F7_2006年12月考试【试题答案】
A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mA C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mPart 2 Examination – Paper 2.5(INT)Financial Reporting (International Stream)December 2006 Answers1(a)Cost of control in Sunlee:Consideration$’000$’000Shares (20,000 x 80% x 3/5 x $5)48,000LessEquity shares 20,000Pre acq reserves18,000Fair value adjustments (4,000 + 3,000 + 5,000)12,000–––––––50,000x 80%(40,000)–––––––Goodwill 8,000–––––––(b)Carrying amount of Amber 30 September 2006 (prior to impairment loss):At cost$’000Cash (6,000 x $3)18,0006% loan notes (6,000 x $100/100)6,000–––––––24,000LessPost acquisition losses (20,000 x 40% x 3/12)(2,000)–––––––22,000–––––––(c)Hosterling GroupConsolidated income statement for the year ended 30 September 2006$’000Revenue (105,000 + 62,000 – 18,000 intra group)149,000Cost of sales (see working)(89,000)––––––––Gross profit60,000Distribution costs (4,000 + 2,000)(6,000)Administrative expenses (7,500 + 7,000)(14,500)Finance costs (1,200 + 900)(2,100)Impairment losses:Goodwill (1,600)Investment in associate (22,000 – 21,500)(500)Share of loss from associate (20,000 x 40% x 3/12)(2,000)––––––––Profit before tax 33,300Income tax expense (8,700 + 2,600)(11,300)––––––––Profit for the period 22,000––––––––Attributable to:Equity holders of the parent19,600Minority Interest ((13,000 – 1,000 depreciation adjustment) x 20%)2,400––––––––22,000––––––––Note: the dividend from Sunlee is eliminated on consolidation.Working $’000Cost of sales Hosterling 68,000Sunlee 36,500Intra group purchases (18,000)Additional depreciation of plant (5,000/5 years)1,000Unrealised profit in inventories (7,500 x 25%/125%)1,500––––––––89,000––––––––A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o m2(a)Tadeon – Income statement – Year to 30 September 2006$’000$’000Revenue277,800Cost of sales (w (i))(144,000)–––––––––Gross profit133,800Operating expenses (40,000 + 1,200 (w (ii)))(41,200)Investment income2,000Finance costs – finance lease (w (ii))(1,500)– loan (w (iii))(2,750)(4,250)––––––––––––––––Profit before tax90,350Income tax expense (w (iv))(36,800)–––––––––Profit for the period 53,550–––––––––(b)Tadeon – Balance Sheet as at 30 September 2006Non-current assets$’000$’000Property, plant and equipment (w (v))299,000Investments at amortised cost 42,000–––––––––341,000Current assets Inventories33,300T rade receivables 53,50086,800––––––––––––––––T otal assets427,800–––––––––Equity and liabilities Capital and reserves:Equity shares of 20 cents each fully paid (w (vi))200,000ReservesShare premium (w (vi))28,000Revaluation reserve (w (v))16,000Retained earnings (w (vii))42,15086,150––––––––––––––––286,150Non-current liabilities 2% Loan note (w (iii))51,750Deferred tax (w (iv))14,800Finance lease obligation (w (ii))10,50077,050–––––––Current liabilities T rade payables18,700Accrued lease finance costs (w (ii))1,500Finance lease obligation (w (ii))4,500Bank overdraft1,900Income tax payable (w (iv))38,00064,600––––––––––––––––T otal equity and liabilities427,800–––––––––Workings (note figures in brackets are in $’000)(i)Cost of sales:$’000Per trial balance118,000Depreciation (12,000 + 5,000 + 9,000 w (v))26,000––––––––144,000––––––––(ii)Vehicle rentals/finance lease:The total amount of vehicle rentals is $6·2 million of which $1·2 million are operating lease rentals and $5 million is identified as finance lease rentals. The operating rentals have been included in operating expenses.Finance lease$’000Fair value of vehicles20,000First rental payment – 1 October 2005(5,000)–––––––Capital outstanding to 30 September 200615,000Accrued interest 10% (current liability)1,500–––––––T otal outstanding 30 September 200616,500–––––––A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mIn the year to 30 September 2007 (i.e. on 1 October 2006) the second rental payment of $6 million will be made, of this $1·5 million is for the accrued interest for the previous year, thus $4·5 million will be a capital repayment. The remaining $10·5 million (16,500 – (4,500 + 1,500)) will be shown as a non-current liability.(iii)Although the loan has a nominal (coupon) rate of only 2%, amortisation of the large premium on redemption, gives aneffective interest rate of 5·5% (from question). This means the finance charge to the income statement will be a total of $2·75 million (50,000 x 5·5%). As the actual interest paid is $1 million an accrual of $1·75 million is required. This amount is added to the carrying amount of the loan in the balance sheet.(iv)Income tax and deferred taxThe income statement charge is made up as follows:$'000Current year’s provision 38,000Deferred tax (see below)(1,200)–––––––36,800–––––––There are $74 million of taxable temporary differences at 30 September 2006. With an income tax rate of 20%, this would require a deferred tax liability of $14·8 million (74,000 x 20%). $4 million ($20m x 20%) is transferred to deferred tax in respect of the revaluation of the leasehold property (and debited to the revaluation reserve), thus the effect of deferred tax on the income statement is a credit of $1·2 million (14,800 – 4,000 – 12,000 b/f).(v)Non-current assets/depreciation:Non-leased plantThis has a carrying amount of $96 million (181,000 – 85,000) prior to depreciation of $12 million at 121/2% reducing balance to give a carrying amount of $84 million at 30 September 2006.The leased vehicles will be included in non-current assets at their fair value of $20 million and depreciated by $5 million (four years straight-line) for the year ended 30 September 2006 giving a carrying amount of $15 million at that date.The 25 year leasehold property is being depreciated at $9 million per annum (225,000/25 years). Prior to its revaluation on 30 September 2006 there would be a further year’s depreciation charge of $9 million giving a carrying amount of $180 million (225,000 – (36,000 + 9,000)) prior to its revaluation to $200 million. Thus $20 million would be transferred to a revaluation reserve. The question says the revaluation gives rise to $20 million of the deductible temporary differences, at a tax rate of 20%, this would give a credit to deferred tax of $4 million which is debited to the revaluation reserve to give a net balance of $16 million. Summarising:cost/valuationaccumulated depreciationcarrying amount$,000$,000$,00025 year leasehold property 200,000nil 200,000Non-leased plant 181,00097,00084,000Leased vehicles20,0005,00015,000––––––––––––––––––––––––401,000102,000299,000––––––––––––––––––––––––(vi)Suspense accountThe called up share capital of $150 million in the trial balance represents 750 million shares (150m/0·2) which have a market value at 1 October 2005 of $600 million (750m x 80 cents). A yield of 5% on this amount would require a $30 million dividend to be paid.A fully subscribed rights issue of one new share for every three shares held at a price of 32c each would lead to an issue of 250 million (150m/0·2 x 1/3). This would yield a gross amount of $80 million, and after issue costs of $2 million,would give a net receipt of $78 million. This should be accounted for as $50 million (250m x 20 cents) to equity share capital and the balance of $28 million to share premium.The receipt from the share issue of $78 million less the payment of dividends of $30 million reconciles the suspense account balance of $48 million.(vii)Retained earnings$,000At 1 October 200518,600Year to 30 September 200653,550less dividends paid (w (vi))(30,000)–––––––42,150–––––––3(a)Most forms of off balance sheet financing have the effect of what is, in substance, debt finance either not appearing on the balance sheet at all or being netted off against related assets such that it is not classified as debt. Common examples would be structuring a lease such that it fell to be treated as an operating lease when it has the characteristics of a finance lease,complex financial instruments classified as equity when they may have, at least in part, the substance of debt and ‘controlled’entities having large borrowings (used to benefit the group as a whole), that are not consolidated because the financial structure avoids the entities meeting the definition of a subsidiary.A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mThe main problem of off balance sheet finance is that it results in financial statements that do not faithfully represent the transactions and events that have taken place. Faithful representation is an important qualitative characteristic of useful information (as described in the Framework for the preparation and presentation of financial statements ). Financial statements that do not faithfully represent that which they purport to lack reliability. A lack of reliability may mean that any decisions made on the basis of the information contained in financial statements are likely to be incorrect or, at best, sub-optimal.The level of debt on a balance sheet is a direct contributor to the calculation of an entity’s balance sheet gearing, which is considered as one of the most important financial ratios. It should be understood that, to a point, the use of debt financing is perfectly acceptable. Where balance sheet gearing is considered low, borrowing is relatively inexpensive, often tax efficient and can lead to higher returns to shareholders. However, when the level of borrowings becomes high, it increases risk in many ways. Off balance sheet financing may lead to a breach of loan covenants (a serious situation) if such debt were to be recognised on the balance sheet in accordance with its substance.H igh gearing is a particular issue to equity investors. Equity (ordinary shares) is sometimes described as residual return capital. This description identifies the dangers (to equity holders) when an entity has high gearing. The dividend that the equity shareholders might expect is often based on the level of reported profits. The finance cost of debt acts as a reduction of the profits available for dividends. As the level of debt increases, higher interest rates are also usually payable to reflect the additional risk borne by the lender, thus the higher the debt the greater the finance charges and the lower the profit. Many off balance sheet finance schemes also disguise or hide the true finance cost which makes it difficult for equity investors to assess the amount of profits that will be needed to finance the debt and consequently how much profit will be available to equity investors. Furthermore, if the market believes or suspects an entity is involved in ‘creative accounting’ (and off balance sheet finance is a common example of this) it may adversely affect the entity’s share price.An entity’s level of gearing will also influence any decision to provide further debt finance (loans) to the entity. Lenders will consider the nature and value of the assets that an entity owns which may be provided as security for the borrowings. The presence of existing debt will generally increase the risk of default of interest and capital repayments (on further borrowings)and existing lenders may have a prior charge on assets available as security. In simple terms if an entity has high borrowings,additional borrowing is more risky and consequently more expensive. A prospective lender to an entity that already has high borrowings, but which do not appear on the balance sheet is likely to make the wrong decision. If the correct level of borrowings were apparent, either the lender would not make the loan at all (too high a lending risk) or, if it did make the loan,it would be on substantially different terms (e.g. charge a higher interest rate) so as to reflect the real risk of the loan. Some forms of off balance sheet financing may specifically mislead suppliers that offer credit. It is a natural precaution that a prospective supplier will consider the balance sheet strength and liquidity ratios of the prospective customer. The existence of consignment inventories may be particularly relevant to trade suppliers. Sometimes consignment inventories and their related current liabilities are not recorded on the balance sheet as the wording of the purchase agreement may be such that the legal ownership of the goods remains with the supplier until specified events occur (often the onward sale of the goods).This means that other suppliers cannot accurately assess an entity’s true level of trade payables and consequently the average payment period to suppliers, both of which are important determinants in deciding whether to grant credit. (b)(i)Debt factoring is a common method of entities releasing the liquidity of their trade receivables. The accounting issue that needs to be decided is whether the trade receivables have been sold, or whether the income from the finance house for their ‘sale’ should be treated as a short term loan. The main substance issue with this type of transaction is to identify which party bears the risks (i.e. of slow and non-payment by the customer) relating to the asset. If the risk lies with the finance house (Omar), the trade receivables should be removed from the balance sheet (derecognised in accordance with IAS 39). In this case it is clear that Angelino still bears the risk relating to slow and non-payment. The residual payment by Omar depends on how quickly the receivables are collected; the longer it takes, the less the residual payment (this imputes a finance cost). Any balance uncollected by Omar after six months will be refunded by Angelino which reflects the non-payment risk.Thus the correct accounting treatment for this transaction is that the cash received from Omar (80% of the selected receivables) should be treated as a current liability (a short term loan) and the difference between the gross trade receivables and the amount ultimately received from Omar (plus any amounts directly from the credit customers themselves) should be charged to the income statement. The classification of the charge is likely to be a mixture of administrative expenses (for Omar collecting receivables), finance expenses (reflecting the time taken to collect the receivables) and the impairment of trade receivables (bad debts).(ii)This is an example of a sale and leaseback of a property. Such transactions are part of normal commercial activity, often being used as a way to improve cash flow and liquidity. However, if an asset is sold at an amount that is different to its fair value there is likely to be an underlying reason for this. In this case it appears (based on the opinion of the auditor)that Finaid has paid Angelino $2 million more than the building is worth. No (unconnected) company would do this knowingly without there being some form of ‘compensating’ transaction. This sale is ‘linked’ to the five year rental agreement. The question indicates the rent too is not at a fair value, being $500,000 per annum ($1,300,000 –$800,000) above what a commercial rent for a similar building would be.It now becomes clear that the excess purchase consideration of $2 million is an ‘in substance’ loan (rather than sales proceeds – the legal form) which is being repaid through the excess ($500,000 per annum) of the rentals. Although this is a sale and leaseback transaction, as the building is freehold and has an estimated remaining life (20 years) that is much longer than the five year leaseback period, the lease is not a finance lease and the building should be treated as sold and thus derecognised.A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mThe correct treatment for this item is that the sale of the building should be recorded at its fair value of $10 million, thus the profit on disposal would be $2·5 million ($10 million – $7·5 million). The ‘excess’ of $2 million ($12 million – $10 million) should be treated as a loan (non-current liability). The rental payment of $1·3 million should be split into three elements; $800,000 building rental cost, $200,000 finance cost (10% of $2 million) and the remaining $300,000 is a capital repayment of the loan.(iii)The treatment of consignment inventory depends on the substance of the arrangements between the manufacturer andthe dealer (Angelino). The main issue is to determine if and at what point in time the cars are ’sold’. The substance is determined by analysing which parties bear the risks (e.g. slow moving/obsolete inventories, finance costs) and receive the benefits (e.g. use of inventories, potential for higher sales, protection from price increases) associated with the transaction.Supplies from MonzaAngelino has, and has actually exercised, the right to return the cars without penalty (or been required by Monza to transfer them to another dealer), which would indicate that it has not ‘bought’ the cars. There are no finance costs incurred by Angelino, however Angelino would suffer from any price increases that occurred during the three month holding/display period. These factors seem to indicate that the substance of this arrangement is the same as its legal form i.e. Monza should include the cars in its balance sheet as inventory and therefore Angelino will not record a purchase transaction until it becomes obliged to pay for the cars (three months after delivery or until sold to customers if sooner).Supplies from CapriAlthough this arrangement seems similar to the above, there are several important differences. Angelino is bearing the finance costs of 1% per month (calling it a display charge is a distraction). The option to return the cars should be ignored because it is not likely to be exercised due to commercial penalties (payment of transport costs and loss of deposit). Finally the purchase price is fixed at the date of delivery rather than at the end of six months. These factors strongly indicate that Angelino bears the risks and rewards associated with ownership and should recognise the inventory and the associated liability in its financial statements at the date of delivery.A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o m4(a)Cash Flow Statement of Minster for the Year ended 30 September 2006:Cash flows from operating activities $000$000Profit before tax 142Adjustments for:Depreciation of property, plant and equipment 255Amortisation of software (180 – 135)45300––––Investment income (20)Finance costs40––––462Working capital adjustmentsDecrease in trade receivables (380 – 270)110Increase in amounts due from construction contracts (80 – 55)(25)Decrease in inventories (510 – 480)30Decrease in trade payables (555 – 350)(205)(90)––––––––Cash generated from operations372Interest paid (40 – 12 re unwinding of environmental provision)(28)Income taxes paid (w (ii))(54)––––Net cash from operating activities290Cash flows from investing activitiesPurchase of – property, plant and equipment (w (i))(410)– software(180)– investments (150 – (15 + 125))(10)Investment income received (20 – 15 gain on investments)5––––Net cash used in investing activities (595)Cash flows from financing activitiesProceeds from issue of equity shares (w (iii))265Proceeds from issue of 9% loan note 120Dividends paid (500 x 4 x 5 cents)(100)––––Net cash from financing activities285––––Net decrease in cash and cash equivalents(20)Cash and cash equivalents at beginning of period (40 – 35) (5)––––Cash and cash equivalents at end of period(25)––––Note: interest paid may be presented under financing activities and dividends paid may be presented under operating activities.Workings (in $’000)(i)Property, plant and equipment:carrying amount b/f940non-cash environmental provision 150revaluation35depreciation for period (255)carrying amount c/f(1,280) ––––––difference is cash acquisitions (410)––––––(ii)T axation:tax provision b/f (50)deferred tax b/f(25)income statement charge (57)tax provision c/f 60deferred tax c/f 18––––difference is cash paid (54)––––(iii)Equity sharesbalance b/f(300)bonus issue (1 for 4)(75)balance c/f500–––––difference is cash issue125–––––A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mShare premium balance b/f(85)bonus issue (1 for 4)75balance c/f150–––––difference is cash issue140–––––Therefore the total proceeds of cash issue of shares are $265,000 (125 + 140).(b)Report on the financial position of Minster for the year ended 30 September 2006To: From: Date:Minster shows healthy operating cash inflows of $372,000 (prior to finance costs and taxation). This is considered by many commentators as a very important figure as it is often used as the basis for estimating the company’s future maintainable cash flows. Subject to (inevitable) annual expected variations and allowing for any changes in the company’s structure this figure is more likely to be repeated in the future than most other figures in the cash flow statements which are often ‘one-off’cash flows such as raising loans or purchasing non-current assets. The operating cash inflow compares well with the underlying profit before tax $142,000. This is mainly due to depreciation charges of $300,000 being added back to the profit as they are a non-cash expense. The cash inflow generated from operations of $372,000 together with the reduction in net working capital of $90,000 is more than sufficient to cover the company’s taxation payments of $54,000, interest payments of $28,000 and the dividend of $100,000 and leaves an amount to contribute to the funding of the increase in non-current assets. It is important that these short term costs are funded from operating cash flows; it would be of serious concern if, for example, interest or income tax payments were having to be funded by loan capital or the sale of non-current assets.There are a number of points of concern. The dividend of $100,000 gives a dividend cover of less than one (85/100 = 0·85)which means the company has distributed previous year’s profits. This is not a tenable situation in the long-term. The size of the dividend has also contributed to the lower cash balances (see below). There is less investment in both inventory levels and trade receivables. This may be the result of more efficient inventory control and better collection of receivables, but it may also indicate that trading volumes may be falling. Also of note is a large reduction in trade payable balances of $205,000.This too may be indicative of lower trading (i.e. less inventory purchased on credit) or pressure from suppliers to pay earlier.Without more detailed information it is difficult to come to a conclusion in this matter.Investing activities:The cash flow statement shows considerable investment in non-current assets, in particular $410,000 in property, plant and equipment. These acquisitions represent an increase of 44% of the carrying amount of the property, plant and equipment as at the beginning of the year. As there are no disposals, the increase in investment must represent an increase in capacity rather than the replacement of old assets. Assuming that this investment has been made wisely, this should bode well for the future (most analysts would prefer to see increased investment rather than contraction in operating assets). An unusual feature of the required treatment of environmental provisions is that the investment in non-current assets as portrayed by the cash flow statement appears less than if balance sheet figures are used. The balance sheet at 30 September 2006 includes $150,000 of non-current assets (the discounted cost of the environmental provision), which does not appear in the cash flow figures as it is not a cash ‘cost’. A further consequence is that the ‘unwinding’ of the discounting of the provision causes a financing expense in the income statement which is not matched in the cash flow statement as the unwinding is not a cash flow. Many commentators have criticised the required treatment of environmental provisions because they cause financing expenses which are not (immediate) cash costs and no ‘loans’ have been taken out. Viewed in this light, it may be that the information in the cash flow statement is more useful than that in the income statement and balance sheet.Financing activities:The increase in investing activities (before investment income) of $600,000 has been largely funded by an issue of shares at $265,000 and raising a 9% $120,000 loan note. This indicates that the company’s shareholders appear reasonably pleased with the company's past performance (or they would not be very willing to purchase further shares). The interest rate of the loan at 9% seems quite high, and virtually equal to the company’s overall return on capital employed of 9·1%(162/(1,660 + 120)). Provided current profit levels are maintained, it should not reduce overall returns to shareholders. Cash position:The overall effect of the year’s cash flows has worsened the company’s cash position by an increased net cash liability of $20,000. Although the company’s short term borrowings have reduced by $15,000, the cash at bank of $35,000 at the beginning of the year has now gone. In comparison to the cash generation ability of the company and considering its large investment in non-current assets, this $20,000 is a relatively small amount and should be relieved by operating cash inflows in the near future.A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mSummaryThe above analysis shows that Minster has invested substantially in new non-current assets suggesting expansion. T o finance this, the company appears to have no difficulty in attracting further long-term funding. At the same time there are indications of reduced inventories, trade receivables and payables which may suggest the opposite i.e. contraction. It may be that the new investment is a change in the nature of the company’s activities (e.g. mining) which has different working capital characteristics. The company has good operating cash flow generation and the slight deterioration in short term net cash balance should only be temporary. Yours …………………..5(a)(i)IFRS 5 Non-current assets held for sale and discontinued operations defines non-current assets held for sale as those assets (or a group of assets) whose carrying amounts will be recovered principally through a sale transaction rather than through continuing use. A discontinued operation is a component of an entity that has either been disposed of, or is classified as ‘held for sale’ and:(i)represents a separate major line of business or geographical area of operations (ii)is part of a single co-ordinated plan to dispose of such, or (iii)is a subsidiary acquired exclusively for sale.IFRS 5 says that a ‘component of an entity’ must have operations and cash flows that can be clearly distinguished from the rest of the entity and will in all probability have been a cash-generating unit (or group of such units) whilst held for use. This definition also means that a discontinued operation will also fall to be treated as a ‘disposal group’ as defined in IFRS 5. A disposal group is a group of assets (possibly with associated liabilities) that it is intended will be disposed of in a single transaction by sale or otherwise (closure or abandonment). Assets held for disposal (but not those being abandoned) must be presented separately (at the lower of cost or fair value less costs to sell) from other assets and included as current assets (rather than as non-current assets) and any associated liabilities must be separately presented under liabilities. The results of a discontinued operation should be disclosed separately as a single figure (as a minimum)on the face of the income statement with more detailed figures disclosed either also on the face of the income statement or in the notes.The intention of this requirement is to improve the usefulness of the financial statements by improving the predictive value of the (historical) income statement. Clearly the results from discontinued operations should have little impact on future operating results. Thus users can focus on the continuing activities in any assessment of future income and profit.(ii)The timing of the board meeting and consequent actions and notifications is within the accounting period ended 31 October 2006. The notification of staff, suppliers and the press seems to indicate that the sale will be highly probable and the directors are committed to a plan to sell the assets and are actively locating a buyer. From the financial and other information given in the question it appears that the travel agencies’ operations and cash flows can be clearly distinguished from its other operations. The assets of the travel agencies appear to meet the definition of non-current assets held for sale; however the main difficulty is whether their sale and closure also represent a discontinued operation.The main issue is with the wording of ‘a separate major line of business’ in part (i) of the above definition of a discontinued operation. The company is still operating in the holiday business, but only through Internet selling. The selling of holidays through the Internet compared with through high-street travel agencies requires very different assets,staff knowledge and training and has a different cost structure. It could therefore be argued that although the company is still selling holidays the travel agencies do represent a separate line of business. If this is the case, it seems the announced closure of the travel agencies appears to meet the definition of a discontinued operation.。
2023年ACCA考试真题精选
2023年ACCA考试真题精选第一题：财务会计假设您是一家制造业公司的财务经理。
您被要求准备财务报表，并解释公司2019年与2020年间发生的财务变化。
请根据以下数据和信息回答问题。
2019年数据：- 销售收入：500万美元- 销售成本：400万美元- 管理费用：50万美元- 借款利息：10万美元2020年数据：- 销售收入：600万美元- 销售成本：450万美元- 管理费用：55万美元- 借款利息：12万美元问题1：请计算2019年的净利润和净利润率，并与2020年进行比较。
解释净利润和净利润率的变化。
根据上述数据，2019年的净利润可通过以下公式计算：净利润=销售收入-销售成本-管理费用-借款利息净利润=500万美元-400万美元-50万美元-10万美元净利润=40万美元净利润率可通过以下公式计算：净利润率=(净利润/销售收入)×100%净利润率=(40万美元/500万美元)×100%净利润率=8%同样的方式，我们可以计算2020年的净利润和净利润率：净利润=600万美元-450万美元-55万美元-12万美元净利润=83万美元净利润率=(83万美元/600万美元)×100%净利润率=13.83%通过比较2019年和2020年的净利润和净利润率，我们可以得出以下结论：- 净利润从40万美元增加到83万美元。
这表明公司的盈利能力有所提高。
- 净利润率从8%增加到13.83%。
这说明公司在销售收入中的盈利比例增加了。
问题2：请根据净利润和净利润率的变化，分析公司在2019年与2020年间可能采取的经营策略。
根据净利润和净利润率的变化，我们可以推断公司可能采取了以下经营策略：1. 成本控制：销售成本从400万美元减少到450万美元，管理费用从50万美元增加到55万美元。
这表明公司在成本控制方面取得了一定的成效。
2. 销售增长：销售收入从500万美元增加到600万美元。
公司可能采取了一些措施，如市场拓展或产品创新，以增加销售额。
ACCA201012份考试真题(P1)
考试真题（P1）Section A - This ONE question is compulsory and MUST be attempted1 In the 2009 results presentation to analysts,the chief executive of ZPT,a global internet communications company,announced an excellent set of results to the waiting audience.Chief executive Clive Xu announced that, compared to 2008,sales had increased by 50%,profi ts by 100% and total assets by 80%.The dividend was to be doubled from the previous year.He also announced that based on their outstanding performance,the executive directors would be paid large bonuses in line with their contracts.His own bonus as chief executive would be $20 million.When one of the analysts asked if the bonus was excessive,Mr Xu reminded the audience that the share price had risen 45% over the course of the year because of his efforts in skilfully guiding the company.He said that he expected the share price to rise further on the results announcement,which it duly did. Because the results exceeded market expectation,the share price rose another 25% to $52.Three months later,Clive Xu called a press conference to announce a restatement of the 2009 results.This was necessary,he said,because of some 'regrettable accounting errors'.This followed a meeting between ZPT and the legal authorities who were investigating a possible fraud at ZPT.He disclosed that in fact the fi gures for 2009 were increases of 10% for sales,20% for profi ts and 15% for total assets which were all signifi cantly below market expectations.The proposed dividend would now only be a modest 10% more than last year.He said that he expected a market reaction to the restatement but hoped that it would only be a short-term effect.The first questioner from the audience asked why the auditors had not spotted and corrected the fundamental accounting errors and the second questioner asked whether such a disparity between initial and restated results was due to fraud rather than'accounting errors'.When a journalist asked Clive Xu if he intended to pay back the $20 million bonus that had been based on the previous results,Mr Xu said he did not.The share price fell dramatically upon the restatement announcement and,because ZPT was such a large company,it made headlines in the business pages in many countries.Later that month,the company announced that following an internal investigation,there would be further restatements,all dramatically downwards,for the years 2006 and 2007.This caused another mass selling of ZPT shares resulting in a fi nal share value the following day of $1.This represented a loss of shareholder value of $12 billion from the peak share price.Clive Xu resigned and the government regulator for businessordered an investigation into what had happened at ZPT.The shares were suspended by the stock exchange.A month later, having failed to gain protection from its creditors in the courts,ZPT was declared bankrupt. Nothing was paid out to shareholders whilst suppliers received a fraction of the amounts due to them. Some non-current assets were acquired by competitors but all of ZPT‘s 54,000 employees lost their jobs,mostly with little or no termination payment.Because the ZPT employees’ pension fund was not protected from creditors,the value of that was also severely reduced to pay debts which meant that employees with many years of service would have a greatly reduced pension to rely on in old age.ced to pay debts which meant that employees with many years of service would have a greatly reduced pension to rely on in old age.ced to pay debts which meant that employees with many years of service would have a greatly reduced pension to rely on in old age.ced to pay debts which meant that employees with many years of service would have a greatly reduced pension to rely on in old age.The government investigation found that ZPT had been maintaining false accounting records for several years. This was done by developing an overly-complicated company structure that contained a network of international branches and a business model that was diffi cult to understand.Whereas ZPT had begun as a simple telecommunications company,Clive Xu had increased the complexity of the company so that he could 'hide' losses and mis-report profi ts. In the company‘s reporting,he also substantially overestimated the value of future customer supply contracts.The investigation also found a number of signifi cant internal control defi ciencies including no effective management oversight of the external reporting process and a disregard of the relevant accounting standards.In addition to Mr Xu,several other directors were complicit in the activities although Shazia Lo,a senior qualifi ed accountant working for the fi nancial director,had been unhappy about the situation for some time.She had approached the fi nance director with her concerns but having failed to get the answers she felt she needed,had threatened to tell the press that future customer supply contract values had been intentionally and materially overstated（the change in fair value would have had a profi t impact）。
ACCA历年考题之f9_2008_dec_a
Fundamentals Level –Skills Module, Paper F9Financial Management December 2008 Answers 1(a)Rights issue price = 2·5 x 0·8 = $2·00 per shareTheoretical ex rights price = ((2·50 x 4) + (1 x 2·00)/5=$2·40 per share(Alternatively, number of rights shares issued = $5m/$2·00 = 2·5m sharesExisting number of shares = 4 x 2·5m = 10m sharesTheoretical ex rights price per share = ((10m x 2·50) + (2·5m x 2·00))/12·5m = $2·40)(b)Current price/earnings ratio = 250/32·4 = 7·7 timesAverage growth rate of earnings per share = 100 x ((32·4/27·7)0·25– 1) = 4·0%Earnings per share following expansion = 32·4 x 1·04 = 33·7 cents per shareShare price predicted by price/earnings ratio method = 33·7 x 7·7 = $2·60Since the price/earnings ratio of Dartig Co has remained constant in recent years and the expansion is of existing business, it seems reasonable to apply the existing price/earnings ratio to the revised earnings per share value.(c)The proposed business expansion will be an acceptable use of the rights issue funds if it increases the wealth of theshareholders. The share price predicted by the price/earnings ratio method is $2·60. This is greater than the current share price of $2·50, but this is not a valid comparison, since it ignores the effect of the rights issue on the share price. The rights issue has a neutral effect on shareholder wealth, but the cum rights price is changed by the increase in the number of shares and by the transformation of cash wealth into security wealth from a shareholder point of view. The correct comparison is with the theoretical ex rights price, which was found earlier to be $2·40. Dartig Co shareholders will experience a capital gain due to the business expansion of $2·60 – 2·40 = 20 cents per share. However, these share prices are one year apart and hence not directly comparable.If the dividend yield remains at 6% per year (100 x 15·0/250), the dividend per share for 2008 will be 15·6p (other estimates of the 2008 dividend per share are possible). Adding this to the capital gain of 20p gives a total shareholder return of 35·6p or 14·24% (100 x 35·6/240). This is greater than the cost of equity of 10% and so shareholder wealth has increased.(d)In order to use the dividend growth model, the expected future dividend growth rate is needed. Here, it may be assumed thatthe historical trend of dividend per share payments will continue into the future. The geometric average historical dividend growth rate = 100 x ((15·0/12·8)0·25– 1) = 4% per year.(Alternatively, the arithmetical average of annual dividend growth rates could be used. This will be (5·5 + 0·0 + 7·4 + 3·5)/4 = 4·1%. Another possibility is to use the Gordon growth model. The average payout ratio over the last 4 years has been 47%, so the average retention ratio has been 53%. Assuming that the cost of equity represents an acceptable return on shareholders’ funds, the dividend growth rate is approximately 53% x 10% = 5·3% per year.)Using the formula for the dividend growth model from the formula sheet, the ex dividend share price = (15·0 x 1·04)/(0·1– 0·04) = $2·60This is 10 cents per share more than the current share price of Dartig Co. There are several reasons why there may be a difference between the two share prices. The future dividend growth rate for example, may differ from the average historical dividend growth rate, and the current share price may factor in a more reasonable estimate of the future dividend growth rate than the 4% used here. The cost of equity of Dartig Co may not be exactly equal to 10%. More generally, there may be a degree of inefficiency in the capital market on which the shares of Dartig Co are traded.(e)The primary financial management objective of a company is usually taken to be the maximisation of shareholder wealth. Inpractice, the managers of a company acting as agents for the principals (the shareholders) may act in ways which do not lead to shareholder wealth maximisation. The failure of managers to maximise shareholder wealth is referred to as the agency problem.Shareholder wealth increases through payment of dividends and through appreciation of share prices. Since share prices reflect the value placed by buyers on the right to receive future dividends, analysis of changes in shareholder wealth focuses on changes in share prices. The objective of maximising share prices is commonly used as a substitute objective for that of maximising shareholder wealth.The agency problem arises because the objectives of managers differ from those of shareholders: because there is a divorce or separation of ownership from control in modern companies; and because there is an asymmetry of information between shareholders and managers which prevents shareholders being aware of most managerial decisions.One way to encourage managers to act in ways that increase shareholder wealth is to offer them share options. These are rights to buy shares on a future date at a price which is fixed when the share options are issued. Share options will encourage managers to make decisions that are likely to lead to share price increases (such as investing in projects with positive net present values), since this will increase the rewards they receive from share options. The higher the share price in the market when the share options are exercised, the greater will be the capital gain that could be made by managers owning the options.Share options therefore go some way towards reducing the differences between the objectives of shareholders and managers.However, it is possible that managers may be rewarded for poor performance if share prices in general are increasing. It is also possible that managers may not be rewarded for good performance if share prices in general are falling. It is difficult to decide on a share option exercise price and a share option exercise date that will encourage managers to focus on increasing shareholder wealth while still remaining challenging, rather than being easily achievable.2(a)Financial analysisFixed interest debt proportion (2006) = 100 x 2,425/ 2,425 + 1,600) = 60%Fixed interest debt proportion (2007) = 100 x 2,425/(2,425 + 3,225) = 43%Fixed interest payments = 2,425 x 0·08 = $194,000Variable interest payments (2006) = 274 – 194 = $80,000 or 29%Variable interest payments (2007) = 355 – 194 = $161,000 or 45%(Alternatively, considering the overdraft amounts and the average variable overdraft interest rate of 5% per year:Variable interest payments (2006) = 1·6m x 0·05 = $80,000 or 29%Variable interest payments (2007) = 3·225m x 0·05 = $161,250 or 45%)Interest coverage ratio (2006) = 2,939/ 274 = 10·7 timesInterest coverage ratio (2007) = 2,992/ 355 = 8·4 timesDebt/equity ratio (2006) = 100 x 2,425/ 11,325 = 21%Debt/equity ratio (2007) = 100 x 2,425/ 12,432 = 20%T otal debt/equity ratio (2006) = 100 x (2,425 +1,600)/ 11,325 = 35%T otal debt/equity ratio (2007) = 100 x (2,425 +3,225)/ 12,432 = 45%DiscussionGorwa Co has both fixed interest debt and variable interest rate debt amongst its sources of finance. The fixed interest bonds have ten years to go before they need to be redeemed and they therefore offer Gorwa Co long term protection against an increase in interest rates.In 2006, 60% of the company’s debt was fixed interest in nature, but in 2007 this had fallen to 43%. The floating-rate proportion of the company’s debt therefore increased from 40% in 2006 to 57% in 2007. The interest coverage ratio fell from 10·7 times in 2006 to 8·4 times in 2007, a decrease which will be a cause for concern to the company if it were to continue. The debt/equity ratio (including the overdraft due to its size) increased over the same period from 35% to 45% (if the overdraft is excluded, the debt/equity ratio declines slightly from 21% to 20%). From the perspective of an increase in interest rates, the financial risk of Gorwa Co has increased and may continue to increase if the company does not take action to halt the growth of its variable interest rate overdraft. The proportion of interest payments linked to floating rate debt has increased from 29% in 2006 to 45% in 2007. An increase in interest rates will further reduce profit before taxation, which is lower in 2007 than in 2006, despite a 40% increase in turnover.One way to hedge against an increase in interest rates is to exchange some or all of the variable-rate overdraft into long-term fixed-rate debt. There is likely to be an increase in interest payments because long-term debt is usually more expensive than short-term debt. Gorwa would also be unable to benefit from falling interest rates if most of its debt paid fixed rather than floating rate interest.Interest rate options and interest rate futures may be of use in the short term, depending on the company’s plans to deal with its increasing overdraft.For the longer term, Gorwa Co could consider raising a variable-rate bank loan, linked to a variable rate-fixed interest rate swap.(b)Financial analysis20072006Inventory days(365 x 2,400)/23,78137 days(365 x 4,600)/34,40849 daysReceivables days(365 x 2,200)/26,72030 days(365 x 4,600)/37,40045 daysPayables days(365 x 2,000)/23,78131 days(365 x 4,750)/34,40851 daysCurrent ratio4,600/3,6001·3 times9,200/7,9751·15 timesQuick ratio2,200/3,6000·61 times4,600/7,9750·58 timesSales/net working capital26,720/1,00026·7 times37,400/1,22530·5 timesT urnover increase37,400/26,72040%Non-current assets increase13,632/12,7507%Inventory increase4,600/2,40092%Receivables increase4,600/2,200109%Payables increase4,750/2,000138%Overdraft increase3,225/1,600102%DiscussionOvertrading or undercapitalisation arises when a company has too small a capital base to support its level of business activity.Difficulties with liquidity may arise as an overtrading company may have insufficient capital to meet its liabilities as they fall due. Overtrading is often associated with a rapid increase in turnover and Gorwa Co has experienced a 40% increase in turnover over the last year. Investment in working capital has not matched the increase in sales, however, since the sales/net working capital ratio has increased from 26·7 times to 30·5 times.Overtrading could be indicated by a deterioration in inventory days. Here, inventory days have increased from 37 days to49 days, while inventory has increased by 92% compared to the 40% increase in turnover. It is possible that inventory hasbeen stockpiled in anticipation of a further increase in turnover, leading to an increase in operating costs.Overtrading could also be indicated by deterioration in receivables days. In this case, receivables have increased by 109% compared to the 40% increase in turnover. The increase in turnover may have been fuelled in part by a relaxation of credit terms.As the liquidity problem associated with overtrading deepens, the overtrading company increases its reliance on short-term sources of finance, including overdraft, trade payables and leasing. The overdraft of Gorwa Co has more than doubled in size to $3·225 million, while trade payables have increased by $2·74 million or 137%. Both increases are much greater than the 40% increase in turnover. There is evidence here of an increased reliance on short-term finance sources.Overtrading can also be indicated by decreases in the current ratio and the quick ratio. The current ratio of Gorwa Co has fallen from 1·3 times to 1·15 times, while its quick ratio has fallen from 0·61 times to 0·58 times.There are clear indications that Gorwa Co is experiencing the kinds of symptoms usually associated with overtrading. A more complete and meaningful analysis could be undertaken if appropriate benchmarks were available, such as key ratios from comparable companies in the same industry sector, or additional financial information from prior years so as to establish trends in key ratios.(c)Current receivables = $4,600,000Receivables under factor = 37,400,000 x 30/365 = $3,074,000Reduction in receivables = 4,600 – 3,074 = $1,526,000Reduction in finance cost = 1,526,000 x 0·05 = $76,300 per yearAdministration cost savings = $100,000 per yearBad debt savings = $350,000 per yearFactor’s annual fee = 37,400,000 x 0·03 = $1,122,000 per yearExtra interest cost on advance = 3,074,000 x 80% x (7% –5%) = $49,184 per yearNet cost of factoring = 76,300 + 100,000 + 350,000 – 1,122,000 – 49,184 = $644,884The factor’s offer cannot be recommended, since the evaluation shows no financial benefit arising.3(a)Calculation of weighted average cost of capitalCost of equity = 4·5 + (1·2 x 5) = 10·5%The company’s bonds are trading at par and therefore the before-tax cost of debt is the same as the interest rate on the bonds, which is 7%.After-tax cost of debt = 7 x (1 – 0·25) = 5·25%Market value of equity = 5m x 3·81 = $19·05 millionMarket value of debt is equal to its par value of $2 millionSum of market values of equity and debt = 19·05 + 2 = $21·05 millionWACC = (10·5 x 19·05/21·05) + (5·25 x 2/21·05) = 10·0%(b)Cash flow forecastYear0123456$000$000$000$000$000$000$000 Cash inflows700·4721·4743·1765·3788·3T ax on cash inflows175·1180·4185·8191·4197·1–––––––––––––––––––––––––––––––––––700·4546·3562·7579·6596·9(197·1) CA tax benefits125·0125·0125·0125·0125·0–––––––––––––––––––––––––––––––––––After-tax cash flows700·4671·3687·7704·6721·9(72·1)Initial investment(2,500)Working capital(240)(7·2)(7·4)(7·6)(7·9)270·1––––––––––––––––––––––––––––––––––––––––––Net cash flows(2,740)693·2663·9680·1696·7992·0(72·1)Discount factors1·0000·9090·8260·7510·6830·6210·564––––––––––––––––––––––––––––––––––––––––––Present values(2,740)630·1548·4510·8475·9616·0(40·7)––––––––––––––––––––––––––––––––––––––––––NPV = $500The investment is financially acceptable, since the net present value is positive. The investment might become financially unacceptable, however, if the assumptions underlying the forecast financial data were reconsidered. For example, the sales forecast appears to assume constant annual demand, which is unlikely in reality.WorkingsCapital allowance tax benefitsAnnual capital allowance (straight-line basis) = $2·5m/5 = $500,000Annual tax benefit = $500,000 x 0·25 = $125,000 per yearWorking capital investmentYear012345Working capital ($000)240247·2254·6262·2270·1Incremental investment ($000)(7·2)(7·4)(7·6)(7·9)270·1(c)The capital asset pricing model (CAPM) can be used to calculate a project-specific discount rate in circumstances where thebusiness risk of an investment project is different from the business risk of the existing operations of the investing company.In these circumstances, it is not appropriate to use the weighted average cost of capital as the discount rate in investment appraisal.The first step in using the CAPM to calculate a project-specific discount rate is to find a proxy company (or companies) that undertake operations whose business risk is similar to that of the proposed investment. The equity beta of the proxy company will represent both the business risk and the financial risk of the proxy company. The effect of the financial risk of the proxy company must be removed to give a proxy beta representing the business risk alone of the proposed investment. This beta is called an asset beta and the calculation that removes the effect of the financial risk of the proxy company is called ‘ungearing’.The asset beta representing the business risk of a proposed investment must be adjusted to reflect the financial risk of the investing company, a process called ‘regearing’. This process produces an equity beta that can be placed in the CAPM in order to calculate a required rate of return (a cost of equity). This can be used as the project-specific discount rate for the proposed investment if it is financed entirely by equity. If debt finance forms part of the financing for the proposed investment, a project-specific weighted average cost of capital can be calculated.The limitations of using the CAPM in investment appraisal are both practical and theoretical in nature. From a practical point of view, there are difficulties associated with finding the information needed. This applies not only to the equity risk premium and the risk-free rate of return, but also to locating appropriate proxy companies with business operations similar to the proposed investment project. Most companies have a range of business operations they undertake and so their equity betas do not reflect only the desired level and type of business risk.From a theoretical point of view, the assumptions underlying the CAPM can be criticised as unrealistic in the real world. For example, the CAPM assumes a perfect capital market, when in reality capital markets are only semi-strong form efficient at best. The CAPM assumes that all investors have diversified portfolios, so that rewards are only required for accepting systematic risk, when in fact this may not be true. There is no practical replacement for the CAPM at the present time, however.4(a)Pecking order theory suggests that companies have a preferred order in which they seek to raise finance, beginning with retained earnings. The advantages of using retained earnings are that issue costs are avoided by using them, the decision to use them can be made without reference to a third party, and using them does not bring additional obligations to consider the needs of finance providers.Once available retained earnings have been allocated to appropriate uses within a company, its next preference will be for debt. One reason for choosing to finance a new investment by an issue of debt finance, therefore, is that insufficient retained earnings are available and the investing company prefers issuing debt finance to issuing equity finance.Debt finance may also be preferred when a company has not yet reached its optimal capital structure and it is mainly financed by equity, which is expensive compared to debt. Issuing debt here will lead to a reduction in the WACC and hence an increase in the market value of the company. One reason why debt is cheaper than equity is that debt is higher in the creditor hierarchy than equity, since ordinary shareholders are paid out last in the event of liquidation. Debt is even cheaper if it is secured on assets of the company. The cost of debt is reduced even further by the tax efficiency of debt, since interest payments are an allowable deduction in arriving at taxable profit.Debt finance may be preferred where the maturity of the debt can be matched to the expected life of the investment project.Equity finance is permanent finance and so may be preferred for investment projects with long lives.(b)Annual interest paid per foreign bond = 500 x 0·061 = 30·5 pesosRedemption value of each foreign bond = 500 pesosCost of debt of peso-denominated bonds = 7% per yearMarket value of each foreign bond = (30·5 x 4·100) + (500 x 0·713) = 481·55 pesosCurrent total market value of foreign bonds = 16m x (481·55/500) = 15,409,600 pesos(c)(i)Interest payment in one year’s time = 16m x 0·061 = 976,000 pesosA money market hedge would involve placing on deposit an amount of pesos that, with added interest, would besufficient to pay the peso-denominated interest in one year. Because the interest on the peso-denominated deposit is guaranteed, Boluje Co would be protected against any unexpected or adverse exchange rate movements prior to the interest payment being made.Peso deposit required = 976,000/ 1·05 = 929,524 pesosDollar equivalent at spot = 929,524/ 6 = $154,921Dollar cost in one year’s time = 154,921 x 1·04 = $161,118(ii)Cost of forward market hedge = 976,000/6·07 = $160,790The forward market hedge is slightly cheaper(d)Boluje receives peso income from its export sales and makes annual peso-denominated interest payments to bond-holders.It could consider opening a peso account in the overseas country and using this as a natural hedge against peso exchange rate risk.Boluje Co could consider using lead payments to settle foreign currency liabilities. This would not be beneficial as far as peso-denominated liabilities are concerned, as the peso is depreciating against the dollar. It is inadvisable to lag payments to foreign suppliers, since this would breach sales agreements and lead to loss of goodwill.Foreign currency derivatives available to Boluje Co could include currency futures, currency options and currency swaps.Currency futures are standardised contracts for the purchase or sale of a specified quantity of a foreign currency. These contracts are settled on a quarterly cycle, but a futures position can be closed out any time by undertaking the opposite transaction to the one that opened the futures position. Currency futures provide a hedge that theoretically eliminates both upside and downside risk by effectively locking the holder into a given exchange rate, since any gains in the currency futures market are offset by exchange rate losses in the cash market, and vice versa. In practice however, movements in the two markets are not perfectly correlated and basis risk exists if maturities are not perfectly matched. Imperfect hedges can also arise if the standardised size of currency futures does not match the exchange rate exposure of the hedging company. Initial margin must be provided when a currency futures position is opened and variation margin may also be subsequently required.Boluje Co could use currency futures to hedge both its regular foreign currency receipts and its annual interest payment.Currency options give holders the right, but not the obligation, to buy or sell foreign currency. Over-the-counter (OTC) currency options are tailored to individual client needs, while exchange-traded currency options are standardised in the same way as currency futures in terms of exchange rate, amount of currency, exercise date and settlement cycle. An advantage of currency options over currency futures is that currency options do not need to be exercised if it is disadvantageous for the holder to do so. Holders of currency options can take advantage of favourable exchange rate movements in the cash market and allow their options to lapse. The initial fee paid for the options will still have been incurred, however.Currency swaps are appropriate for hedging exchange rate risk over a longer period of time than currency futures or currency options. A currency swap is an interest rate swap where the debt positions of the counterparties and the associated interest payments are in different currencies. A currency swap begins with an exchange of principal, although this may be a notional exchange rather than a physical exchange. During the life of the swap agreement, the counterparties undertake to service each others’ foreign currency interest payments. At the end of the swap, the initial exchange of principal is reversed.Fundamentals Level –Skills Module, Paper F9Financial Management December 2008 Marking SchemeMarks Marks1(a)Rights issue price1Theoretical ex rights price per share2––––3(b)Existing price/earnings ratio1Revised earnings per share1Share price using price/earnings method1––––3(c)Discussion of share price comparisons3–4Calculation of effect on shareholder wealth and comment1–2––––Maximum5(d)Average dividend growth rate2Ex div market price per share2Discussion2––––6(e)Discussion of agency problem4–5Discussion of share option schemes4–5––––Maximum8–––252(a)Discussion of effects of interest rate increase3–4Relevant financial analysis1–2Interest rate hedging2–3––––Maximum7(b)Financial analysis5–6Discussion of overtrading4–5Conclusion as to overtrading1––––Maximum10(c)Reduction in financing cost2Admininstration cost and bad debt savings1Factor’s fee1Interest on advance2Net cost of factoring1Conclusion1––––8–––25Marks Marks 3(a)Cost of equity2 Cost of debt 1Market value of equity1Market value of debt1WACC calculation1––––6(b)Inflated cash flows1T ax on cash flows1Capital allowance tax benefits1Working capital – initial investment1Working capital – incremental investment1Working capital – recovery1Net present value calculation1Comment1––––8(c)Explanation of use of CAPM5–6Discussion of limitations6–7––––Maximum11–––25 4(a)Relevant discussion7(b)Market value of each foreign bond3T otal market value of foreign bonds1––––4(c)(i)Explanation of money market hedge2Illustration of money market hedge2––––4 (ii)Comparison with forward market hedge2(d)Discussion of natural hedge1–2Description of other hedging methods6–7––––Maximum8–––25。
ACCA_F7_2001年12月考试【试题答案】
A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mA C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mA C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mPart 2 Examination – Paper 2.5(INT)Financial Reporting (International Stream)Answers1(a)Consolidated Balance Sheet of Horsefield as at 31 March 2002:Non-current assets $000$000IntangibleProperty, plant and equipment (8,050 + 3,600)11,650Goodwill (1,170 – 468 (w (i)))702Licence (180 – 60) (w (iii))120________12,472InvestmentsAssociated company (w (v))705Others (4,000 + 910 – 3,240 (Sandfly) – 630 (Anthill) + 120 (fair value)) 1,1601,865______________14,337Current assetsInventory (830 + 340)1,170Accounts receivable (520 + 290 – 40 cash in transit)770Bank (240 + 40 cash in transit)2802,220______________T otal assets16,557________Equity and liabilitiesCapital and reserves:Ordinary shares of $1 each 5,000Accumulated profits (w (iii))8,203________13,203Minority interest (w (ii))364Non-current liabilities10% Loan notes (500 + 240)740Current liabilitiesAccounts payable (420 + 960)1,380Dividend payable to minority (w (iii))10T axation (220 + 250)470Proposed dividend – Horsefield 200Overdraft1902,250______________T otal equity and liabilities16,557________Workings (Note: all figures in $000)(i)Cost of controlInvestments (1,200× 90%× $3)3,240Ordinary shares (90%× 1,200)1,080Pre acq profit (w (iii))720Fair value adjustments (w (iv))270Goodwill1,170____________3,2403,240____________The goodwill relating to Sandfly of $1,170,000 is depreciated over a five-year life at $234,000 per annum for two years= $468,000.(ii)Minority interest Balance c/f364Ordinary shares (10%× 1,200)120Accumulated profits (w (iii))214Fair value adjustments (w (iv))30____________364364____________(iii)Accumulated profitsHorsefield Sandfly HorsefieldSandfly Unrealised profit in inventory (see below)3B/f 7,3002,200Depreciation – licence (180/6× 2 years (w (iv)))60Post acq profit – Sandfly 1,206Minority interest (10%× (2,200 – 60))214Proposed dividend (see below)90Pre-acq profit (90%× 800)720Post acq profit – Anthill (w (v))90Post acq profit (90%× (2,200 – 800 – 60)1,206Goodwill amortisation – Sandfly (w (i))468– Anthill (w (v))12Balance c/f 8,203________________________8,6862,2008,6862,200________________________A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mThe unrealised profit in the inventory sold to the associate is $65,000× 30/130× 2/3× 30% = $3,000.The proposed dividend of Sandfly must be allocated 10% ($10,000) to the minority, and shown as a creditor as it will be paid in the near future, and 90% ($90,000) credited to group reserves.(iv)Fair value adjustments Group share 90%270Investment property 120Minority 10%30Licence 180__________300300__________(v)Associated company – calculation of goodwillInvestment at cost (600× 30%× $3·50)630Net assets on acquisition (30%× 1,700 see below)(510)____Goodwill 120____This is depreciated for six months of a five-year life = $12,000The net assets at the date of acquisition will be equal to the shareholders’ funds at that date:Share capital 600Accumulated profit b/f 800Half of the profits for the year ($600,000× 1/2) 300______1,700______Associated company – carrying value in consolidated balance sheet Investment at cost 630Post acquisition profit (30%× (600× 1/2))90____720Amortisation of goodwill above (12)Unrealised profit in inventory(3)____705____(b)In order for an investment to be classified as an investment in associated company the investor must have ‘significantinfluence’ over the investee. Significant influence is presumed to exist where there is a holding of 20% or more of the voting power unless the investor can clearly demonstrate that this is not the case. Conversely a holding of less than 20% is presumed not to be an associate, unless it can be clearly demonstrated that the investor can exercise significant influence. The voting rights can be held directly or through subsidiaries. IAS 28 ‘Accounting for Investments in Associates’ excludes subsidiaries and joint ventures from the definition of an associate. Presumably this is for clarity as the definition of a subsidiary would also meet the definition of an associate, and whilst joint ventures are in many ways similar to associates, they are covered by a different International Standard and may require a different accounting treatment. Somewhat controversially IAS 28 says that a majority holding by one investor does not preclude another investor having significant influence. An investing company owning a majority holding in another company normally has control over the investee and would thus class it as a subsidiary.In normal circumstances it is difficult to see how a company could be controlled by one entity and be significantly influenced by a different entity unless ‘control’ was passive. The 20% test is not definitive and the following other evidence should be considered.Does the investing company:have representation on the Board of the investee;participate in the policy making processes (operational and financial);have material transactions with investee;interchange managerial personnel with the investee; or provide technical expertise to the investee?A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o m2(a)Balance sheet of Deltoid as at 31 March 2002Non-current assets$000$000Property, plant and equipment (12,110 + 600 – 20 (w (i)) – 120 (w (iii)))12,570Current assets Inventory3,850T rade accounts receivable 2,450Bank 2506,550_____________T otal assets19,120_______Equity and liabilities:Capital and reserves:Ordinary shares of 50p each (2,000 + 500 bonus issue)2,500Conversion rights (equity element of convertible loan note (w (iv)))186_______2,686ReservesShare premium1,000Revaluation reserve (3,000 – 500 bonus issue)2,500Accumulated profits (note (i))3,4096,909_____________9,595Non-current liabilitiesEnvironmental provision – revised amount 2,150Finance lease (w (iii))3716% Convertible loan note (2,814 + 101 accrued interest (w (iv)))2,915Current liabilitiesT rade accounts payable 2,820Accrued interest (w (iii))24Finance lease (w (iii))105T axation1,1404,089_____________19,120_______Note: The directors have proposed a final dividend of $400,000 (w (v)).Workings:(i)Recalculation of accumulated profits:Retained profit for year to 31 March 2002 from question 2,000Additional depreciation of: plant (w (ii))(20)leased plant (w (iii))(120)(140)_____Add back: lease rentals (w (iii))150Addition finance costs:for loan notes (281 – 180 (w (iv)))(101)for leased plant (w (iii))(50)(151)_____Additional environmental provision (245 – 180)(65)______Restated retained profit for year1,794Retained profit b/f at 1 April 2001 from question2,500Prior year effect of error in environmental provision (2,150 – 1,200 – 65)(885)______Accumulated profit in balance sheet 3,409______(ii)Change of depreciation policy:current policy group policyYear to 31 March 2001 ((250 – 50)× 2,000/8,000)50(250× 20%)50Year to 31 March 2020 ((250 – 50)× 800/8,000))20(200× 20%)40The net effect of this is an increase in the depreciation charge of $20,000 for the current year only.A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o m(iii)Leased plant – this has been treated as an operating lease whereas it should be treated as a finance lease:$000Fair value/cost6001st payment 1 April 2001(75)_____525interest to 30 September 2001 (10% for 6 months)26_____5512nd payment 1 October 2001(75)_____capital outstanding at 31 March 2002476accrued interest to 31 March 2002 (10% for 6 months)24_____total outstanding at 31 March 20025003rd payment due 1 April 2002(75)_____425interest to 30 September 2002 (10% for 6 months)21_____4464th payment 1 October 2002(75)_____capital outstanding at 31 March 2003371_____Summarising:–the lease payments of $150,000 should be eliminated from expenses and replaced with a depreciation charge of$120,000 ($600,000× 20% pa)–interest of $50,000 ($26,000 paid, $24,000 accrued) should be included as a finance cost –current liabilities are $24,000 for accrued interest and $105,000 ($476,000 – $371,000) for the capital elementof the finance lease –non-current liabilities $371,000 for the capital element of the finance lease.(iv)The convertible loan note is a compound financial instrument and IAS 32 ‘Financial Instruments: Disclosure andPresentation’ requires that the debt element and the equity element of such instruments are accounted for separately.The amount of the issue proceeds attributable to the conversion rights is classed as equity. This amount is normally calculated as the ‘residue’ after the value of the debt has been calculated:cash flows factor at 10%present value $000year 1 interest 1800·91164year 2 interest 1800·83149year 3 interest 1800·75135year 4 interest, redemption premium and capital 3,4800·682,366______total value of debt component 2,814proceeds of the issue3,000______equity component (residual amount)186______The interest cost in the income statement should be increased from $180 to $281 (10% of 2,814) by accruing $101,and this accrual should be added to the carrying value of the debt.(v)Proposed dividend:At the current value of $2 per share the market capitalisation of the ordinary shares is $10 million (2·5× 2× $2), a 4% yield on this would be $400,000.(b)Basic earnings per share:Profit attributable to ordinary shareholders (w (i))$1,794,000Number of shares ranking for dividend (2·5 million × 2) 5 million Earnings per share 35·9 cents Diluted earnings per share:The potential dilution of the convertible loan note must be assessed. On an assumed conversion to ordinary shares there would be an increase in shares of 1·5 million (3 million × 50/100). The effect on earnings is that there will also be an increase based on the after tax finance costs saved. Although the finance costs are $281,000, only the actual interest paid of $180,000 is available for tax relief, thus the after tax increase in earnings will be $281,000 – ($180,000× 25%) =$236,000. The diluted earnings per share is:Earnings (1,794 basic earnings + 236 above)$2,030,000Number of shares (5 million + 1·5 million)6·5 million Diluted earnings per share 31·2 centsA C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o m3(a)(i)An impairment loss arises where the carrying value of an asset, or group of assets, is higher than their recoverable amounts. In effect the Standard requires that assets should not appear on a balance sheet at a value which is higher than they are ‘worth’. The recoverable amount of an asset is defined as the higher of its net realisable value (i.e. the amount at which it can be sold for net of direct selling expenses) or its value in use (i.e. its estimated future net cash flows discounted to a present value). IAS 36 ‘Impairment of Assets’ recognises that many assets do not produce independent cash flows and therefore the value in use may have to be calculated for a group of assets – a cash-generating unit.The Standard recognises that it would be too onerous for companies to have to test for impaired assets every year and therefore only requires impairment reviews when there is some indication that an impairment has occurred. The exception to this general principle is where goodwill or other intangible assets are being depreciated over a period of more than 20 years, in which case an impairment review is required at least annually. This also applies where any tangible non-current asset, other than land, has a remaining life of more than 50 years.(ii)Impairments generally arise where there has been an event or change in circumstances. It may be that something has happened to the assets themselves (e.g. physical damage) or there has been a change in the economic environment relating to the assets (e.g. new regulations may have come into force).The Standard gives several examples of indicators of impairment, which may be available from internal or external sources:(i)poor operating results. This could be a current operating loss or a low profit. One year’s losses in itself does notnecessarily mean there has been an impairment, but if this is coupled with previous losses or expected future losses then this is an indication of impairment;(ii) a significant decline in an asset’s market value (in excess of normal depreciation though use or the passage of time)or evidence of obsolescence (through market changes or technology) or physical damage;(iii)evidence of a reduction in the useful economic life or estimated residual value of assets;(iv)adverse changes in the market or economy such as the entrance of a major competitor, new statutory or regulatoryrules or any indicator of value that has been used to value an asset (e.g. on acquisition a brand may have been valued on a ‘multiple of sale revenues’. If subsequent sales were below expectations this may indicate an impairment.);(v) a commitment to a significant reorganisation or restructuring of the business;(vi)loss of key employees or major customers;(vii)increases in long-term interest rates (this could materially impact on value in use calculations thus affecting therecoverable amounts of assets);(viii)where the carrying amount of an enterprise’s net assets is more than its market capitalisation.(b)(i)On the acquisition of a subsidiary, the purchase consideration must be allocated to the fair value of its net assets with the residue being classed as goodwill (or negative goodwill if the assets have a greater fair value than the purchase consideration). IAS 22 ‘Business Combinations’ recognises that it is not always possible to accurately determine the value of some assets at the date of acquisition and therefore allows an ‘investigation period’ up to the end of the first full reporting period following the period of acquisition. As the revision to the value of Halyard’s assets was due to more detailed information becoming available, the fall in its asset values should be treated as an adjustment to provisional valuations made at the time of acquisition. In effect the net assets and goodwill should be restated to $7 million and $5million respectively; the fall of $1 million is not an impairment loss and should not be charged to the income statement.This revision will have the effect of increasing the amortisation of goodwill from $800,000 to $1 million per annum (based on a five-year life). The above assumes that the recoverable value of the company as a whole is greater than $12 million.The fall in value of Mainstay’s assets is the result of events that occurred after the acquisition (i.e. physical damage to the plant) and this does constitute an impairment loss. The plant and machinery should be written down to its recoverable amount and the loss charged to the income statement. On the assumption that the recoverable value of the company as a whole has not fallen, goodwill will not be affected.(ii)On the basis of the original estimates, Shiplake’s earth-moving plant was not impaired, the value in use of $500,000being greater than its carrying value. However due to the ‘dramatic’ increase in interest rates causing Shiplake’s cost of capital to increase, the value in use of the plant will have to be recalculated. As the discount rate has risen this will cause the value in use to fall. There is insufficient information to be able to quantify this fall. If the new discounted value is above the carrying value $400,000 there is still no impairment. If it is between $245,000 and $400,000, this will be the recoverable amount of the plant and it should be written down to this value. As the plant can be sold for $250,000 less selling costs of $5,000, $245,000 is the least amount that the plant should be written down to even if its revised value in use is below this figure.(iii)The treatment of the research and development costs in the year to 31 March 2001 was correct due to the element ofuncertainty at the date. The development costs of $75,000 written off in that same period should not be capitalised at a later date even if the uncertainties leading to its original write off are favourably resolved. The treatment of the development costs in the year to 31 March 2002 is incorrect. The directors’ decision to continue the development is logical as (at the time of the decision) the future costs are estimated at only $10,000 and the future revenues are expected to be $150,000. It is also true that the project is now expected to lead to an overall deficit of $135,000(120 + 75 + 80 + 10 – 150 (in $000)). However, at 31 March 2002 the unexpensed development costs of $80,000are expected to be recovered. Provided the criteria in IAS 38 ‘Intangible Assets’ are met these costs of $80,000 shouldA C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mbe recognised as an asset in the balance sheet and ‘matched’ to the future earnings of the new product. Thus the directors’ logic of writing off the $80,000 development cost at 31 March 2002 because of an expected overall loss is flawed. The directors do not have the choice to write off the development expenditure.(iv)An impairment loss relating to an income generating unit should be allocated on the following basis:first to any obviously impaired assets (none in this example);then to goodwill;then to the remaining asset on a pro-rata basis;but no asset should be written down to less than its net realisable value. Applying this to the impairment loss of $130 million ($370m – $240m):Cost Impairment Restated value $000$000$000Goodwill 80,000(80,000)nil Franchise costs 50,000(20,000)30,000 Restored vehicles 90,000nil 90,000Plant 100,000(20,000)80,000Other net assets 50,000(10,000)40,000_________________________370,000(130,000)240,000_________________________Note: the franchise cost cannot be written down to less than its realisable value, the restored vehicles have a realisable value higher than their cost and should not be written down at all, the remaining impairment loss (after the goodwill and franchise write downs) of $30 million is apportioned pro-rata to the plant and the other net assets.4(a)A company that is a wholly owned subsidiary is a related party of its parent company. This means that the financial statements may have been affected by related party transactions. Such transactions may or may not be at ‘arm’s length’ i.e.on normal commercial terms. Even where related party transactions are at arm’s length, it is still important to realise that they are related party transactions. This is because it is quite possible that they would not have occurred but for the relationship.For example a parent company may purchase all of its motor vehicle fleet requirements from one of its subsidiaries on normal commercial terms. Whilst this may appear perfectly proper, it may mean that, but for the custom of its parent, the subsidiary’s sales and profits would have been much less. The types of transaction that may occur between related parties are:purchases and sales, possibly at favourable prices or advantageous settlement terms;provision of finance, again possibly at artificially low (favourable) rates of interest;equipment or other property may be provided under favourable terms;favourable agency arrangements;provision of services, such as sharing technical knowledge from research and development activities or allowing patented goods to be produced under licence; and guarantees for loans or overdrafts.All of the above would mean that there is hardly any area of financial reporting that could not be influenced by the presence of related party transactions with the possibility that this may cause severe distortion of the financial statements.Although there is a requirement to disclose related party relationships and transactions there are exemptions available to wholly owned subsidiaries.Apart from related party issues, a common error when dealing with individual subsidiaries is to assume that the liabilities of an individual subsidiary may be ‘covered’ by assets owned by other members of the group, or that the parent company will guarantee a subsidiary’s liabilities. This is not usually the case.(b)Ms A B Conrad Chief ExecutiveReport on the Financial Position of BreadlineIntroduction:The following report is based on the available financial statements of Breadline for the year to 31 December 2001, which include comparative figures for the year to 2000. The comments have been based on taking the financial statements at face value. T owards the end of the report under ‘causes of concern’ I have expressed matters that could seriously affect the position of Breadline as portrayed in its financial statements.Profitability:Breadline’s overall profitability has shown a creditable improvement from a ROCE of 41% to 47·1%. Calculation of the asset turnover and profit margins reveal that this improvement has arisen from increased profit margins (at both the gross and net level) as the asset turnover of Breadline has declined from 2·6 to 2·0 times.Liquidity:This is an area of concern as both the current ratio and the quick ratio (acid test) have deteriorated considerably from normal and acceptable positions in 2000 to worrying low levels of 1·1:1 (current) and 0·77:1 (quick) in 2001.A C C A 博客：b l o g .52a c c a .c o mA C C A 书店：s h o p .52a c c a .c o mLooking in more depth at the composition of these ratios:Inventory holding has gone from 18 days to 23 days. In general these are relatively low levels, but given the trade of Breadline (bakery), large inventory holdings would not be expected.The accounts receivable collection period shows a modest decline from 34 days in 2000 to 41 days in 2001; despite the worsening of this ratio it is still an efficient collection period.The accounts payable period: two figures have been calculated for this ratio. The figure for the payment of our own balance shows a very serious worsening of the payment period from 46 days (which was in line with our credit terms) in 2000 to an unacceptable period of 103 days for 2001. The payment period when our own balance is excluded also shows an increasing payment period from 45 days in 2000 to 53 days in 2001, however this is nothing like the increase for our own account.Although the increasing payment period is partly responsible for the worsening of the liquidity ratios of Breadline, it is the deterioration in the cash position that is the main cause. It has gone from a balance in hand of $250,000 in 2000 to an overdraft of $220,000 in 2001. Further evidence of a deteriorating cash flow position is the company having to raise a loan (of $500,000) in the current year.Gearing and financing:Gearing is not a significant issue for Breadline. The company had nil gearing in 2000 and the issue of the loan note (at the beginning of the current year) has created modest gearing of 12%.The company appears to have made an issue of shares during the year to the amount of $600,000 cash ($400,000 capital + $200,000 premium – see below). This is a significant amount representing 17% of net assets at the end of 2000.It would appear the composition of the accumulated profits at 31 December 2001 is made up of a brought forward balance of $1,700,000 plus $600,000 retained profit for the current year and the transfer of the revaluation reserve of $700,000 to realised profits (as the company’s freehold has now been sold). Thus it must be a cash issue of shares that has caused the increase in share capital and share premium.Causes of concern/further investigations:Sale of property:The company appears to have sold its freehold premises and leased it back as a leasehold property. The main reason for this conclusion is that our company is aware that Breadline traded from the same business address in both 2000 and 2001.There is no indication of how long the lease is, but even if it is for a long period, its cost ($2·5 million) is likely to have been less than the freehold was sold for as even a long lease would be worth less than the freehold. Therefore there must have been a large profit on the sale of at least $1,250,000. This should be $2,500,000 (minimum value of the freehold) less $1,250,000 (the carrying value of the freehold). This profit has been included in the income statement as a reduction of the cost of sales. This profit seems to be largely responsible for the improvement in Breadline’s margins and overall profitability.If the ROCE is calculated excluding this profit it would be 17·4% [(1,970 +10 – 1,250)/(3,700 + 500)× 100)], which is much worse than the previous year’s 41%. Normally this type and size of profit is separately disclosed either on the face of the income statement or in a note to the financial statements. It should not be considered as a reduction of the cost of sales.Clearly any prospective purchaser of Breadline cannot expect to repeat this type of profit in future periods.Issue of Loan note/Share capitalThe most striking feature of the issue of the loan note is the interest rate it carries. At only 2% this is well below the commercial rate of 8%. It is possible that the loan note has been issued to Breadline’s parent company, and the low interest rate is a feature of the related party relationship. If it is not a related party transaction, it may be that the low interest is compensated for by high premium on its redemption. If this is so the premium should be amortised over the life of the loan note to give a higher finance charge. One way or another it appears that the issue of the loan note has led to an artificially low finance cost and is another example of flattering profitability.The issue of the shares is even more perplexing. As Breadline is a 100% owned subsidiary of Wheatmaster, the shares must have been issued to Wheatmaster. It is not immediately obvious why this share issue occurred. The practical effect of the issue is that Breadline received $600,000 from its parent. What is interesting is that Breadline paid a dividend of $900,000to its parent company during the year. Given the size of Breadline’s overdraft, it may have had insufficient cash to pay the dividend without the receipt from the proceeds of the share issue. Thus the issue may have been a mechanism to enable Breadline to transfer some of its profits to its parent company.ConclusionThe apparent improvement in Breadline’s profitability seems largely due to related party issues and the sale and leaseback of the freehold property. Thus it is illusory rather than a genuine commercial improvement. The company’s liquidity is also poor and its most valuable asset (the freehold property) has now been replaced by a leasehold property of unknown duration. All of these may be symptoms of the parent company preparing to sell the business and attempting to improve the financial position of Breadline. There is insufficient information to conclude whether Breadline would be a good (or poor) acquisition,but it is important that such an evaluation is made based on ‘non-manipulated’ information.A more immediate concern is the deterioration in the payment period to our company. Breadline must be contacted immediately to find out why the account is so late in being paid. It would not be advisable to allow any further trading on credit until the account is within the stated credit terms. Enquiries should be made as to why our internal credit control procedures have allowed the situation to develop this far.D E FranksAssistant Financial Controller。
ACCA 历年真题f7int_2010_dec_ans
AnswersFundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International) December 2010 Answers 1 (a)PremierConsolidated statement of comprehensive income for the year ended 30 September 2010$’000 Revenue (92,500 + (45,000 x 4/12) – 4,000 intra-group sales) 103,500Cost of sales (w (i)) (78,850 )––––––––profit 24,650GrossDistribution costs (2,500 + (1,200 x 4/12)) (2,900 )Administrative expenses (5,500 + (2,400 x 4/12)) (6,300 )costs (100 )Finance––––––––Profittax 15,350 beforeIncome tax expense (3,900 + (1,500 x 4/12)) (4,400 )––––––––Profi t for the year 10,950––––––––income:OthercomprehensiveGain on available-for-sale investments 300Gain on revaluation of property 500––––––––T otal other comprehensive income for the year 800––––––––income 11,750 comprehensiveT otal––––––––Profi t for year attributable to:Equity holders of the parent 10,760Non-controlling interest ((1,300 see below – 400 URP + 50 reduced depreciation) x 20%) 190––––––––10,950––––––––T otal comprehensive income attributable to:Equity holders of the parent (10,760 + 300 + 500) 11,560interest 190Non-controlling––––––––11,750––––––––Sanford’s profi ts for the year ended 30 September 2010 of $3·9 million are $2·6 million (3,900 x 8/12) pre-acquisition and $1·3 million (3,900 x 4/12) post-acquisition.(b)Consolidated statement of fi nancial position as at 30 September 2010.$’000AssetsassetsNon-currentProperty, plant and equipment (w (ii)) 38,250Goodwill (w (iii)) 9,300Available-for-sale investments (1,800 – 800 consideration + 300 gain) 1,300–––––––48,850 Current assets (w (iv)) 14,150–––––––assets 63,000T otal–––––––liabilitiesandEquityEquity attributable to owners of the parentEquity shares of $1 each ((12,000 + 2,400) w (iii)) 14,400Share premium (w (iii)) 9,600reserve 2,000LandrevaluationOther equity reserve (500 + 300) 800Retained earnings (w (v)) 13,060–––––––39,860 Non-controlling interest (w (vi)) 3,690–––––––equity 43,550T otalliabilitiesNon-current6% loan notes 3,000Current liabilities (10,000 + 6,800 – 350 intra group balance) 16,450–––––––T otal equity and liabilities 63,000–––––––Workings in $’000sales(i) CostofPremier 70,5004/12) 12,000Sanfordx(36,000)purchases (4,000Intra-groupinventory 400URPinReduction of depreciation charge (50 )–––––––78,850–––––––The unrealised profi t (URP) in inventory is calculated as $2 million x 25/125 = $400,000.assetsNon-current(ii)Premier 25,500Sanford 13,900Fair value reduction at acquisition (1,200 )depreciation 50Reduced–––––––38,250–––––––inSanfordGoodwill(iii)costInvestmentatShares (5,000 x 80% x 3/5 x $5) 12,0006% loan notes (5,000 x 80% x 100/500) 800Non-controlling interest (5,000 x 20% x $3·50) 3,500–––––––16,300Net assets (equity) of Sanford at 30 September 2010 (9,500 )Less: post-acquisition profi ts (see above) 1,300Less: fair value adjustment for property 1,200––––––Net assets at date of acquisition (7,000 )–––––––Goodwill 9,300–––––––The 2·4 million shares (5,000 x 80% x 3/5) issued by Premier at $5 each would be recorded as share capital of$2·4 million and share premium of $9·6 million.Currentassets(iv)Premier 12,500Sanford 2,400)inventory (400inURP)Intra-groupbalance (350–––––––14,150–––––––earnings(v)RetainedPremier 12,300profitSanford’sadjustedpost-acquisition((1,300 – 400 URP + 50 reduced depreciation) x 80%) 760–––––––13,060–––––––(vi) Non-controlling interest in statement of fi nancial positionacquisition 3,500ofAtdatePost-acquisition profi t from income statement 190–––––––3,690–––––––2 (a) Cavern – Statement of comprehensive income for the year ended 30 September 2010$’000 Revenue 182,500 Cost of sales (w (i)) (137,400 )––––––––– Gross profi t 45,100 Distribution costs (8,500 ) Administrative expenses (25,000 – 18,500 dividends (w (iii))) (6,500 ) Investment income 700 Finance costs (300 + 400 (w (ii)) + 3,060 (w (iv))) (3,760 ) ––––––––– Profi t before tax 27,040 Income tax expense (5,600 + 900 – 250 (w (v))) (6,250 ) ––––––––– Profi t for the year 20,790 ––––––––– Other comprehensive income Loss on available-for-sale investments (15,800 – 13,500) (2,300 ) Gain on revaluation of land and buildings (w (ii)) 800 ––––––––– T otal other comprehensive losses for the year (1,500 )––––––––– T otal comprehensive income 19,290 –––––––––(b) Craven – Statement of changes in equity for the year ended 30 September 2010Share Share Other equity Revaluation Retained Totalcapital premium reserve reserve earnin gs equity$’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 October 2009 40,000 nil 3,000 7,000 12,100 62,100 Rights issue (w (iii)) 10,000 11,000 21,000Dividends (w (iii)) (18,500 ) (18,500 ) Comprehensive income (2,300 ) 800 20,790 19,290––––––– ––––––– –––––– –––––– ––––––– ––––––– Balance at 30 September 2010 50,000 11,000 700 7,800 14,390 83,890 ––––––– ––––––– –––––– –––––– ––––––– –––––––(c) Cavern – Statement of fi nancial position as at 30 September 2010Assets$’000 $’000Non-current assets Property, plant and equipment (41,800 + 51,100 (w (ii))) 92,900Available-for-sale investments 13,500 ––––––––106,400Current assets Inventory 19,800T rade receivables 29,000 48,800 ––––––– ––––––––T otal assets 155,200 ––––––––Equity and liabilities Equity (see (b) above) Equity shares of 20 cents each 50,000Share premium 11,000Other equity reserve 700 Revaluation reserve 7,800Retained earnings 14,390 33,890 ––––––– ––––––––83,890 Non-current liabilities Provision for decontamination costs (4,000 + 400 (w (ii))) 4,400 8% loan note (w (iv)) 31,260 Deferred tax (w (v)) 3,750 39,410–––––––Current liabilities T rade payables 21,700 Bank overdraft 4,600Current tax payable 5,600 31,900 ––––––– ––––––––T otal equity and liabilities 155,200––––––––Workings (monetary fi gures in brackets in $’000)salesof(i) Costbalance 128,500PertrialDepreciation of building (36,000/18 years) 2,000Depreciation of new plant (14,000/10 years) 1,400Depreciation of existing plant and equipment ((67,400 – 10,000 – 13,400) x 12·5%) 5,500––––––––137,400––––––––(ii) Property, plant and equipmentThe new plant of $10 million should be grossed up by the provision for the present value of the estimated futuredecontamination costs of $4 million to give a gross cost of $14 million. The ‘unwinding’ of the provision will give rise toa fi nance cost in the current year of $400,000 (4,000 x 10%) to give a closing provision of $4·4 million.The gain on revaluation and carrying amount of the land and building will be:Valuation – 30 September 2009 43,000)(i)) (2,000(wdepreciationBuilding–––––––revaluation 41,000beforeamountCarryingRevaluation – 30 September 2010 41,800–––––––revaluation 800onGain–––––––The carrying amount of the plant and equipment will be:New plant (14,000 – 1,400) 12,600Existing plant and equipment (67,400 – 10,000 – 13,400 – 5,500) 38,500–––––––51,100–––––––paidissue/dividends(iii)RightsBased on 250 million (50 million x 5 – as shares are 20 cents each) shares in issue at 30 September 2010, a rightsissue of 1 for 4 on 1 April 2010 would have resulted in the issue of 50 million new shares (250 million – (250 millionx 4/5)). This would be recorded as share capital of $10 million (50,000 x 20 cents) and share premium of $11 million(50,000 x (42 cents – 20 cents)).The dividend of 3 cents per share paid on 30 November 2009 would have been based on 200 million shares andbeen $6 million. The dividend of 5 cents per share paid on 31 May 2010 would have been based on 250 millionshares and been $12·5 million. Therefore the total dividends paid, incorrectly included in administrative expenses, were$18·5 million.note(iv)LoanThe finance cost of the loan note, at the effective rate of 10% applied to the carrying amount of the loan note of$30·6 million, is $3·06 million. The interest actually paid is $2·4 million. The difference between these amounts of$660,000 (3,060 – 2,400) is added to the carrying amount of the loan note to give $31·26 million (30,600 + 660)for inclusion as a non-current liability in the statement of fi nancial position.tax(v)DeferredProvision required at 30 September 2010 (15,000 x 25%) 3,750Provision at 1 October 2009 (4,000 )––––––Credit (reduction in provision) to income statement 250––––––3Note: references to 2009 and 2010 should be taken as being to the years ended 30 September 2009 and 2010 respectively.Profi tability:Income statement performance:Hardy’s income statement results dramatically show the effects of the downturn in the global economy; revenues are down by 18% (6,500/36,000 x 100), gross profi t has fallen by 60% and a healthy after tax profi t of $3·5 million has reversed to a loss of $2·1 million. These are refl ected in the profi t (loss) margin ratios shown in the appendix (the ‘as reported’ fi gures for 2010). This in turn has led to a 15·2% return on equity being reversed to a negative return of 11·9%. However, a closer analysis shows that the results are not quite as bad as they seem. The downturn has directly caused several additional costs in 2010: employee severance, property impairments and losses on investments (as quantified in the appendix). These are probably all non-recurring costs and could therefore justifi ably be excluded from the 2010 results to assess the company’s ‘underlying’ performance. If this is done the results of Hardy for 2010 appear to be much better than on fi rst sight, although still not as good as those reported for 2009. A gross margin of 27·8% in 2009 has fallen to only 23·1% (rather than the reported margin of 13·6%) and the profi t for period has fallen from $3·5 million (9·7%) to only $2·3 million (7·8%). It should also be noted that as well as the fall in the value of the investments, the related investment income has also shown a sharp decline which has contributed to lower profi ts in 2010.Given the economic climate in 2010 these are probably reasonably good results and may justify the Chairman’s comments. It should be noted that the cost saving measures which have helped to mitigate the impact of the downturn could have some unwelcomeeffects should trading conditions improve; it may not be easy to re-hire employees and a lack of advertising may cause a loss of market share.Statement of fi nancial position:Perhaps the most obvious aspect of the statement of fi nancial position is the fall in value ($8·5 million) of the non-current assets, most of which is accounted for by losses of $6 million and $1·6 million respectively on the properties and investments. Ironically, because these falls are refl ected in equity, this has mitigated the fall in the return of the equity (from 15·2% to 13·1% underlying) and contributed to a perhaps unexpected improvement in asset turnover from 1·6 times to 1·7 times.Liquidity:Despite the downturn, Hardy’s liquidity ratios now seem at acceptable levels (though they should be compared to manufacturing industry norms) compared to the low ratios in 2009. The bank balance has improved by $1·1 million. This has been helped by a successful rights issue (this is in itself a sign of shareholder support and confi dence in the future) raising $2 million and keeping customer’s credit period under control. Some of the proceeds of the rights issue appear to have been used to reduce the bank loan which is sensible as its fi nancing costs have increased considerably in 2010. Looking at the movement on retained earnings (6,500 – 2,100 – 3,600) it can be seen that the company paid a dividend of $800,000 during 2010. Although this is only half the dividend per share paid in 2009, it may seem unwise given the losses and the need for the rights issue. A counter view is that the payment of the dividend may be seen as a sign of confi dence of a future recovery. It should also be mentioned that the worst of the costs caused by the downturn (specifi cally the property and investments losses) are not cash costs and have therefore not affected liquidity.The increase in the inventory and work-in-progress holding period and the trade receivables collection period being almost unchanged appear to contradict the declining sales activity and should be investigated. Although there is insuffi cient information to calculate the trade payables credit period as there is no analysis of the cost of sales fi gures, it appears that Hardy has received extended credit which, unless it had been agreed with the suppliers, has the potential to lead to problems obtaining future supplies of goods on credit.Gearing:On the reported fi gures debt to equity shows a modest increase due to income statement losses and the reduction of the revaluation reserve, but this has been mitigated by the repayment of part of the loan and the rights issue.Conclusion:Although Hardy’s results have been adversely affected by the global economic situation, its underlying performance is not as bad as fi rst impressions might suggest and supports the Chairman’s comments. The company still retains a relatively strong statement of fi nancial position and liquidity position which will help signifi cantly should market conditions improve. Indeed the impairment of property and investments may well reverse in future. It would be a useful exercise to compare Hardy’s performance during this diffi cult time to that of its competitors – it may well be that its 2010 results were relatively very good by comparison.Appendix:An important aspect of assessing the performance of Hardy for 2010 (especially in comparison with 2009) is to identify the impact that several ‘one off’ charges have had on the results of 2010. These charges are $1·3 million redundancy costs and a $1·5 million (6,000 – 4,500 previous surplus) property impairment, both included in cost of sales and a $1·6 million loss on the market value of investments, included in administrative expenses. Thus in calculating the ‘underlying’ fi gures for 2010 (below) the adjusted cost of sales is $22·7 million (25,500 – 1,300 – 1,500) and the administrative expenses are $3·3 million (4,900 – 1,600). These adjustments feed through to give an underlying gross profi t of $6·8 million (4,000 + 1,300 + 1,500) and an underlying profi t for the year of $2·3 million (–2,100 + 1,300 + 1,500 + 1,600).Note: it is not appropriate to revise Hardy’s equity (upwards) for the one-off losses when calculating equity based underlying fi gures, as the losses will be a continuing part of equity (unless they reverse) even if/when future earnings recover.2010 2009underlying as reportedGross profi t % (6,800/29,500 x 100) 23·1% 13·6% 27·8%Profi t (loss) for period % (2,300/29,500 x 100) 7·8% (7·1)% 9·7%Return on equity (2,300/17,600 x 100) 13·1% (11·9)% 15·2%Net asset (taken as equity) turnover (29,500/17,600) 1·7 times same 1·6 timesDebt to equity (4,000/17,600) 22·7% same 21·7% Current ratio (6,200:3,400) 1·8:1 same 1·0:1Quick ratio (4,000:3,400) 1·2:1 same 0·6:1 Receivables collection (in days) (2,200/29,500 x 365) 27 days same 28 days Inventory and work-in-progress holding period (2,200/22,700 x 365) 35 days 31 days 27 daysNote: the fi gures for the calculation of the 2010 ‘underlying’ ratios have been given; those of 2010 ‘as reported’ and 2009 are based on equivalent fi gures from the summarised fi nancial statements provided.Alternative ratios/calculations are acceptable, for example net asset turnover could be calculated using total assets less current liabilities.4 (a)Management’s choices of which accounting policies they may adopt are not as wide as generally thought. Where an InternationalAccounting Standard, IAS or IFRS (or an Interpretation) specifically applies to a transaction or event the accounting policy used must be as prescribed in that Standard (taking in to account any Implementation Guidance within the Standard). In the absence of a Standard, or where a Standard contains a choice of policies, management must use its judgement in applying accounting policies that result in information that is relevant and reliable given the circumstances of the transactions and events. In making such judgements, management should refer to guidance in the Standards related to similar issues and the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the IASB’s Framework for the preparation and presentation of fi nancial statements. Management may also consider pronouncements of other standard-setting bodies that use a similar conceptual framework to the IASB.A change in an accounting policy usually relates to a change of principle, basis or rule being applied by an entity. Accountingestimates are used to measure the carrying amounts of assets and liabilities, or related expenses and income. A change in an accounting estimate is a reassessment of the expected future benefi ts and obligations associated with an asset or a liability.Thus, for example, a change from non-depreciation of a building to depreciating it over its estimated useful life would be a change of accounting policy. T o change the estimate of its useful life would be a change in an accounting estimate.(b) (i)The main issue here is the estimate of the useful life of a non-current asset. Such estimates form an important part ofthe accounting estimate of the depreciation charge. Like most estimates, an annual review of their appropriateness isrequired and it is not unusual, as in this case, to revise the estimate of the remaining useful life of plant. It appears,from the information in the question, that the increase in the estimated remaining useful life of the plant is based on agenuine reassessment by the production manager. This appears to be an acceptable reason for a revision of the plant’slife, whereas it would be unacceptable to increase the estimate simply to improve the company’s reported profi t. Thatsaid, the assistant accountant’s calculation of the financial effect of the revised life is incorrect. Where there is anincrease (or decrease) in the estimated remaining life of a non-current asset, its carrying amount (at the time of therevision) is allocated over the new remaining life (after allowing for any estimated residual value). The carrying amount at1 October 2009 is $12 million ($20 million – $8 million accumulated depreciation) and this should be written off overthe estimated remaining life of six years (eight years in total less two already elapsed). Thus a charge for depreciationof $2 million would be required in the year ended 30 September 2010 leaving a carrying amount of $10 million($12 million – $2 million) in the statement of fi nancial position at that date. A depreciation charge for the current yearcannot be avoided and there will be no credit to the income statement as suggested by the assistant accountant. It shouldbe noted that the incremental effect of the revision to the estimated life of the plant would be to improve the reportedprofit by $2 million being the difference between the depreciation based on the old life ($4 million) and the new life($2 million).(ii)The appropriateness of the proposed change to the method of valuing inventory is more dubious than the previous example. Whilst both methods (FIFO and AVCO) are acceptable methods of valuing inventory under IAS 2 Inventories,changing an accounting policy to be consistent with that of competitors is not a convincing reason. Generally changesin accounting policies should be avoided unless a change is required by a new or revised accounting standard or thenew policy provides more reliable and relevant information regarding the entity’s position. In any event the assistantaccountant’s calculations are again incorrect and would not meet the intention of improving reported profit. Themost obvious error is that changing from FIFO to AVCO will cause a reduction in the value of the closing inventory at30 September 2010 effectively reducing, rather than increasing, both the valuation of inventory and reported profit.A change in accounting policy must be accounted for as if the new policy had always been in place (retrospectiveapplication). In this case, for the year ended 30 September 2010, both the opening and closing inventories would needto be measured at AVCO which would reduce reported profi t by $400,000 (($20 million – $18 million) – ($15 million –$13·4 million) – i.e. the movement in the values of the opening and closing inventories). The other effect of the changewill be on the retained earnings brought forward at 1 October 2009. These will be restated (reduced) by the effect of thereduced inventory value at 30 September 2009 i.e. $1·6 million ($15 million – $13·4 million). This adjustment wouldbe shown in the statement of changes in equity.5From the information in the question, the closure of the furniture making operation is a restructuring as defi ned in IAS 37 Provisions, contingent liabilities and contingent assets and, due to the timing of the decision, a provision for the closure costs will be required in the year ended 30 September 2010. Although the Standard says that a Board of directors’ decision to close an operation is alone not suffi cient to trigger a provision the other actions of the management, informing employees, customers and a press announcement indicate that this is an irreversible decision and that therefore there is an obligating event.Commenting on each element in turn for both years:(i) Factory and plantAt 30 September 2010 – these assets cannot be classed as ‘held-for-sale’ as they are still in use (i.e. generating revenue) and therefore are not available for sale. Both assets will therefore continue to be depreciated.Despite this, it does appear that the plant is impaired. Based on its carrying amount of $2·8 million an impairment charge of $2·3 million ($2·8 million – $0·5 million) would be required (subject to any further depreciation for the three months from July to September 2010). The expected gain on the sale of the factory cannot be recognised or used to offset the impairment charge on the plant. The impairment charge is not part of the restructuring provision, but should be reported with the depreciation charge for the year.At 30 September 2011 – the realised profi t on the disposal of the factory and any further loss on the disposal of the plant will both be reported in the income statement.(ii) Redundancy and retraining costsAt 30 September 2010 – a provision for the redundancy costs of $750,000 should be made, but the retraining costs relate to the ongoing actives of Manco and cannot be provided for.At 30 September 2011 – the redundancy costs incurred during the year will be offset against the provision created last year.Any under- or over-provision will be reported in the income statement. The retraining costs will be written off as they are incurred.losses(iii)T radingThe losses to 30 September 2010 will be reported as part of the results for the year ended 30 September 2010. The expected losses from 1 October 2010 to the closure on 31 January 2011 cannot be provided in the year ended 30 September 2010 as they relate to ongoing activities and will therefore be reported as part of the results for the year ended 30 September 2011 as they are incurred.It should also be considered whether the closure fulfils the definition of a discontinued operation in accordance with IFRS 5 Non-current assets held for sale and discontinued operations. As there is a co-ordinated plan to dispose of a separate major line of business (the furniture making operation is treated as an operating segment) this probably is a discontinued operation. However, the timing of the closure means that it is not a discontinued operation in the year ended 30 September 2010; rather it is likely that it will be such in the year ended 30 September 2011. Some commentators believe that this creates an anomalous situation in that most of the closure costs are reported in the year ended 30 September 2010 (as described above), but the closure itself is only identifi ed and reported as a discontinued operation in the year ended 30 September 2011 (although the comparative fi gures for 2010 would then restate this as a discontinued operation).Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International) December 2010 Marking SchemeThis marking scheme is given as a guide in the context of the suggested answers. Scope is given to markers to award marks for alternative approaches to a question, including relevant comment, and where well-reasoned conclusions are provided. This is particularly the case for written answers where there may be more than one acceptable solution.Marks1 (a)statement of comprehensive income:revenue 1½sales 3costofcosts ½distributionexpenses ½administrativecosts ½financetax ½incomeother comprehensive income – gain on investments ½other comprehensive income – gain on property ½non-controlling interest – profi t for year 1split of total comprehensive income ½9(b)statement of fi nancial position:property, plant and equipment 2goodwill 3½investments 1available-for-saleassets 1½currentshares 1equitysharepremium 1reserve ½revaluationreserve 1equityotherearnings 1½retainedinterest 1½non-controllingnotes ½6%loanliabilities 1current16Total for question 25Marks2 (a)statement of comprehensive incomerevenue ½sales 3 ofcostcosts ½ distributionexpenses 1 administrativeincome ½ investmentcosts 2½ financeexpense 2 incometaxloss on available-for-sale investments ½gain on revaluation of land and buildings ½11(b)statement of changes in equityb/f 1 balancesrightsissue 1dividends 1loss on available-for-sale investments ½revaluationgain ½profi t for year 15(c)statement of fi nancial positionproperty, plant and equipment 2½investments ½ available-for-saleinventory ½receivables ½ tradeprovision 1 contaminationnote 1 8%loantax 1 deferredpayables ½ tradeoverdraft ½ bankpayable 1 taxcurrent9Total for question 253comments – 1 mark per valid point, up to 15a good answer must consider the effects of the ‘one off’ costsratios – up to 10Total for question 254 (a) 1 mark per valid point 5(b) (i)recognise as a change in accounting estimate 1appears an acceptable basis for change 1correct method is to allocate carrying amount over new remaining life 1depreciation for current year should be $2 million 1carrying amount at 30 September 2010 is $10 million 15 (ii)proposed change is probably not for a valid reason 1 change would cause a decrease (not an increase) in profi t 1changes in policy should be applied retrospectively 1decrease in year to 30 September 2010 is $400,000 1retained earnings restated by $1.6 million 15Total for question 15。
ACCA考试F7考试真题
ACCA考试F7考试真题ACCA考试F7考试真题ALL FIVE questions are compulsory and MUST be attempted1 IntroductionTinkerbell Toys Co (Tinkerbell) is a manufacturer of children’s building block toys; they ha ve been trading for over 35 years and they sell to a wide variety of customers including la rge and small toy retailers across the country. The company’s year end is 31 May 2011. The company has a large manufacturing plant, four large warehouses and a head office. Upon manufacture, the toys are stored in one of the warehouses until they are despatche d to customers. The company does not have an internal audit department.Sales ordering, goods despatched and invoicingEach customer has a unique customer account number and this is used to enter sales or ders when they are received in writing from customers. The orders are entered by an ord er clerk and the system automatically checks that the goods are available and that the or der will not take the customer over their credit limit. For new customers, a sales manager completes a credit application; this is checked through a credit agency and a credit limit e ntered into the system by the credit controller. The company has a price list, which is upd ated twice a year. Larger customers are entitled to a discount; this is agreed by the sales director and set up within the customer master file.Once the order is entered an acceptance is automatically sent to the customer by mail/e mail confirming the goods ordered and a likely despatch date. The order is then sorted by address of customer. The warehouse closest to the customer receives the order ele ctronically and a despatch list and sequentially numbered goods despatch n otes (GDNs) are automatically generated. The warehouse team pack the goods from the despatch list and, before they are sent out, a second member of the team double checks the despatch list to the GDN, which accompanies the goods.Once despatched, a copy of the GDN is sent to the accounts team at head office and a s equentially numbered sales invoice is raised and checked to the GDN. Periodically a com puter sequence check is performed for any missing sales invoice numbers.FraudDuring the year a material fraud was uncovered. It involved cash/cheque receipts from cu stomers being diverted into employees’ personal accounts. In order to cover up the fraud, receipts from subsequent unrelated customers would then be recorded against the earlie r outstanding receivable balances and this cycle of fraud would continue.The fraud occurred because two members of staff ‘who were related’ colluded. One proc essed cash receipts and prepared the weekly bank reconciliation; the other empl oyee recorded customer receipts in the sales ledger. An unrelated sales ledger clerk was supposed to send out monthly customer statements but this was not performe d. The bank reconciliations each had a small unreconciled amount but no-one reviewed t he reconciliations after they were prepared. The fraud was only uncovered when the twoACCA考试F7考试真题employees went on holiday at the same time and it was discovered that cash receipts fro m different customers were being applied to older receivable balances to hide the earlier sums stolen.Required:(a) Recommend SIX tests of controls the auditor would normally carry out on the sales s ystem of Tinkerbell, and explain the objective for each test.(b) Describe substantive procedures the auditor should perform to confirm Ti nkerbell’s year-end receivables balance.(c) Identify and explain controls Tinkerbell should implement to reduce the risk of fraud o ccurring again and, for each control, describe how it would mitigate the risk.(d) Describe substantive procedures the auditor should perform to confirm Tinkerbell’s re venue.。
ACCA考试F7考试历年真题精选及详细解析1109-59
ACCA考试F7考试历年真题精选及详细解析1109-591. Petre owns 100% of the share capital of the following companies. The directors are unsure of whether the investments should be consolidated. In which of the following circumstances would the investment NOT be consolidated?A Petre has decided to sell its investment in Alpha as it is loss-making; the directors believe its exclusion from consolidation would assist users in predicting the group’s future profitsB Beta is a bank and its activity is so different from the engineering activities of the rest of the group that it would be meaningless to consolidate itC Delta is located in a country where local accounting standards are compulsory and these are not compatible with IFRS used by the rest of the groupD Gamma is located in a country where a military coup has taken place and Petre has lost control of the investment for the foreseeable future答案：A2. On 1 October 2013, Bertrand issued $10 million convertible loan notes which carry a nominal interest (coupon) rate of 5% per annum. The loan notes are redeemable on 30 September 2016 at par for cash or can be exchanged for equity shares. A similar loan note, without the conversion option, would have required Bertrand to pay an interest rate of 8%.The present value of $1 receivable at the end of each year, based on discount rates of 5% and 8%, can be taken as:5% 8%End of year 1 0·95 0·932 0·91 0·863 0·86 0·79How would the convertible loan appear in Bertrand’s statement of financial position on initial recognition (1 October 2013)?Equity Non-current liability$’000 $’000A 810 9,190B nil 10,000C 10,000 nilD 40 9,960答案：C3. The net assets of Fyngle, a cash generating unit (CGU), are:$Property, plant and equipment 200,000Allocated goodwill 50,000Product patent 20,000Net current assets (at net realisable value) 30,000––––––––300,000––––––––As a result of adverse publicity, Fyngle has a recoverableamount of only $200,000.What would be the value of Fyngle’s property, plant and equipment after the allocation of the impairment loss?A $154,545B $170,000C $160,000D $133,333答案：D4. When a gain on a bargain purchase (negative goodwill) arises, IFRS 3 Business Combinations requires an entity to first of all review the measurement of the assets, liabilities and consideration transferred in respect of the combination.When the negative goodwill is confirmed, how is it then recognised?A It is credited directly to retained earningsB It is credited to profit or lossC It is debited to profit or lossD It is deducted from positive goodwill答案：B5. On 1 October 20X1, Bash Co borrowed $6m for a term of one year, exclusively to finance the construction of a new piece of production equipment. The interest rate on the loan is 6% and is payable on maturity of the loan. The construction commenced on 1 November 20X1 but no construction took place between 1 December 20X1 to.31 January 20X2 due to employees taking industrial action. The asset was available for use on 30 September 20X2 having a construction cost of $6m.What is the carrying amount of the production equipment in Bash Co’s statement of financial position as at 30 September 20X2?A $5,016,000B $6,270,000C $6,330,000D $6,360,000答案：B。
ACCA_F7_2008年12月考试【试题答案】
(11,600) –––––––––
22,700
Other comprehensive income Loss on leasehold property revΒιβλιοθήκη luation (w (iii))
(4,500) –––––––––
Total comprehensive income for the year
Revenue (85,000 + (42,000 x 6/12) – 8,000 intra-group sales) Cost of sales (w (i))
Gross profit Distribution costs (2,000 + (2,000 x 6/12)) Administrative expenses (6,000 + (3,200 x 6/12)) Finance costs (300 + (400 x 6/12))
Revenue (300,000 – 2,500) Cost of sales (w (i))
Gross profit Distribution costs Administrative expenses (22,200 – 400 + 100 see note below) Finance costs (200 + 1,200 (w (ii)))
The 1·6 million shares (4,000 x 60% x 2/3) issued by Pedantic would be recorded as share capital of $1·6 million and share premium of $8 million (1,600 x $5).
ACCA历年真题
P a p e r F 7 ( H K G )ALL FIVE questions are compulsory and MUST be attempted1On 1 April 2011, Pyramid acquired 80% of Square’s equity shares by means of an immediate share exchange anda cash payment of 88 cents per acquired share, deferred until 1 April 2012. Pyramid has recorded the shareexchange, but not the cash consideration. Pyramid’s cost of capital is 10% per annum.The summarised statements of financial position of the two companies as at 31 March 2012 are:Pyramid Square Assets$’000 $’000Non-current assetsProperty, plant and equipment38,10028,500Investments–Square 24,000–Cube at cost (note (iv))6,000–Loan notes (note (ii))2,500–Other equity (note (v)) 2,000nil––––––––––––––72,60028,500 Current assetsInventory (note (iii))13,90010,400T rade receivables (note (iii))11,4005,500Bank (note (iii))900600––––––––––––––T otal assets98,80045,000––––––––––––––Equity and liabilitiesEquityEquity shares of $1 each25,00010,000Share premium17,600nilRetained earnings–at 1 April 201116,20018,000–for year ended 31 March 201214,0008,000––––––––––––––72,80036,000 Non-current liabilities11% loan notes (note (ii))12,0004,000Deferred tax4,500nilCurrent liabilities (note (iii))9,5005,000––––––––––––––T otal equity and liabilities98,80045,000––––––––––––––The following information is relevant:(i)At the date of acquisition, Pyramid conducted a fair value exercise on Square’s net assets which were equal totheir carrying amounts with the following exceptions:–An item of plant had a fair value of $3 million above its carrying amount. At the date of acquisition it hada remaining life of five years. Ignore deferred tax relating to this fair value.–Square had an unrecorded deferred tax liability of $1 million, which was unchanged as at 31 March 2012.Pyramid’s policy is to value the non-controlling interest at fair value at the date of acquisition. For this purpose a share price for Square of $3·50 each is representative of the fair value of the shares held by the non-controlling interest.(ii)Immediately after the acquisition, Square issued $4 million of 11% loan notes, $2·5 million of which were bought by Pyramid. All interest due on the loan notes as at 31 March 2012 has been paid and received.2(iii)Pyramid sells goods to Square at cost plus 50%. Below is a summary of the recorded activities for the year ended31 March 2012 and balances as at 31 March 2012:Pyramid Square$’000$’000 Sales to Square16,000Purchases from Pyramid14,500Included in Pyramid’s receivables4,400Included in Square’s payables1,700On 26 March 2012, Pyramid sold and despatched goods to Square, which Square did not record until they were received on 2 April 2012. Square’s inventory was counted on 31 March 2012 and does not include any goods purchased from Pyramid.On 27 March 2012, Square remitted to Pyramid a cash payment which was not received by Pyramid until4 April 2012. This payment accounted for the remaining difference on the current accounts.(iv)Pyramid bought 1·5 million shares in Cube on 1 October 2011; this represents a holding of 30% of Cube’s equity. At 31 March 2012, Cube’s retained profits had increased by $2 million over their value at 1 October 2011. Pyramid uses equity accounting in its consolidated financial statements for its investment in Cube.(v)The other equity investments of Pyramid are carried at their fair values on 1 April 2011. At 31 March 2012, these had increased to $2·8 million.(vi)There were no impairment losses within the group during the year ended 31 March 2012.Required:Prepare the consolidated statement of financial position for Pyramid as at 31 March 2012.(25 marks)3[P.T.O.2The following trial balance relates to Fresco at 31 March 2012:$’000$’000 Equity shares of 50 cents each (note (i))45,000Share premium (note (i))5,000Retained earnings at 1 April 20115,100Leased property (12 years) – at cost (note (ii))48,000Plant and equipment – at cost (note (ii))47,500Accumulated amortisation of leased property at 1 April 2011 16,000Accumulated depreciation of plant and equipment at 1 April 201133,500Inventory at 31 March 2012 25,200T rade receivables (note (iii))28,500Bank1,400Deferred tax (note (iv))3,200T rade payables27,300Revenue350,000Cost of sales 298,700Lease payments (note (ii))8,000Distribution costs 16,100Administrative expenses26,900Bank interest300Current tax (note (iv))800Suspense account (note (i))13,500––––––––––––––––500,000500,000––––––––––––––––The following notes are relevant:(i)The suspense account represents the corresponding credit for cash received for a fully subscribed rights issue ofequity shares made on 1 January 2012. The terms of the share issue were one new share for every five held ata price of 75 cents each. The price of the company’s equity shares immediately before the issue was $1·20 each.(ii)Non-current assets:T o reflect a marked increase in property prices, Fresco decided to revalue its leased property on 1 April 2011.The Directors accepted the report of an independent surveyor who valued the leased property at $36 million on that date. Fresco has not yet recorded the revaluation. The remaining life of the leased property is eight years at the date of the revaluation. Fresco makes an annual transfer to retained profits to reflect the realisation of the revaluation reserve. In Fresco’s tax jurisdiction the revaluation does not give rise to a deferred tax liability.On 1 April 2011, Fresco acquired an item of plant under a finance lease agreement that had an implicit finance cost of 10% per annum. The lease payments in the trial balance represent an initial deposit of $2 million paid on 1 April 2011 and the first annual rental of $6 million paid on 31 March 2012. The lease agreement requires further annual payments of $6 million on 31 March each year for the next four years. Had the plant not been leased it would have cost $25 million to purchase for cash.Plant and equipment (other than the leased plant) is depreciated at 20% per annum using the reducing balance method.No depreciation/amortisation has yet been charged on any non-current asset for the year ended 31 March 2012.Depreciation and amortisation are charged to cost of sales.(iii)In March 2012, Fresco’s internal audit department discovered a fraud committed by the company’s credit controller who did not return from a foreign business trip. The outcome of the fraud is that $4 million of the company’s trade receivables have been stolen by the credit controller and are not recoverable. Of this amount, $1 million relates to the year ended 31 March 2011, and the remainder to the current year. Fresco is not insured against this fraud.(iv)Fresco’s income tax calculation for the year ended 31 March 2012 shows a tax refund of $2·4 million. The balance on current tax in the trial balance represents the under/over provision of the tax liability for the year ended31 March 2011. At 31 March 2012, Fresco had taxable temporary differences of $12 million (requiring adeferred tax liability). The income tax rate of Fresco is 25%.4Required:(a)(i)Prepare the statement of comprehensive income for Fresco for the year ended 31 March 2012.(ii)Prepare the statement of changes in equity for Fresco for the year ended 31 March 2012.(iii)Prepare the statement of financial position of Fresco as at 31 March 2012.The following mark allocation is provided as guidance for this requirement:(i)9 marks(ii) 5 marks(iii)8 marks(22 marks)(b)Calculate the basic earnings per share for Fresco for the year ended 31 March 2012.(3 marks) Notes to the financial statements are not required.(25 marks)5[P.T.O.3(a)T angier is a public listed company. Its summarised financial statements for the years ended 31 March 2012 and the comparative figures are shown below.Statements of comprehensive income for the year ended 31 March:20122011$ m$ m Revenue2,7001,820Cost of sales(1,890)(1,092)––––––––––––Gross profit810728Distribution costs(230)(130)Administrative expenses(345)(200)Finance costs(40)(5)––––––––––––Profit before tax195393Income tax expense(60)(113)––––––––––––Profit for the year135280Other comprehensive income80nil––––––––––––T otal comprehensive income215280––––––––––––Statements of financial position as at 31 March:20122011$ m$ m$ m$ m AssetsNon-current assetsProperty, plant and equipment680410Intangible asset: manufacturing licence300200Investment at cost: shares in Raremetal230nil––––––––––1,210610 Current assetsInventory200110T rade receivables19575Bank nil395120305––––––––––––––––––T otal assets1,605915––––––––––Equity and liabilitiesEquityEquity shares of $1 each350250ReservesRevaluation80nilRetained earnings 375295––––––––––805545 Non-current liabilities5% loan notes10010010% secured loan notes300400nil100––––––––Current liabilitiesBank overdraft110nilT rade payables210160Current tax payable80400110270––––––––––––––––––T otal equity and liabilities1,605915––––––––––6The following information is relevant:Depreciation/amortisation charges for the year ended 31 March 2012 were:$ mProperty, plant and equipment115Intangible asset: manufacturing licence25There were no sales of non-current assets during the year, although property has been revalued.Required:Prepare the statement of cash flows for the year ended 31 March 2012 for Tangier in accordance with the indirect method in accordance with HKAS 7 Statement of cash flows. (11 marks)(b)The following additional information has been obtained in relation to the operations of T angier for the year ended31 March 2012:(i)On 1 June 2011, T angier won a tender for a new contract to supply Jetside with aircraft engines that T angiermanufactures under a recently-acquired licence. The bidding process was very competitive and T angier had to increase its manufacturing capacity to fulfil the contract.(ii)T angier also decided to invest in Raremetal by acquiring 8% of its equity shares in order to secure supplies of specialised materials used in the manufacture of the engines. No dividends were received from Raremetal nor had the value of its shares changed since acquisition.(iii)T angier revalued its property during the year to facilitate the issue of the 10% loan notes.On seeing the results for the first time, one of the company’s non-executive directors is disappointed by the current year’s performance.Required:Explain how the new contract and its related costs may have affected Tangier’s operating performance, identifying any further information that may be useful to your answer.Your answer may be supported by appropriate ratios (up to 4 marks available), but ratios and analysis of working capital are not required.(14 marks)(25 marks)7[P.T.O.4(a)The objective of HKAS 36 Impairment of assets is to prescribe the procedures that an entity applies to ensure that its assets are not impaired.Required:Explain what is meant by an impairment review. Your answer should include reference to assets that may form a cash generating unit.Note: you are NOT required to describe the indicators of an impairment or how impairment losses are allocated against assets.(4 marks)(b)(i)T elepath acquired an item of plant at a cost of $800,000 on 1 April 2010 that is used to produce andpackage pharmaceutical pills. The plant had an estimated residual value of $50,000 and an estimated lifeof five years, neither of which has changed. T elepath uses straight-line depreciation. On 31 March 2012,T elepath was informed by a major customer (who buys products produced by the plant) that it would nolonger be placing orders with T elepath. Even before this information was known, T elepath had been havingdifficulty finding work for this plant. It now estimates that net cash inflows earned from the plant for the nextthree years will be:$’000year ended:31 March 201322031 March 201418031 March 2015170On 31 March 2015, the plant is still expected to be sold for its estimated realisable value.T elepath has confirmed that there is no market in which to sell the plant at 31 March 2012.T elepath’s cost of capital is 10% and the following values should be used:value of $1 at:$end of year 10·91end of year 20·83end of year 30·75(ii)T elepath owned a 100% subsidiary, Tilda, that is treated as a cash generating unit. On 31 March 2012, there was an industrial accident (a gas explosion) that caused damage to some of Tilda’s plant. The assetsof Tilda immediately before the accident were:$’000Goodwill1,800Patent1,200Factory building4,000Plant3,500Receivables and cash1,500–––––––12,000–––––––As a result of the accident, the recoverable amount of Tilda is $6·7 millionThe explosion destroyed (to the point of no further use) an item of plant that had a carrying amount of$500,000.Tilda has an open offer from a competitor of $1 million for its patent. The receivables and cash are alreadystated at their fair values less costs to sell (net realisable values).8Required:Calculate the carrying amounts of the assets in (i) and (ii) above at 31 March 2012 after applying any impairment losses.Calculations should be to the nearest $1,000.The following mark allocation is provided as guidance for this requirement:(i) 4 marks(ii)7 marks(11 marks)(15 marks)9[P.T.O.5(a)The methods by which Accounting Standards are developed differ considerably throughout the world. It is often argued that there are two main systems of regulation that determine the nature of Accounting Standards: a rules-based system and a principles-based system.Required:Briefly explain the difference between the two systems and state which system you believe is most descriptive of Hong Kong Financial Reporting Standards (HKFRS).(4 marks)(b)Baxen is a public listed company that currently uses local Accounting Standards for its financial reporting. Theboard of directors of Baxen is considering the adoption of Hong Kong Financial Reporting Standards (HKFRS) in the near future. The company has ambitious growth plans which involve extensive trading with many foreign companies and the possibility of acquiring at least one of its trading partners as a subsidiary in the near future.Required:Identify the advantages that Baxen could gain by adopting HKFRS for its financial reporting purposes.(6 marks)(10 marks)End of Question Paper10。
2008年6月ACCA F7真题
P a p e r F 7 ( U K )ALL FIVE questions are compulsory and MUST be attempted1On 1 August 2007 Patronic purchased 18 million of a total of 24 million equity shares in Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. Both companies have shares with a par value of £1 each. The market price of Patronic’s shares at 1 August 2007 was £5·75 per share.Patronic will also pay in cash on 31 July 2009 (two years after acquisition) £2·42 per acquired share of Sardonic.Patronic’s cost of capital is 10% per annum. The reserves of Sardonic on 1 April 2007 were £69 million.Patronic has held an investment of 30% of the equity shares in Acerbic for many years.The summarised profit and loss accounts for the three companies for the year ended 31 March 2008 are:Patronic Sardonic Acerbic£’000£’000£’000 T urnover150,00078,00080,000Cost of sales(94,000)(51,000)(60,000)––––––––––––––––––––––Gross profit56,00027,00020,000Distribution costs(7,400)(3,000)(3,500)Administrative expenses(12,500)(6,000)(6,500)––––––––––––––––––––––Operating profit36,10018,00010,000Finance costs (note (ii))(2,000)(900)nil––––––––––––––––––––––Profit before tax34,10017,10010,000T ax(10,400)(3,600)(4,000)––––––––––––––––––––––Profit for the year23,70013,5006,000––––––––––––––––––––––The following information is relevant:(i)The fair values of the net assets of Sardonic at the date of acquisition were equal to their carrying amounts withthe exception of property and plant. Property and plant had fair values of £4·1 million and £2·4 million respectively in excess of their carrying amounts. The increase in the fair value of the property would create additional depreciation of £200,000 in the consolidated financial statements in the post acquisition period to31 March 2008 and the plant had a remaining life of four years (straight-line depreciation) at the date ofacquisition of Sardonic. All depreciation is treated as part of cost of sales.The fair values have not been reflected in Sardonic’s financial statements.No fair value adjustments were required on the acquisition of Acerbic.(ii)The finance costs of Patronic do not include the finance cost on the deferred consideration.(iii)Prior to its acquisition, Sardonic had been a good customer of Patronic. In the year to 31 March 2008, Patronic sold goods at a selling price of £1·25 million per month to Sardonic both before and after its acquisition. Patronic made a profit of 20% on the cost of these sales. At 31 March 2008 Sardonic still held stock of £3 million (at cost to Sardonic) of goods purchased in the post acquisition period from Patronic.(iv)The goodwill of Sardonic should be amortised over a nine-year life with time apportionment in the year of acquisition. The goodwill in Acerbic was deemed to have an indefinite life and was not impaired at 31 March 2008.(v)All items in the above profit and loss accounts are deemed to accrue evenly over the year.(vi)Ignore deferred tax.2Required:(a)Calculate the goodwill arising on the acquisition of Sardonic at 1 August 2007. (6 marks)(b) Prepare the consolidated profit and loss account for the Patronic Group for the year ended 31 March 2008.Note: assume that the investment in Acerbic has been accounted for using the equity method since its acquisition.(15 marks) (c)At 31 March 2008 the other equity shares (70%) in Acerbic were owned by many separate investors. Shortlyafter this date Spekulate (a company unrelated to Patronic) accumulated a 60% interest in Acerbic by buying shares from the other shareholders. In May 2008 a meeting of the board of directors of Acerbic was held at which Patronic lost its seat on Acerbic’s board.Required:Explain, with reasons, the accounting treatment Patronic should adopt for its investment in Acerbic when it prepares its financial statements for the year ending 31 March 2009.(4 marks)(25 marks)3[P.T.O.2Below is the summarised draft balance sheet of Dexon, a publicly listed company, as at 31 March 2008.£’000£’000£’000 Fixed assetsProperty at valuation (land £20,000; buildings £165,000 (note (ii))185,000 Plant (note (ii))180,500 Investments at fair value through profit and loss at 1 April 2007 (note (iii))12,500––––––––378,000 Current assetsStock 84,000Debtors (note (iv))52,200Bank3,800––––––––140,000 Creditors: amounts falling due within one year (81,800)––––––––Net current assets58,200 Provisions for liabilitiesDeferred tax –at 1 April 2007 (note (v))(19,200)––––––––Net assets417,000––––––––Share capital and reservesOrdinary shares of £1 each 250,000 Share premium 40,000Revaluation reserve18,000Profit and loss account–at 1 April 200712,300–for the year ended 31 March 200896,700109,000167,000–––––––––––––––––––––––417,000––––––––The following information is relevant:(i)Dexon’s profit and loss account for the year includes £8 million in turnover from credit sales made on a ‘sale orreturn’ basis. At 31 March 2008, customers who had not paid for the goods, had the right to return £2·6 million of them. Dexon applied a mark up on cost of 30% on all these sales. In the past, Dexon’s customers have sometimes returned goods under this type of agreement.(ii)The fixed assets have not been depreciated for the year ended 31 March 2008.Dexon has a policy of revaluing its land and buildings at the end of each accounting year. The values in the above balance sheet are as at 1 April 2007 when the buildings had a remaining life of fifteen years. A qualified surveyor has valued the land and buildings at 31 March 2008 at £180 million.Plant is depreciated at 20% on the reducing balance basis.(iii)The investments at fair value through profit and loss are held in a fund whose value changes directly in proportion to a specified market index. At 1 April 2007 the relevant index was 1,200 and at 31 March 2008 it was 1,296.(iv)In late March 2008 the directors of Dexon discovered a material fraud perpetrated by the company’s credit controller that had been continuing for some time. Investigations revealed that a total of £4 million of the debtors as shown in the balance sheet at 31 March 2008 had in fact been paid and the money had been stolen by the credit controller. An analysis revealed that £1·5 million had been stolen in the year to 31 March 2007 with the rest being stolen in the current year. Dexon is not insured for this loss and it cannot be recovered from the credit controller, nor is it deductible for tax purposes.(v)During the year the company’s timing differences increased by £10 million (capital allowances in excess of carrying values) of which £6 million related to the revaluation of the property. Dexon has a firm commitment to sell this property in the near future and has therefore been advised that a tax liability will arise on its sale. The applicable corporation tax rate is 20%.4(vi)The above figures do not include the estimated provision for corporation tax on the profits for the year ended31 March 2008. After allowing for any adjustments required in items (i) to (iv), the directors have estimated theprovision at £11·4 million (this is in addition to the deferred tax effects of item (v)).(vii)On 1 September 2007 there was a fully subscribed rights issue of one new share for every four held at a price of £1·20 each. The proceeds of the issue have been received and the issue of the shares has been correctly accounted for in the above balance sheet.(viii)In May 2007 a dividend of 4 pence per share was paid. In November 2007 (after the rights issue in item (vii) above) a further dividend of 3 pence per share was paid. Both dividends have been correctly accounted for in the above balance sheet.Required:Taking into account any adjustments required by items (i) to (viii) above(a)Prepare a statement showing the recalculation of Dexon’s profit for the year ended 31 March 2008.(8 marks)(b)Prepare a statement of the movements in the share capital and reserves of Dexon for the year ended31 March 2008.(8 marks)(c)Redraft the balance sheet of Dexon as at 31 March 2008.(9 marks) Note: notes to the financial statements are NOT required.(25 marks)5[P.T.O.3Pinto is a publicly listed company. The following financial statements of Pinto are available: Profit and loss account for the year ended 31 March 2008£’000 T urnover5,740 Cost of sales(4,840)––––––Gross profit900 Distribution costs (120) Administrative expenses (note (ii))(350)––––––Operating profit430 Income from and gains on investment property60 Finance costs (50)––––––Profit before tax440 T ax(160)––––––Profit for the year280––––––Balance sheets as at31 March 200831 March 2007£’000£’000£’000£’000 Fixed assetsT angible assets (note (i))2,8801,860 Investment property420400––––––––––––3,3002,260 Current assetsStock1,210810Debtors480540T ax asset nil50Bank10nil––––––––––––1,7001,400––––––––––––Creditors: amounts falling due within one yearBank overdraft nil120Creditors1,4101,050Warranty provision (note (iv))200100T axation150nil––––––––––––(1,760)(1,270)––––––––––––Net current assets (liabilities)(60)130 Creditors: amounts falling due after more than one year6% loan notes (note (ii))nil(400) Provisions for liabilitiesDeferred tax(50)(30)––––––––––––3,1901,960––––––––––––Capital and reservesEquity shares of 20 pence each (note (iii))1,000600 Share premium600nilRevaluation reserve (note (i))15050Profit and loss account1,4402,1901,3101,360––––––––––––––––––––––––3,1901,960––––––––––––6The following supporting information is available:(i)The increase in the revaluation reserve is attributable to a revaluation of Pinto’s property during the year.An item of plant with a carrying amount of £240,000 was sold at a loss of £90,000 during the year. Depreciation of £280,000 was charged (to cost of sales) for tangible fixed assets the year ended 31 March 2008.There were no purchases or sales of investment property during the year.(ii)The 6% loan notes were redeemed early incurring a penalty payment of £20,000 which has been charged as an administrative expense in the profit and loss account.(iii)There was an issue of shares for cash on 1 October 2007. There were no bonus issues of shares during the year. (iv)Pinto gives a 12 month warranty on some of the products it sells. The amounts shown as warranty provision are an accurate assessment, based on past experience, of the amount of claims likely to be made in respect of warranties outstanding at each year end. Warranty costs are included in cost of sales.(v) A dividend of 3 pence per share was paid on 1 January 2008.Required:(a)Prepare a cash flow statement for Pinto for the year to 31 March 2008 in accordance with FRS 1 Cash FlowStatements.(15 marks) (b)Comment on the cash flow management of Pinto as revealed by the cash flow statement and the informationprovided by the above financial statements.Note: ratio analysis is not required, and will not be awarded any marks.(10 marks)(25 marks)7[P.T.O.4(a)The ASB’s Statement of Principles for Financial Reporting requires financial statements to be prepared on the basis that they comply with certain accounting concepts, underlying assumptions and (qualitative) characteristics. Five of these are:Matching/accrualsSubstance over formPrudenceComparabilityMaterialityRequired:Briefly explain the meaning of each of the above principles/concepts.(5 marks)(b)For most entities, applying the appropriate concepts/assumptions in accounting for stock is an important elementin preparing their financial statements.Required:Illustrate with examples how each of the principles/concepts in (a) may be applied to accounting for stock.(10 marks)(15 marks) 5Pingway issued a £10 million 3% convertible loan note at par on 1 April 2007 with interest payable annually in arrears. Three years later, on 31 March 2010, the loan note is convertible into equity shares on the basis of £100 of loan note for 25 equity shares or it may be redeemed in cash at par at the option of the loan note holder. One of the company’s financial assistants observed that the use of a convertible loan note was preferable to a non-convertible loan note as the latter would have required an interest rate of 8% in order to make it attractive to investors. The assistant has also commented that the use of a convertible loan note will improve the profit as a result of lower interest costs and, as it is likely that the loan note holders will choose the equity option, the loan note can be classified as equity which will improve the company’s high gearing position.The present value of £1 receivable at the end of the year, based on discount rates of 3% and 8% can be taken as:3%8%££End of year 10·970·9320·940·8630·920·79Required:Comment on the financial assistant’s observations and show how the convertible loan note should be accounted for in Pingway’s profit and loss account for the year ended 31 March 2008 and balance sheet as at that date.(10 marks)End of Question Paper8。
ACCA 历年真题f5_2012_dec_a
Fundamentals Level – Skills Module, Paper F5Performance Management December 2012 Answers 1Hair Co(a)Weighted average contribution to sales ratio (WA C/S ratio) = total contribution/total sales revenue.Per unit:C S D$$$Selling price110160120Material 1(12)(28)(16)Material 2(8)(22)(26)Skilled labour(16)(34)(22)Unskilled labour(14)(20)(28)–––––––––Contribution 605628–––––––––Sales units20,00022,00026,000T otal sales revenue$2,200,000$3,520,000$3,120,000T otal contribution $1,200,000$1,232,000$728,000WA C/S ratio = $1,200,000 + $1,232,000 + $728,000/$2,200,000 + $3,520,000 + $3,120,000= $3,160,000/$8,840,000 = 35·75%(b)Break-even sales revenue = fixed costs/C/S ratioTherefore break-even sales revenue = $640,000/35·75% = $1,790,209·70.(c)PV chartCalculate the individual C/S ratio for each product then rank them according to the highest one first.Per unit:C S D$$$Contribution 605628Selling price110160120C/S ratio0·550·350·23Ranking123Product Revenue Cumulative Revenue Profit Cumulative Profit(x axis co-ordinate)(y axis co-ordinate)$$$$000(640,000)(640,000)Make C2,200,0002,200,0001,200,000560,000Make S3,520,0005,720,0001,232,0001,792,000Make D3,120,0008,840,000728,0002,520,000(d)From the chart above it can be seen that, if the products are sold in order of the highest ranking first, break even will take place at a point just under $1,200,000 of sales revenue. The exact figure can be worked out by taking the fixed costs of $640,000 and dividing them by Product C’s C/S ratio of 0·55, i.e. the exact BEP is $1,163,636. This is substantially earlier than the break-even point which occurs if the products are all sold in a constant mix, which is $1,790,209, as calculated in (b) above.The reason for this is obviously because the more profitable product, C, contributes more per unit to fixed costs when being sold on its own, than when a mix of products C, S and D are sold. The weighted average C/S ratio of all three products is only 35·75%, compared to C’s C/S ratio of 55%. Obviously, then, break even will occur earlier if C is sold in priority.In reality, however, the mix of sales will vary throughout the year and Hair Co can neither assume that the products are sold in a constant mix, nor that the most profitable can be sold first.2Truffle Co (a)Basic variancesStandard cost of labour per hour = $6/0·5 = $12 per hour.Labour rate variance = (actual hours paid x actual rate) – (actual hours paid x std rate)Actual hours paid x std rate = $136,800/·95 = $144,000. Therefore rate variance = $144,000 –$136,800 = $7,200 FLabour efficiency variance =(actual production in std hours – actual hours worked) x std rate[(20,500 x 0·5) – 12,000] x $12 = $21,000 A.(b)Planning and operational variancesLabour rate planning variance(Revised rate –std rate) x actual hours paid = [$12 – ($12 x 0·95)] x 12,000 = $7,200 F .Labour rate operational varianceThere is no labour rate operational variance.(Revised rate – actual rate) x actual hours paid = $11·40 –$11·40 x 12,000 = 0Most p r ofitable fi r st Co n sta n t m ix2,0004,0006,0008,00010,000–1,000–50005001,0001,5002,0002,5003,000Sales revenue $’000P r o f i t $’000CSDLabour efficiency planning variance(Standard hours for actual production –revised hours for actual production) x std rate[10,250 –(20,500 x 0·5 x 1·2)] x $12 = $24,600 A.Labour efficiency operational variance(Revised hours for actual production – actual hours for actual production) x std rate(12,300 – 12,000) x $12 = $3,600 F.(c)DiscussionWhen looking at the total variances alone, it looks like the production manager has been extremely poor at controlling his staff’s efficiency, since the labour efficiency variance is $21,000 adverse. It also looks, at a glance, like he has managed to secure labour at a lower rate.In order to assess the production manager’s performance fairly, however, only the operational variances should be taken into account. This is because planning variances reflect differences that arise because of factors that are outside the control of the production manager. The operational variance for the labour rate was $0, which means that the labour force were paid exactly what was agreed at the end of October: their reduced rate of $11·40 per hour. The manager clearly did not have to pay anyone for overtime, for example, which would have been expected to push this rate up. The rate reduction was secured by the company and was not within the control of the production manager, so he cannot take credit for the favourable rate planning variance of $7,200. The company is the source of this improvement.As regards labour efficiency, the planning and operational variances give us more information about the total efficiency variance of $21,000A. When this is broken down into its two parts, it becomes clear that the operational variance, for which the manager does have control, is actually $3,600 favourable. This is because, when the recipe is changed as it has been in November, the chocolates usually take 20% longer to make in the first month whilst the workers are getting used to handling the new ingredient mix. When this is taken into account, it can therefore be seen that workers took less than the 20% extra time that they were expected to take, hence the positive operational variance. The planning variance, on the other hand, is $24,600 adverse. This is because the standard labour time per batch was not updated in November to reflect the fact that it would take longer to produce the truffles. The manager cannot be held responsible for this.Overall, then, the manager has performed well, given the change in the recipe.3Web CoWeb Co has made three changes and introduced two incentives in an attempt to increase sales. Using the performance indicators given in the question, it is possible to assess whether these attempts have been successful.Total sales revenueThis has increased from $2·2 million to $2·75m, an increase of 25% (W1). This is a substantial increase, especially considering the fact that a $10 discount has been given to all customers spending $100 or more at any one time. However, because a number of changes and incentives have been introduced, it is not possible to assess how effective each of the individual changes/incentives has been in increasing sales revenue without considering the other performance indicators.Net profit margin (NPM)This has decreased from 25% to 16·7%. In $ terms this means that net profit was $550,000 in quarter 1 and $459,250 in quarter 2 (W2). If the 25% NPM had been maintained in quarter 2, the net profit would have been $687,500 for quarter 2. It is therefore $228,250 lower than it would have been. This is mainly because of the $200,000 paid out for advertising and the $20,000 paid to the consultant for the search engine work. The remaining $8,250 difference could be a result of the cost of the $10 discounts given to customers who spent more than $100, depending on how these are accounted for. Alternatively, it could be due to the costs of providing the Fast T rack service. More information would be required on how the discounts are accounted for (whether they are netted off sales revenue or instead included in cost of sales) and also on the cost of providing the Fast T rack service.Whilst it is not clear how long the advert is going to run for in the fashion magazine, $200,000 does seem to be a very large cost.This expense is largely responsible for the fall in NPM. This is discussed further under ‘number of visits to website’.Number of visits to websiteThese have increased dramatically from 101,589 to 141,714, an increase of 40,125 visits (39·5% W3). The reason for this isa combination of visitors coming through the fashion magazine’s website (28,201 visitors W5), with the remainder of the increasemost probably being due to the search engine consultants’ work. Both of these changes can therefore be said to have been effective in improving the number of people who at least visit Web Co’s online store. However, given that the search engine consultant only charged a fee of $20,000 compared to the $200,000 paid for magazine advertising, in relative terms, the consultant’s work provided value for money. Web Co’s sales are not really high enough to withstand a hit of $200,000 against profit, hence the fall in NPM.Number of orders/customers spending more than $100The number of orders received from customers has increased from 40,636 to 49,600, an increase of 22% (W4). This shows that, whilst most of the 25% sales revenue increase is due to a higher number of orders, 3% of it is due to orders being of a higher purchase value. This is also reflected in the fact that the number of customers spending more than $100 per visit has increasedfrom 4,650 to 6,390, an increase of 1,740 orders. So, for example, If each of these 1,740 customers spent exactly $100 rather than the $50 they might normally spend, it would easily explain the 3% increase in sales that is not due to increased order numbers. It depends partly on how the sales discounts of $10 each are accounted for. As stated above, further information is required on these.An increase in the number of orders would also be expected, given that the number of visitors to the site has increased substantially.This leads on to the next point.Conversion rate – visitor to purchaserThe conversion rate of visitors to purchasers has gone down from 40% to 35%. This is not surprising, given the advertising on the fashion magazine’s website. Readers of the magazine may well have clicked on the link out of curiosity and may come back and purchase something at a later date. It may be useful to have a breakdown of the visitor to purchaser rate, showing one statistic for visitors who have come from the online magazine and one for those who have not. This would help clarify the position.Website availabilityRather than improving after the work completed by Web Co’s IT department, the website’s availability has stayed the same. This means that the IT department’s changes to the website have not corrected the problem. Lack of availability is not good for business, although its exact impact is difficult to ascertain. It may be that visitors have been part of the way through making a purchase only to find that the website then becomes unavailable. More information would need to be available about aborted purchases, for example, before any further conclusions could be drawn.Subscribers to online newsletterThese have increased by a massive 159%. It is not clear what impact this has had on the business as we do not know whether the level of repeat customers has increased. This information is needed. Surprisingly, it seems that there has not been an increased cost associated with providing Fast T rack delivery, as the whole fall in net profit has been accounted for, so one can only assume that Web Co managed to offer this service without incurring any additional cost itself.ConclusionWith the exception of the work carried out to make the system more available, all of the other measures seem to have increased sales or, in the case of Incentive 1, increased subscribers. More information is needed in relation to a couple of areas, as noted above. The business has therefore been responsive to changes made and incentives implemented but the cost of the advertising was so high that, overall, profits have declined substantially. This expenditure seems too high in relation to the corresponding increase in sales volumes.Workings1.Increase in sales revenue $2·75m –$2·2m/$2·2m = 25% increase.2. NPM: 25% x $2·2m = $550,000 profit in quarter 1. 16·7% x $2·75m = $459,250 profit in quarter 2.3.No. of visits to website: increase = 141,714 –101,589/101,589 = 39·5%.4.Increase in orders = 49,600 –40,636/40,636 = 22%.5.Customers accessing website through magazine line = 141,714 x 19·9% = 28,201.6.Increase in subscribers to newsletter = 11,900 –4,600/4,600 = 159%.4Designit(a)ExplanationThe rolling budget outlined for Designit would be a budget covering a 12-month period and would be updated monthly.However, instead of the 12-month period remaining static, it would always roll forward by one month. This means that, as soon as one month has elapsed, a budget is prepared for the corresponding month one year later. For example, Designit would begin by preparing a budget for the 12 months from 1 December 2012 to 30 November 2013, to correspond with its year end. Then, at the end of December 2012, a budget would be prepared for the month December 2013, so that the unexpired period covered by the budget is always 12 months.When the budget is initially prepared for the year ending 30 November 2013, the first month is prepared in detail, with much less detail being given to later months, where there is a greater uncertainty about the future. Then, when this first month has elapsed and the budget for the month of December 2013 is prepared, it is also necessary to revisit and revise the budget for January 2013, which will now be done in more detail.Note:This answer gives more level of detail than would be required to gain full marks.(b)ProblemsDesignit only has one part-qualified accountant. H e is already overworked and probably has neither the time nor the experience to prepare rolling budgets every month. One would only expect to see monthly rolling budgets of this nature in businesses which face rapid change. There is no evidence that this is the case for Designit. If it did decide to introduce rolling budgets, it would probably be sufficient if they were updated on a quarterly rather than a monthly basis. If this monthly rolling budget is going to be introduced, it is going to require a lot of input from many of the staff, meaning that they will have less time to dedicate to other things.The sales managers may react badly to the new budgeting and incentive system. They are used to having been set targets that are easily achievable. With the new system, they will have to work hard all year round. They are also likely to become frustrated with the fact that they do not know the target for the whole year in advance. Once they have hit their target for themonth, they may then also be tempted to hold back further work and let it run into the next month, so that they increase the chances of meeting next month’s target. This would not be good for the business.(c)Alternative incentive schemeThe issue with the current bonus scheme is that the reward system is stepped, rather than being a percentage of sales. The first $1·5 million fee income target is too easy to reach and the second $1·5 million target is too hard to reach. Therefore, managers are not motivated to earn additional fees once the initial $1·5 million target has been reached.A series of constantly rising bonus rates ranging over a narrower rate of sales could be used. For example, every $500,000of fee income could be rewarded with an additional bonus equivalent to 5% of salary. Alternatively, the bonus could be replaced by commission, giving the managers a reward as a percentage of the fee income rather than a percentage of salary.Currently, the company is paying out $30,000 in bonus to each of its managers each year. This is 2% of $1·5 million.Therefore, the bonus could be that each manager earns 2% commission on all sales.(d)Using spreadsheetsIf spreadsheets are used for budgeting, the part-qualified accountant could be rekeying large amounts of data taken from the company’s systems. It would be very easy for him to make a mistake when he is entering his data, especially without someone else to check his work.Similarly, if there is any error in any of the formulae, all the numbers in the budget will be wrong. Whilst this risk already exists because fixed budgets are being prepared on spreadsheets, the rolling budgets will be far more complex, which increases the risk of error in the design of the model or any of the formulae.A model can become easily corrupted simply by putting a number in the wrong cell. The accountant is unlikely to spot thisdue to his lack of experience and the time pressure on him.When spreadsheets are used, there is no audit trail that can be followed in order to check the numbers.5Wash Co(a)Transfer price using machine hoursT otal overhead costs = $877,620T otal machine hours = (3,200 x 2) + (5,450) x 1 = 11,850Overhead absorption rate = $877,620/11,850 = $74·06Overhead cost for S = 2 x $74·06 = $148·12 and for R = 1 x $74·06 = $74·06.Product S Product R$$Materials cost11795Labour cost (at $12 per hour)69Overhead costs148·1274·06––––––––––––T otal cost271·12178·0610% mark-up27·11 17·81––––––––––––T ransfer price using machine hours298·23195·87––––––––––––(b)Transfer price using ABCMachine set up costs:driver = number of production runs.30 + 12 = 42.Therefore cost per set up = $306,435/42 = $7,296·07Machine maintenance costs:driver = machine hours: 11,850 (S= 6,400; R=5,450)$415,105/11,850 = $35·03Ordering costs:driver = number of purchase orders82 + 64 = 146.Therefore cost per order = $11,680/146 = $80Delivery costs:driver = number of deliveries.64 + 80 = 144.Therefore cost per delivery = $144,400/144 = $1,002·78Allocation of overheads to each product:Product S Product R Total$$$ Machine set-up costs218,88287,553306,435Machine maintenance costs224,192190,913415,106Ordering costs6,5605,12011,680Delivery costs64,178 80,222144,400––––––––––––––––––––––––T otal overheads allocated513,812363,808877,620––––––––––––––––––––––––Number of units produced3,2005,4508,650$$Overhead cost per unit160·5766·75T ransfer price per unit:Materials cost11795Labour cost69Overhead costs160·5766·75––––––––––––––T otal cost283·57170·75Add10% mark up28·3617·08––––––––––––––T ransfer price under ABC311·93187·83––––––––––––––(c)(i)ABC monthly profitUsing ABC transfer price from part (b):Assembly division Product S Product R TotalProduction and sales3,2005,450$$10% mark up28·3617·08––––––––––––––––––––Profit90,75293,086183,838––––––––––––––––––––––––––––Retail division Product S Product R TotalProduction and sales3,2005,450$$Selling price320260Cost price(311·93)(187·83)–––––––––––––––––––––Profit per unit8·0772·17–––––––––––––––––––––T otal profit25,824393,327419,151–––––––––––––––––––––––––––––(ii)DiscussionFrom the various profit figures for the three bases of allocating overheads, various observations can be made.–There is obviously very little difference between the TOTAL profits of each division whichever method is used, except for differences arising from rounding. In each case, the total profit made by the assembly division isapproximately $183,000 and $419,000 for the retail division. It is the reallocation of profits from R to S or S toR that is the important factor in this situation, given that the retail division wants to reduce prices but increase salesvolumes for R.–As regards the assembly division, when labour hours are used to allocate overheads, there is a big difference between the profits that each of the two products makes. When machine hours or ABC are used, this differencebecomes much smaller.–As regards the retail division, when labour hours are used, product S generates 76% of the profit. When this method of allocation is then changed so that either machine hours are used or ABC is used, the main share of theprofit then moves to product R. In the case of ABC, the profit moves so much to R that S only generates a profitper unit of $8·07 for the retail division, which is very low for a selling price of $320.–From the assembly division manager’s point of view, any change that results in increased sales of either R or S to the retail division would be a good thing for the assembly division, given that both products are profitable. However,the assembly division’s manager would probably oppose the implementation of ABC to achieve this end resultbecause firstly, it is complex and secondly, it is unnecessary here. The aim of this exercise is to set more accuratetransfer prices for R and S, which should mean a reduction in R’s transfer price and an increase in S’s, accordingto the information given. This would then have the effect of enabling the retail division to lower its price for R andincrease sales volumes. This goal is achieved simply by changing the basis of overhead absorption from labourhours to machine hours, without the need for activity based costing.–The retail manager’s view is likely to be exactly the same. If the basis of absorption is changed so that a lower transfer price is charged, the retail division could potentially reduce their selling price for R, provided that the increased sales volumes more than make up for the reduced margin. There is no need to get into the complexities of ABC when the results it produces are not that different.Fundamentals Level – Skills Module, Paper F5Performance Management December 2012Marks1Hair Co(a)Weighted average C/S ratioIndividual contributions3T otal sales revenue1T otal contribution1Ratio1–––6–––(b)Break-even revenue2–––(c)PV chartIndividual CS ratios1·5Ranking1Workings for chart2Chart:Labelling 0·5Plotting each of six points4–––9–––(d)DiscussionGeneral comments re assumptions of CVP (max. 2 marks)1Each valid point re BEP1–––3–––Total20––––––2Truffle Co(a)Rate and efficiency variancesRate variance2Efficiency variance2–––4–––(b)Planning and operational variancesLabour rate planning variance2Labour rate operational variance2Labour efficiency planning variance2Labour efficiency operational variance2–––8–––(c)DiscussionOnly operational variances controllable1No labour rate operating variance 1Planning variance down to company, not manager2Labour efficiency total variance looks bad2Manager has performed well as regards efficiency2Standard for labour time was to blame2Conclusion2–––Maximum marks8–––Total20––––––Marks 3Web CoCalculations4 Missing info3 Discussion and further analysis (2–3 marks per point)18 Conclusion2–––Total20––––––4Designit(a)ExplanationUpdated after one month elapsed1 Always 12 months1 Example given1 First month in detail1 Later month less detail1 Need to revisit earlier months1–––Maximum4–––(b)ProblemsMore time1 Lack of experience1 T oo regular2 Managers’ resistance2 Work harder1 Holding back work2–––Maximum6–––(c)Simpler incentive schemeCurrent target too easy1 Second target too hard1 Other valid point re current scheme1 New scheme outlined3–––6–––(d)Using spreadsheetsErrors entering data1 Rolling budgets more complex1 Formulae may be wrong1 Corruption of model1 No audit trail1–––Maximum4–––Total20––––––Marks 5Wash Co(a)T ransfer price using machine hoursCalculating OAR1 New TP for S1 New TP for R1–––3–––(b)T ransfer price using ABCIdentify cost drivers1 Cost driver rates2 T otal overheads allocated2 Overhead cost per unit1 T otal cost per unit1 T ransfer price per unit1–––8–––(c)ABC profit and discussion(i)Profit calculation3–––(ii)Each valid comment 2–––Maximum marks6–––Total20––––––21。
【国际注册会计师ACCA】F7 2008-2014历年真题-f7int_2011_dec_a
Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International)December 2011 Answers 1Consolidated statement of financial position of Paladin as at 30 September 2011$’000$’000 AssetsNon-current assets:Property, plant and equipment (40,000 + 31,000 + 4,000 –1,000)74,000Intangible assets (w (i))–goodwill15,000–other intangibles (7,500 + 3,000 –500)10,000Investment in associate (w (ii))7,700––––––––106,700 Current assetsInventory (11,200 + 8,400 –600 URP (w (iii)))19,000T rade receivables (7,400 + 5,300 –1,300 intra-group (w (iii)))11,400Bank3,40033,800–––––––––––––––T otal assets140,500––––––––Equity and liabilitiesEquity attributable to owners of the parentEquity shares of $1 each 50,000Retained earnings (w (iv))35,200––––––––85,200 Non-controlling interest (w (vi))7,900––––––––T otal equity93,100Non-current liabilitiesDeferred tax (15,000 + 8,000)23,000Current liabilitiesBank overdraft2,500Deferred consideration 5,400T rade payables (11,600 + 6,200 –1,300 intra-group (w (iii))) 16,50024,400–––––––––––––––T otal equity and liabilities140,500––––––––Workings (figures in brackets are in $’000)(i)Goodwill in Saracen$’000$’000 Controlling interest (see below)Immediate cash32,000Deferred consideration (5,400 x 100/108)5,000Non-controlling interest (10,000 x 20% (see below) x $3·50)7,000–––––––44,000 Equity shares10,000Pre-acquisition reserves:At 1 October 2010 12,000Fair value adjustments– plant4,000–intangible3,000(29,000)––––––––––––––Goodwill arising on acquisition15,000–––––––The cost of the majority shareholding in Saracen was $32 million. Paladin acquired eight million shares and Saracen has10 million $1 shares, this gives a controlling interest of 80% and a non-controlling interest of 20%.The customer relationship asset is recognised as an intangible asset in the consolidated financial statements under IFRS 3 Business combinations.(ii)Carrying amount of Augusta at 30 September 2011$’000 Cash consideration10,000Share of post-acquisition profits (1,200 x 8/12 x 25%)200Impairment loss (2,500)––––––7,700––––––(iii)Unrealised profit (URP) in inventory/intra-group current accountsThe URP in Saracen’s inventory (supplied by Paladin) of $2·6 million is $600,000 (2,600 x 30/130). The current account balances of Paladin and Saracen should be eliminated from trade receivables and payables at the agreed amount of $1·3 million.(iv)Consolidated retained earnings:$’000 Paladin’s retained earnings (25,700 + 9,200)34,900Saracen’s post-acquisition profits (4,500 (w (v)) x 80%) 3,600Augusta’s post-acquisition profits (w (ii))200Augusta’s impairment loss(2,500)URP in inventory (w (iii))(600)Finance cost of deferred consideration (5,000 x 8%)(400)–––––––35,200–––––––(v)Post-acquisition adjusted profit of Saracen is:$’000 Profit as reported6,000Additional depreciation of plant (4,000/4 years)(1,000)Additional amortisation of customer relationship asset (3,000/6 years)(500)––––––4,500––––––(vi)Non-controlling interest$’000 Fair value on acquisition (w (i))7,000Post-acquisition profits (4,500 (w (v)) x 20%)900––––––7,900––––––2(a)Keystone – Statement of comprehensive income for the year ended 30 September 2011$’000$’000 Revenue (380,000 – 2,400 (w (i)))377,600Cost of sales (w (ii))(258,100)––––––––Gross profit119,500Distribution costs (14,200)Administrative expenses (46,400 – 24,000 dividend (50,000 x 5 x 2·40 x 4%))(22,400)Investment income800Loss on fair value of investments (18,000 – 17,400)(600)Finance costs (350)––––––––Profit before tax82,750Income tax expense (24,300 + 1,800 (w (v)))(26,100)––––––––Profit for the year56,650Other comprehensive incomeRevaluation of leased property8,000T ransfer to deferred tax (w (v))(2,400)5,600––––––––––––––T otal comprehensive income for the year 62,250––––––––(b)Keystone – Statement of financial position as at 30 September 2011$’000$’000 AssetsNon-current assetsProperty, plant and equipment (w (iv))78,000Financial asset: equity investments17,400––––––––95,400 Current assetsInventory (w (iii))56,600T rade receivables (33,550 – 2,400 (w (i))) 31,15087,750–––––––––––––––T otal assets183,150––––––––Equity and liabilitiesEquityEquity shares of 20 cents each50,000Revaluation reserve (w (iv))5,600Retained earnings (33,600 + 56,650 – 24,000 dividend paid) 66,25071,850–––––––––––––––121,850 Non-current liabilitiesDeferred tax (w (v))6,900Current liabilitiesT rade payables27,800Bank overdraft2,300Current tax payable24,30054,400–––––––––––––––T otal equity and liabilities183,150––––––––Workings (figures in brackets in $’000)(i)Where there is uncertainty over goods sold on a sale or return basis they should not be recognised as revenue until theyhave been formally accepted by the buyer. Thus $2·4 million should be removed from revenue and receivables. The goods should be added to the inventory at 30 September 2011 at their cost of $1·8 million (2·4 million x 75%).(ii)Cost of sales$’000 opening inventory46,700materials (64,000 – 3,000)61,000production labour (124,000 – 4,000)120,000factory overheads (80,000 – (4,000 x 75%))77,000Amortisation of leased property (w (iv))3,000Depreciation of plant (1,000 + 6,000 (w (iv)))7,000Closing inventory (w (iii))(56,600)––––––––258,100––––––––The cost of the self-constructed plant is $10 million (3,000 + 4,000 + 3,000 for materials, labour and overheads respectively that have also been deducted from the above items in cost of sales). It is not permissible to add a profit margin to self-constructed assets.(iii)Inventory at 30 September 2011:$’000 per count54,800goods on sale or return (w (i))1,800–––––––56,600–––––––(iv)Non-current assets:The leased property has been amortised at $2·5 million per annum (50,000/20 years). The accumulated amortisation of $10 million therefore represents four years, thus its remaining life at the date of revaluation is 16 years.$’000 carrying amount at date of revaluation (50,000 – 10,000)40,000revalued amount48,000–––––––gross gain on revaluation 8,000transfer to deferred tax (at 30%)(2,400)–––––––net gain to revaluation reserve5,600–––––––The revalued amount of $48 million will be amortised over its remaining life of 16 years at $3 million per annum.The self-constructed plant will be depreciated for six months by $1 million (10,000 x 20% x 6/12) and have a carryingamount at 30 September 2011 of $9 million. The plant in the trial balance will be depreciated by $6 million ((44,500– 14,500) x 20%) for the year and have a carrying amount at 30 September 2011 of $24 million.In summary:$’000 Leased property (48,000 – 3,000)45,000Plant (9,000 + 24,000)33,000–––––––Property, plant and equipment78,000–––––––(v)Deferred taxProvision required at 30 September 2011 ((15,000 + 8,000) x 30%)6,900Provision at 1 October 2010 (2,700)–––––––Increase required4,200Transferred from revaluation reserve (w (iv))(2,400)–––––––Balance: charge to income statement1,800–––––––3(a)Mocha – Statement of cash flows for the year ended 30 September 2011:(Note: figures in brackets are in $’000)Cash flows from operating activities:$’000$’000Profit before tax3,900Adjustments fordepreciation of non-current assets 2,500profit on the disposal of property, plant and equipment (8,100 – 4,000)(4,100)investment income(1,100)interest expense500increase in inventory (10,200 – 7,200)(3,000)decrease in receivables (3,700 – 3,500)200decrease in payables (4,600 – 3,200)(1,400)decrease in warranty provision (4,000 – 1,600)(2,400)–––––––Cash generated from operations (4,900)Interest paid(500)Income tax paid (w (i))(800)–––––––Net cash deficit from operating activities(6,200)Cash flows from investing activities:Purchase of property, plant and equipment(8,300)Disposal of property, plant and equipment8,100Disposal of investment3,400Dividends received200–––––––Net cash from investing activities3,400Cash flows from financing activities:Shares issued (w (ii))2,400Payment of finance lease obligations (w (iii))(3,900)–––––––Net cash from financing activities(1,500)–––––––Net decrease in cash and cash equivalents (4,300)Cash and cash equivalents at beginning of the year1,400–––––––Cash and cash equivalents at end of the year(2,900)–––––––Workings(i)Income tax paid:$’000Provision b/f–current(1,200)–deferred(900)Income statement tax charge (1,000)Provision c/f–current1,000–deferred1,300––––––Difference – cash paid(800)––––––(ii)Share issues$’000Increase in share capital (14,000 – 8,000)6,000Bonus issue–share premium(2,000)–revaluation reserve (3,600 – 2,000)(1,600)––––––Shares issued for cash at par2,400––––––(iii)Finance leaseBalance b/f–current(2,100)–non-current(6,900)New leases in year(6,700)Balance c/f–current4,800–non-current7,000––––––Principal repaid(3,900)––––––Tutorial note:Reconciliation of investments/investment income$’000InvestmentsBalance b/f7,000Carrying amount sold(3,000)Balance c/f(4,500)––––––Difference: increase in fair value500––––––Carrying amount sold3,000Proceeds(3,400)––––––Profit on sale in income statement400––––––Tutorial note:as the retained earnings at 30 September 2010 (10,100) plus the profit for the period (2,900) equalthe retained earnings at 30 September 2011 (13,000) there was no equity dividend paid.(b)(i)Mocha has reported an operating profit of $3·3 million (12,000 – 8,700) for the year ended 30 September 2011, whichis likely to give a favourable impression to shareholders. However, its cash generated from operations is a deficit of$4·9 million. The reconciling items of these two figures appear in the statement of cash flows and it can be seen thatoperating profit has been boosted by the profit on the sale of a property and a large decrease in the product warrantyprovision. Some commentators argue that a profit on the sale of non-current assets is not really an ‘operating’ profit andit is misleading to be classed as such. Also, many items included in operating profit are subjective (for example theproduct warranty provision), and as such can be subject to manipulation. Cash flows are unaffected by such subjectiveestimates and from this perspective they are considered less susceptible to manipulation and therefore more reliable.(ii)From the statement of financial position it can be seen that net investment in property, plant and equipment (after depreciation) has increased by $8·5 million (32,600 –24,100). This may give the impression that the company isinvesting heavily in property, plant and equipment, and in one sense it is. However, the statement of cash flows showsthat net cash investment in property, plant and equipment is only $200,000 (purchases of 8,300 less disposals of8,100). Most of the difference is due to a (non-cash) acquisition of plant under finance leases (meaning furtherborrowing) and disposal proceeds of plant and equipment in excess of its carrying amounts. The cash flow informationgives a somewhat different (and possibly more realistic) view of the company’s investment in property, plant andequipment during the year.4(a)IAS 37 Provisions, contingent liabilities and contingent assets defines provisions as liabilities of uncertain timing or amount that should be recognised where there is a present obligation (as a result of past events), it is probable (assumed to be more than a 50% chance) that there will be an outflow of economic benefits (to settle the obligation) and the amounts can be estimated reliably. The obligation may be legal or constructive.A contingent liability has more uncertainty in that it is a possible obligation (assumed to be less than a 50% chance) whoseexistence will be confirmed only by one or more future uncertain events that are not wholly within the control of the entity.An existing obligation where the amount cannot be reliably measured is also treated as a contingent liability.The Standard seeks to improve consistency in the reporting of provisions. In the past some entities created ‘general’ (rather than specific) provisions for liabilities that did not really exist (known as ‘big bath’ provisions); equally many entities did not recognise provisions where there was a present obligation. T he latter often related to deferred liabilities such as future environmental costs. T he effect of such inconsistencies was that comparability was weakened and profit was frequently manipulated.(b)(i)Although the information in the question says the environmental provision is not a legal obligation, it implies that it is aconstructive obligation (Borough has created an expectation that it will pay the environmental costs) and therefore thesecosts should be provided for. The obligation for the fixed element of the cost arose as soon as the extraction commenced,whereas the variable element accrues in line with the extraction of oil. The present value of the environmental cost isshown as a non-current liability (credit) with the debit added to the cost of the licence and (effectively) charged to incomeas part of the annual amortisation charge.The relevant extracts from Borough’s statement of financial position as at 30 September 2011 are:$’000Non-current assetLicence for oil extraction (50,000 + 20,000)70,000Amortisation (10 years)(7,000)–––––––Carrying amount63,000–––––––Non-current liabilityEnvironmental provision ((20,000 + (150,000 x 0·02 cents)) x 1·08 finance cost)24,840–––––––(ii)From Borough’s perspective, as a separate entity, the guarantee for Hamlet’s loan is a contingent liability of $10 million.As Hamlet is a separate entity, Borough has no liability for the secured amount of $15 million, not even for the potentialshortfall for the security of $3 million. The $10 million contingent liability would normally be described and disclosedin the notes to Borough’s entity financial statements.In Borough’s consolidated financial statements, the full liability of $25 million would be included in the statement offinancial position as part of the group’s consolidated non-current liabilities – there would be no contingent liabilitydisclosed.The concerns over the potential survival of Hamlet due to the effects of the recession may change the disclosure inBorough’s entity financial statements. If Borough deems it probable that Hamlet is not a going concern the $10 millionloan, which was previously a contingent liability, would become an actual liability and should be provided for onBorough’s entity statement of financial position and disclosed as a current (not a non-current) liability.5(a)(i)The interest rate (5%) for the convertible loan notes is lower because of the potential value of the conversion option.The cost of equivalent loan notes without the option is 8%, the difference is mainly due to the market expectation of thehigher worth of Bertrand’s equity shares (compared to the cash alternative) when the loan notes are due for redemption.From the entity’s viewpoint, the conversion option means lower payments of interest (to help cash flow), but it willeventually cause a dilution of earnings.(ii)If the directors’ treatment were acceptable, the use of the conversion option (compared to issuing non-convertible loans) would improve profit and earnings per share because of lower interest rates (and hence interest charges) and thecompany’s gearing would be lower as the loan notes would not be shown as debt. However, this proposed treatment isnot acceptable. A convertible loan note is a complex (hybrid) financial instrument and IFRS requires that the proceedsof the issue should be allocated between equity (the value of the option) and debt and the finance charge should bebased on that of an equivalent non-convertible loan (8% in this case).(b)Extracts from the financial statements of BertrandIncome statement for the year ended 30 September 2011$’000 Finance costs (9,190 x 8%)735rounded Statement of financial position as at 30 September 2011EquityEquity option810Non-current liabilities8% convertible loan notes ((9,190 x 1·08) – 500)9,425rounded WorkingYear ended Cash flow Discount rate Discounted cash flows30 September $’000at 8%$’00020115000·9346520125000·86430201310,5000·798,295–––––––value of debt component9,190value of equity option component (= balance)810–––––––total proceeds 10,000–––––––Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International)December 2011 Marking SchemeThis marking scheme is given as a guide in the context of the suggested answers. Scope is given to markers to award marks for alternative approaches to a question, including relevant comment, and where well-reasoned conclusions are provided. This is particularly the case for written answers where there may be more than one acceptable solution.Marks1property, plant and equipment2½goodwill5other intangibles2½investment in associate2inventory1receivables1bank½equity shares½retained earnings 5non-controlling interest 2deferred tax½bank overdraft½deferred consideration1trade payables1Total for question252(a)Income statementrevenue1cost of sales7distribution costs½administrative expenses 1½investment income1loss on fair value of investment1finance costs½income tax expense1½other comprehensive income 115(b)Statement of financial positionproperty, plant and equipment2equity investments½inventory ½trade receivables1equity shares ½revaluation reserve1½retained earnings1½deferred tax1trade payables½bank overdraft½current tax payable½10Total for question25Marks 3(a)profit before tax½depreciation1profit on disposal of property (deducted) 1investment income adjustment (deducted)½interest expense adjustment (added back)½working capital items1½decrease in warranty provisions1½interest paid (cash flow)1income tax paid2purchase of property, plant and equipment 1disposal of property, plant and equipment 1disposal of investment1investment income (dividends received)1share issue2½payment of finance lease obligations2cash b/f½cash c/f½19(b)(i)and (ii)3 marks each 6Total for question254(a)definition of provisions2 definition of contingent liabilities2how the Standard improves comparability26(b)(i)it is a constructive obligation1explanation of treatment1non-current asset (including amortisation) 1½environmental provision (including unwinding of discount)1½(ii)entity financial statements contingent liability of $10 million1 no obligation for secured $15 million 1consolidated statements show full $25 million as a liability1if not a going concern, guarantee would be shown as an actual (current)liability in entity financial statements 19Total for question155(a)(i) 1 mark per valid point 2 (ii) 1 mark per valid point3(b)finance cost2value of equity option1value of debt at 30 September 201125Total for question10。
acca考试试题
acca考试试题ACCA考试试题ACCA（Association of Chartered Certified Accountants）是国际上最具影响力的会计师资格认证机构之一，其考试试题是每位考生必须面对的挑战。
ACCA考试试题的难度与复杂性堪比其他专业资格考试，因此备考过程中的试题解析和技巧是非常重要的。
一、ACCA考试试题的特点ACCA考试试题的特点主要体现在以下几个方面：1.广泛的知识面：ACCA考试试题涵盖了会计、财务管理、税务、审计等多个领域的知识，考生需要具备全面的专业知识体系。
2.实践性强：ACCA考试试题注重考察考生对真实案例的分析和解决问题的能力，而不仅仅是纸上谈兵。
3.综合性强：ACCA考试试题往往需要考生将不同领域的知识进行整合，形成全局性的解决方案。
4.时效性强：ACCA考试试题通常会结合最新的国际会计准则和法规，考生需要及时了解并掌握相关变化。
二、ACCA考试试题的解析技巧1.理解题意：在做ACCA考试试题之前，首先要仔细阅读题目，确保对题意有准确的理解。
如果理解错误，即使答案计算正确也无法得分。
2.分析关键点：ACCA考试试题往往会给出大量的信息，但并非每一条信息都是关键的。
考生需要通过分析，找出问题的关键点，避免陷入无用的细节。
3.建立思维框架：在解答ACCA考试试题时，可以先建立一个思维框架，将问题按照逻辑顺序进行分类和排序，有助于整理思路和提高解题效率。
4.灵活运用知识：ACCA考试试题往往需要考生将不同领域的知识进行整合运用。
因此，考生需要具备广泛的知识储备，并能够将其灵活应用于解决实际问题。
5.注意时间管理：ACCA考试试题的时间非常紧张，考生需要合理安排时间，掌握每个题目的解答时间，避免在某一道题上花费过多时间而导致其他题目无法完成。
三、ACCA考试试题的备考建议1.系统学习：ACCA考试试题的知识体系庞大，考生需要系统地学习各个领域的知识。
可以通过参加培训班、自学或在线学习等方式进行系统学习。
acca考试题目
acca考试题目ACCA（英国特许公认会计师协会）是全球最大的专业会计师协会，其资格认证被广泛认可。
ACCA考试是许多会计专业人士追求的目标。
本文将对ACCA考试的题目进行分析和讨论，为想要参加ACCA考试的人士提供一些有益的参考。
第一部分：ACCA考试概述ACCA考试分为四个模块，即基本阶段、应用阶段、专业阶段和完全专业阶段。
每个阶段都包含多个考试科目，考察不同的知识和技能。
通过ACCA考试，考生将获得ACCA会员资格，并有机会在全球范围内从事会计、审计和财务等领域的工作。
第二部分：基本阶段考试题目在基本阶段，考试科目包括《管理会计与财务管理》、《审计与保证》等。
这些科目涵盖了会计和财务管理的基本理论和实践。
根据ACCA考试的特点，考题一般分为两种类型：选择题和主观题。
选择题包括单选题和多选题，主观题要求考生进行论述和分析。
第三部分：应用阶段考试题目应用阶段的考试科目更加深入和综合，其中包括《财务报告与会计基准》、《企业税务》等。
这些科目考察了考生在实际工作中应用会计知识和技能的能力。
考题内容更加具体和复杂，要求考生能够分析和解决实际的会计和财务问题。
第四部分：专业阶段考试题目专业阶段考试科目包括《公司法与企业结构》、《高级财务管理》等。
这些科目是ACCA考试的重点，考察了考生在不同领域的专业知识和技能。
考题一般更加复杂和综合，要求考生能够在实际情况下进行决策和分析。
第五部分：完全专业阶段考试题目完全专业阶段的考试科目包括《企业战略与风险管理》、《高级审计与控制》等。
这些科目是ACCA考试的最高级别，要求考生具备深入的专业知识和高级的技能。
考题一般更加开放和综合，要求考生能够独立思考和解决复杂的会计和财务问题。
第六部分：ACCA考试备考建议1.充分了解考试科目的内容和要求，做好考前的准备和规划。
2.多做题，熟悉考试形式和题型。
可以通过参加模拟考试来提高答题技巧和时间管理能力。
3.注重理论与实践相结合，掌握实际案例的解决方法和技巧。
2007年6月ACCA F7真题
Section A – This ONE question is compulsory and MUST be attempted1Parentis, a public listed company, acquired 600 million equity shares in Offspring on 1 April 2006. The purchase consideration was made up of:a share exchange of one share in Parentis for two shares in Offspringthe issue of £100 10% loan note for every 500 shares acquired; anda deferred cash payment of 11 pence per share acquired payable on 1 April 2007.Parentis has only recorded the issue of the loan notes. The value of each Parentis share at the date of acquisition was75 pence and Parentis has a cost of capital of 10% per annum.The balance sheets of the two companies at 31 March 2007 are shown below:Parentis Offspring£ million£ million£ million£ million T angible fixed assets (note (i))640340Investments120nilIntellectual property (note (ii))nil30––––––––760370 Current assetsStock (note (iii))7622T rade debtors (note (iii))8444Bank nil4––––––––16070––––––––Creditors: amounts falling due within one yearT rade creditors (note (iii))13057T axation4523Overdraft25nil––––––––20080––––––––Net current liabilities(40)(10)Creditors: amounts falling due after more than one year10% loan notes(120)(20)––––––––600340––––––––Capital and reserves:Equity shares of 25 pence each300200Profit and loss account– 1 April 2006210120– year ended 31 March 20079030020140––––––––––––––––600340––––––––The following information is relevant:(i)At the date of acquisition the fair values of Offspring’s net assets were approximately equal to their carryingamounts with the exception of its properties. These properties had a fair value of £40 million in excess of their carrying amounts which would create additional depreciation of £2 million in the post acquisition period to31 March 2007. The fair values have not been reflected in Offspring’s balance sheet.(ii)The intellectual property is a system of encryption designed for internet use. Offspring has been advised that government legislation (passed since acquisition) has now made this type of encryption illegal. Offspring will receive £10 million in compensation from the government.(iii)Offspring sold Parentis goods for £15 million in the post acquisition period. £5 million of these goods are included in the stock of Parentis at 31 March 2007. The profit made by Offspring on these sales was £6 million.Offspring’s trade creditor account (in the records of Parentis) of £7 million does not agree with Parentis’s trade debtor account (in the records of Offspring) due to cash in transit of £4 million paid by Parentis.2(iv)Goodwill is amortised on a straight-line basis over a five year life.Required:Prepare the consolidated balance sheet of Parentis as at 31 March 2007.(25 marks)3[P.T.O.Section B – THREE questions ONLY to be attempted2The summarised draft financial statements of Wellmay are shown below.Profit and loss account year ended 31 March 2007:£’000T urnover (note (i))4,200Cost of sales (note (ii))(2,700)––––––Gross profit1,500Operating expenses(470)Investment property rental income20Finance costs(55)––––––Profit before tax995T axation(360)––––––Profit for the period635––––––Balance sheet as at 31 March 2007:£’000£’000Fixed assetsT angible fixed assets (note (iii))4,200Investment property (note (iii))400––––––4,600Current assets1,400Creditors: amounts falling due within one year(820)––––––Net current assets580Creditors: amounts falling due after more than one year8% Convertible loan note (2010) (note (v))(600)Provisions for liabilitiesDeferred tax (note (vi))(180)––––––4,400––––––Capital and reservesEquity shares of 50 pence each (note (vii))1,200Reserves:Revaluation reserve– factory300– investment property50Profit and loss account (note (iv))2,8503,200––––––––––––4,400––––––The following information is relevant to the draft financial statements:(i)T urnover includes £500,000 for the sale on 1 April 2006 of maturing goods to Westwood. The goods had a costof £200,000 at the date of sale. Wellmay can repurchase the goods on 31 March 2008 for £605,000 (based on achieving a lender’s return of 10% per annum) at which time the goods are estimated to have a value of £750,000.(ii)Past experience shows that in the post balance sheet period the company often receives unrecorded invoices for materials relating to the previous year. As a result of this an accrued charge of £75,000 for contingent costs has been included in cost of sales and in creditors due within one year.4(iii)T angible fixed assets:Wellmay owns two properties. One is a factory (with office accommodation) used by Wellmay as a production facility and the other is an investment property that is leased to a third party under an operating lease. Relevant details of the fair values of the properties are:Factory Investment property£’000£’000Valuation 31 March 20061,200400Valuation 31 March 20071,350375Although Wellmay has a policy of revaluing its properties, the valuations at 31 March 2007 have not yet been incorporated into the financial statements. Factory depreciation for the year ended 31 March 2007 of £40,000 was charged to cost of sales. As the factory includes some office accommodation, 20% of this depreciation should have been charged to operating expenses.(iv)The balance of the profit and loss account reserve is made up of:£’000balance b/f 1 April 20062,615profit for the period635dividends paid during year ended 31 March 2007(400)––––––2,850––––––(v)8% Convertible loan note (2010)On 1 April 2006 an 8% convertible loan note with a nominal value of £600,000 was issued at par. It is redeemable on 31 March 2010 at par or it may be converted into equity shares of Wellmay on the basis of 100 new shares for each £200 of loan note. An equivalent loan note without the conversion option would have carried an interest rate of 10%. Interest of £48,000 has been paid on the loan and charged as a finance cost.The present value of £1 receivable at the end of each year, based on discount rates of 8% and 10% are:8%10%End of year10·930·9120·860·8330·790·7540·730·68(vi)The company has timing differences (carrying amounts in excess of tax written down values) of £600,000 at31 March 2007. The rate of corporation tax is 35%. The tax charge of £360,000 does not include theadjustment required to the deferred tax provision which should be assumed to go through the profit and loss account.(vii)Bonus issue:On 15 March 2007, Wellmay made a bonus issue from the profit and loss account reserve of one share for every four held. The issue has not been recorded in the draft financial statements.Required:Redraft the financial statements of Wellmay, including a statement of the movement in share capital and reserves, for the year ended 31 March 2007 reflecting the adjustments required by notes (i) to (vii) above.Note: Calculations should be made to the nearest £’000.(25 marks)5[P.T.O.3(a) A trainee accountant has been assisting in the preparation of the financial statements of T oogood for the year ended 31 March 2007. He has observed that the corresponding figures (i.e. for the year ended 31 March 2006) in the financial statements for the year ended 31 March 2007 do not agree in several instances with the equivalent figures that were published in the company’s financial statements for year ended 31 March 2006. In particular:consolidated goodwill (gross figure before amortisation) appears to have been recalculated,several other fixed assets have been revised,the brought forward profit and loss account reserve has been restated and;several profit and loss account line items are also different.The trainee accountant has also noted that even when the revised earnings figure for the year ended 31 March 2006 is divided by the weighted average number of shares in issue during that year, it still does not agree with the comparative earnings per share figure (i.e. for the year ended 31 March 2006) reported in the financial statements for the year ended 31 March 2007.Required:Explain three circumstances where accounting standards require previously reported financial statement figures to be amended when they are reproduced as corresponding amounts.Note: It may help to consider, among other things, the items mentioned by the trainee accountant.(12 marks)(b)The trainee accountant has been reading some literature written by a chartered surveyor on the values ofleasehold property located in the area where T oogood owns leasehold property. The main thrust is that historically, annual increases in property prices more than compensate for the fall in the carrying amount caused by annual amortisation until a leasehold property has less than 10 years of remaining life. Therefore the trainee accountant suggests that the company should adopt a policy of carrying its leasehold properties at cost until their remaining lives are 10 years and then amortising them on a straight-line basis over 10 years. This would improve the company’s reported profit and cash flows as well as showing a realistic value for the leasehold properties.Required:Comment on the validity and acceptability of the trainee accountant’s suggestion.(7 marks)(c)The trainee accountant notes that T oogood acquired the T rilogy group during the year ended 31 March 2007.The T rilogy group consists of T rilogy itself and two wholly owned subsidiaries. T oogood has only consolidated T rilogy and one subsidiary with the other subsidiary being shown as a current asset. The trainee accountant wonders if this is because the non-consolidated subsidiary is making losses.Required:Explain why the two subsidiaries may require the different treatments that Toogood has applied.(6 marks)(25 marks)6This is a blank page.Question 4 begins on page 8.7[P.T.O.4Greenwood is a public listed company. During the year ended 31 March 2007 the directors decided to cease operations of one of its activities and put the assets of the operation up for sale (the discontinued activity has no associated liabilities). The directors have been advised that the cessation qualifies as a discontinued operation. In order to facilitate an assessment of the effects of the discontinuation, its operating results are shown separately and its operating assets have been revalued to their fair values and shown separately as current assets in the balance sheet at 31 March 2007.Note: the profit and loss account figures down to the profit for the period from continuing operations are those of the continuing operations only.Profit and loss accounts for the year ended 31 March:20072006£’000£’000 T urnover27,50021,200Cost of sales(19,500)(15,000)––––––––––––––––Gross profit8,0006,200Operating expenses(2,900)(2,450)––––––––––––––––5,1003,750 Finance costs(600)(250)––––––––––––––––Profit before taxation4,5003,500Corporation tax(1,000)(800)––––––––––––––––Profit for the period from continuing operations3,5002,700Profit/(Loss) from discontinued operations(1,500)320––––––––––––––––Profit for the period2,0003,020––––––––––––––––Analysis of discontinued operations:T urnover7,5009,000Cost of sales(8,500)(8,000)––––––––––––––––Gross profit/(loss)(1,000)1,000Operating expenses(400)(550)––––––––––––––––Profit/(loss) before tax(1,400)450T ax (expense)/relief300(130)––––––––––––––––(1,100)320 Loss on measurement to fair value of discontinued assets(500)–T ax relief on discontinued assets100–––––––––––––––––Profit/(Loss) from discontinued operations(1,500)320––––––––––––––––8Balance Sheets as at 31 March20072006£’000£’000£’000£’000Fixed assets17,50017,600Current assetsStock1,5001,350T rade debtors2,0002,300Bank nil50Assets of discontinued operation6,000nil––––––––––––9,5003,700––––––––––––Creditors: amounts falling due within one yearBank overdraft1,150nilT rade creditors2,4002,800T axation9501,000––––––––––––(4,500)(3,800)––––––––––––Net current assets/(liabilities)5,000(100) Creditors: amounts falling due after more than one year5% loan notes(8,000)(5,000)––––––––––––––14,50012,500––––––––––––––Capital and reservesEquity shares of £1 each10,00010,000Profit and loss account reserve4,5002,500––––––––––––––14,50012,500––––––––––––––Note: the carrying amount of the assets of the discontinued operation at 31 March 2006 was £6·3 million. Required:Analyse the financial performance and position of Greenwood for the two years ended 31 March 2007.Note: Your analysis should be supported by appropriate ratios (up to 10 marks available) and refer to the effects of the discontinued operation.(25 marks)9[P.T.O.5(a)The following is an extract of Errsea’s balances of plant and related government grants at 1 April 2006.accumulated carryingcost depreciation amount£’000£’000£’000 Plant24018060Creditors: amounts falling due within one yearGovernment grants10Creditors: amounts falling due after more than one yearGovernment grants30Details including purchases and disposals of plant and related government grants during the year are:(i)Included in the above figures is an item of plant that was disposed of on 1 April 2006 for £12,000 whichhad cost £90,000 on 1 April 2003. The plant was being depreciated on a straight-line basis over four yearsassuming a residual value of £10,000. A government grant was received on its purchase and was beingrecognised in equal amounts in the profit and loss account over four years. In accordance with the terms ofthe grant, Errsea repaid £3,000 of the grant on the disposal of the related plant.(ii)An item of plant was acquired on 1 July 2006 with the following costs:£Base cost192,000Modifications specified by Errsea12,000T ransport and installation6,000The plant qualified for a government grant of 25% of the base cost of the plant, but it had not been receivedby 31 March 2007. The plant is to be depreciated on a straight-line basis over three years with a nilestimated residual value.(iii)All other plant is depreciated by 15% per annum on cost(iv)£11,000 of the £30,000 creditor falling due after more than one year for government grants at 1 April 2006 should be reclassified as a creditor falling due within one year as at 31 March 2007.(v)Depreciation is calculated on a time apportioned basis.Required:Prepare extracts of Errsea’s profit and loss account and balance sheet in respect of the plant and government grants for the year ended 31 March 2007.Note: Disclosure notes are not required.(10 marks)(b)In the post balance sheet period, prior to authorising for issue the financial statements of T entacle for the yearended 31 March 2007, the following material information has arisen.(i)The notification of the receivership of a customer. The balance due from the customer at 31 March 2007was £23,000 and at the date of the notification it was £25,000. No payment is expected from the receiver.(3 marks)(ii)Sales of some items of product W32 were made at a price of £5·40 each in April and May 2007. Sales staff receive a commission of 15% of the sales price on this product. At 31 March 2007 T entacle had12,000 units of product W32 in stock included at cost of £6 each.(4 marks) (iii)T entacle is being sued by an employee who lost a limb in an accident while at work on 15 March 2007.The company is contesting the claim as the employee was not following the safety procedures that he hadbeen instructed to use. Accordingly the financial statements include a note of a contingent liability of£500,000 for personal injury damages. In a recently decided case where a similar injury was sustained, asettlement figure of £750,000 was awarded by the court. Although the injury was similar, the circumstancesof the accident in the decided case are different from those of T entacle’s case.(4 marks)10(iv)T entacle is involved in the construction of a residential apartment building. It is being accounted for using the percentage of completion basis in SSAP 9 Stocks and long-term contracts. The recognised profit at31 March 2007 was £1·2 million based on costs to date of £3 million as a percentage of the total estimatedcosts of £6 million. Early in May 2007 T entacle was informed that due to very recent industry shortages, building materials will cost £1·5 million more than the estimate of total cost used in the calculation of the percentage of completion. T entacle cannot pass on any additional costs to the customer.(4 marks) Required:State and quantify how items (i) to (iv) above should be treated when finalising the financial statements of Tentacle for the year ended 31 March 2007.Note: The mark allocation is shown against each of the four items above.(25 marks)End of Question Paper11。
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P a p e r F 7 ( I N T )ALL FIVE questions are compulsory and MUST be attempted1On 1 January 2012, Viagem acquired 90% of the equity share capital of Greca in a share exchange in which Viagem issued two new shares for every three shares it acquired in Greca. Additionally, on 31 December 2012, Viagem will pay the shareholders of Greca $1·76 per share acquired. Viagem’s cost of capital is 10% per annum.At the date of acquisition, shares in Viagem and Greca had a stock market value of $6·50 and $2·50 each, respectively.Income statements for the year ended 30 September 2012Viagem Greca$’000$’000 Revenue 64,60038,000Cost of sales(51,200)(26,000)––––––––––––––Gross profit13,40012,000Distribution costs(1,600)(1,800)Administrative expenses(3,800)(2,400)Investment income500nilFinance costs(420)nil––––––––––––––Profit before tax8,0807,800Income tax expense(2,800)(1,600)––––––––––––––Profit for the year5,2806,200––––––––––––––Equity as at 1 October 2011Equity shares of $1 each30,00010,000Retained earnings54,00035,000The following information is relevant:(i)At the date of acquisition, the fair values of Greca’s assets were equal to their carrying amounts with the exceptionof two items:–An item of plant had a fair value of $1·8 million above its carrying amount. The remaining life of the plant at the date of acquisition was three years. Depreciation is charged to cost of sales.–Greca had a contingent liability which Viagem estimated to have a fair value of $450,000. This has not changed as at 30 September 2012.Greca has not incorporated these fair value changes into its financial statements.(ii)Viagem’s policy is to value the non-controlling interest at fair value at the date of acquisition. For this purpose, Greca’s share price at that date can be deemed to be representative of the fair value of the shares held by the non-controlling interest.(iii)Sales from Viagem to Greca throughout the year ended 30 September 2012 had consistently been $800,000 per month. Viagem made a mark-up on cost of 25% on these sales. Greca had $1·5 million of these goods in inventory as at 30 September 2012.(iv)Viagem’s investment income is a dividend received from its investment in a 40% owned associate which it has held for several years. The underlying earnings for the associate for the year ended 30 September 2012 were $2 million.(v)Although Greca has been profitable since its acquisition by Viagem, the market for Greca’s products has been badly hit in recent months and Viagem has calculated that the goodwill has been impaired by $2 million as at30 September 2012.Required:(a)Calculate the consolidated goodwill at the date of acquisition of Greca.(b)Prepare the consolidated income statement for Viagem for the year ended 30 September 2012.The following mark allocation is provided as guidance for these requirements:(a)7 marks(b)14 marks(21 marks)(c)The carrying amount of a subsidiary’s leased property will be subject to review as part of the fair value exerciseon acquisition and may be subject to review in subsequent periods.Required:Explain how a fair value increase of a subsidiary’s leased property on acquisition should be treated in the consolidated financial statements; and how any subsequent increase in the carrying amount of the leased property might be treated in the consolidated financial statements.Note: Ignore taxation.(4 marks)(25 marks)2The following trial balance relates to Quincy as at 30 September 2012:$’000$’000 Revenue (note (i))213,500Cost of sales136,800Distribution costs12,500Administrative expenses (note (ii))19,000Loan note interest and dividend paid (notes (ii) and (iii))20,700Investment income400Equity shares of 25 cents each 60,0006% loan note (note (ii))25,000Retained earnings at 1 October 201118,500Land and buildings at cost (land element $10 million) (note (iv))50,000Plant and equipment at cost (note (iv))83,700Accumulated depreciation at 1 October 2011:buildings8,000plant and equipment 33,700 Equity financial asset investments (note (v))17,000Inventory at 30 September 2012 24,800T rade receivables 28,500Bank2,900Current tax (note (vi))1,100Deferred tax (note (vi))1,200T rade payables36,700––––––––––––––––397,000397,000––––––––––––––––The following notes are relevant:(i)On 1 October 2011, Quincy sold one of its products for $10 million (included in revenue in the trial balance).As part of the sale agreement, Quincy is committed to the ongoing servicing of this product until 30 September 2014 (i.e. three years from the date of sale). The value of this service has been included in the selling price of $10 million. The estimated cost to Quincy of the servicing is $600,000 per annum and Quincy’s normal gross profit margin on this type of servicing is 25%. Ignore discounting.(ii)Quincy issued a $25 million 6% loan note on 1 October 2011. Issue costs were $1 million and these have been charged to administrative expenses. The loan will be redeemed on 30 September 2014 at a premium which gives an effective interest rate on the loan of 8%.(iii)Quincy paid an equity dividend of 8 cents per share during the year ended 30 September 2012.(iv)Non-current assets:Quincy had been carrying land and buildings at depreciated cost, but due to a recent rise in property prices, it decided to revalue its property on 1 October 2011 to market value. An independent valuer confirmed the value of the property at $60 million (land element $12 million) as at that date and the directors accepted this valuation.The property had a remaining life of 16 years at the date of its revaluation. Quincy will make a transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation reserve. Ignore deferred tax on the revaluation.Plant and equipment is depreciated at 15% per annum using the reducing balance method.No depreciation has yet been charged on any non-current asset for the year ended 30 September 2012. All depreciation is charged to cost of sales.(v)The investments had a fair value of $15·7 million as at 30 September 2012. There were no acquisitions or disposals of these investments during the year ended 30 September 2012.(vi)The balance on current tax represents the under/over provision of the tax liability for the year ended 30 September 2011. A provision for income tax for the year ended 30 September 2012 of $7·4 million is required. At30 September 2012, Quincy had taxable temporary differences of $5 million, requiring a provision for deferredtax. Any deferred tax adjustment should be reported in the income statement. The income tax rate of Quincy is 20%.Required:(a)Prepare the statement of comprehensive income for Quincy for the year ended 30 September 2012.(b)Prepare the statement of changes in equity for Quincy for the year ended 30 September 2012.(c)Prepare the statement of financial position for Quincy as at 30 September 2012.Notes to the financial statements are not required.The following mark allocation is provided as guidance for this question:(a)11 marks(b) 4 marks(c)10 marks(25 marks)3Quartile sells jewellery through stores in retail shopping centres throughout the country. Over the last two years it has experienced declining profitability and is wondering if this is related to the sector as whole. It has recently subscribed to an agency that produces average ratios across many businesses. Below are the ratios that have been provided by the agency for Quartile’s business sector based on a year end of 30 June 2012.Return on year-end capital employed (ROCE)16·8%Net asset (total assets less current liabilities) turnover 1·4 timesGross profit margin 35%Operating profit margin12%Current ratio 1·25:1Average inventory turnover 3 timesT rade payables’ payment period 64 daysDebt to equity38%The financial statements of Quartile for the year ended 30 September 2012 are:Income statement$’000 $’000Revenue56,000Opening inventory8,300Purchases43,900–––––––52,200Closing inventory(10,200)(42,000)––––––––––––––Gross profit14,000Operating costs(9,800)Finance costs(800)–––––––Profit before tax3,400Income tax expense(1,000)–––––––Profit for the year2,400–––––––Statement of financial position$’000$’000AssetsNon-current assetsProperty and shop fittings25,600Deferred development expenditure5,000–––––––30,600Current assetsInventory10,200Bank1,00011,200––––––––––––––T otal assets41,800–––––––Equity and liabilitiesEquityEquity shares of $1 each15,000Property revaluation reserve3,000Retained earnings 8,600–––––––26,600Non-current liabilities10% loan notes 8,000Current liabilitiesT rade payables5,400Current tax payable1,8007,200––––––––––––––T otal equity and liabilities41,800–––––––Note:The deferred development expenditure relates to an investment in a process to manufacture artificial precious gems for future sale by Quartile in the retail jewellery market.Required:(a)Prepare for Quartile the equivalent ratios that have been provided by the agency.(9 marks)(b)Assess the financial and operating performance of Quartile in comparison to its sector averages.(12 marks)(c)Explain four possible limitations of the usefulness of the above comparison.(4 marks)(25 marks)4(a)T wo of the qualitative characteristics of information contained in the IASB’s Conceptual Framework for Financial Reporting are understandability and comparability.Required:Explain the meaning and purpose of the above characteristics in the context of financial reporting and discuss the role of consistency within the characteristic of comparability in relation to changes in accounting policy.(6 marks)(b)Lobden is a construction contract company involved in building commercial properties. Its current policy fordetermining the percentage of completion of its contracts is based on the proportion of cost incurred to date compared to the total expected cost of the contract.One of Lobden’s contracts has an agreed price of $250 million and estimated total costs of $200 million.The cumulative progress of this contract is:Year ended:30 September 201130 September 2012$million$millionCosts incurred80145Work certified and billed75160Billings received70150Based on the above, Lobden prepared and published its financial statements for the year ended 30 September 2011. Relevant extracts are:Income statement$millionRevenue (balance)100Cost of sales(80)––––Profit (50 x 80/200)20––––Statement of financial position$millionCurrent assetsAmounts due from customersContract costs to date80Profit recognised20––––100Progress billings(75)––––25––––Contract receivables (75 –70)5Lobden has received some adverse publicity in the financial press for taking its profit too early in the contract process, leading to disappointing profits in the later stages of contracts. Most of Lobden’s competitors take profit based on the percentage of completion as determined by the work certified compared to the contract price.Required:(i)Assuming Lobden changes its method of determining the percentage of completion of contracts to thatused by its competitors, and that this would represent a change in an accounting estimate, calculateequivalent extracts to the above for the year ended 30 September 2012;(7 marks) (ii)Explain why the above represents a change in accounting estimate rather than a change in accounting policy.(2 marks)(15 marks)5(a)Shawler is a small manufacturing company specialising in making alloy castings. Its main item of plant is a furnace which was purchased on 1 October 2009. The furnace has two components: the main body (cost $60,000 including the environmental provision –see below) which has a ten-year life, and a replaceable liner (cost $10,000) with a five-year life.The manufacturing process produces toxic chemicals which pollute the nearby environment. Legislation requires that a clean-up operation must be undertaken by Shawler on 30 September 2019 at the latest.Shawler received a government grant of $12,000 relating to the cost of the main body of the furnace only.The following are extracts from Shawler’s statement of financial position as at 30 September 2011 (two years after the acquisition of the furnace):Carrying amount$Non-current assetsFurnace:main body48,000replaceable liner6,000Current liabilitiesGovernment grant1,200Non-current liabilitiesGovernment grant8,400Environmental provision18,000(present value discounted at 8% per annum)Required:(i)Prepare equivalent extracts from Shawler’s statement of financial position as at 30 September 2012;(3 marks)(ii)Prepare extracts from Shawler’s income statement for the year ended 30 September 2012 relating to the items in the statement of financial position.(3 marks)(b)On 1 April 2012, the government introduced further environmental legislation which had the effect of requiringShawler to fit anti-pollution filters to its furnace within two years. An environmental consultant has calculated that fitting the filters will reduce Shawler’s required environmental costs (and therefore its provision) by 33%. At30 September 2012 Shawler had not yet fitted the filters.Required:Advise Shawler as to whether they need to provide for the cost of the filters as at 30 September 2012 and whether they should reduce the environmental provision at this date.(4 marks)(10 marks)End of Question Paper。