2014年12月ACCA F9考试真题答案
2014年12月A级英语考试真题
2014年12月Part I Listening Comprehension (15 minutes) Directions: This part is to test your listening ability. It consists of 3 sections. Section ADirections: This section is to test your ability to understand short dialogues. There are 5 recorded dialogues in it. After each dialogue, there is a recorded question. Both the dialogues and questions will be spoken only once. When you hear a question, you should decide on the correct answer from the 4 choices marked A), B), C) and D) given in your test paper. Then you should mark the corresponding letter on the Answer Sheet with a single line through the center.Example: You will hear:You will read: A) New York City.B) An evening party.C) An air trip.D) The man’s job.From the dialogue we learn that the man is to take a flight to New York. Therefore,C) An air trip is the correct answer. You should mark C) on the Answer Sheet with a single line through the center.Now the test will begin.1. A) Production planning. C) Public relations.B) Financial affairs. D)Import and Export.2. A) More workers are needed. C) Raw materials are more expensive.B) Advertising costs more. D) Workers' salaries are higher.3. A) To look for a dream job. C) To continue his study.B) To visit his friends. D) To find a chance to do business.4. A) He is good at programming. C) He is nice and kind.B) He is suitable for the job. D) He finds the job difficult.5. A) Interviewer and interviewee. C) Doctor and nurse.B) Buyer and seller. D) Shop assistant and customer.Section BDirections: This section is to test your ability to understand short conversations. There are 2 recorded conversations in it. After each conversation, there are some recorded questions. Both the conversations and the questions will be spoken two times. When you hear a question, you should decide on the correct answer from the 4 choices marked A), B), C) and D) given in your test paper. Then you should mark the corresponding letter on the Answer Sheet with a single line through the center.Now the test will begin.Conversation l6. A) He was too busy. C) His company has moved away.B) He got a new offer. D) His company has closed down.7. A) To have his own business. C) To move to another city.B) To do social work. D) To go to study abroad.Conversation 28. A) The chief engineer. C) The office secretary.B) The manager assistant. D) The sales manager.9. A) He's giving a lecture. C) He’s speaking on another phone.B) He's attending a meeting. D) He’s away on a business trip.10.A) Telling him to meet tomorrow. C) Asking him to call back.B) Telling him to send a sample. D) Asking him to attend a party.Section CDirections: In this section you will hear a recorded short passage. The passage is printed in the test paper, but with some words or phrases missing. The passage will be read two times. You are required to put the missing words or phrases on the Answer sheet in order of the numbered blanks according to what you hear. Now the passage will begin.Ladies and Gentlemen,It’s my honor to be the guide to show you around our company. First of all, I’ll introduce our factory to you.Our company ll in the 1980s. We mainly produce electronic goods and export them all over the world. We 12 of about US$80 million last year, and our business is growing steadily．We now have offices in Asia, North America and Europe, with about 1500 employees, and we are working gladly to 13 of our customers. In order to further develop our overseas market, we need more agents to14 our products.I hope you will 15 doing business with us. Thank you.Section DDirections: This section is to test your ability to comprehend short passage. You will hear a recorded passage．After that you’ll hear five questions. Bo th the passage and the questions will be read two times．When you hear a question, you should complete the answer to it with a word or a short phrase (in no more than 3 words). The questions and incomplete answers are printed in your test paper. You should write your answers on the Answer Sheet correspondingly.Now listen to the passage.16. What did the speaker talk about last time?The ___________________ of an oral presentation.17．What does the speaker want to talk about today?The ____________________ of a presentation.18. What does a typical presentation consist of?The beginning, ______________________.19. Why is the beginning of a presentation the most important part, according to thespeaker?Because it is the ____________________ to your listeners.20. What is the role an effective beginning can play in your presentation?It can draw ______________ and set the proper tone.Part II Structure (10minutes)Directions: This part is to test your ability to construct grammatically correct sentences. It consists of 2 sections.Section ADirections: In this section there are 10 incomplete sentences. You are required to complete each one by deciding on the most appropriate word or wordsfrom the 4 choices marked A), B), C) and D). Then you should mark thecorresponding letter on the Answer Sheet with a single line through thecenter.2l. ______ the number in full-time employment fell by 2 million, the number of people in part-time work doubled to over 4 million.A) Unless B) Until C) While D) Since22. It was your recommendation ______ enabled me to be an engineer in thisworld-famous company.A) when B) who C) what D) that23. Now the pollution caused by the increasing number of cars ______ more andmore serious in many cities.A) become B) became C) is becoming D) had become24. We understand you need easy access ______up-to-date information about youraccounts in our bank.A) in B)to C)for D)with25. It is common practice ______ a battery when it still has some life in it.A) to charge B) charge C)charged D) having charged26. We have to investigate as ______ customers as possible in order to make sure ofthe potential of the market.A) many B) much C) more D) most27. As long as you keep on ______ hard, you’11 get promoted sooner or later.A) work B) be working C) worked D) working28. There are 4.9 million businesses in the UK, 99% of ______ are small businesses.A) which B) that C) whose D) it29. ______ by all the team members, they finally got the big project for theircompany.A) To be supported C) SupportingB) Having supported D) Supported30. This article tells the readers ______ they can look for in an employee’s abilities.A) that B) what C) which D) howSection BDirections: There are 5 incomplete statements here. You should fi11 in each blank with the proper form of the word given in brackets. Write the word orwords in the corresponding space on the Answer Sheet.31. The proposal that the head of the team made at the meeting sounds (reason)______.32. Generally speaking, once you (make) ______ the payment, the goods should bedelivered within a week.33. It is said that advertising is the (expensive) ______ of all the promotionalactivities undertaken by businesses.34. The company suffered greatly during the economic crisis, with considerable lossof its (invest) ____＿.35. It is reported that an international conference (hold) ______ in London nextFriday.Part ⅢReading Comprehension (40minutes)Directions: This part is to test your reading ability. There are 5 tasks for you to fulfill. You should read the reading materials carefully and do the tasks as you are instructed.Task 1Directions: After reading the following passage. You will find 5 questions or unfinished statements, numbered 36 to 40. For each question or statement there are 4 choices marked A), B), C) and D). You should make the correct choice and mark the corresponding letter on the Answer Sheet with a single line through the center. We try to ensure that GFL Solid Waste Haulage (清运) Division is a company that acts safely and responsibly at all times and in all places. We never tolerate any conduct that puts our customers and the communities we serve at risk. At GFL, safety is more than a program; it is a core value of our company. GFL is equally committed to improving the environment for the future of the communities we live in and we serve. We believe that our services play an essential part in improving the environment and we are always mindful of having the most cost-effective waste management solutions for our customers.We are committed to the safety of our workers and have programs in place to continually upgrade our worker safety and environmental practices. We have highly qualified staff, we use the best available equipment and we are fully committed to keeping our workplace safe and the environment clean.Over the past years, service requests have changed dramatically from basic waste disposal to comprehensive waste management or "green” programs. Our new "green” waste management program is now gaining respect and popularity in the community.For more information, contact GFL at cssupport@.36. According to the passage, GFL doesn’t allow any conduct that will ______.A) cause any noise to the environmentB) produce waste in the communitiesC) waste more natural resourcesD) do harm to its customers37. The core value of GFL Solid Haulage Division is _______A) profit B) safety C) efficiency D) responsibility38. In the first paragraph, "we are always mindful o f…” means “______”.A) we are a1ways worried about…B) we always look forward to…C) we are always aware of…D) we always put up with…39. What does GFL do with its worker safety and environmental practices, accordingto the second paragraph?A) Continually upgrade them.B) Keep using the traditional methods.C) Hire new workers to clean the environment.D) Import new techno1ogy from overseas companies.40. What can we learn about the company’s new “green” waste managementprogram?A) The quality of waste management has become worse.B) The program is becoming more and more popular.C) Waste management has remained unchanged.D) More workers are involved in the program.Task 2Directions: This task is the same as Task 1. The 5 questions or unfinished statements are numbered 41 to 45.Many jobs have been lost and they may not be coming back. Some occupations had already been declining for years due to advances in technology and changes in the global economy. The following is a list of careers that are disappearing.Stage PerformersThe five-year decline for this career was a surprising 61%. Stage performances have fallen out of fashion and have been almost entirely replaced with movies and home entertainment technologies.Postal Service Mail Sorters（分拣员）After losing almost 57,000 jobs between 2004 and 2009, a further 30% decline in this occupation can be seen by 2018. With more automatic processes for mail sorting and increasing correspondence via e-mail and fax, this job is quickly becoming unnecessary.Office Support WorkersAbout 300,000 office support jobs disappeared between 2004 and 2009. Secretaries and file clerks are no longer in demand as companies cut costs. Moreover, technologies like voicemail and easy-to-use word processors have enabled professionals to do their own office work.Photo ProcessorsWith the rise of digital photography and automatic printing, positions for manual photo printers are rapidly disappearing. The occupation has been steadily losing jobs in the last five years and there might be a 24% decline by 2018.Radio operatorsAs technology advances, the need for workers to monitor communications via radiotelephone equipment is disappearing. This already small field saw a five-year decline of 43%.41. According to the first paragraph, because of the advances in technology andglobal economic changes, ________.A) many jobs are disappearing sharplyB) many new occupations are emergingC) people are attracted to higher-paying jobsD) part-time jobs have become more popular42. One reason why the career of stage performers is declining so fast is that ______.A) stage performers can no longer earn big moneyB) fewer people are qualified as stage performersC) there is less investment in stage performancesD) stage performances have become less popular43. The benefit of using new technologies in the office is that ________.A) office workers can work on a flexible work systemB) professionals are able to do their own office workC) secretaries and file clerks are badly in needD) employees can enjoy better social welfare44. The author expects that by 2018 the occupation of photo processors might declineby ________.A) 61% B) 43% C) 30% D) 24%45. Which of the following might be the best title of the passage?A) Advanced TechnologiesB) Rising UnemploymentC) Disappearing CareersD) Global EconomyTask 3Directions: The following is a short introduction to all sales representatives. After reading it, you are required to complete the outline below it (No. 46 to No. 50). You should write your answers briefly (in not more than three words) on the Answer Sheet correspondingly.In American Income Life Insurance Company (AIL), sales representatives have servants’ hearts. Our team members make every effort to protect hard-working, middle-income families with insurance coverage（承保范围）. We also believe whole-heartedly in giving back to the communities in which we operate. American Income Life gives off its time and resources to help make the world a better place.Sales experience is not required to be a representative. Just the willingness to work hard. What makes American Income Life unique is that our work system enables our sales team to focus on selling, which is what makes this career truly opportunity unlimit ed. Simply said, you earn what you’re worth based on how hard you work and how fast you want to advance. At American Income Life you will find a career, not a job. You will also find free training opportunities, and leadership experience, too. American Income Life’s independent agency offices provide sales training focused on insurance sales. Training includes working one-on-one with experienced sales agents both in the classroom and in the field.Task 4Directions: The following is a list of terms related to online jobs from home. After reading it, you are required to find the items equivalent to (与……等同) those given in Chinese in the table below. Then you should put the corresponding letters in the brackets on the Answer Sheet, numbered 51 through 55.A --- Cost of goods soldB --- Channel of distributionC --- Commission percentD --- Competitive advantageE --- Current assetsF --- Current debtG --- Direct cost of salesH --- Earning before taxesI --- Effective demandJ --- Advance paymentK --- Advising bankL --- Letter of creditM --- Paying bankN --- Capital marketO --- Cost and freightP --- Import licenseQ --- Joint ventureExamples: (A）售出货物成本（H）税前收益Task 5Directions: The following is a letter. After reading it, you should give brief answers to the 5 questions (No. 56 to No. 60) that follow. The answers (in not more than 3 words) should be written after the corresponding numbers on the Answer Sheet.Act now to get a student loanMake no payments while in school with a Wells Fargo private student loan.A college education is a worthwhile investment, but sometimes you need help covering all the costs．Wells Fargo private student loans may be able to help you pay for all eligible education-related expenses, including tuition, housing, books, a laptop, lab fees, and more.Other benefits include:一Make no payments until six months after leaving school一Select a competitive fixed or variable interest rate option一Reduce your loan cost with our interest rate discountsApplying with a co-signer （联署人；担保人）may improve your chance of getting approved and help you qualify for a lower interest rate, Learn more about undergraduate student loans for traditional colleges and universities or career and community colleges. Or call our toll-free number 1-877-315-7721.Our Student Loan Specialists are here to help you through the process --- from helping you make an informed choice on the loan that meets your needs, to helping you estimate how much you may need to borrow.56. What is introduced in the passage?A Wells Fargo __________________ loan.57. What expenses can be paid with the loan?All eligible __________________ expenses·58. What is the advantage of the loan in terms of the repayment period?No payment is made until six months after _________________.59. Why are you advised to apply for your loan with a co-signer?To have a better chance of _____________ and being qualified for a lower interest rate.60. What can the Students Loan Specialists do to help you in your application?They can help you through _____________ in your application.Part IV Translation – English into Chinese (25 minutes) Directions: This part, numbered 61 through 65, is to test your ability to translate English into Chinese. After each of the sentence numbered 61 to 64, you will read three choices of suggested translation marked A), B) and C). You should choose the best translation and mark the corresponding letter on your Answer Sheet. And for theparagraph numbered 65, write your translation in the corresponding space on the Translation/Composition Sheet.61. In order to increase cash flow and limit layoffs, the company has decided thatsalary reductions are absolutely necessary at this time.A) 公司收到增加现金收入和加快裁员的决定，认为这一决定十分适时。
2014年12月ACCA-F5考试真题答案
AnswersFundamentals Level – Skills Module, Paper F5 Performance Management December 2014 AnswersSection A 1ADivision A: Profit = $14·4m x 30% = $4·32mImputed interest charge = $32·6m x 10% = $3·26m Residual income = $1·06mDivision B: Profit = 8·8m x 24% = $2·112mImputed interest charge = $22·2m x 10% = $2·22m Residual income = $(0·108)m2 345DAll costs are included when using life cycle costing.AThis is the definition of a basic standard.BThe first statement is describing management control, not strategic planning.CNumber of units required to make target profit = fixed costs + target profit/contribution per unit of P1.Fixed costs = ($1·2 x 10,000) + ($1 x 12,500) – $2,500 = $22,000. Contribution per unit of P = $3·20 + $1·20 = $4·40. ($22,000 + $60,000)/$4·40 = 18,636 units.6 AProduct A B C D Selling price per unit Raw material cost Direct labour cost at $11 per hour Variable overhead cost Contribution per unit$160 $24 $66 $24 $214 $56 $88 $18 $100 $22 $33 $24 $140 $40 $22 $18 $46 $52$21 $60 –––– –––– –––– –––– Direct labour hours per unit Contribution per labour hour Rank 6 $7·67 2 8 $6·50 4 3 $7 2 $30 1 3 Normal monthly hours (total units x hours per unit)1,800 1,000 720800If the strike goes ahead, only 2,160 labour hours will be available. Therefore make all of D, then 1,360 hours’ worth of A (2,160 – 800 hrs).7 8B460 – 400 = 60 clients$40,000 – $36,880 = $3,120 VC per unit = $3,120/60 = $52Therefore FC = $40,000 – (460 x $52) = $16,080BIncrease in variable costs from buying in (2,200 units x $40 ($140 – $100)) = $88,000 Less the specific fixed costs saved if A is shut down = ($10,000) Decrease in profit = $78,000Only the first statement is correct. Traditional absorption costing tends to over-allocate costs to high vo products, notunder-allocate them.10 11BBy definition, a shadow price is the amount by which contribution will increase if an extra kg of material becomes available. 20 x$2·80 = $56.CNeither statement is correct. Responsibility is not assigned solely to senior managers as, for example, in a TQM enviro qualityis everybody’s responsibility. In addition, standard costing can be difficult to apply in dynamic situations.12 13AThe second statement is talking about flow cost accounting, not input/outputanalysis.DTarget 1 is a financial target and so assesses economy factors. Target 2 is measuring the rate of work handled by staff which is anefficiency measure. Target 3 is assessing output, so is a measure of effectiveness.14 15BIn comparison to participative budgeting, an advantage of non-participative budgeting is that it should be less time consuming, asless collaboration will be required in order to produce the budgets.CThe target costing process always begins with the target selling price being set. The required profit is then determine deductedfrom the target selling price to estimate the target cost. The target cost is then compared to the estimated current co and the costgap is then calculated.16 17AThis is a description of an incrementalbudget.ANew profit figures before salarypaid:Good manager: $180,000 x 1·3 = $234,000Average manager: $180,000 x 1·2 = $216,000Poor: $180,000 x 1·1 = $198,000EV of profits = (0·35 x $234,000) + (0·45 x $216,000) + (0·2 x $198,000) = $81,900 + $97,200 + $39,600 = $218,700 Deduct salary cost and EV with manager = $178,700Therefore do not employ manager as profits will fall by $1,300.18BSet-up costs per production run = $140,000/28 = $5,000Cost per inspection = $80,000/8 = $10,000Other overhead costs per labour hour = $96,000/48,000 = $2 Overheads costs of product D:$Set-up costs (15 x $5,000) Inspection costs (3 x $10,000) Other overheads (40,000 x $2)75,000 30,000 80,000––––––––185,00020This is an example of feedforward control as the manager is using a forecast to assist in making a future decision.AIf demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.Section B 1 Chair Co(a) Learning curve formula = y = ax bCumulative average time per unit for 8 units:Y = 12 x 8–·415= 5·0628948 hours. Therefore cumulative total time for 8 units = 40·503158 hours.Cumulative average time per unit for 7 units:Y = 12 x 7–·415= 5·3513771 hours. Therefore cumulative total time for 7 units = 37·45964 hours.Therefore incremental time for 8th unit = 40·503158 hours – 37·45964 hours = 3·043518 hours. Total labour cost for 8th unit =3·043518 x $15 = $45·65277 Material and overheads cost per unit = $230 Therefore total cost per unit = $275·65277 Therefore price per unit = $413·47915 (b) (i) Actual learningrateCumulative number of seats produced 1 2 4 8Cumulative totalCumulative average hours per unit 12·512·5 x r 12·5 x r 2 hours 12·5 ? ? 34·3 12·5 x r 3Using algebra: 34·3 = 8 x (12·5 x r 3)4·2875 = (12·5 x r 3) 0·343 = r 3r = 0·70 The learning effect was 70% as compared to the forecast rate of 75%, meaning that the labour force learnt morequicklythan anticipated. (ii) Adjusted priceThe adjusted price charged will be lower than the original price calculated in part (a). This is because the incrementalcost of the 8th unit will be lower given the 70% learning rate, even though the first unit took 12·5 hours. W know thisbecause we are told that the cumulative time for 8 units was actually 34·3 hours. This is lower than t estimatedcumulative time in part (a) for 8 units of 40·503158 hours and therefore, logically, the actual incremental for the8th unit must be lower than the estimated 3·043518 hours calculated in part (a). Consequently, total cost willowerand price will be lower, given that this is based on cost. 2Glam Co Bottleneckactivity(a) The bottleneck may have been worked out as follows: Total salon hours = 8 x 6 x 50 = 2,400 each year. The capacity for each senior stylist must be 2,400 hours, which equatesto 2,400 cuts each year (2,400/1). Since there are three senior stylists, the total capacity is 7,200 hours or 7,2cuts eachyear. Using this method, the capacity for each activity is as follows: Cut Treatment16,000 4,800 Assistants Senior stylists Juniorstylists 48,000 7,200 9,600 9,600 The bottleneck activity is clearly the work performed by the senior stylists.The senior stylists’ time is called a bottleneck activity because it is the activity which prevents the salon throughput frombeing higher than it is. The total number of cuts or treatments which can be completed by the salon’s senior stylists is lessthan the number which can be completed by other staff members, considering the number of each type of staff availa andthe time required by each type of staff for each client.(b) TPARCut $Treatment$ Selling price 60 110Materials Throughput Throughput per bottleneck hour Total salon costs per BN hour (w1) TPAR 0·60 59·40 59·40 42·56 1·4 8 (7·40+0·6) 102 68 42·56 1·6Working 1: Total salon costs(3 x $40,000) + (2 x $28,000) + (2 x $12,000) + $106,400 = $306,400 Therefore cost for each bottleneck hour = $306,400/7,200 = $42·56Note: Answers based on total salary costs were $80,000 were also equally acceptable since the wording of quest wasopen to interpretation.3Hi Life Co Direct materials: Fabric WoodNote 1 2 $ 200 m 2 at $17·50 per m 2 20 m at $8·20 per m 30 m at $8·50 per m 3,500 164 2552 Direct labour: SkilledSemi-skilledFactory overheadsAdministration overheads50 hours at $24 per hour 300 hours at $14 per hour 20 hours at $15 per hour3 4 5 61,200 4,200 300 –––––––Total cost 9,619–––––– 1 2 Since the material is in regular use by HL Co, it is replacement cost which is the relevant cost for the contract.30 m will have to be ordered from the alternative supplier for immediate delivery but the remaining 20 m can be frominventory and replaced by an order from the usual supplier at a cost of $8·20 per m.3 4 5There is no cost for the first 150 hours of labour because there is spare capacity. The remaining 50 hours will be at timeand a half, which is $16 x 1·5, i.e. $24 per hour.HL Co will choose to use the agency workers, who will cost $14 per hour, since this is cheaper than pa existingsemi-skilled workers at $18 per hour ($12 x 1·5) to work overtime.None of the general factory costs are incremental, so they have all been excluded. How ever, the supervisor’s ove pay isincremental, so has been included. The supervisor’s normal salary, on the other hand, has been excluded becaus is notincremental. 6These are general overheads and are not incremental, so no value should be included for them.4 Jamair(a) The four perspectivesFinancial perspective – this perspective is concerned with how a company looks to its shareholders. How can it c valuefor them? Kaplan and Norton identified three core financial themes which will drive the business strategy: rev growthand mix, cost reduction and asset utilisation. Customer perspective – this considers how the organisation appears to customers. The organisation should as itself: ‘toachieve our vision, how should we appear to our customers?’ The customer perspective should identify the cus andmarket segments in which the business will compete. There is a strong link between the customer perspectiv therevenue objectives in the financial perspective. If customer objectives are achieved, revenue objectives should b Internal perspective – this requires the organisation to ask itself: ‘what must we excel at to achieve our finan and customerobjectives?’ It must identify the interna l business processes which are critical to the implementation of t organisation’sstrategy. These will include the innovation process, the operations process and the post-sales process. Learning and growth perspective – this requires the organisation to ask itself whether it can continue to impro and createvalue. The organisation must continue to invest in its infrastructure – i.e. people, systems and organisational procedures – inorder to improve the capabilities which will help the other three perspectives to be achieved.(b) Goals and measuresFinancial perspective Goal Performance measure To use fewer planes to transport customers Lease costs of plane per customerExplanation – operating efficiency will be driven by getting more customers on fewer planes. This goal and measur cover thecost side of this. Goal Performance measure To increase seat revenue per planeRevenue per available passenger mile Explanation – this covers the first part of achieving operating efficiency – by having fewer empty seats on planes.Customer perspective Goal Performance measure To ensure that flights are on time ‘On time arrival’ ranking from the aviation authorityExplanation – Jamair is currently number 7 in the rankings. If it becomes known as a particularly reliable airl customersare more likely to use it, which will ultimately increase revenue. Goal Performance measure To reduce the number of flights cancelled The number of flights cancelledExplanation – again, if flights are seen to be cancelled frequently by Jamair, customers will not want to use it needs to beperceived as reliable by its customers. Internal perspective Goal Performance measure To improve turnaround time on the ground ‘On the ground’timeExplanation – less time spent on the ground means fewer planes are needed, which will reduce plane leasing costs.However,it is important not to compromise the quality of cleaning or make errors in refuelling as a consequence of reducing on the ground time.Goal Performance measure To improve the cleanliness of Jamair’s planes The percentage of customers happy with the standard of the planes,as reported in the customer satisfaction surveys.Explanation – at present, only 85% of customers are happy with the standard of cleanliness on Jamair’s planes.couldbe causing loss of revenue. Goal Performance measure To develop the online booking system Percentage downtime.Explanation – since the company relies entirely on the booking system for customer booking of flights and c in, it iscritical that it can deal with the growing number of customers. Learning perspective Goal Performance measure To reduce the employee absentee rate The number of days absent per employeeExplanation – it is critical to Jamair that its workforce is reliable as, at worse, absent staff lead to cancelled flights. Goal Performance measureTo increase ground crew training on cleaning andrefuelling proceduresNumber of days’ training per ground crew member Explanation – if ground crew are better trained, they can reduce the number of minutes that the plane stays on ground,which will result in fewer planes being required and therefore lower costs. Also, if their cleaning is better, cus satisfactionand retention will increase. Note: Only one goal and measure were required for each perspective. In order to gain full marks, answers had to be specificto Jamair as stated in the requirements.5 Safe Soap Co (a) VariancecalculationsMix variance Total kg of materials per standard batch = 0·25 + 0·6 + 0·5 = 1·35 kgTherefore standard quantity to produce 136,000 batches = 136,000 x 1·35 kg = 183,600 kgActual total kg of materials used to produce 136,000 batches = 34,080 + 83,232 + 64,200 = 181,512 kgMaterialActual quantity Standard mix kgs 181,512 x 0·25/1·35 = 33,613·33 181,512 x 0·6/1·35 = Actual quantity Actual mix kgs 34,080 83,232 Variance Standard cost per kgVariance kgs (466·67) (2,560) $ 10 4 $(4,666·70) (10,240) Lye Coconut oil Shea butter 80,672 181,512 x 0·5/1·35 = 67,226·67 64,200 3,026·67 3 9,080·01––––––––– –––––––– ––––––––– 181,512 181,512 (5,826·69)A ––––––––– ––––––––– –––––––– Yield variance MaterialStandard quantityStandard mixActual quantity Standard mix kgs 33,613·33 80,672 Variance Standard cost per kgVariance kgs 386·67 928 $ 10 4 $3,866·70 3,712 Lye Coconut oil Shea butter 0·25 x 136,000 = 0·6 x 136,000 = 0·5 x 136,000 = 34,000 81,600 68,000 67,226·67 773·33 3 2,319·99–––––––– 183,600 ––––––––– –––––––––181,512 9,898·69F ––––––––– –––––––– –––––––––(b) (i) A materials mix variance will occur when the actual mix of materials used in production is different from tstandardmix. So, it is inputs which are being considered. Since the total mix variance is adverse for the Safe Soap Co this meansthat the actual mix used in September and October was more expensive than the standard mix. A material yield variance arises because the output which was achieved is different from the output which wo havebeen expected from the inputs. So, whereas the mix variance focuses on inputs, the yield variance focuses on outputs.In both September and October, the yield variance was favourable, meaning that the inputs produced a higher level of output than one would have expected.(ii) Whilst the mix and yield variances provide Safe Soap Co with a certain level of information, they do notnecessarilyexplain any quality issues which arise because of the change in mix. The consequences of the change may wel havean impact on sales volumes. In Safe Soap Co’s case, the sales volume variance is adverse, meaning that sales volumeshave fallen in October. It is not known whether they also fell in September but it would be usual for the eff on sales of the change in mix to be slightly delayed, in this case by one month, given that it is only once the customers startreceiving the slightly altered soap that they may start expressing their dissatisfaction with the product.There may also be other reasons for the adverse sales volume variance but given the customer complaints whic havebeen received, the sales manager’s views should be taken on board.Fundamentals Level – Skills Module, Paper F5Performance Management December 2014 Marking Scheme Section A Marks2 marks per question40––––––Section B1(a)PriceCumulative average time per unit for 8 unitsTotal time for 8 unitsCumulative average time per unit for 7 unitsTotal time for 7 unitsIncremental time for 8th unitCost for 8th unitTotal cost1 0·5 1 0·5 0·5 0·5 0·5Price0·5–––5–––(b)(i)Learning rateCalculating learning rate Saying whether better or worse 2·5 0·5–––3–––(ii)Effect on price2–––Total marks10––––––2(a)(b)Calculation and justification ofbottleneckExplanation of bottleneck31–––4–––TPARThroughput1111 Throughput per bottleneck hourTotal salon costsCost per hourTPAR2–––6–––Total marks10––––––3FabriccalculationFabric reasonWood calculation 0·5 0·5 1Wood reason1Skilled labour calculationSkilled labour reason 1 1Semi-skilled labour calculation Semi-skilled labour reason Factory overheads calculation Factory overheads reason Administration overheads reason Total relevant cost (lowest cost estimate)0·5 1 0·5 1·5 1 0·5–––Total marks10––––––（注：可编辑下载，若有不当之处，请指正，谢谢!）Marks4(a)(b)PerspectivesExplanation for eachperspective1·5–––6–––Goals and measuresEach goal/measure/explanationPresentation and structure21–––9–––Total marks15––––––5(a)(b)VariancecalculationsMix varianceQuantity variance44–––8–––(i)VariancesMarks per variance explained2–––4–––(ii)DiscussionPer valid point1–––3–––Total marks15––––––。
ACCA历年考题之f9_2009_dec_ans
Fundamentals Level –Skills Module, Paper F9Financial Management December 2009 Answers 1(a)After-tax cost of borrowing = 8·6 x (1 – 0·3) = 6% per yearEvaluation of leasingYear Cash flow Amount ($)6% Discount factors Present value ($)0–3Lease rentals(380,000)1·000 + 2·673 = 3·673(1,395,740)2–5T ax savings114,0004·212 – 0·943 = 3·269372,666–––––––––––(1,023,074)–––––––––––Present value of cost of leasing = $1,023,074Evaluation of borrowing to buyLicence Tax Net cash6% discount Present Year Capital fee benefits flow factors value$$$$$ 0(1,000,000)(1,000,000)1·000(1,000,000)1(104,000)(104,000)0·943(98,072)2(108,160)106,200(1,960)0·890(1,744)3(112,486)88,698(23,788)0·840(19,982)4100,000(116,986)75,93458,9480·79246,6875131,659131,6590·74798,349–––––––––(974,762)–––––––––Present value of cost of borrowing to buy = $974,762WorkingsLicence feeYear Capital allowance Tax benefits tax benefits Total$$$$21,000,000 x 0·25 = 250,00075,00031,200106,2003750,000 x 0·25 = 187,50056,25032,44888,6984562,500 x 0·25 =140,62542,18833,74675,9345421,875 – 100,000 = 321,87596,56335,096131,659ASOP Co should buy the new technology, since the present cost of borrowing to buy is lower than the present cost of leasing.(b)Nominal terms net present value analysisYear12345$$$$$ Cost savings365,400479,250637,450564,000T ax liabilities(109,620)(143,775)(191,235)(169,200)–––––––––––––––––––––––––––––––––––––––––––Net cash flow365,400369,630493,675372,765(169,200)Discount at 11%0·9010·8120·7310·6590·593–––––––––––––––––––––––––––––––––––––––––––Present values329,225300,140360,876245,652(100,336)–––––––––––––––––––––––––––––––––––––––––––Present value of benefits1,135,557Present cost of financing(974,762)––––––––––Net present value160,795––––––––––The investment in new technology is acceptable on financial grounds, as it has a positive net present value of $160,795.WorkingsYear1234Operating cost saving ($/unit)6·096·396·717·05Production (units/year)60,00075,00095,00080,000––––––––––––––––––––––––––––––––Operating cost savings ($/year)365,400479,250637,450564,000T ax liabilities at 30% ($/year)109,620143,775191,235169,200(Examiner’s note: Including the financing cash flows in the NPV evaluation and discounting them by the WACC of 11% is also acceptable)(c)The equivalent annual cost or benefit method can be used to calculate the equal annual amount of cost or benefit which,when discounted at the appropriate cost of capital, produces the same present value of cost or net present value as a set of varying annual costs or benefits.For example, the net present value (NPV) of investing in the new technology of $160,795 in part (b) was calculated usinga weighted average cost of capital (WACC) of 11% over an expected life of four years. The annuity factor for 11% and fouryears is 3·102. The equivalent annual benefit (EAB) is therefore 160,795/3·102 = $51,835·9 per year. This can be checked by multiplying the EAB by the annuity factor, i.e. 51,835·9 x 3·102 = $160,795.If an alternative investment in similar technology over five years had a lower EAB, the four-year investment would be preferred as it has the higher EAB.(d)When capital is rationed, the optimal investment schedule is the one that maximises the return per dollar invested. The capitalrationing problem is therefore concerned with limiting factor analysis, but the approach adopted is slightly different depending on whether the investment projects being evaluated are divisible or indivisible.With divisible projects, the assumption is made that a proportion rather than the whole investment can be undertaken, with the net present value (NPV) being proportional to the amount of capital invested. If 70% of a project is undertaken, for example, the resulting NPV is assumed to be 70% of the NPV of investing in the whole project.For each divisible project, a profitability index can be calculated, defined either as the net present value of the project divided by its initial investment, or as the present value of the future cash flows of the project divided by its initial investment. The profitability index represents the return per dollar invested and can be used to rank the investment projects. The limited investment funds can then be invested in the projects in the order of their profitability indexes, with the final investment selection being a proportionate one if there is insufficient finance for the whole project. This represents the optimum investment schedule when capital is rationed and projects are divisible.With indivisible projects, ranking by profitability index will not necessarily indicate the optimum investment schedule, since it will not be possible to invest in part of a project. In this situation, the NPV of possible combinations of projects must be calculated. The most likely combinations are often indicated by the profitability index ranking. The combination of projects with the highest aggregate NPV will then be the optimum investment schedule.2(a)The cost of debt of Bond A can be found by linear interpolation.Using 11%, the difference between the present value of future cash flows and the ex interest market value = (9 x 5·889) + (100 x 0·352) – 95·08 = 53·00 + 35·20 – 95·08 = ($6·88)As the net present value is negative, 11% is higher than the cost of debt.Using 9%, the difference between the present value of future cash flows and the ex interest market value = (9 x 6·418) + (100 x 0·422) – 95·08 = 57·76 + 42·20 – 95·08 = $4·88As the net present value is positive, 9% is lower than the cost of debt.Cost of debt = 9 + ((11 – 9) x 4·88)/(4·88 + 6·88) = 9 + 0·83 = 9·83%Using estimates other than 11% and 9% will give slightly different values of the cost of debt.(b) A key factor here could be the duration of the bond issues, linked to the term structure of interest rates. Normally, the longerthe time to maturity of a debt, the higher will be the interest rate and the cost of debt. Bond A has the greater time to maturity and therefore would be expected to have a higher interest rate and a higher cost of debt than Bond B, which is the case here.Liquidity preference theory suggests that investors require compensation for deferring consumption, i.e. for not having access to their cash in the current period, and so providers of debt finance require higher compensation for lending for longer periods.The premium for lending for longer periods also reflects the way that default risk increases with time.Expectations theory suggests that the shape of the yield curve depends on expectations as to future interest rates. If the expectation is that future interest rates will be higher than current interest rates, the yield curve will slope upwards. If the expectation is that future interest rates will be lower than at present, the yield curve will slope downwards.Market segmentation theory suggests that future interest rates depend on conditions in different debt markets, e.g. the short-term market, the medium-term market and the long-term market. The shape of the yield curve therefore depends on the supply of, and demand for, funds in the market segments.Since the two bonds were issued at the same time by the same company, the business risk of DD Co can be discounted asa reason for the difference between the two costs of debt. If the two bonds had been issued by different companies, a differentbusiness risk might have been a reason for the difference in the costs of debt.The size of the debt could be a contributory factor, since the Bond A issue is twice the size of the Bond B issue. The greater size of the Bond A issue could be one of the reasons it has the higher cost of debt.(c)(i)Cost of equity = 4 + (1·2 x (11 – 4)) = 4 + 8·4 = 12·4%(ii)Dividend growth rate = 100 x ((52/50) – 1) = 100 x (1·04 – 1) = 4% per yearShare price using DGM = (50 x 1·04)/(0·124 – 0·04) = 52/0·84 = 619c or $6·19(iii)Number of ordinary shares = 25 millionMarket value of equity = 25m x 6·19 = $154·75 millionMarket value of Bond A issue = 20m x 95·08/100 = $19·016mMarket value of Bond B issue = 10m x 102·01/100 = $10·201mMarket value of debt = $29·217mMarket value of capital employed = 154·75m + 29·217m = $183·967mCapital gearing = 100 x 29·217/183·967 = 15·9%(iv)WACC = ((12·4 x 154·75) + (9·83 x 19·016) + (7·82 x 10·201))/183·967 = 11·9%(d)Miller and Modigliani showed that, in a perfect capital market, the value of a company depended on its investment decisionalone, and not on its dividend or financing decisions. In such a market, a change in dividend policy by DD Co would not affect its share price or its market capitalisation. They showed that the value of a company was maximised if it invested in all projects with a positive net present value (its optimal investment schedule). The company could pay any level of dividend and if it had insufficient finance, make up the shortfall by issuing new equity. Since investors had perfect information, they were indifferent between dividends and capital gains. Shareholders who were unhappy with the level of dividend declared bya company could gain a ‘home-made dividend’ by selling some of their shares. This was possible since there are notransaction costs in a perfect capital market.Against this view are several arguments for a link between dividend policy and share prices. For example, it has been argued that investors prefer certain dividends now rather than uncertain capital gains in the future (the ‘bird-in-the-hand’ argument).It has also been argued that real-world capital markets are not perfect, but semi-strong form efficient. Since perfect information is therefore not available, it is possible for information asymmetry to exist between shareholders and the managers of a company. Dividend announcements may give new information to shareholders and as a result, in a semi-strong form efficient market, share prices may change. The size and direction of the share price change will depend on the difference between the dividend announcement and the expectations of shareholders. This is referred to as the ‘signalling properties of dividends’.It has been found that shareholders are attracted to particular companies as a result of being satisfied by their dividend policies. This is referred to as the ‘clientele effect’. A company with an established dividend policy is therefore likely to have an established dividend clientele. The existence of this dividend clientele implies that the share price may change if there isa change in the dividend policy of the company, as shareholders sell their shares in order to reinvest in another company witha more satisfactory dividend policy. In a perfect capital market, the existence of dividend clienteles is irrelevant, sincesubstituting one company for another will not incur any transaction costs. Since real-world capital markets are not perfect, however, the existence of dividend clienteles suggests that if DD Co changes its dividend policy, its share price could be affected.3(a)Amount of equity finance to be invested in euros = 13m/2 = €6·5 millionAmount of equity to be invested in dollars = 6·5m/1·3000 = $5 millionThe amount of equity finance to be raised in dollars = 5m + 0·312m = $5·312mRights issue price = 4·00 x 0·83 = $3·32 per shareNumber of new shares issued = 5·312m/3·32 = 1·6 million sharesCurrent number of ordinary shares in issue = $100m/4·00 = 25 million sharesT otal number of shares after the rights issue = 25m + 1·6m = 26·6 million sharesTheoretical ex rights price = ((25m x 4) + (1·6m x 3·32))/26·6 = 105·312/26·6 = $3·96 per share(b)(i) Effect on earnings per shareCurrent EPS = 100 x 4·00/10 = 40 cents per share(Alternatively, current profit after tax = 100m/10 = $10 millionCurrent EPS = 100 x 10m/25m = 40 cents per share)Increase in profit before interest and tax = 13m x 0·2 = €2,600,000Dollar increase in profit before interest and tax = 2,600,000/1·3000 = $2 million$000Increase in profit before interest and tax2,000Increase in interest = 6·5m x 0·08 = 0·52m/1·3000 =400–––––––Increase in profit before tax1,600T axation = 1·6m x 0·3 =480–––––––Increase in profit after tax1,120Current profit after tax = 100m/10 =10,000–––––––Revised profit after tax11,120–––––––Alternatively, using euros:€000Increase in profit before interest and tax = 13m x 0·2 =2,600Increase in interest = 6·5m x 0·08 =520–––––––Increase in profit before tax2,080T axation = 2·08m x 0·3 =624–––––––Increase in profit after tax1,456$000Increase in dollar profit after tax = 1·456m/1·300 =1,120Current profit after tax = 100m/10 =10,000–––––––Revised profit after tax11,120–––––––Revised EPS = 100 x 11·12m/26·6m = 41·8 cents/share(ii)Effect on shareholder wealthExpected share price using PER method = (41·8 x 10)/100 = $4·18 per shareThis should be compared to the theoretical ex rights price per share in order to evaluate any change in shareholder wealth.The investment produces a capital gain of 22 cents per share ($4·18 – $3·96)In the absence of any information about dividend payments, it appears that the investment will increase the wealth of shareholders.(c)T ransaction risk is exchange rate risk that arises as a result of short-term transactions. Because it is short term in nature, ithas a direct effect on cash flows, which can either increase or decrease, depending on the movement in exchange rates before the settlement dates of individual short-term transactions.NG Co is exposed to transaction risk on its euro-denominated European sales and interest payments. The dollar value of its euro-denominated sales, for example, would decrease if the dollar appreciated against the euro.T ranslation risk is exchange rate risk that arises from the need to consolidate financial performance and financial position when preparing consolidated financial statements. For this reason, it is also referred to as accounting exposure.NG Co is exposed to translation risk on its euro-denominated non-current assets. The dollar value of the non-current assets acquired by investing in the storage, packing and distribution network, for example, will change as the euro/dollar exchange rate changes.(d)NG Co will receive euro-denominated income and will incur euro-denominated expenses as a result of its Europeanoperations. One hedging method is to maintain a euro-denominated bank account for all euro-denominated transactions. This natural hedge will minimise the need for cash to be exchanged from one currency to another.T ransactions that are deemed to have significant exchange-rate risk could be hedged using the forward market, i.e. using a forward exchange contract or FEC. This is a binding contract between a company and a bank for delivery or receipt of an agreed amount of foreign currency at an agreed exchange rate on an agreed future date.The six-monthly interest payment of €260,000 can be used to illustrate an FEC. The current cost of the interest payment is $200,000. In six months and twelve months, as the euro is expected to strengthen against the dollar, the dollar cost of the interest payment is expected to rise. In order to protect against unexpected adverse exchange rate movements, NG Co can lock into the six-month and twelve-month forward rates of 1·2876 €/$ and 1·2752 €/$ using forward exchange contracts, thereby guaranteeing the dollar cost of its euro-denominated interest payments. The dollar cost of the six-month interest payment would be $201,926 (€260,000/1·2876) and the dollar cost of the twelve-month interest payment would be $203,890 (€260,000/1·2752).An alternative to an FEC is a money market hedge. NG Co could borrow now in dollars in order to make a euro deposit which, with accrued interest, will be sufficient to pay the euro-denominated interest in six months’ time.The six-month euro deposit rate available to NG Co is 1·39% (100 x (1·0280·5– 1)) and the six-month dollar borrowing rate available to NG Co is 2·62% (100 x (1·0530·5–1)). The amount of dollars to deposit now would be €256,436 (260,000/1·0139) and to make this payment NG Co would need to borrow $197,259 (256,436/1·3000). The six-month dollar cost of this debt would be $202,427 (197,259 x 1·0262). This is more expensive than using the six-month forward exchange contract.(Examiner’s note: an illustration using the interest payment due in twelve months would also be acceptable. It would also be acceptable to use six-monthly interest rates that are one half of the annual interest rates.)Other hedging methods that could be identified and briefly discussed are currency futures, currency options and currency swaps.4(a)The role of financial intermediaries in providing short-term finance for use by business organisations is to provide a link between investors who have surplus cash and borrowers who have financing needs. The amounts of cash provided by individual investors may be small, whereas borrowers need large amounts of cash: one of the functions of financial intermediaries is therefore to aggregate invested funds in order to meet the needs of borrowers. In so doing, they provide a convenient and readily accessible route for business organisations to obtain necessary funds.Small investors are likely to be averse to losing any capital value, so financial intermediaries will assume the risk of loss on short-term funds borrowed by business organisations, either individually or by pooling risks between financial intermediaries.This aspect of the role of financial intermediaries is referred to as risk transformation. Financial intermediaries also offer maturity transformation, in that investors can deposit funds for a long period of time while borrowers may require funds on a short-term basis only, and vice versa. In this way the needs of both borrowers and lenders can be satisfied.(b)Forecast income statement$mT urnover = 16·00m x 1·084 =17·344Cost of sales = 17·344m – 5·203m =12·141–––––––Gross profit = 17·344m x 30% =5·203Other expenses = 5·203m – 3·469m =1·734–––––––Net profit = 17·344m x 20% =3·469Interest = (10m x 0·08) + 0·140m =0·940–––––––Profit before tax2·529T ax = 2·529m x 0·3 =0·759–––––––Profit after tax1·770Dividends = 1·770m x 50% =0·885–––––––Retained profit0·885–––––––Forecast statement of financial position$m$mNon-current assets22·00Current assetsInventory3·66T rade receivables3·09–––––6·75––––––T otal assets28·75––––––Equity finance:$m$mOrdinary shares5·00Reserves8·39–––––13·39Bank loan10·00––––––23·39Current liabilitiesT rade payables2·49Overdraft2·87–––––5·36––––––T otal liabilities28·75––––––WorkingsInventory = 12·141m x (110/365) = $3·66mT rade receivables = 17·344m x (65/365) = $3·09mT rade payables = 12·141m x (75/365) = $2·49mReserves = 7·5m + 0·885m = $8·39mOverdraft = 28·75m – 23·39m – 2·49 = $2·87m (balancing figure)(c)Working capital financing policies can be classified into conservative, moderate (or matching) and aggressive, depending onthe extent to which fluctuating current assets and permanent current assets are financed by short-term sources of finance.Permanent current assets are the core level of investment in current assets needed to support a given level of business activity or turnover, while fluctuating current assets are the changes in the levels of current assets arising from the unpredictable nature of some aspects of business activity.A conservative working capital financing policy uses long-term funds to finance non-current assets and permanent currentassets, as well as a proportion of fluctuating current assets. This policy is less risky and less profitable than an aggressiveworking capital financing policy, which uses short-term funds to finance fluctuating current assets and a proportion of permanent current assets as well. Between these two extremes lies the moderate (or matching) policy, which uses long-term funds to finance long-term assets (non-current assets and permanent current assets) and short-term funds to finance short-term assets (fluctuating current assets).The current statement of financial position shows that APX Co uses trade payables and an overdraft as sources of short-term finance. In terms of the balance between short- and long-term finance, 89% of current assets (100 x 4·1/4·6) are financed from short-term sources and only 11% are financed from long-term sources. Since a high proportion of current assets are permanent in nature, this appears to be a very aggressive working capital financing policy which carries significant risk. If the overdraft were called in, for example, APX Co might have to turn to more expensive short-term financing.The forecast statement of financial position shows a lower reliance on short-term finance, since 79% of current assets (100 x 5·36/6·75) are financed from short-term sources and 21% are financed from long-term sources. This decreased reliance on an aggressive financing policy is sensible, although with a forecast interest coverage ratio of only 3·7 times (3·469/0·94), APX Co has little scope for taking on more long-term debt. An increase in equity funding to decrease reliance on short-term finance could be considered.(d)Working capital managementFinancial analysis shows deterioration in key working capital ratios. The inventory turnover period is expected to increase from81 days to 110 days, the trade receivables period is expected to increase from 50 days to 65 days and the trade payablesperiod is expected to increase from 64 days to 75 days. It is also a cause for concern here that the values of these working capital ratios for the next year are forecast, i.e. APX Co appears to be anticipating a worsening in its working capital position.The current and forecast values could be compared to average or sector values in order to confirm whether this is in fact the case.Because current assets are expected to increase by more than current liabilities, the current ratio and the quick ratio are both expected to increase in the next year, the current ratio from 1·12 times to 1·26 times and the quick ratio from 0·54 times to 0·58 times. Again, comparison with sector average values for these ratios would be useful in making an assessment of the working capital management of APX Co. The balance between trade payables and overdraft finance is approximately the same in both years (trade payables are 46% of current liabilities in the current statement of financial position and 47% of current liabilities in the forecast statement of financial position), although reliance on short-term finance is expected to fall slightly in the next year.The deteriorating working capital position may be linked to an expected deterioration in the overall financial performance of APX Co. For example, the forecast gross profit margin (30%) and net profit margin (20%) are both less than the current values of these ratios (32% and 23% respectively), and despite the increase in turnover, return on capital employed (ROCE) is expected to fall from 16·35% to 14·83%.AnalysisExtracts from current income statement:$mT urnover16·00Cost of sales10·88–––––Gross profit5·12Other expenses1·44–––––Net profit3·68–––––Current ForecastGross profit margin (100 x 5·12/16·00)32%30%Net profit margin (100 x 3·68/16·00)23%20%ROCE(100 x 3·68/22·5)16·35%(100 x 3·469/23·39)14·83%Inventory period (365 x 2·4/10·88)81 days110 daysReceivables period (365 x 2·2/16·00)50 days65 daysPayables period (365 x 1·9/10·88)64 days75 daysCurrent ratio(4·6/4·1)1·12 times(6·75/5·36)1·26 timesQuick ratio(2·2/4·1)0·54 times(3·09/5·36)0·58 timesFundamentals Level –Skills Module, Paper F9Financial Management December 2009 Marking SchemeMarks Marks1(a)Present value of lease rentals2Present value of lease rental tax benefits1Present value of cost of leasing1Investment and scrap values1Licence fee1Capital allowance tax benefits2Licence fee tax benefits1Present value of cost of borrowing to buy1Appropriate decision on leasing versus buying1–––11(b)Inflated cost savings2T ax liabilities1Present values of net cash flows1Net present value1Advice on acceptability of investment1–––6(c)Definition of equivalent cost or benefit1Relevant discussion1Appropriate illustration1–––3(d)Capital rationing1–2Divisible projects and profitability index2–3Indivisible projects and combinations1–2–––Maximum5–––252(a)Calculation of cost of debt of Bond A3(b)T erm structure of interest rates1–2Liquidity preference theory1–2Expectations theory1–2Market segmentation theory1–2Other relevant discussion1–2–––Maximum6(c)Cost of equity2Dividend growth rate1Share price using dividend growth model2Capital gearing2Weighted average cost of capital2–––9(d)Dividend irrelevance3–4Dividend relevance3–4–––Maximum7–––25Marks Marks 3(a)Amount of equity finance to be raised in dollars1 Rights issue price1Theoretical ex rights price2–––4(b)Current EPS1Increase in PBIT from investment1Interest on bond issue1Revised dollar profit after tax2Revised EPS1Revised share price using PER method1Comment on effect on shareholder wealth1–3–––Maximum9(c)T ransaction risk1–2T ranslation risk1–2Link to question1–2–––Maximum4(d)Euro account1Forward market hedge1Illustration of forward market hedge1–2Money-market hedge1Illustration of money-market hedge1–2Other hedging strategies, including derivatives1–2–––Maximum8–––25 4(a)Relevant discussion on financial intermediaries4(b)Gross profit1Net profit1Profit before tax1Retained profit1Inventory1T rade receivables1T rade payables1Reserves1Overdraft1Layout and format1–––Maximum9(c)Working capital financing policies2–3Financial analysis1–2Working capital financing policy of company2–3–––Maximum6(d)Discussion of working capital management3–4Financial analysis2–4–––Maximum6–––25。
2014年12月ACCA F5考试真题
Performance ManagementMonday 1 December 2014Time allowedReading and planning: 15 minutesWriting: 3 hoursThis paper is divided into two sections:Section A – ALL 20 questions are compulsory and MUST beattemptedSection B – ALL FIVE questions are compulsory and MUST beattemptedFormulae Sheet is on page 14.Do NOT open this paper until instructed by the supervisor.During reading and planning time only the question paper maybe annotated. You must NOT write in your answer booklet until instructed by the supervisor.This question paper must not be removed from the examination hall.The Association of Chartered Certified AccountantsSection A – ALL 20 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1 Dust Co has two divisions, A and B. Each division is currently considering the following separate projects:Division A $32·6 million $14·4 million30%Division B $22·2 million $8·8 million24%Capital required for the projectSales generated by projectOperating profit marginCost of capital 10% 10%Current return on investment of division 15% 9%If residual income is used as the basis for the investment decision, which Division(s) would choose to invest in the project?A B C D Division A onlyDivision B onlyBoth Division A and Division B Neither Division A nor Division B2 The following costs have arisen in relation to the production of a product:(i) Planning and concept design costs(ii) Testing costs(iii) Production costs(iv) Distribution and customer service costsIn calculating the life cycle costs of a product, which of the above items would be included?A B C D (iii) only(i), (ii) and (iii) only (i), (ii) and (iv) only All of the above3 Which of the following describes a ‘basic standard’ within the context of budgeting?A B C D A standard which is kept unchanged over a period of timeA standard which is based on current price levelsA standard set at an ideal level, which makes no allowance for normal losses, waste and machine downtime A standard which assumes an efficient level of operation, but which includes allowances for factors such as normal loss, waste and machine downtime4 The following statements have been made about planning and control as described in the three tiers of RobertAnthony’s decision-making hierarchy:(1) Strategic planning is concerned with making decisions about the efficient and effective use of existing resources(2) Operational control is about ensuring that specific tasks are carried out efficiently and effectivelyWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 25 P Co makes two products – P1 and P2 – budgeted details of which are as follows:P1 $ P2 $Selling price 10·00 8·00 Cost per unit:Direct materials Direct labour Variable overhead Fixed overhead3·501·500·604·001·000·40 1·20 1·00 ––––––––––Profit per unit 3·20 1·60––––––––––Budgeted production and sales for the year ended 30 November 2015 are:Product P1 Product P2 10,000 units 12,500 unitsThe fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also includes specific fixed overheads totalling $2,500.If only product P1 were to be made, how many units (to the nearest unit) would need to be sold in order to achieve a profit of $60,000 each year?A B C D 25,625 units 19,205 units 18,636 units 26,406 units6 A company has the following production planned for the next four weeks. The figures reflect the full capacity level ofoperations. Planned output is equal to the maximum demand per product.Product A$ per unit160B$ per unit214C$ per unit100D$ per unit140Selling priceRaw material cost Direct labour cost Variable overhead cost Fixed overhead cost246624568818223324402218 16 10 8 12 ––––––––––––––––Profit 30 42 13 48––––––––––––––––Planned outputDirect labour hours per unit 3006125824034002The direct labour force is threatening to go on strike for two weeks out of the coming four. This means that only 2,160 hours will be available for production rather than the usual 4,320 hours.If the strike goes ahead, which product or products should be produced if profits are to be maximised?A B C D D and A B and D D only B and C7 The following table shows the number of clients who attended a particular accountancy practice over the last fourweeks and the total costs incurred during each of the weeks:Week Number of clients Total cost$1 2 3 4 40044042046036,88039,84036,80040,000Applying the high low method to the above information, which of the following could be used to forecast total cost ($) from the number of clients expected to attend (where x = the expected number of clients)?A B C D 7,280 + 74x 16,080 + 52x 3,200 + 80x 40,000/x8 Oxco has two divisions, A and B. Division A makes a component for air conditioning units which it can only sell toDivision B. It has no other outlet for sales.Current information relating to Division A is as follows:Marginal cost per unit $100Transfer price of the component $165Total production and sales of the component each year Specific fixed costs of Division A per year2,200 units $10,000Cold Co has offered to sell the component to Division B for $140 per unit. If Division B accepts this offer, Division A will be shut.If Division B accepts Cold Co’s offer, what will be the impact on profits per year for the group as a whole?A B C D Increase of $65,000 Decrease of $78,000 Decrease of $88,000 Increase of $55,0009 The following statements have been made in relation to activity-based costing:(1) A cost driver is a factor which causes a change in the cost of an activity(2) Traditional absorption costing tends to under-estimate overhead costs for high volume productsWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 210 A linear programming model has been formulated for two products, X and Y. The objective function is depicted by theformula C = 5X + 6Y, where C = contribution, X = the number of product X to be produced and Y = the number of product Y to be produced.Each unit of X uses 2 kg of material Z and each unit of Y uses 3 kg of material Z. The standard cost of material Z is $2 per kg.The shadow price for material Z has been worked out and found to be $2·80 per kg.If an extra 20 kg of material Z becomes available at $2 per kg, what will the maximum increase in contribution be?A B C D Increase of $96 Increase of $56 Increase of $16 No change11 The following statements have been made about both standard costing and total quality management (TQM):(1) They focus on assigning responsibility solely to senior managers(2) They work well in rapidly changing environmentsWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 212 The following statements have been made about environmental cost accounting:(1) The majority of environmental costs are already captured within a typical organisation’s accounting system. Thedifficulty lies in identifying them(2) Input/output analysis divides material flows within an organisation into three categories: material flows; systemflows; and delivery and disposal flowsWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 213 Def Co provides accounting services to government departments. On average, each staff member works six chargeablehours per day, with the rest of their working day being spent on non-chargeable administrative work. One of thecompany’s main objectives is to produce a high level of quality and customer satisfaction.Def Co has set its targets for the next year as follows:(1) Cutting departmental expenditure by 5%(2) Increasing the number of chargeable hours handled by advisers to 6·2 per day(3) Obtaining a score of 4·7 or above on customer satisfaction surveysWhich of the above targets assesses economy, efficiency and effectiveness at Def Co?Economy Efficiency EffectivenessA B C D 12313122231314 Which of the following is an advantage of non-participative budgeting as compared to participative budgeting?A B C D It increases motivationIt is less time consumingIt increases acceptanceThe budgets produced are more attainable15 The following are all steps in the implementation of the target costing process for a product:(1) Calculate the target cost(2) Calculate the estimated current cost based on the existing product specification(3) Set the required profit(4) Set the selling price(5) Calculate the target cost gapWhich of the following represents the correct sequence if target costing were to be used?A B C D (1), (2), (3), (4), (5)(2), (3), (4), (1), (5) (4), (3), (1), (2), (5) (4), (5), (3), (1), (2)16 What is the name given to a budget which has been prepared by building on a previous period’s budgeted oractual figures?A B C D Incremental budget Flexible budget Zero based budget Functional budget17 Tree Co is considering employing a sales manager. Market research has shown that a good sales manager can increaseprofit by 30%, an average one by 20% and a poor one by 10%. Experience has shown that the company hasattracted a good sales manager 35% of the time, an average one 45% of the time and a poor one 20% of the time.The company’s normal profits are $180,000 per annum and the sales manager’s salary would be $40,000 perannum.Based on the expected value criterion, which of the following represents the correct advice which Tree Co should be given?A B C D Do not employ a sales manager as profits would be expected to fall by $1,300 Employ a sales manager as profits will increase by $38,700Employ a sales manager as profits are expected to increase by $100Do not employ a sales manager as profits are expected to fall by $39,90018 A company manufactures two products, C and D, for which the following information is available:Product C 1,0008135 Product D4,00010153Total5,00048,00028Budgeted production (units)Labour hours per unit/in totalNumber of production runs requiredNumber of inspections during production 8Total production set up costs Total inspection costsOther overhead costs $140,000 $80,000 $96,000Other overhead costs are absorbed on the basis of labour hours per unit.Using activity-based costing, what is the budgeted overhead cost per unit of product D?A B C D $43·84 $46·25 $131·00 $140·6419 X Co uses rolling budgeting, updating its budgets on a quarterly basis. After carrying out the last quarter’s update tothe cash budget, it projected a forecast cash deficit of $400,000 at the end of the year. Consequently, the planned purchase of new capital equipment has been postponed.Which of the following types of control is the sales manager’s actions an example of?A B C D Feedforward control Negative feedback control Positive feedback control Double loop feedback control20 The following circumstances may arise in relation to the launch of a new product:(i) Demand is relatively inelastic(ii) There are significant economies of scale(iii) The firm wishes to discourage new entrants to the market(iv) The product life cycle is particularly shortWhich of the above circumstances favour a penetration pricing policy?A B C D (ii) and (iii) only(ii) and (iv)(i), (ii) and (iii)(ii), (iii) and (iv) only(40 marks)Section B – ALL FIVE questions are compulsory and MUST be attempted1 Chair Co has developed a new type of luxury car seat. The estimated labour time for the first unit is 12 hours but alearning curve of 75% is expected to apply for the first eight units produced. The cost of labour is $15 per hour. The cost of materials and other variable overheads is expected to total $230 per unit.Chair Co plans on pricing the seat by adding a 50% mark-up to the total variable cost per seat, with the labour cost being based on the incremental time taken to produce the 8th unit.Required:(a) Calculate the price which Chair Co expects to charge for the new seat.Note: The learning index for a 75% learning curve is –0·415. (5 marks)(b) The first phase of production has now been completed for the new car seat. The first unit actually took12·5 hours to make and the total time for the first eight units was 34·3 hours, at which point the learning effectcame to an end. Chair Co are planning on adjusting the price to reflect the actual time it took to complete the8th unit.Required:(i) Calculate the actual rate of learning and state whether this means that the labour force actually learntmore quickly or less quickly than expected. (3 marks) (ii) Briefly explain whether the adjusted price charged by Chair Co will be higher or lower than the price you calculated in part (a) above. You are NOT required to calculate the adjusted price. (2 marks)(10 marks)2 Glam Co is a hairdressing salon which provides both ‘cuts’ and ‘treatments’ to clients. All cuts and treatments at thesalon are carried out by one of the salon’s three senior stylists. The salon also has two salon assistants and two junior stylists.Every customer attending the salon is first seen by a salon assistant, who washes their hair; next, by a senior stylist, who cuts or treats the hair depending on which service the customer wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:Cut Hours 0·11 Treatment Hours0·31·50·5AssistantSenior stylistJunior stylist 0·5The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for senior stylists, $28,000 each year for junior stylists and $12,000 each year for the assistants. The cost of cleaning products applied when washing the hair is $0·60 per client. The cost of all additional products applied during a ‘treatment’ is $7·40 per client. Other salon costs (excluding labour and raw materials) amount to $106,400 each year.Glam Co charges $60 for each cut and $110 for each treatment.The senior stylists’ time has been correctly identified as the bottleneck activity.Required:(a) Briefly explain why the senior stylists’ time has been described as the ‘bottleneck activity’, supporting youranswer with calculations. (4 marks) (b) Calculate the throughput accounting ratio (TPAR) for ‘cuts’ and the TPAR for ‘treatments’ assuming thebottleneck activity is fully utilised. (6 marks)(10 marks)3 The Hi Life Co (HL Co) makes sofas. It has recently received a request from a customer to provide a one-off order ofsofas, in excess of normal budgeted production. The order would need to be completed within two weeks. The following cost estimate has already been prepared:Direct materials: FabricWoodNote12$3,400410 200 m2 at $17 per m250 m at $8·20 per m 2Direct labour:SkilledSemi-skilled Factory overheads 200 hours at $16 per hour300 hours at $12 per hour500 hours at $3 per hour3453,2003,6001,500–––––––Total production cost 12,110Administration overheads at 10% of total production cost 6 1,211–––––––Total cost 13,321–––––––Notes1 The fabric is regularly used by HL Co. There are currently 300 m2 in inventory, which cost $17 per m 2. Thecurrent purchase price of the fabric is $17·50 per m 2.2 This type of wood is regularly used by HL Co and usually costs $8·20 per m 2. However, the company’s currentsupplier’s earliest delivery time for the wood is in three weeks’ time. An alternative supplier could deliver immediately but they would charge $8·50 per m 2. HL Co already has 500 m 2 in inventory but 480 m 2 of this is needed to complete other existing orders in the next two weeks. The remaining 20 m2 is not going to be needed until four weeks’ time.3 The skilled labour force is employed under permanent contracts of employment under which they must be paidfor 40 hours’ per week’s labour, even if their time is idle due to absence of orders. Their rate of pay is $16 per hour, although any overtime is paid at time and a half. In the next two weeks, there is spare capacity of 150 labour hours.4 5 There is no spare capacity for semi-skilled workers. They are currently paid $12 per hour or time and a half for overtime. However, a local agency can provide additional semi-skilled workers for $14 per hour.The $3 absorption rate is HL Co’s standard factory overhead absorption rate; $1·50 per hour reflects the cost of the factory supervisor’s salary and the other $1·50 per hour reflects general factory costs. The supervisor is paid an annual salary and is also paid $15 per hour for any overtime he works. He will need to work 20 hours’overtime if this order is accepted.6 This is an apportionment of the general administration overheads incurred by HL Co.Required:Prepare, on a relevant cost basis, the lowest cost estimate which could be used as the basis for the quotation. Explain briefly your reasons for including or excluding each of the costs in your estimate.(10 marks)4 Jamair was founded in September 2007 and is one of a growing number of low-cost airlines in the country of Shania.Jamair’s strategy is to operate as a low-cost, high efficiency airline, and it does this by:––Operating mostly in secondary cities to reduce landing costs.Using only one type of aircraft in order to reduce maintenance and operational costs. These planes are leased rather than bought outright.–––Having only one category of seat class.Having no pre-allocated seats or in-flight entertainment.Focusing on e-commerce with customers both booking tickets and checking in for flights online.The airline was given an ‘on time arrival’ ranking of seventh best by the country’s aviation authority, who rank all 50 of the country’s airlines based on the number of flights which arrive on time at their destinations. 48 Jamair flights were cancelled in 2013 compared to 35 in 2012. This increase was due to an increase in the staff absentee rate at Jamair from 3 days per staff member per year to 4·5 days.The average ‘ground turnaround time’ for airlines in Shania is 50 minutes, meaning that, on average, planes are on the ground for cleaning, refuelling, etc for 50 minutes before departing again. Customer satisfaction surveys have shown that 85% of customers are happy with the standard of cleanliness on Jamair’s planes.The number of passengers carried by the airline has grown from 300,000 passengers on a total of 3,428 flights in 2007 to 920,000 passengers on 7,650 flights in 2013. The overall growth of the airline has been helped by the limited route licensing policy of the Shanian government, which has given Jamair almost monopoly status on some of its routes. However, the government is now set to change this policy with almost immediate effect, and it has become more important than ever to monitor performance effectively.Required:(a) Describe each of the four perspectives of the balanced scorecard. (6 marks)(b) For each perspective of the balanced scorecard, identify one goal together with a corresponding performancemeasure which could be used by Jamair to measure the company’s performance. The goals and measures should be specifically relevant to Jamair. For each pair of goals and measures, explain why you have chosen them. (9 marks)(15 marks)5 The Safe Soap Co makes environmentally-friendly soap using three basic ingredients. The standard cost card for onebatch of soap for the month of September was as follows:Material Lye Coconut oil Shea butter Kilograms0·250·6Price per kilogram ($)1040·5 3The budget for production and sales in September was 120,000 batches. Actual production and sales were 136,000 batches. The actual ingredients used were as follows:Material Lye Coconut oil Shea butter Kilograms 34,080 83,232 64,200Required:(a) Calculate the total material mix variance and the total material yield variance for September. (8 marks)(b) In October the materials mix and yield variances were as follows:Mix: $6,000 adverseYield: $10,000 favourableThe production manager is pleased with the results overall, stating:‘At the beginning of September I made some changes to the mix of ingredients used for the soaps. As I expected, the mix variance is adverse in both months because we haven’t yet updated our standard cost card but, in both months, the favourable yield variance more than makes up for this. Overall, I think we can be satisfied that the changes made to the product mix are producing good results and now we are able to produce more batches and meet the growing demand for our product.’The sales manager, however, holds a different view and says:‘I’m not happy with this change in the ingredients mix. I’ve had to explain to the board why the sales volume variance for October was $22,000 adverse. I’ve tried to explain that the quality of the soap has declined slightly and some of my customers have realised this and simply aren’t happy but no-one seems to be listening. Some customers are even demanding that the price of the soap be reduced and threatening to go elsewhere if the problem isn’t sorted out.’Required:(i) Briefly explain what the adverse materials mix and favourable materials yield variances indicate aboutproduction at Safe Soap Co in October.Note: You are NOT required to discuss revision of standards or operational and planning variances.(4 marks)(ii) Discuss whether the sales manager could be justified in claiming that the change in the materials mix has caused an adverse sales volume variance in October. (3 marks)(15 marks)Formulae SheetLearning curveY = ax bWhere Y = cumulative average time per unit to produce x unitsa = the time taken for the first unit of outputx = the cumulative number of units producedb = the index of learning (log LR/log2)LR = the learning rate as a decimalDemand curveP = a – bQchange in priceb = change in quantitya = price when Q = 0MR = a – 2bQEnd of Question Paper。
2014年12月ACCA考试F4(Corporate and business law)样卷
2014年12月ACCA考试F4（Corporate and business law）样卷本文由高顿ACCA整理发布，转载请注明出处ACCA考试F4 Corporate and business law （公司法和商法）在2014年12月份的考试开始，会有一个很大的考试形式的变革，相信学员们已经有所了解了。
为了让大家高效复习，高顿网校小编为大家分享ACCA官方网站刊登的部分样题。
F4从10道简答题变为了45道选择题和5道简答题，时间也缩短了1个小时的时间，这就需要有想报名参加12月份考试的同学提前准备。
In the context of the English legal system, which of the following courts ONLY has civil jurisdiction?A Magistrates' courtB County courtC High Court (1 mark)在考试中，前面几道选择题会相对来说比较基础，考核学员们的是框架性的知识，比如上面这道题就闻到了在英国司法体系中，只有民事管辖权的法庭是哪一下。
这里要注意的一共有两点，第一点就是民事管辖权，第二点就是题目中提到的”ONLY”这个词。
这里也算是一考官为学员们做了一个提示，说明在选项中，可能会涉及到某个法庭不仅有民事管辖权还会有刑事管辖权。
第一项治安法庭，基本没有司法能力，但是是在刑事体系中存在的；第二项地方法院是正确的选择；最后一项是高等法院，它不仅有民事管辖权还有刑事管辖权，所以不符合题目的要求。
这样简单的题目学员们一定要注意，比起之前的简答题来说，这样的题目考察的范围更为狭窄，要求的指示精度更为准确，所以，一定要引起注意。
Ho subscribed for some partly paid-up shares in Io Ltd. The company has not been successful and Ho has been told that when Io Ltd is liquidated, he will have to pay the amount remaining unpaid on his shares. However, he is not sure to whom such payment should be made.In limited liability companies, shareholders are liable to which party for any unpaid capital?A CreditorsB The directorsC The companyD The liquidator (2 marks)本题就相对于来说会复杂一些，因为会搭上一些背景，是题目更为贴近现实。
2015年12月ACCA考试F9财务管理真题(SectionB部分)及标准答案
2015年12月ACCA考试F9财务管理真题（SectionB部）(总分100, 考试时间180分钟)Section BGemlo Co is planning an expansion of existing business operations costing $10 million in the(a) Calculate the debt/equity ratio of Gemlo Co based on market values and comment on your findings.(b) Gemlo Co agrees with a bank that its business expansion will be financed by a new issue of 8% loan notes. The company then announces to the stock market both this financing decision and the expected increase in profit before interest and tax arising from the business expansion. Required:Assuming the stock market is semi-strong form efficient, analyse and discuss the effect of the financing and profitability announcement on the financial risk and share price of Gemlo Co.Required:(a) Evaluate the proposed forward rate agreement as a way of managing the interest rate risk anticipated by GXJ Co.该题您未回答:х 该问题分值: -3forward exchange rates and future (expected) spot rates.receivable.It is expected that investing $20 million in the business will increase income by 5% over theRequired:(a) Assess the impact of financing the business expansion by the loan note issue on financial position, financial risk and shareholder wealth after one year, using appropriate measures.company could be used in investment appraisal and indicate briefly how its limitations as a discount rate could be overcome.(a) Using a nominal terms net present value approach, evaluate whether purchasing the newmachine is financially acceptable.。
2014年12月A级真题
2014年12月A级真题DA. manyB. muchC. moreD. most27.As long as you keep on ______hard,you’11get promoted sooner or later.A. workB. be workingC. workedD. working28. There are 4.9 million businesses in the UK, 99% of ______ are small businesses.A. whichB. thatC. whoseD. it29. ______ by all the team members, they finally got the big project for their company.A. To be supported C. SupportingB. Having supported D. Supported30. This article tells the readers ______ they can look for in an employee’s abilities.A. thatB. whatC. whichD. howSection BDirections: There are 5 incomplete statements here. You should fi11 in each blank with the proper form of the word given in brackets. Write the word or words in thecorresponding space on the Answer Sheet.31. The proposal that the head of the team made at the meeting sounds (reason) ______.32. Generally speaking, once you (make) ______ the payment, the goods should be deliveredwithin a week.33. It is said that advertising is the(expensive) ______of all the promotional activities undertaken by businesses.34.The company suffered greatly during the economic crisis, with considerable loss of its(invest)____.35.It is reported that an international conference (hold) ______in London next Friday.Part III Reading Comprehension[40 minutes] Directions: This part is to test your reading ability. There are 5 tasks for you to fulfill. You should read the reading materials carefully and do the tasksas you are instructed.Task 1Directions: After reading the following passage, you will find 5 questions or unfinished statements, numbered36 to 40. For each question or statement there are 4 choicesmarked A, B, C and D. You should make the correct choice and mark thecorresponding letter on the Answer Sheet with a single line through the center.We try to ensure that GFL Solid Waste Haulage (清运) Division is a company that acts safely and responsibly at all times and in all places. We never tolerate any conduct that puts our customers and the communities we serve at risk.At GFL, safety is more than a program; it is a core value of our company .GFL is equally committed to improving the environment for thefuture of the communities we live in and we serve. We believe that our services play an essential part in improving the environment and we are always mindful of having the most cost-effective waste management solutions for our customers.We are committed to the safety of our workers and have programs in place to continually upgrade our worker safety and environmental practices .We have highly qualified staff , we use the best available equipment and we are fully committed to keeping our workplace safe and the environment clean.Over the past years, service requests have changed dramatically from basic waste disposal to comprehensive waste management or “green” programs .Our new “green” waste management program is now gaining respect and popularity in the community. For more information, contact GFL at csupport@.36. According to the passage, GFL doesn’t allow any conduct that will_______.A) cause any noise to the environmentB) produce waste in the communitiesC) waste more nature resourcesD) do harm to its customers37. The core value of GFL Solid Waste Haulage Division is_______.A) profitB) safetyC) efficiencyD) responsibility38. In the first paragraph, “we are always mindful of …”means “_______.”A) we are always worried about…B) we always look forward to…C) we are always aware of…D) we always put up with…39. What does GFL do with its worker safety and environmental practices , according tothesecond paragraph ?A) Continually upgrade themB) Keep using the traditional methodsC) Hire new workers to clean the environmentD) Import new technology from overseas companies40. What can we learn about the company’s new “green” waste management program?A) The quality of waste management has become worse.B) The program is becoming more and more popular.C) Waste management has remained unchanged.D) More workers are involved in the program.Task 2Directions: This task is the same as Task 1. The 5 questions or unfinished statements are numbered 41 to 45.Many jobs have been lost and they may not be coming back. Some occupations had already been declining for years due to advance in technology and changes in the global economy. The following is a list of careers that are disappearing.Stage PerformersThe five-year decline for this career was a surprising 61% .Stage performances have fallen out of fashion and have been almost entirely replaced with movies and home entertainment technologies.Postal service mail sortersAfter losing almost 57,000 jobs between 2004 and 2009, a further 30% decline in this occupation can be seen by 2018.With more automatic processes for mail sorting and increasing correspondence via e-mail and fax; this job is quickly becoming unnecessary.Office support workersAbout 300,000 office support jobs disappeared between 2004 and 2009.Secretaries and file clerks are no longer in demand as companies cut costs. Moreover, technologies like voice mail and easy-to-use word processors have enabled professionals to do their own office work. Photo processorsWith the rise of digital photography and automatic printing, positions for manual photo printers are rapidly disappearing. The occupation has been steadily losing jobs in the last five years and there might be a 24% decline by 2018.Radio operatorsAs technology advances, the need for workers to monitor communications via radiotelephone equipment is disappearing. This already small field saw a five-year decline of 43%.41. According to the first paragraph, because of the advances in technology and globaleconomic changes, _______.A. Many jobs are disappearing sharplyB. Many new occupations are emergingC. People are attracted to higher-paying jobsD. Part-time jobs have become more popular42. One reason why the career of stage performers is declining so fast is that_______.A. Stage performers can no longer earn big moneyB. Fewer people are qualified as stage performersC. There is less investment in in stage performancesD. Stage performances have become less popular43. The benefit of using new technologies in the office is that_______.A. Office workers can work on a flexible work systemB. Professionals are able to do their own office workC. Secretaries and file clerks are badly in needD. Employees can enjoy better social welfare44. The author expects that by 2018 the occupation of photo processors mightdeclineby_______.A. 61%B.43%C.30%D.24%45. Which of the following might be best title of the passage?A. Advanced TechnologiesB. Rising UnemploymentC. Disappearing CareersD. Global EconomyTask 3Directions:The following is a short introduction to AIL Sales Representatives. After reading it, you are required to complete the outline below it (No.46 to No.50).You should write youranswersbriefly (in no more than three words) on the Answer Sheet correspondingly.In American Income Life Company(AIL),sales representatives have servants’ heart. Our team members make every effort to protect hard-working, middle-income families with insurance coverage(承保范围).We also believe whole heartedly in giving back to the communities in which we operate. American Income Life gives off its time and resources to help make the world a better place.Sales experience is not required to be a representative, just the willingness to work hard. What makes American Income Life unique is that our work system enables our sales team to focus on selling, which is what makes this career truly opportunity unlimited. Simply said, you earn what you’re worth based on how hard you work; and how fast you want to advance.At American Income Life you will find a career, not a job. You will also find free training opportunities, and leadership experience, too. American Income Life’s independent agency offices provide sales training focused on insurance sales. Training includes working one-on-oneSales Representatives of AILAims: l. to protect middle-income families2. to give back to 46Features: 1. having servants’ hearts2. willingness to 473. being able to focus on 48Benefits: 1. 49 sales training opportunities2. 50 experienceTask 4Directions: The following is a list of term used in International Trade .After reading it, you are required to find the items equivalent to ( 与… 等同) those given in Chinese in thetable below .Then you should put the corresponding letters in brackets on theanswer sheet, numbered51through 55.A Cost of goods soldB --- Channel of distributionC --- Commission percentD --- Competitive advantage / edgeE --- Current assetsF --- Current debtG--- Direct cost of salesH --- Earning before taxesI --- Effective demandJ --- Advance paymentK --- Advising bankL --- Letter of creditM --- Paying bankN --- Capital marketO --- Cost and freightP --- Import licenseQ --- Joint ventureExamples: (A) 售出物成本(H)税前收益51. ( )现有债务（）预付款52. ( )信用证（）合资企业53. ( )竞争优势（）有效需求54. ( )付款银行（）成本加运费55. ( )直销成本（）资本市场Task 5Directions: Read the following passage. After reading it, you should give brief answer to the 5question (No.56 to No.60) that follow. The answer (in no more than three words)should been written after the corresponding numbers on the Answer Sheet.Act now to get a student loanMake no payments while in school with a Wells Fargo private student loan. A college education is a worthwhile investment, but sometimes you need help covering all the costs.Wells Fargo private student loans may be able to help you pay for all eligibleeducation-related expenses, including tuition, housing ,books, a laptop, lab fees, andmore.Other benefits include:--Make no payments until six months after leaving school--Select a competitive fixed or variable interest rate option--Reduce your loan cost with our interest rate discountsApplying with a co-signer（联署人；担保人）may improve your chance of getting approved and help you qualify for a lower interest rate.Learn more about undergraduate studentloans for traditional colleges and universities or career and community colleges. Orcall our toll-free number 1-877-315-7721.Our Student Loan Specialists ae here tohelp you through the progress-----from helping you make an informed choice on theloan that meets your needs, to helping you estimate how much you may need toborrow.56. What is introduced in the passage?A Wells Fargo______loan.57. What expenses can be paid with the loan?All eligible ______expenses.58. What is the advantage of the loan in terms of the repayment period?No payment is made until six months after__________________.59. Why are you advised to apply for your loan with a co-signer?To have a better chance of ____________and being qualified for a lower interest rate.60. What can the Students Loan Specialists do to help you in your application?They can help you through ____________in your application.Part IV Translation—English into Chinese (25 minutes)Direction: This part, numbered 61 through 65, is to test your ability to translate English intoChinese. After each of the sentences numbered 61 to 64, you will read three choices ofsuggested translation marked A),B) and C).You should choose the best translation andmark the corresponding letter on your Answer Sheet with a single line through thecenter. And for the paragraph numbered 65, write your translation in thecorresponding space on the Translation/Composition Sheet.61. In order to increase cash flow and limit layoffs, the company has decided that salaryreductions are absolutely necessary at this time.A)公司收到增加现金收入和加快裁员的决定，认为这一决定十分适合。
2014年12月A级真题
2014年12月A级真题2014年12月A级考试全真试题Part I Listening Comprehension [15 minutes] Directions: This part is to test your listening ability. It consists of 3 sections. Section ADirections: This section is to test your ability to understand short dialogues. There are 5 recorded dialogues in it. After each dialogue, there is a recordedquestion. Both the dialogues and questions will be spoken only once. Whenyou hear a question, you should decide on the correct answer from the 4choices marked A, B, C and D given in your test paper. Then you should markthe corresponding letter on the Answer Sheet with a single line throughthe center.Example: You will hear:You will read: A. New York City. B. An evening party.C. An air trip.D. The man’s job.From the dialogue we learn that the man is to take a flight to New York. Therefore,C. An air trip, is the correct answer. You should mark C on the Answer Sheetwith a single line through the center.Now the test will begin.1. A. Production planning. C. Public relations.B. Financial affairs. D. Import and Export2. A. More workers are needed. C. Raw materials are more expensive.B. Advertising costs more. D. Workers' salaries are higher.3. A. To look for a dream job. C. To continue his study.B. To visit his friends. D. To find a chance to do business.4. A. He is good at programming. C. He is nice and kind.B. He is suitable for the job. D. He finds the job difficult.5. A. Interviewer and interviewee. C. Doctor and nurse.B. Buyer and seller. D. Shop assistant and customer.Section BDirections: This section is to test your ability to understand short conversations.There are 2 recorded conversations in it. After each conversation, thereare some recorded questions. Both the conversations and questions will bespoken two times. When you hear a question, you should decide on the cor-rect answer from the 4 choices marked A, B, C and D given in your test paper.Then you should mark the corresponding letter on the Answer Sheet with asingle line through the center.Conversation 16. A. He was too busy. C. His company has moved away.B. He got a new offer. D. His company has closed down.7. A. To have his own business. C. To move to another city.B. To do social work. D. To go to study abroad.Conversation 28. A. The chief engineer .C. The office secretary.B. The manager assistant. D. The sales manager.9. A. He's giving a lecture. C. He’s speaking on another phone.B. He's attending a meeting. D. He’s away on a business trip.10. A. Telling him to meet tomorrow. C. Asking him to call back.B. Telling him to send a sample. D. Asking him to attend a party.Section CDirections:In this section you will hear a recorded short passage.The passage is printed in the test paper,but with some words or phrases missing.The passage will be eead twotimes .Your are required to put the missing words or phrases on the Answer Sheetin prder of the mumbered blanks according to what you hear.Now the passage willbegin.Ladies and GentlemenIt’s my honor to be the guide to show you around our company. First of all, I’ll introduce our factory to you.Our company 11 in the 1980s,We mainly produce electronic goods and export them all over the world.We 12 of about US$80 million last year, and our business is growing steadily.We now have offices in Asia,North America and Europe,with about 1500 employees,and we are working gladly to 13 of our customers.In order to further develop our overseas market, we need more agents to 14 our products.I hope you will 15 doing business with us. Thank you!Section DDirections: This section is to test your ability to comprehend short passages. You will hear a recorded passage. After that you will hear five questions. Both the passage and thequestions will be read tow times, When you hear a question, you should complete theanswer to it with a word or a short phrase (in no more than 3 words ). The questionsand incomplete answers are printed in your test paper. You should write your answerson the Answer Sheet correspondingly. Now listen to the passage16. What does the speaker think of his working conditions?He thinks that the working conditions are ___________________.17．How many hours does the speaker work every week?________________________________________ .18 .How does the speaker spend his holiday in winter ?He usually takes one week to, ______________________.19. What system did the company introduce last year ?It introduced a flexible ________________________________system.20. When can the speaker start his work in the morning?Any time between ________________________________________.Part II Structure[15 minutes] Directions:This part is to test your ability to construct grammatically correct sentences .It consists of 2 sections.SectionADirections: In this section, there are 10 incomplete sentences. You are required to complete each one by deciding on the most appropriate word or words from the 4 choices markedA,B,Cand D. Then you should mark the corresponding letter on the Answer Sheetwith a single line through the center.2l. ______ the number in full-time employment fell by 2 million, the number of people in part-time work doubled to over 4 million.A. UnlessB. UntilC. WhileD. Since22. It was your recommendation ______ enabled me to be an engineer in this world-famous company.A. whenB. whoC. whatD. that23. Now the pollution caused by the increasing number of cars______more and more serious in many cities.A. be comeB. be cameC. is becomingD. had become24.We understand you need easy access ______up-to-date information about your accounts in our bank.A. inB. toC. forD. with25.It is common practice ______ a battery when it still has some life in it.A. to chargeB. chargeC. chargedD. having charged26.We have to investigate as ______customers as possible in order to make sure of the potential of the market.A. manyB. muchC. moreD. most27.As long as you keep on ______hard,you’11get promoted sooner or later.A. workB. be workingC. workedD. working28. There are 4.9 million businesses in the UK, 99% of ______ are small businesses.A. whichB. thatC. whoseD. it29. ______ by all the team members, they finally got the big project for their company.A. To be supported C. SupportingB. Having supported D. Supported30. This article tells the readers ______ they can look for in an employee’s abilities.A. thatB. whatC. whichD. howSection BDirections: There are 5 incomplete statements here. You should fi11 in each blank with the proper form of the word given in brackets. Write the word or words in thecorresponding space on the Answer Sheet.31. The proposal that the head of the team made at the meeting sounds (reason) ______.32. Generally speaking, once you (make) ______ the payment, the goods should be deliveredwithin a week.33. It is said that advertising is the(expensive) ______of all the promotional activities undertaken by businesses.34.The company suffered greatly during the economic crisis, with considerable loss of its(invest)____.35.It is reported that an international conference (hold) ______in London next Friday.Part III Reading Comprehension[40 minutes] Directions: This part is to test your reading ability. There are 5 tasks for you to fulfill. You should read the reading materials carefully and do the tasksas you are instructed.Task 1Directions: After reading the following passage, you will find 5 questions or unfinished statements, numbered36 to 40. For each question or statement there are 4 choicesmarked A, B, C and D. You should make the correct choice and mark thecorresponding letter on the Answer Sheet with a single line through the center.We try to ensure that GFL Solid Waste Haulage (清运) Division is a company that acts safely and responsibly at all times and in all places. We never tolerate any conduct that puts our customers and the communities we serve at risk.At GFL, safety is more than a program; it is a core value of our company .GFL is equally committed to improving the environment for thefuture of the communities we live in and we serve. We believe that our services play an essential part in improving the environment and we are always mindful of having the most cost-effective waste management solutions for our customers.We are committed to the safety of our workers and have programs in place to continually upgrade our worker safety and environmental practices .We have highly qualified staff , we use the best available equipment and we are fully committed to keeping our workplace safe and the environment clean.Over the past years, service requests have changed dramatically from basic waste disposal to comprehensive waste management or “green” programs .Our new “green” waste management program is now gaining respect and popularity in the community. For more information, contact GFL at csupport@.36. According to the passage, GFL doesn’t allow any conduct that will_______.A) cause any noise to the environmentB) produce waste in the communitiesC) waste more nature resourcesD) do harm to its customers37. The core value of GFL Solid Waste Haulage Division is_______.A) profitB) safetyC) efficiencyD) responsibility38. In the first paragraph, “we are always mindful of …”means “_______.”A) we are always worried about…B) we always look forward to…C) we are always aware of…D) we always put up with…39. What does GFL do with its worker safety and environmental practices , according tothesecond paragraph ?A) Continually upgrade themB) Keep using the traditional methodsC) Hire new workers to clean the environmentD) Import new technology from overseas companies40. What can we learn about the company’s new “green” waste management program?A) The quality of waste management has become worse.B) The program is becoming more and more popular.C) Waste management has remained unchanged.D) More workers are involved in the program.Task 2Directions: This task is the same as Task 1. The 5 questions or unfinished statements are numbered 41 to 45.Many jobs have been lost and they may not be coming back. Some occupations had already been declining for years due to advance in technology and changes in the global economy. The following is a list of careers that are disappearing.Stage PerformersThe five-year decline for this career was a surprising 61% .Stage performances have fallen out of fashion and have been almost entirely replaced with movies and home entertainment technologies.Postal service mail sortersAfter losing almost 57,000 jobs between 2004 and 2009, a further 30% decline in this occupation can be seen by 2018.With more automatic processes for mail sorting and increasing correspondence via e-mail and fax; this job is quickly becoming unnecessary.Office support workersAbout 300,000 office support jobs disappeared between 2004 and 2009.Secretaries and file clerks are no longer in demand as companies cut costs. Moreover, technologies like voice mail and easy-to-use word processors have enabled professionals to do their own office work. Photo processorsWith the rise of digital photography and automatic printing, positions for manual photo printers are rapidly disappearing. The occupation has been steadily losing jobs in the last five years and there might be a 24% decline by 2018.Radio operatorsAs technology advances, the need for workers to monitor communications via radiotelephone equipment is disappearing. This already small field saw a five-year decline of 43%.41. According to the first paragraph, because of the advances in technology and globaleconomic changes, _______.A. Many jobs are disappearing sharplyB. Many new occupations are emergingC. People are attracted to higher-paying jobsD. Part-time jobs have become more popular42. One reason why the career of stage performers is declining so fast is that_______.A. Stage performers can no longer earn big moneyB. Fewer people are qualified as stage performersC. There is less investment in in stage performancesD. Stage performances have become less popular43. The benefit of using new technologies in the office is that_______.A. Office workers can work on a flexible work systemB. Professionals are able to do their own office workC. Secretaries and file clerks are badly in needD. Employees can enjoy better social welfare44. The author expects that by 2018 the occupation of photo processors mightdeclineby_______.A. 61%B.43%C.30%D.24%45. Which of the following might be best title of the passage?A. Advanced TechnologiesB. Rising UnemploymentC. Disappearing CareersD. Global EconomyTask 3Directions:The following is a short introduction to AIL Sales Representatives. After reading it, you are required to complete the outline below it (No.46 to No.50).You should write youranswersbriefly (in no more than three words) on the Answer Sheet correspondingly.In American Income Life Company(AIL),sales representatives have servants’ heart. Our team members make every effort to protect hard-working, middle-income families with insurance coverage(承保范围).We also believe whole heartedly in giving back to the communities in which we operate. American Income Life gives off its time and resources to help make the world a better place.Sales experience is not required to be a representative, just the willingness to work hard. What makes American Income Life unique is that our work system enables our sales team to focus on selling, which is what makes this career truly opportunity unlimited. Simply said, you earn what you’re worth based on how hard you work; and how fast you want to advance.At American Income Life you will find a career, not a job. You will also find free training opportunities, a nd leadership experience, too. American Income Life’s independent agency offices provide sales training focused on insurance sales. Training includes working one-on-oneSales Representatives of AILAims: l. to protect middle-income families2. to give back to 46Features: 1. having servants’ hearts2. willingness to 473. being able to focus on 48Benefits: 1. 49 sales training opportunities2. 50 experienceTask 4Directions: The following is a list of term used in International Trade .After reading it, you are required to find the items equivalent to ( 与… 等同) those given in Chinese in thetable below .Then you should put the corresponding letters in brackets on theanswer sheet, numbered51through 55.A Cost of goods soldB --- Channel of distributionC --- Commission percentD --- Competitive advantage / edgeE --- Current assetsF --- Current debtG--- Direct cost of salesH --- Earning before taxesI --- Effective demandJ --- Advance paymentK --- Advising bankL --- Letter of creditM --- Paying bankN --- Capital marketO --- Cost and freightP --- Import licenseQ --- Joint ventureExamples: (A) 售出物成本(H)税前收益51. ( )现有债务（）预付款52. ( )信用证（）合资企业53. ( )竞争优势（）有效需求54. ( )付款银行（）成本加运费55. ( )直销成本（）资本市场Task 5Directions: Read the following passage. After reading it, you should give brief answer to the 5question (No.56 to No.60) that follow. The answer (in no more than three words)should been written after the corresponding numbers on the Answer Sheet.Act now to get a student loanMake no payments while in school with a Wells Fargo private student loan. A college education is a worthwhile investment, but sometimes you need help covering all the costs.Wells Fargo private student loans may be able to help you pay for all eligibleeducation-related expenses, including tuition, housing ,books, a laptop, lab fees, andmore.Other benefits include:--Make no payments until six months after leaving school--Select a competitive fixed or variable interest rate option--Reduce your loan cost with our interest rate discountsApplying with a co-signer（联署人；担保人）may improve your chance of getting approved and help you qualify for a lower interest rate.Learn more about undergraduate studentloans for traditional colleges and universities or career and community colleges. Orcall our toll-free number 1-877-315-7721.Our Student Loan Specialists ae here tohelp you through the progress-----from helping you make an informed choice on theloan that meets your needs, to helping you estimate how much you may need toborrow.56. What is introduced in the passage?A Wells Fargo______loan.57. What expenses can be paid with the loan?All eligible ______expenses.58. What is the advantage of the loan in terms of the repayment period?No payment is made until six months after__________________.59. Why are you advised to apply for your loan with a co-signer?To have a better chance of ____________and being qualified for a lower interest rate.60. What can the Students Loan Specialists do to help you in your application?They can help you through ____________in your application.Part IV Translation—English into Chinese (25 minutes)Direction: This part, numbered 61 through 65, is to test your ability to translate English intoChinese. After each of the sentences numbered 61 to 64, you will read three choices ofsuggested translation marked A),B) and C).You should choose the best translation andmark the corresponding letter on your Answer Sheet with a single line through thecenter. And for the paragraph numbered 65, write your translation in thecorresponding space on the Translation/Composition Sheet.61. In order to increase cash flow and limit layoffs, the company has decided that salaryreductions are absolutely necessary at this time.A)公司收到增加现金收入和加快裁员的决定，认为这一决定十分适合。
2014年12月ACCA F5考试真题答案
AnswersFundamentals Level – Skills Module, Paper F5Performance Management December 2014 Answers Section A1 ADivision A: Profit = $14·4m x 30% = $4·32mImputed interest charge = $32·6m x 10% = $3·26mResidual income = $1·06mDivision B: Profit = 8·8m x 24% = $2·112mImputed interest charge = $22·2m x 10% = $2·22mResidual income = $(0·108)m2 3 4 5 DAll costs are included when using life cycle costing.AThis is the definition of a basic standard.BThe first statement is describing management control, not strategic planning.CNumber of units required to make target profit = fixed costs + target profit/contribution per unit of P1. Fixed costs = ($1·2 x 10,000) + ($1 x 12,500) – $2,500 = $22,000.Contribution per unit of P = $3·20 + $1·20 = $4·40.($22,000 + $60,000)/$4·40 = 18,636 units.6 AProduct A B C DSelling price per unitRaw material costDirect labour cost at $11 per hour Variable overhead cost Contribution per unit $160$24$66$24$214$56$88$18$100$22$33$24$140$40$22$18 $46 $52 $21 $60 ––––––––––––––––Direct labour hours per unit Contribution per labour hour Rank6$7·6728$6·5043$72$3013Normal monthly hours (total units x hours per unit) 1,800 1,000 720 800 If the strike goes ahead, only 2,160 labour hours will be available.Therefore make all of D, then 1,360 hours’ worth of A (2,160 – 800 hrs).7 8 B460 – 400 = 60 clients$40,000 – $36,880 = $3,120VC per unit = $3,120/60 = $52Therefore FC = $40,000 – (460 x $52) = $16,080BIncrease in variable costs from buying in (2,200 units x $40 ($140 – $100)) = $88,000 Less the specific fixed costs saved if A is shut down = ($10,000)Decrease in profit = $78,000Only the first statement is correct. Traditional absorption costing tends to over-allocate costs to high volume products, not under-allocate them.1011 BBy definition, a shadow price is the amount by which contribution will increase if an extra kg of material becomes available. 20 x $2·80 = $56.CNeither statement is correct. Responsibility is not assigned solely to senior managers as, for example, in a TQM environment quality is everybody’s responsibility. In addition, standard costing can be difficult to apply in dynamic situations.1213 AThe second statement is talking about flow cost accounting, not input/output analysis.DTarget 1 is a financial target and so assesses economy factors. Target 2 is measuring the rate of work handled by staff which is an efficiency measure. Target 3 is assessing output, so is a measure of effectiveness.1415 BIn comparison to participative budgeting, an advantage of non-participative budgeting is that it should be less time consuming, as less collaboration will be required in order to produce the budgets.CThe target costing process always begins with the target selling price being set. The required profit is then determined and deducted from the target selling price to estimate the target cost. The target cost is then compared to the estimated current cost and the cost gap is then calculated.1617 AThis is a description of an incremental budget.ANew profit figures before salary paid:Good manager: $180,000 x 1·3 = $234,000Average manager: $180,000 x 1·2 = $216,000Poor: $180,000 x 1·1 = $198,000EV of profits = (0·35 x $234,000) + (0·45 x $216,000) + (0·2 x $198,000) = $81,900 + $97,200 + $39,600 = $218,700 Deduct salary cost and EV with manager = $178,700Therefore do not employ manager as profits will fall by $1,300.18 BSet-up costs per production run = $140,000/28 = $5,000Cost per inspection = $80,000/8 = $10,000Other overhead costs per labour hour = $96,000/48,000 = $2 Overheads costs of product D:$Set-up costs (15 x $5,000) Inspection costs (3 x $10,000) Other overheads (40,000 x $2)75,000 30,000 80,000 ––––––––185,000 ––––––––Overhead cost per unit = 185,000/4,000 = $46·2520 This is an example of feedforward control as the manager is using a forecast to assist in making a future decision.AIf demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.1 Chair Co(a) Learning curve formula = y = ax bCumulative average time per unit for 8 units: Y = 12 x 8–·415 = 5·0628948 hours.Therefore cumulative total time for 8 units = 40·503158 hours. Cumulative average time per unit for 7 units: Y = 12 x 7–·415 = 5·3513771 hours.Therefore cumulative total time for 7 units = 37·45964 hours.Therefore incremental time for 8th unit = 40·503158 hours – 37·45964 hours = 3·043518 hours. Total labour cost for 8th unit =3·043518 x $15 = $45·65277 Material and overheads cost per unit = $230 Therefore total cost per unit = $275·65277 Therefore price per unit = $413·47915 (b) (i)Actual learning rate Cumulative number ofseats produced 1 2 4 8Cumulative totalCumulative averagehours per unit 12·5 12·5 x r 12·5 x r 2 hours 12·5 ? ? 34·312·5 x r 3Using algebra: 34·3 = 8 x (12·5 x r 3)4·2875 = (12·5 x r 3) 0·343 = r 3 r = 0·70The learning effect was 70% as compared to the forecast rate of 75%, meaning that the labour force learnt more quicklythan anticipated. (ii) Adjusted priceThe adjusted price charged will be lower than the original price calculated in part (a). This is because the incremental cost of the 8th unit will be lower given the 70% learning rate, even though the first unit took 12·5 hours. We know this because we are told that the cumulative time for 8 units was actually 34·3 hours. This is lower than the estimated cumulative time in part (a) for 8 units of 40·503158 hours and therefore, logically, the actual incremental time for the 8th unit must be lower than the estimated 3·043518 hours calculated in part (a). Consequently, total cost will be lower and price will be lower, given that this is based on cost.2 Glam CoBottleneck activity(a) The bottleneck may have been worked out as follows:Total salon hours = 8 x 6 x 50 = 2,400 each year. The capacity for each senior stylist must be 2,400 hours, which equates to 2,400 cuts each year (2,400/1). Since there are three senior stylists, the total capacity is 7,200 hours or 7,200 cuts each year. Using this method, the capacity for each activity is as follows: Cut Treatment 16,000 4,800 Assistants Senior stylists Junior stylists48,000 7,200 9,6009,600The bottleneck activity is clearly the work performed by the senior stylists.The senior stylists’ time is called a bottleneck activity because it is the activity which prevents the salon’s throughpu t from being higher than it is. The total number of cuts or treatments which can be completed by the salon’s senior stylists is less than the number which can be completed by other staff members, considering the number of each type of staff available and the time required by each type of staff for each client.(b) TPARCut $ Treatment$Selling price 60 110MaterialsThroughputThroughput per bottleneck hour Total salon costs per BN hour (w1) TPAR0·6059·4059·4042·561·48 (7·40+0·6)1026842·561·6Working 1: Total salon costs(3 x $40,000) + (2 x $28,000) + (2 x $12,000) + $106,400 = $306,400Therefore cost for each bottleneck hour = $306,400/7,200 = $42·56Note: Answers based on total salary costs were $80,000 were also equally acceptable since the wording of question was open to interpretation.3 Hi Life CoDirect materials: FabricWoodNote12$ 200 m2 at $17·50 per m220 m at $8·20 per m30 m at $8·50 per m3,5001642552Direct labour:SkilledSemi-skilledFactory overheads Administration overheads 50 hours at $24 per hour300 hours at $14 per hour20 hours at $15 per hour34561,2004,200300–––––––Total cost 9,619––––––1 2 Since the material is in regular use by HL Co, it is replacement cost which is the relevant cost for the contract.30 m will have to be ordered from the alternative supplier for immediate delivery but the remaining 20 m can be used from inventory and replaced by an order from the usual supplier at a cost of $8·20 per m.3 4 5 There is no cost for the first 150 hours of labour because there is spare capacity. The remaining 50 hours will be paid at time and a half, which is $16 x 1·5, i.e. $24 per hour.HL Co will choose to use the agency workers, who will cost $14 per hour, since this is cheaper than paying existing semi-skilled workers at $18 per hour ($12 x 1·5) to work overtime.None of the general factory costs are incremental, so they have all been excluded. However, the supervisor’s overtime pay is incremental, so has been included. The supervisor’s normal salary, on the other hand, has been excluded because it is not incremental.6 These are general overheads and are not incremental, so no value should be included for them.4 Jamair(a) The four perspectivesFinancial perspective – this perspective is concerned with how a company looks to its shareholders. How can it create value for them? Kaplan and Norton identified three core financial themes which will drive the business strategy: revenue growth and mix, cost reduction and asset utilisation.Customer perspective –this considers how the organisation appears to customers. The organisation should ask itself: ‘to achieve our vision, how should we appear to our customers?’ The customer perspective should identify the customer and market segments in which the business will compete. There is a strong link between the customer perspective and the revenue objectives in the financial perspective. If customer objectives are achieved, revenue objectives should be too.Internal perspective –this requires the organisation to ask itself: ‘what must we excel at to achieve our financial and customer objectives?’ It must identify the internal business processes which are critical to the implementation of the organisation’s strategy. These will include the innovation process, the operations process and the post-sales process.Learning and growth perspective – this requires the organisation to ask itself whether it can continue to improve and create value. The organisation must continue to invest in its infrastructure – i.e. people, systems and organisational procedures – in order to improve the capabilities which will help the other three perspectives to be achieved.(b) Goals and measuresFinancial perspectiveGoal Performance measureTo use fewer planes to transport customers Lease costs of plane per customerExplanation – operating efficiency will be driven by getting more customers on fewer planes. This goal and measure cover the cost side of this.Goal Performance measureTo increase seat revenue per plane Revenue per available passenger mileExplanation – this covers the first part of achieving operating efficiency – by having fewer empty seats on planes.Customer perspectiveGoal Performance measureTo ensure that flights are on time ‘On time arrival’ ranking from the aviation authorityExplanation – Jamair is currently number 7 in the rankings. If it becomes known as a particularly reliable airline, customers are more likely to use it, which will ultimately increase revenue.Goal Performance measureTo reduce the number of flights cancelled The number of flights cancelledExplanation – again, if flights are seen to be cancelled frequently by Jamair, customers will not want to use it. It needs to be perceived as reliable by its customers.Internal perspectiveGoal Performance measureTo improve turnaround time on the ground ‘On the ground’ timeExplanation – less time spent on the ground means fewer planes are needed, which will reduce plane leasing costs. However, it is important not to compromise the quality of cleaning or make errors in refuelling as a consequence of reducing on the ground time.Goal Performance measureTo improve the cleanliness of Jamair’s planes The percentage of customers happy with the standard of the planes,as reported in the customer satisfaction surveys.Explanation –at present, only 85% of customers are happy with the standard of cleanliness on Jamair’s planes. This could be causing loss of revenue.Goal Performance measureTo develop the online booking system Percentage downtime.Explanation – since the company relies entirely on the booking system for customer booking of flights and check-in, it is critical that it can deal with the growing number of customers.Learning perspectiveGoal Performance measureTo reduce the employee absentee rate The number of days absent per employeeExplanation – it is critical to Jamair that its workforce is reliable as, at worse, absent staff lead to cancelled flights.Goal Performance measureNumber of days’ training per ground crew member To increase ground crew training on cleaning andrefuelling proceduresExplanation – if ground crew are better trained, they can reduce the number of minutes that the plane stays on the ground, which will result in fewer planes being required and therefore lower costs. Also, if their cleaning is better, customer satisfaction and retention will increase.Note: Only one goal and measure were required for each perspective. In order to gain full marks, answers had to be specific to Jamair as stated in the requirements.5 Safe Soap Co(a) Variance calculationsMix varianceTotal kg of materials per standard batch = 0·25 + 0·6 + 0·5 = 1·35 kgTherefore standard quantity to produce 136,000 batches = 136,000 x 1·35 kg = 183,600 kgActual total kg of materials used to produce 136,000 batches = 34,080 + 83,232 + 64,200 = 181,512 kgMaterial Actual quantityStandard mixkgs181,512 x 0·25/1·35 = 33,613·33181,512 x 0·6/1·35 = Actual quantityActual mixkgs34,08083,232Variance Standard costper kgVariancekgs(466·67)(2,560)$104$(4,666·70)(10,240)LyeCoconut oil Shea butter80,672181,512 x 0·5/1·35 = 67,226·67 64,200 3,026·67 3 9,080·01––––––––––––––––––––––––––181,512 181,512 (5,826·69)A––––––––––––––––––––––––––Yield varianceMaterial Standard quantityStandard mix Actual quantityStandard mixkgs33,613·3380,672Variance Standard costper kgVariancekgs386·67928$104$3,866·703,712Lye Coconut oil Shea butter 0·25 x 136,000 =0·6 x 136,000 =0·5 x 136,000 =34,00081,60068,000 67,226·67 773·33 3 2,319·99––––––––183,600––––––––––––––––––181,512 9,898·69F––––––––––––––––––––––––––(b) (i) A materials mix variance will occur when the actual mix of materials used in production is different from the standardmix. So, it is inputs which are being considered. Since the total mix variance is adverse for the Safe Soap Co, this means that the actual mix used in September and October was more expensive than the standard mix.A material yield variance arises because the output which was achieved is different from the output which would havebeen expected from the inputs. So, whereas the mix variance focuses on inputs, the yield variance focuses on outputs.In both September and October, the yield variance was favourable, meaning that the inputs produced a higher level of output than one would have expected.(ii) Whilst the mix and yield variances provide Safe Soap Co with a certain level of information, they do not necessarily explain any quality issues which arise because of the change in mix. The consequences of the change may well have an impact on sales volumes. In Safe Soap Co’s case, the sales volume variance is adverse, meaning that sales volumes have fallen in October. It is not known whether they also fell in September but it would be usual for the effects on sales of the change in mix to be slightly delayed, in this case by one month, given that it is only once the customers start receiving the slightly altered soap that they may start expressing their dissatisfaction with the product.There may also be other reasons for the adverse sales volume variance but given the customer complaints which have been received, the sales manager’s views should be taken on board.Fundamentals Level – Skills Module, Paper F5Performance Management December 2014 Marking Scheme Section A Marks2 marks per question 40––––––Section B1 (a) PriceCumulative average time per unit for 8 units Total time for 8 unitsCumulative average time per unit for 7 units Total time for 7 unitsIncremental time for 8th unitCost for 8th unitTotal cost1 0·5 1 0·5 0·5 0·5 0·5Price 0·5–––5–––(b) (i) Learning rateCalculating learning rate Saying whether better or worse 2·5 0·5 –––3 –––(ii) Effect on price 2–––Total marks 10––––––2 (a)(b) Calculation and justification of bottleneckExplanation of bottleneck31–––4–––TPARThroughput 1111 Throughput per bottleneck hourTotal salon costsCost per hourTPAR 2–––6–––Total marks 10––––––3 Fabric calculationFabric reasonWood calculation 0·5 0·5 1Wood reason 1Skilled labour calculation Skilled labour reason 1 1Semi-skilled labour calculationSemi-skilled labour reasonFactory overheads calculationFactory overheads reason Administration overheads reasonTotal relevant cost (lowest cost estimate) 0·5 1 0·5 1·5 1 0·5 –––Total marks 10––––––Marks4 (a)(b) PerspectivesExplanation for each perspective 1·5–––6–––Goals and measuresEach goal/measure/explanationPresentation and structure21–––9–––Total marks 15––––––5 (a)(b) Variance calculationsMix varianceQuantity variance44–––8–––(i) VariancesMarks per variance explained 2–––4–––(ii) DiscussionPer valid point 1–––3–––Total marks 15––––––。
2014年12月ACCA《公司法与商法》真题及答案精选
2014年12月ACCA《公司法与商法》真题及答案精选Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.1 Which of the following involves an offer which may only be accepted by performing an action?A、A collateral contractB、A unilateral contractC、A bilateral contract2 An agency relationship which is made retrospectively is referred to by which of the following terms?A、Agency by estoppelB、Agency by ratificationC、Agency by necessity3 In contract law, the ‘market price rule’ arises in relation to which of the following?A、OfferB 、ConsiderationC、RemotenessD、Mitigation4 In relation to a debenture, which of the following is NOT true?A 、It may be issued at a discountB、Interest on it may be paid from capitalC、It is paid after preference sharesD、It is freely transferable5 Tan writes to Yun stating that he will sell his car to him for ￡10,000. At the same time, Yun writes to Tan stating that he will buy his car for ￡10,000. Which of the following statements applies to this situation?A、There is a binding agreement due to the postal ruleB、There is a collateral contractC、There is neither an agreement nor a contract6 Which of the following statements about contracts of employment is true?A、They can be made either orally or in writingB、They must be made in writingC、They must be evidenced in writing7 Where directors make a false statement of solvency prior to a members’ voluntary liquidation, which of the following have they committed under the relevant legislation?A、A breach of criminal law with criminal penaltiesB、A breach of civil law with criminal penaltiesC、A breach of civil law with civil liabilityD、A breach of both civil and criminal law with liabilities under both8 Which of the following is the consequence when a patient signs a medical consent form before an operation?A、The patient gives up any right of action for any injury sufferedB 、Any action for any injury suffered during the operation is limited to negligenceC 、The level of any potential payment for any injury suffered is reduced9 Where a contract states the sum to be paid in the event of a breach of contract, the stated sum is known as which of the following?A、Unliquidated damagesB、Liquidated damagesC、Specific damagesD、Nominal damages10 Which of the following applies to the concept of enlightened shareholder value?A、It is the price shares can be expected to raise if they were to be soldB、It is the yardstick for assessing the performance of directors’ dutiesC、It is the standard of behaviour expected of shareholders in general meetings11 Which of the following involves a summary dismissal in relation to a contract of employment?A、Both parties agree to end the contract immediately without noticeB、The employee breaks the contract without noticeC、The employer terminates the contract without notice12 What qualification is the company secretary of a private limited company required to have?A、An appropriate legal qualificationB、An appropriate professional qualification such as ACCAC、No qualification13 Statutory redundancy payment is calculated on the basis of which of the following?A、Length of service and pay onlyB、Age and length of service onlyC、Age, length of service and pay14 In relation to wrongful trading, the standard against which the conduct of directors will be assessed is which of the following?A、Purely subjective, depending on the actual skill of the directorB、Purely objective, depending on what is expected of a director in that positionC、A mixture of subjective and objective but only to increase potential liabilityD、A mixture of subjective and objective but only to reduce potential liability15 Which of the following statements as regards an acceptance of an offer‘subject to contract’ is true?A、It binds the offerorB、It binds neither partyC、It binds both parties16 Su had just passed her driving test when she negligently drove into a pedestrian. What standard of care will Su be judged by?A、The objective standard of a newly qualified driver, lack of experience will be taken into accountB、The objective standard of a competent driver, lack of experience will not be taken into accountC、The subjective standard of actual ability17 Which of the following are ordinary partnerships UNABLE to create in relation to their property?A、MortgagesB、Fixed chargesC、Floating charges18 Which of the following courts deal with civil law matters ONLY?A、The Crown CourtB、The magistrates’ courtC、The county court19 Jo promises to pay a reward for the return of her lost phone. Mia finds the phone and returns it to Jo. Which of the following types of consideration has Mia provided?A、Executed considerationB、Executory considerationC、Past consideration20 Which of the following requires court approval before the appointment of an administrator?A、CreditorsB、Holders of floating chargesC、The directors of the companyD、The company itself21 Which of the following is an English court NORMALLY bound to follow?A、An obiter statement of a higher courtB、A ratio of a lower courtC、A ratio of a court at the same levelD、An obiter statement of the Supreme Court22 Which of the following co urts hear appeals from the magistrates’ court?(1) County court(2) Crown Court(3) High CourtA、(1) and (2) onlyB、(2) and (3) onlyC、(1) and (3) onlyD、(1), (2) and (3)23 Which of the following is NOT an automatic consequence of a compulsory winding up order against a public limited company?A、Transfers of shareholdings are suspendedB、Liquidation is deemed to start on the date of the issuing of the orderC、Directors cease to exercise any management powerD、Employees are immediately dismissed24 Which TWO of the following apply to shares of companies whose names end in ‘Ltd’?(1) They may not be issued to non-members(2) They may not be offered to the public(3) They may not be transferred(4) They may not be traded on the stock exchangeA、(1) and (2)B、(2) and (3)C、(1) and (4)D、(2) and (4)25 Which of the following statements regarding the age limits for serving as a director in a public limited company is true?A、Minimum age 16 years and no maximum ageB、Minimum age 21 years and no maximum ageC、Minimum age 21 years and maximum age 75 yearsD、Minimum age 16 years and maximum age 75 years26 Which TWO of the following are private law actions?(1) Those between individuals(2) Those between business organisations(3) Those between individuals and the stateA、(1) and (2)B、(1) and (3)C、(2) and (3)27 In which procedure does a liquidation committee operate?(1) Compulsory liquidation(2) A members’ voluntary liquidation(3) A creditors’ voluntary liquid ation(4) AdministrationA、(1) and (2)B、(2) and (4)C、(1) and (3)D、(3) and (4)28 The category of treasury shares comes into existence under which of the following circumstances?A、They are issued as such by a private companyB、They are issued as such by a public companyC、They are purchased as such by the exchequerD、They are purchased as such by a private or public company29 Which of the following is NOT a source of English law?A、CustomB、EquityC、Public law30 Which of the following are owed a duty of care by auditors when preparing a company’s audit report?A、A potential investor with no current holdingB、An existing shareholder looking to increase their holdingC、A company looking to make a takeover bid for the companyD、The company and the existing shareholders in the company as a body31 In a potential redundancy situation, an employee may lose the right to payment if they reject an offer of alternative employment within the business. Which of the following will allow the employee to reject the employment offered and claim redundancy?A、The alternative was suitable but the employee reasonably felt that it was not of the same statusB、The alternative was suitable but the employee refused to consider itC、The a lternative was suitable but the employee’s grounds for refusing to accept it were unreasonable32 Which TWO of the following are reasons for dismissal which must be justified as FAIR?(1) Capability or qualifications of the employee(2) Legal prohibitions relating to the employee(3) Refusal of the employee to join a trade union(4) Taking part in unofficall industrial actionA、(1) and (2)B、(1) and (3)C、(2) and (3)D、(2) and (4)33 What type of contract does an employee have?A、A contract for serviceB、A contract of serviceC、A contract for servicesD A contract of services34 Which of the following describes a pre-contractual statement which does NOT form a term of a contract but induces the contract?A、A conditionB、A warrantyC、A representationD、An innominate term35 Which of the following exists as a separate legal entity from its members?A、An ordinary partnershipB、A limited partnershipC、A limited liability partnership36 Which of the following must a private company ALWAYS have?A、SharesB、Limited liabilityC、A company secretaryD、A registration certificate37 A breach of a contractual warranty enables the injured party to do which of the following?A、To sue for damages onlyB、To sue for damages or terminate the contractC、To sue for damages and terminate the contractD、To terminate the contract only38 In relation to the tort of negligence, which TWO of the following criteria are required to establish the existence of a duty of care?(1) The claimant suffered a financial loss(2) The harm suffered was reasonably foreseeable(3) A relationship of proximity existed between the parties(4) The claimant did not consent to cause the injury sufferedA、(1) and (2)B、(1) and (3)C、(2) and (3)D、(2) and (4)39 In relation to defences to the tort of negligence, which of the following is the consequence of a finding of volenti non fit injuria?A、It removes the requirement to pay damagesB、It reverses the burden of proof as to who can claim damagesC、It increases the level of damagesD It decreases the level of damages40 Which of the following actions is open to a party who has only partly performed work under a contract?A、Quantum meruitB、Action for the priceC、DamagesD、Restitution41 Which of the following is an example of the purposive approach to statutory interpretation?A、The mischief ruleB、The literal ruleC、The golden rule42 Which is the correct minimum period of notice an employee is entitled to after five yea rs’ service?A、One calendar monthB、Five weeksC、Ten weeksD、Five calendar months43 In relation to agency law, ‘warranty of authority’ is provided by which of the following?A、The agentB、The principalC、The third party44 Which of the following correctly applies to the burden of proof in a criminal case?A It must be proved beyond reasonable doubtB、It must be proved on the balance of probabilitiesC、It lies with the prosecutionD、It lies with the defence45 Where a business includes a term in a contract which excludes liability for death and personal injuries through negligence, which of the following states the effect of the term?A、It is invalidB、It is invalid unless it is reasonable in the circumstances of the caseC、It is valid only if specifically brought to the attention of the other partyD、It is valid if it is clearly included in the contract termsAnswer:1 、B3、D4 、C5 、C6、A7、A8 、B9、B10 、B11 、C12 、C13、C14、C15 、B16 、B17 、C18 、C19、A20 、A21 、C22 、B23 、B24 、D26、A27 、C28 、D29 、C30 、D31 、A32 、A33 、B34 、C35 、C36 、D37、A38 、C39、A40、A41 、A42、B43 、A44、C45 、A。
2014年12月ACCA F8考试真题
2014年12月ACCA F8考试真题1(a)Auditors have a responsibility under ISA 265 Communicating Deficiencies in Internal Control to those Charged with Governance and Management,to communicate deficiencies in internal controls.In particular SIGNIFICANT deficiencies in internal controls must be communicated in writing to those charged with governance.Required:Explain examples of matters the auditor should consider in determining whether a deficiency in internal controls is significant.(5 marks)Greystone Co is a retailer of ladies clothing and accessories.It operates in many countries around the world and has expanded steadily from its base in Europe.Its main market is aimed at 15 to 35 year olds and its prices are mid to low range.The company"s year end was 30 September 2010.In the past the company has bulk ordered its clothing and accessories twice a year.However,if their goods failed to meet the key fashion trends then this resulted in significant inventory write downs.As a result of this the company has recently introduced a just in time ordering system.The fashion buyers make an assessment nine months in advance as to what the key trends are likely to be,these goods are sourced from their suppliers but only limited numbers are initially ordered.Greystone Co has an internal audit department but at present their only role is to perform regular inventory counts at the stores.Ordering processEach country has a purchasing manager who decides on the initial inventory levels for each store,this is not done in conjunction with store or sales managers.These quantities are communicated to the central buying department at the head office in Europe.An ordering clerk amalgamates all country orders by specified regions of countries,such as Central Europe and North America,and passes them to the purchasing director to review and authorise.As the goods are sold,it is the store manager"s responsibility to re-order the goods through the purchasing manager;they are prompted weekly to review inventory levels as although the goods are just in time,it can still take up to four weeks for goods to be received in store.It is not possible to order goods from other branches of stores as all ordering must be undertaken through the purchasing manager.If a customer requests an item of clothing,which is unavailable in a particular store,then the customer is provided with other branch telephone numbers or recommended to try the company website.Goods received and InvoicingTo speed up the ordering to receipt of goods cycle,the goods are delivered directly from the suppliers to the individual stores.On receipt of goods the quantities received are checked by a sales assistant against the supplier"s delivery note,and then the assistant produces a goods received note(GRN).This is done at quiet times of the day so as to maximise sales.The checked GRNs are sent to head office for matching with purchase invoices.As purchase invoices are received they are manually matched to GRNs from the stores,this can be a very time consuming process as some suppliers may have delivered to over 500 stores.Once the invoice has been agreed then it is sent to the purchasing director for authorisation.It is at this stage that the invoice is entered onto the purchase ledger.Required:(b)As the external auditors of Greystone Co,write a report to management in respect of the purchasing system which:(i)Identifies and explains FOUR deficiencies in that system;(ii)Explains the possible implication of each deficiency;(iii)Provides a recommendation to address each deficiency.A covering letter is required.Note:Up to two marks will be awarded within this requirement for presentation.(14 marks)(c)Describe substantive procedures the auditor should perform on the year-end trade payables of Greystone Co.(5 marks)(d)Describe additional assignments that the internal audit department of Greystone Co could be asked to perform by those charged with governance.(6 marks)(30 marks)2(a)Explain the concept of TRUE and FAIR presentation.(4 marks)(b)Explain the status of International Standards on Auditing.(2 marks)(c)ISA 230 Audit Documentation deals with the auditor"s responsibility to prepare audit documentation for an audit of financial statements.Required:State FOUR benefits of documenting audit work.(4 marks)(10 marks)3(a)In agreeing the terms of an audit engagement,the auditor is required to agree the basis on which the audit is to be carried out.This involves establishing whether the preconditions for an audit are present and confirming that there is a common understanding between the auditor and management of the terms of the engagement.Required:Describe the process the auditor should undertake to assess whether the PRECONDITIONS for an audit are present.(3 marks)(b)List FOUR examples of matters the auditor may consider when obtaining an understanding of the entity.(2 marks)(c)You are the audit senior of White & Co and are planning the audit of Redsmith Co for the year ended 30 September 2010.The company produces printers and has been a client of your firm for two years;your audit manager has already had a planning meeting with the finance director.He has provided you with the following notes of his meeting and financial statement extracts.Redsmith"s management were disappointed with the 2009 results and so in 2010 undertook a number of strategies to improve the trading results.This included the introduction of a generous sales-related bonus scheme for their salesmen and a high profile advertising campaign.In addition,as market conditions are difficult for their customers,they have extended the credit period given to them.The finance director of Redsmith has reviewed the inventory valuation policy and has included additional overheads incurred this year as he considers them to be production related.He is happy with the 2010 results and feels that they are a good reflection of the improved trading levels.Financial statement extracts for year ended 30 September DRAFT ACTUAL 2010 2009$m $mRevenue 23.0 18.0Cost of Sales (11.0) (10.0)------ ------Gross profit 12.0 8.0Operating expenses (7.5) (4.0)------ ------Profit before interest and taxation 4.5 4.0------ ------Inventory 2.1 1.6Receivables 4.5 3.0Cash - 2.3Trade payables 1.6 1.2Overdraft 0.9 -Using the information above:(i)Calculate FIVE ratios,for BOTH years,which would assist the audit senior in planning the audit;and(5 marks)(ii)From a review of the above information and the ratios calculated,explain the audit risks that arise and describe the appropriate response to these risks. (10 marks)(20 marks)4(a)Explain the purpose of a value for money audit.(4 marks)(b)Bluesberry hospital is located in a country where healthcare is free,as the taxpayers fund the hospitals which are owned by the government.Two years ago management reviewed all aspects of hospital operations and instigated a number of measures aimed at improving overall "value for money" for the local community.Management have asked that you,an audit manager in the hospital"s internal audit department,perform a review over the measures which have been implemented.Bluesberry has one centralised buying department and all purchase requisition forms for medical supplies must be forwarded here.Upon receipt the buying team will research the lowest price from suppliers and a purchase order is raised.This is then passed to the purchasing director,who authorises all orders.The small buying team receive in excess of 200 forms a day.The human resources department has had difficulties with recruiting suitably trained staff.Overtime rates have been increased to incentivise permanent staff to fill staffing gaps,this has been popular,and reliance on expensive temporary staff has been reduced.Monitoring of staff hours had been difficult but the hospital has implemented time card clocking in and out procedures and these hours are used for overtime payments as well.The hospital has invested heavily in new surgical equipment,which although very expensive,has meant that more operations could be performed and patient recovery rates are faster.However, currently there is a shortage of appropriately trained medical staff.A capital expenditure committee has been established,made up of senior managers,and they plan and authorise any significant capital expenditure items.Required:(i)Identify and explain FOUR STRENGTHS within Bluesberry"s operating environment;and(6 marks)(ii)For each strength identified,describe how Bluesberry might make further improvements to provide the best value for money.(4 marks)(c)Describe TWO substantive procedures the external auditor of Bluesberry should adopt to verify EACH of the following assertions in relation to an entity"s property,plant and equipment;(i)Valuation;(ii)Completeness;and(iii)Rights and obligations.Note:Assume that the hospital adopts International Financial Reporting Standards.(6 marks)(20 marks)5 Greenfields Co specialises in manufacturing equipment which can help to reduce toxic emissions in the production of chemicals.The company has grown rapidly over the past eight years and this is due partly to the warranties that the company gives to its customers.It guarantees its products for five years and if problems arise in this period it undertakes to fix them,or provide a replacement product.You are the manager responsible for the audit of Greenfields and you are performing the final review stage of the audit and have come across the following two issues.Receivable balance owing from Yellowmix CoGreenfields has a material receivable balance owing from its customer,Yellowmix Co.During the year-end audit, your team reviewed the ageing of this balance and found that no payments had been received from Yellowmix for over six months,and Greenfields would not allow this balance to be circularised.Instead management has assured your team that they will provide a written representation confirming that the balance is recoverable.Warranty provisionThe warranty provision included within the statement of financial position is material.The audit team has performed testing over the calculations and assumptions which are consistent with prior years.The team has requested a written representation from management confirming the basis and amount of the provision are reasonable.Management has yet to confirm acceptance of this representation.Required:(a)Describe the audit procedures required in respect of accounting estimates.(5 marks)(b)For each of the two issues above:(i)Discuss the appropriateness of written representations as a form of audit evidence;and(4 marks)(ii)Describe additional procedures the auditor should now perform in order to reach a conclusion on the balance to be included in the financial statements.(6 marks)Note:The total marks will be split equally between each issue.(c)The directors of Greenfields have decided not to provide the audit firm with the written representation for the warranty provision as they feel that it is unnecessary.Required:Explain the steps the auditor of Greenfields Co should now take and the impact on the audit report in relation to the refusal to provide the written representation.(5 marks)(20 marks)。
2014年12月ACCA P4考试真题答案
AnswersProfessional Level – Options Module, Paper P4Advanced Financial Management December 2014 Answers1 (a) Risk diversification, especially into diverse business sectors, has often been stated as a reason for undertaking mergers andacquisitions (M&As). Like individuals holding well-diversified portfolios, a company with a number of subsidiaries in different sectors could reduce its exposure to unsystematic risk. Another possible benefit of diversification is sometimes argued to bea reduction in the volatility of cash flows, which may lead to a better credit rating and a lower cost of capital.The argument against this states that since individual investors can undertake this level of risk diversification both quickly and cheaply themselves, there is little reason for companies to do so. Indeed, research suggests that markets do not reward this risk diversification.Nevertheless, for Nahara Co, undertaking M&As may have beneficial outcomes, especially if the sovereign fund has its entire investment in the holding company and is not well-diversified itself. In such a situation unsystematic risk reduction can be beneficial. The case study does not state whether or not the sovereign funds are invested elsewhere and therefore a definitive conclusion cannot be reached.If Nahara Co is able to identify undervalued companies and after purchasing the company can increase the value for the holding company overall, by increasing the value of the undervalued companies, then such M&As activity would have a beneficial impact on the funds invested. However, for this strategy to work, Nahara Co must:(i) Possess a superior capability or knowledge in identifying bargain buys ahead of its competitor companies. To achievethis, it must have access to better information, which it can tap into quicker, and/or have superior analytical tools.Nahara Co should assess whether or not it does possess such capabilities, otherwise its claim is not valid;(ii) Ensure that it has quick access to the necessary funds to pursue an undervalued acquisition. Even if Nahara Co possesses superior knowledge, it is unlikely that this will last for a long time before its competitors find out; therefore itneeds to have the funds ready, to move quickly. Given that it has access to sovereign funds from a wealthy source,access to funds is probably not a problem;(iii) Set a maximum ceiling for the price it is willing to pay and should not go over this amount, or the potential value created will be reduced.If, in its assessment, Nahara Co is able to show that it meets all the above conditions, then the strategy of identifying and pursuing undervalued companies may be valid.(b) In a similar manner to the Competition and Markets Authority in the UK, the European Union (EU) will assess significantmergers and acquisitions’ (M&As) impact on competition within a country’s market. It will, for example, use tests such a s worldwide turnover and European turnover of the group after the M&A. It may block the M&A, if it feels that the M&A will give the company monopolistic powers or enable it to carve out a dominant position in the market so as to negatively affect consumer choice and prices.Sometimes the EU may ask for the company to sell some of its assets to reduce its dominant position rather than not allow an M&A to proceed. It would appear that this may be the case behind the EU’s concern and the reason for its suggested action.(c) Report to the Board of Directors, Avem CoProposed acquisition of Fugae CoThis report evaluates whether or not it is beneficial for Avem Co to acquire Fugae Co. Initially the value of the two companies is determined separately and as a combined entity, to assess the additional value created from bringing the two companies together. Following this, the report considers how much Nahara Co and Avem Co will gain from the value created. The assumptions made to arrive at the additional value are also considered. The report concludes by considering whether or not the acquisition will be beneficial to Avem Co and to Nahara Co.Appendix 1 shows that the additional value created from combining the two companies is approximately $451·5 million, of which $276·8 million will go to Nahara Co, as the owner of Fugae Co. This represents a premium of about 30% which isthe minimum acceptable to Nahara Co. The balance of the additional value will go to Avem Co which is about $174·7 million, representing an increase in value of 1·46% [$174·7m/$12,000m].Appendix 2 shows that accepting the project would increase Fugae Co’s value as the expected net present value is positive.After taking into account Lumi Co’s offer, the expected net present va lue is higher. Therefore, it would be beneficial for Fugae Co to take on the project and accept Lumi Co’s offer, if the tourism industry does not grow as expected, as this w ill increase Fugae Co’s value.AssumptionsIt is assumed that all the figures relating to synergy benefits, betas, growth rates, multipliers, risk adjusted cost of capital and the probabilities are accurate. There is considerable uncertainty surrounding the accuracy of these, and in addition to the probability analysis conducted in appendix 2 and the assessments of value conducted in appendix 1, a sensitivity analysis is probably needed to assess the impact of these uncertainties.It is assumed that the rb model provides a reasonably good estimate of the growth rate, and that perpetuity is not an unreasonable assumption when assessing the value of Fugae Co.It is assumed that the capital structure would not change substantially when the new project is taken on. Since the projectis significantly smaller than the value of Fugae Co itself, this is not an unreasonable assumption.When assessing the value of the project, the outcomes are given as occurring with discrete probabilities and the resulting cash flows from the outcomes are given with certainty. There may be more outcomes in practice than the ones given and financial impact of the outcomes may not be known with such certainty. The Black-Scholes Option Pricing model may provide an alternative and more accurate way of assessing the value of the project.It is assumed that Fugae Co can rely on Lumi Co paying the $50m at the beginning of year two with certainty. Fugae Co may want to assess the reliability of Lumi Co’s offer and whether formal contracts should be drawn up between the two companies. Furthermore, Lumi Co may be reluctant to pay the full amount of money once Fugae Co becomes a part of Avem Co. Concluding commentsAlthough Nahara Co would gain more than Avem Co from the acquisition both in percentage terms and in monetary terms, both companies benefit from the acquisition. If Fugae Co were to take on the project, although it is value-neutral to the acquisition, Nahara Co could ask for an additional 30% of $12·3 million value to be transferred to it, which is about $3·7 million. Hence the return to Avem Co would reduce by a small amount, but not significantly.As long as all the parties are satisfied that the value is reasonable despite the assumptions highlighted above, it would appear that the acquisition should proceed.Report compiled by:Date:AppendicesAppendix 1: Additional value created from combining Avem Co and Fugae CoAvem Co, current value = $7·5/share x 1,600 million shares = $12,000mAvem Co, free cash flow to equity = $12,000 million/7·2 = $1,666·7mThe growth rate is calculated on the basis of the rb model.Fugae Co, estimate of growth rate = 0·227 x 0·11 = 0·025 = 2·5%Fugae Co, current value estimate = $76·5 million x 1·025/(0·11 – 0·025) = $922·5mCombined company, estimated additional value created =([$1,666·7m + $76·5m + $40m] x 7·5) – ($12,000m + $922·5m) = $451·5mGain to Nahara for selling Fugae Co, 30% x $922·5m = $276·8mAvem Co will gain $174·7 million of the additional value created, $451·5m – $276·8m = $174·7mAppendix 2: Value of project to Fugae CoAppendix 2.1Estimate of risk-adjusted cost of capital to be used to discount the project’s cash flowsThe project value is calculated based on its cash flows which are discounted at the project’s risk adjusted cost of capital, to reflect the business risk of the project.Reka Co’s asset betaReka Co equity value = $4·50 x 80 million shares = $360mReka Co debt value = 1·05 x $340 million = $357mAsset beta = 1·6 x $360m/($360m + $357m x 0·8) = 0·89P roject’s asset beta (PAB)0·89 = PAB x 0·15 + 0·80 x 0·85PAB = 1·4Fugae CoMVe = $922·5mMVdCost of debt = Risk free rate of return plus the credit spread= 4% + 0·80% = 4·80%Current value of a $100 bond: $5·4 x 1·048–1 + $5·4 x 1·048–2 + $5·4 x 1·048–3 + $105·4 x 1·048–4 = $102·14 per$100MVd = 1·0214 x $380m = $388·1mProject’s risk adjusted equity beta1·4 x ($922·5m + $388·1m x 0·8)/$922·5m = 1·87Project’s risk adjusted cost of equity4% + 1·87 x 6% = 15·2%Project’s risk adjusted cost of capital(15·2% x $922·5m + 4·8% x 0·8 x $388·1m)/($922·5m + $388·1m) = 11·84%, say 12%Appendix 2.2Estimate of expected value of the project without the offer from Lumi Co (All amounts in $, 000s)Year 1 2 3 4Cash flowsDiscount factor for 12% Present values 3,277·60·8932,926·916,134·30·79712,859·036,504·70·71225,991·335,683·60·63622,694·8Probabilities are assigned to possible outcomes based on whether or not the tourism market will grow. The expected net present value (PV) is computed on this basis.PV year 1: $2,926,90050% of PV years 1 to 4: $32,236,000PV years 2 to 4: $61,545,10040% PV years 2 to 4: $24,618,040Expected present value of cash flows = [0·75 x (2,926,900 + (0·8 x 61,545,100 + 0·2 x 24,618,040))] + [0·25 x32,236,000]= [0·75 x (2,926,900 + 54,159,688)] + [0·25 x 32,236,000] = 42,814,941 + 8,059,000 = $50,873,941Expected NPV of project = $50,873,941 – $42,000,000 = $8,873,941Estimate of expected value of the project with the offer from Lumi CoPV of $50m = $50,000,000 x 0·893 = $44,650,000If the tourism industry does not grow as expected in the first year, then it is more beneficial for Fugae Co to exercise the offer made by Lumi Co, given that Lumi Co’s offer of $44·65 million (PV of $50 m illion) is greater than the PV of the years two to four cash flows ($30·8 million approximately) for that outcome. This figure is then incorporated into the expected net present value calculations.50% of year 1 PV: $1,463,450Expected present value of project =[0·75 x (2,926,900 + 54,159,688)] + [0·25 x (1,463,450 + 44,650,000)] = 42,814,941 + 11,528,363 =$54,343,304Expected NPV of project = $54,343,304 – $42,000,000 = $12,343,304(Note: Credit will be given for alternative, relevant approaches to the calculations, comments andsuggestions/recommendations)2 (a) Using traded optionsNeed to hedge against a rise in interest rates, therefore buy put options.Keshi Co needs 42 March put option contracts ($18,000,000/$1,000,000 x 7 months/3 months).Expected futures price on 1 February if interest rates increase by 0·5% =100 – (3·8 + 0·5) – 0·22 = 95·48Expected futures price on 1 February if interest rates decrease by 0·5% =100 – (3·8 – 0·5) – 0·22 = 96·48If interest rates increase by 0·5% to 4·3%Exercise price Futures price Exercise? 95·5095·48Yes96·0095·48YesGain in basis points 2 52 Underlying cost of borrowing4·7% x 7/12 x $18,000,000 Gain on options0·0002 x $1,000,000 x 3/12 x 42 0·0052 x $1,000,000 x 3/12 x 42 Premium $493,500$2,100$493,500$54,6000·00662 x $1,000,000 x 3/12 x 42 0·00902 x $1,000,000 x 3/12 x 42 Net cost$69,510$94,710$533,6105·08% $560,9105·34%Effective interest rateIf interest rates decrease by 0·5% to 3·3%Exercise price Futures price 95·5096·48No96·0096·48NoExercise?Gain in basis points Underlying cost of borrowing 3·7% x 7/12 x $18,000,000 Gain on options0 0 $388,500$0$388,500$0PremiumNet costEffective interest rate$69,510$458,0104·36%$94,710$483,2104·60%Using swapsKeshi Co Rozu Bank offer4·6% Basis differential0·9%Fixed rate 5·5%Floating rate LIBOR + 0·4% LIBOR + 0·3% 0·1%Prior to the swap, Keshi will borrow at LIBOR + 0·4% and swaps this rate to a fixed rate. Total possible benefit is 0·8% before Rozu Bank’s charges.Keshi Co borrows atFrom swap Keshi Co receives LIBOR + 0·4%LIBORKeshi Co gets 70% of the benefitAdvantage (70% x 0·8 – 0·10)Keshi Co’s effective borrowing rate (after swap)0·46% 5·04%Alternatively (Swap)From swap Keshi Co receives Keshi Co pays LIBOR 4·54%Effective borrowing rate (as above) 4·54% + 0·4% + 0·10% = 5·04% Discussion and recommendationUnder each choice the interest rate cost to Keshi Co will be as follows:Doing nothing 4·7% floating;5·5% fixed 3·7% floating;5·5% fixed 95·50 option5·34%96·00 option5·08%Swap5·04%If rates increase by 0·5%If rates decrease by 0·5% 4·36% 4·60% 5·04%Borrowing at the floating rate and undertaking a swap effectively fixes the rate of interest at 5·04% for the loan, which is significantly lower than the market fixed rate of 5·5%.On the other hand, doing nothing and borrowing at the floating rate minimises the interest rate at 4·7%, against the next best choice which is the swap at 5·04% if interest rates increase by 0·5%. And should interest rates decrease by 0·5%, then doing nothing and borrowing at a floating rate of 3·7% minimises cost, compared to the next best choice which is the 95·50 option.On the face of it, doing nothing and borrowing at a floating rate seems to be the better choice if interest rates increase or decrease by a small amount, but if interest rates increase substantially then this choice will no longer result in the lowest cost.The swap minimises the variability of the borrowing rates, while doing nothing and borrowing at a floating rate maximises the variability. If Keshi Co wants to eliminate the risk of interest rate fluctuations completely, then it should borrow at the floating rate and swap it into a fixed rate.(b) Free cash flows and therefore shareholder value are increased when corporate costs are reduced and/or income increased.Therefore, consideration should be given to how the centralised treasury department may reduce costs and increase income.The centralised treasury department should be able to evaluate the financing requirements of Keshi Co’s group as a whole and it may be able to negotiate better rates when borrowing in bulk. The department could operate as an internal bank and undertake matching of funds. Therefore it could transfer funds from subsidiaries which have spare cash resources to ones which need them, and thus avoid going into the costly external market to raise funds. The department may be able to undertake multilateral internal netting and thereby reduce costs related to hedging activity. Experts and resources within one location could reduce duplication costs.The concentration of experts and resources within one central department may result in a more effective decision-making environment and higher quality risk monitoring and control. Further, having access to the Keshi Co group’s entire cash funds may give the company access to larger and more diverse investment markets. These factors could result in increasing the company’s cash inflows, as long as the benefits from such activity outweigh the costs.Decentralising Keshi Co’s treasury function to its subsidiary companies may be beneficial in several ways. Ea ch subsidiary company may be better placed to take local regulations, custom and practice into consideration. An example of custom andpractice is the case of Suisen Co’s need to use Salam contracts instead of conventional derivative pr oducts which the centralised treasury department may use as a matter of course.Giving subsidiary companies more autonomy on how they undertake their own fund management may result in increased motivation and effort from the subsidiary’s senior management and thereby increase future income. Subsidiary companies which have access to their own funds may be able to respond to opportunities quicker and establish competitive advantage more effectively.(c) Islamic principles stipulate the need to avoid uncertainty and speculation. In the case of Salam contracts, payment for thecommodity is made at the start of the contract. The buyer and seller of the commodity know the price, the quality and the quantity of the commodity and the date of future delivery with certainty. Therefore, uncertainty and speculation are avoided.On the other hand, futures contracts are marked-to-market daily and this could lead to uncertainty in the amounts received and paid everyday. Furthermore, standardised futures contracts have fixed expiry dates and pre-determined contract sizes.This may mean that the underlying position is not hedged or covered completely, leading to limited speculative positions even where the futures contracts are used entirely for hedging purposes. Finally, only a few commodity futures contracts are offered to cover a range of different quality grades for a commodity, and therefore price movement of the futures market may not be completely in line with the price movement in the underlying asset.(Note: Credit will be given for alternative, relevant discussion for parts (b) and (c))3 (a) A free trade area like the European Union (EU) aims to remove barriers to trade and allow freedom of movement of productionresources such as capital and labour. The EU also has an overarching common legal structure across all member countries and tries to limit any discriminatory practice against companies operating in these countries. Furthermore, the EU erects common external barriers to trade against countries which are not member states.Riviere Co may benefit from operating within the EU in a number of ways as it currently trades within it. It should find that it is able to compete on equal terms with rival companies within the EU. Companies outside the EU may find it difficult toenter the EU markets due to barriers to trade. A common legal structure should ensure that the standards of food quality and packaging apply equally across all the member countries. Due diligence of logistic networks used to transport the food may be easier to undertake because of common compliance requirements. Having access to capital and labour within the EU may make it easier for the company to set up branches inside the EU, if it wants to. The company may also be able to access any grants which are available to companies based within the EU.(b) Project DrugiInternal rate of return (IRR)10% NPV:€2,293,000 approximatelyYear Current 1 2 3 4 5Cash flows (€000s) Try 20% (11,840) 1,2300·8331,0251,6800·6941,1664,3500·5792,51910,2400·4824,9362,2000·402884 (11,840)NPV =€(1,310,000)IRR = 10% + 2,293/(2,293 + 1,310) x 10% approximately = 16·4%Modified internal rate of return (MIRR)Total PVs years 1 to 5 at 10% discount rate =€11,840,000 +€2,293,000 =€14,133,000 MIRR (using formula) = [(14,133/11,840)1/5 x 1·10] – 1 = 14%Alternatively:Year Cash flows(€000s) Multiplier Re-investedamount(€000s)1,8012,2365,2641 2 3 4 51,2301,6804,35010,2402,2001·141·131·121·11 11,2642,2001Total re-invested amount approx. =€22,765,000MIRR = (€22,765,000/€11,840,000)1/5 – 1 = 14%Value at risk (VAR)Based on a single tail test:A 95% confidence level requires the annual present value VAR to be within approximately 1·645 standard deviations from the mean.A 90% confidence level requires annual present value VAR to be within approximately 1·282 standard deviations from the mean.(Note: An approximation of standard deviations to two decimal places is acceptable)95%, five-year present value VAR = $400,000 x 1·645 x 50·5 = approx.€1,471,00090%, five-year present value VAR = $400,000 x 1·282 x 50·5 = approx.€1,147,000Privi€2,054,00017·6%Drugi€2,293,00016·4%Net present value (10%) Internal rate of returnModified internal rate of return VAR (over the project’s life) 95% confidence level13·4% 14·0% €1,103,500€860,000€1,471,000€1,147,00090% confidence levelThe net present value and the modified internal rate of return both indicate that project Drugi would create more value for Riviere Co. However, the internal rate of return (IRR) for project Privi is higher. Where projects are mutually exclusive, the IRR can give an incorrect answer. This is because the IRR assumes that returns are re-invested at the internal rate of return, whereas net present value and the modified IRR assume that they are re-invested at the cost of capital (discount rate) which in this case is 10%. The cost of capital is a more realistic assumption as this is the minimum return required by investors ina company. Furthermore, the manner in which the cash flows occur will have a bearing on the IRR calculated. For example,with project Drugi, a high proportion of the cash flows occur in year four and these will be discounted by using the higher IRR compared to the cost of capital, thus reducing the value of the project faster. The IRR can give the incorrect answer in these circumstances. Therefore, based purely on cash flows, project Drugi should be accepted due to the higher net present value and modified IRR, as they give the theoretically correct answer of the value created.The VAR provides an indication of the potential riskiness of a project. For example, if Riviere Co invests in project Drugi then it can be 95% confident that the present value will not fall by more than€1,471,000 over its life. Hence the project will still produce a positive net present value. However, there is a 5% chance that the loss could be greater than€1,471,000. With project Privi, the potential loss in value is smaller and therefore it is less risky. It should be noted that the VAR calculations indicate that the investments involve different risk. However, the cash flows are discounted at the same rate, which they should not be, since the risk differs between them.Notwithstanding that, when risk is also taken into account, the choice between the projects is not clear cut and depends on Riviere Co’s attitude to risk and return. Project Drugi gives th e higher potential net present value but is riskier, whereas project Privi is less risky but gives a smaller net present value. This is before taking into account additional uncertainties such as trading in an area in which Riviere Co is not familiar. It is therefore recommended that Riviere Co should only proceed with project Drugi if it is willing to accept the higher risk and uncertainty.(c) Possible legal risksThere are a number of possible legal risks which Riviere Co may face, for example:–The countries where the product is sold may have different legal regulations on food preparation, quality and packaging.The company needs to ensure that the production processes and the transportation of the frozen foods comply with these regulations. It also needs to ensure that the promotional material on the packaging complies with regulations in relation to what is acceptable in each country.–The legal regulations may be more lax in countries outside the EU but Riviere Co needs to be aware that complying only with the minimum standards may impact its image negatively overall, even if they are acceptable in the countriesconcerned.–––There may be import quotas in the countries concerned or the governments may give favourable terms and conditions to local companies, which may make it difficult for Riviere Co to compete.The legal system in some countries may not recognise the trademarks or production patents which the company holds on its packaging and production processes. This may enable competitors to copy the food and the packaging. Different countries may have different regulations regarding product liability from poorly prepared and/or stored food which cause harm to consumers. For example, Riviere Co may use other companies to transport its food and different supermarkets may sell its food. It needs to be aware of the potential legal claims on it and its supplier should the food prove harmful to the customers.Possible mitigation strategies–Riviere Co needs to undertake sufficient research of the countries’ current laws and regulations to ensure that it complies with the standards required. It may even want to ensure that it exceeds the required standards to ensure that it maintains its reputation.–Riviere Co needs to ensure that it also keeps abreast of potential changes in the law. It may also want to ensure that it complies with best practice, even if it is not the law yet. Often current best practices become enshrined in future legislation.–Riviere Co needs to investigate the extent to which it may face difficulty in overcoming quota restrictions, less favourable trading conditions and lack of trademark and patent protection. If necessary, these should be factored into the financial analysis. It could be that Riviere Co has already taken these into account.– –Strict contracts need to be set up between Riviere Co and any agents it uses to transport and sell the food. These could be followed up by regular checks to ensure that the standards required are maintained.All the above will add extra costs and if these have not been included in the financial analysis, they need to be. These extra costs may mean that the project is no longer viable.(Note: Credit will be given for alternative, relevant discussion for parts (a) and (c))4(a) Advantages of EVATMThe cost of capital indicates the minimum value which is required by the investors of a company and therefore any positive economic profit greater than the cost of capital times the capital employed should result in an increase in value for theinvestors. If the debt holders are paid a fixed return, then all the additional value created will go to the shareholders. EVAfocuses on creating shareholder value.TM Capital is needed for investment purposes to create value and EVA recognises this when it takes into account the capital TM employed. EVA TMcaptures performance into a single figure, which if positive should increase shareholder value. Ratios on the other hand may require various different targets to be set. EVATM TM is based on the residual income value principle and therefore it is relatively easy to understand. An EVA trend would give an indication of how the company is creating value over a number of years. Drawbacks of EVAis an annual measure and therefore it is relatively easy to manipulate. Short-term projects with early redemption but low yields may be chosen to the detriment of longer term, high yield projects which may not show immediate high returns. Focusing on annual EVA figures may make the company’s managers adopt a short -term attitude and this may be to theTM EVA TMTM detriment of the company’s long -term success. Paying attention to EVA trends instead may reduce or eliminate this TMdrawback. Furthermore, EVA is an absolute measure, making comparison between companies in different industrial sectors more TMdifficult. (b) EVA calculation: Kamala CoTM30 November 201330 November 2014$m $m Operating profit Add: DepreciationLess: Economic depreciation Add: Non-cash expenses819 826 (990) 1501,098 1,150 (1,380) 170Taxation excluding finance costs: 2013: 25% x $819m and 2014 25% x $1,098m (205) (275) –––––– –––––– Economic profit600 763 –––––– –––––– Capital employed: 2013: $1,484m + $2,226m; 2014: $2,184m + $2,577m + $616m 10% x capital employed 3,710 371 5,377 538 EVATM229225(c) Additional ratio trends: Kamala Co201219·2% 1·01 0·80 0·80 201317·2% 0·85 0·65 0·92 201416·7% 0·79 0·63 0·93 Return on capital employed Asset turnover Current ratio Operating profit/cap employedSales revenue/cap employed Current assets/current liabilities (Current assets – bank o/d)/current liabilitiesCurrent ratio without bank overdraft (o/d) Gearing with bank o/d 40% 52% 60% (NCL + bank o/d)/(equity + NCL + bank o/d)Kamala Co PE ratioKamala Co dividend yield11·0:1 2·7%12·3:1 2·3%13·0:1 1·9%Share price/earnings per share Dividend per share/share price。
2014年12月ACCA P2考试真题答案
AnswersProfessional Level – Essentials Module, Paper P2 (INT) Corporate Reporting (International) December 2014 Answers1(a) JoeyConsolidated statement of financial position at 30 November 2014$mAssets:Non-current assetsProperty, plant and equipment (W8) Goodwill (W1)Intangible assets – franchise right (W2) Investment in joint venture (W10) 6,709 89 15 0·75 ––––––––– 6,813·75 Current assets (W6) Total assets2,011·3 ––––––––– 8,825·05 –––––––––Equity and liabilities:Equity attributable to owners of parent Share capital850 Retained earnings (W4)Other components of equity (W5) 3,450·25 258·5 ––––––––– 4,558·75 ––––––––– Non-controlling interest (W7) 908·1 ––––––––– Non-current liabilities (W9) Current liabilities (W9) 2,770 588·2 ––––––––– Total liabilities3,358·2 ––––––––– Total equity and liabilities8,825·05 –––––––––Working 1 Goodwill on acquisition of Margy$m$m Fair value of consideration for 40% interest Non-controlling interest – fair valuePreviously held interest of 30% – fair value Fair value of identifiable net assets acquired: Share capital975 620 7051,020 900 70 Retained earnings OCEFV adjustment – land266 – contingent liability(6) ––––––(2,250)40 Add decrease in fair value of buildingsMeasurement period adjustment – contingent liability ($6m – $5m) (1) ––––––Goodwill89 ––––––Tutorial noteThe carrying amount of Margy at 1 December 2013 is (cash $600 + profit $90m + revaluation gain $10m) $700 million and this interest is fair valued at the date of acquisition to $705 million, giving a revaluation gain of $5 million which goes to profit or loss. The previous revaluation gain of $10 million would not be reclassified to profit or loss even if the interest in Margy were disposed of.The carrying amount of property, plant and equipment as of 30 November 2014 is decreased by $40 million less the excess depreciation charged of $2 million, i.e. $38 million. The carrying amount of goodwill is increased by $40 million and depreciation expense for 2014 is decreased by $2 million. This latter decrease in expense is split between retained earnings ($1·4m) and NCI ($0·6m). IFRS 3 Business Combinations requires Joey to measure contingent liabilities subsequent to the date of acquisition at the higher of the amount which would be recognised in accordance with IAS 37 Provisons, Contingent Liabilities and Contingent Assets, and the amount initially recognised, less any appropriate cumulative amortisation in accordance with IAS 18 Revenue. These requirements should be applied only for the period in which the item is considered to be a contingent liability. In this case, the contingent liability has subsequently met the requirements to be reclassified as a provision, and will be measured in accordance with IAS 37 rather than IFRS 3.As a result the liability has been measured at March 2014 at $5 million, and recognised through profit or loss during the year ended 30 November 2014. This represents a pre-combination loss which must be credited back to NCI and group reserves. Therefore NCI is credited with $1·5 million and retained earnings with $3·5 million. Working 2 HultyJoey measures the gain on its purchase of the 80% interest in Hulty as follows:$m$m 700 250Purchase consideration – Hulty Non-controlling interestLess fair value of identifiable net assets: Share capitalRetained earnings OCE600 300 40 FV – franchise right 20 ––––(960) –––– Gain on bargain purchase(10) ––––The gain of $10 million is recognised in profit or loss. Additionally, Joey recognises an identified intangible asset for the reacquired right at its fair value of $20 million. This right will be amortised over the remaining term of the franchise agreement of four years. Thus $5 million will be credited to the franchise right account (to give a balance of $15 million) and debited to retained earnings $4 million and NCI $1 million. Working 3 Asset held for saleIFRS 5 Non-current Assets Held for Sale and Discontinued Operations criteria are met at 31 March 2014. Therefore, Joey should depreciate the property until the date of reclassification as held for sale. Thus, the depreciation charge is $300,000 x 4/12 = $100,000. The carrying value of the property is therefore $13·9 million. The property should be revalued to its fair value at that date of $15·4 million as the difference between the property’s carr ying amount at that date and its fair value is deemed to be material. The revaluation increase of $1·5 million is recognised in other comprehensive income in accordance with IAS 16 Property, Plant and Equipment.Joey should consider whether the property is impaired by comparing its carrying amount (fair value) with its recoverable amount (higher of value in use and fair value less costs to sell). No impairment loss is recognised because value in use of $15·8 million is higher than fair value less costs to sell of $15·1 million. The property should be reclassified as held for sale and remeasured to fair value less costs to sell ($15·1 million), which results in the recognition of a loss of $300,000 which should be recognised in profit or loss.When the property is disposed of on 30 November 2014, a profit on disposal of $200,000 is recognised (net proceeds of $15·3 million less carrying amount of $15·1 million). Any remaining revaluation reserve relating to the property is not recognised in profit or loss, nor transferred to retained earnings in accordance with IAS 16 because of group policy. Accounting entries Dr Profit or loss Cr Property $100,000 $100,000 The depreciation up to the date of reclassification as held for sale.Dr Property Cr OCI $1·5 million $1·5 million The increase in the value of the property to fair value at the date of the reclassification.Dr Profit or loss Cr Property$300,000 $300,000 Loss arising on reclassification.Dr Accounts receivable Cr Property Cr Profit or loss$15·3 million $15·1 million $0·2 millionThe disposal of the property at the year end.Working 4 Retained earnings$mJoeyBalance at 30 November 2014 Revaluation gain – Margy3,3405 Depreciation reduction (70% x 2) Liability adjustment (70% x 5)Amortisation – franchise right (80% x 5) Gain on bargain purchase1·4 3·5 (4) 10 Asset held for sale – depreciation up to reclassification (W3) Asset held for sale – remeasurement (W3) Asset held for sale – gain on sale (W3) Joint operation (W10) Joint venture (W10) Joint venture (W10)(0·1) (0·3) 0·2 (0·7) 0·75 (1·5) 56 Post-acquisition reserves: Margy (70% of (980 – 900))Hulty (80% of (350 – 300))40––––––––– 3,450·25 ––––––––– Working 5 Other components of equity$m 250 1·5 7 Balance at 30 November 2014 – Joey Asset held for sale (W3)Post-acquisition reserves: Margy post acquisition (70% of 80 – 70)Hulty (80% x (40 – 40))0 –––––– 258·5 –––––– Working 6 Current assets$mBalance at 30 November 2014 Joey Margy Hulty985 861 150 Sale of property (W3)15·3 –––––––– 2,011·3 –––––––– Working 7 Non-controlling interest$m 620 250 24 10 3 0 0·6 (1) Margy (W1) Hulty (W2)Post-acquisition retained earnings – Margy (30% of 980 – 900) Post-acquisition retained earnings – Hulty (20% of 350 – 300) OCE – post acquisition – Margy (30% of 80 – 70) OCE – post acquisition – Hulty (20% of 40 – 40) Depreciation reduction (30% x 2)Franchise right – amortisation (20% x 5) Liability adjustment (30% x 5)1·5 –––––– 908·1 ––––––Working 8 Property, plant and equipment$m $m Balance at 30 November 2014Joey Margy Hulty3,2952,0001,200––––––––6,495Decrease in value of building – Margy (W1)Increase in value of land – Margy (W1)Asset held for sale – depreciation prior to reclassification (W3) Asset held for sale – remeasurement prior to reclassification Asset held for sale – remeasurement after reclassification Asset held for sale – disposal(38)266(0·1)1·5(0·3)(15·1) 214 ––––––––––––––6,709––––––Working 9 Liabilities$m $m Non-current liabilities – balance at 30 November 2014Joey Margy Hulty1,895675200––––––––––––2,770––––––$m $mCurrent liabilities – balance at 30 November 2014JoeyMargyHultyJoint operation – CP Joint venture 3201061600·71·5–––––––––––588·2––––––Working 10 Joint ventureFor the period to 31 May 2014, the requirement for unanimous key strategic decisions means this is a joint venture. Since there is no legal entity, it would be classified as a joint operation. Joey would account for its direct rights to the underlying results and assets.Up until 31 May 2014, the joint operation had the following results:$mRevenue (5 x 6/12) 2·5Cost of sales (2 x 6/12) (1)–––––Gross profit 1·5–––––What belongs to Joey is therefore:$mSales (90% x 2·5) 2·25Cost of sales (printing, binding, platform – all by Joey) (1)–––––Gross profit 1·25Profit royalty to CP (calculated as 30% of $1·5m) (0·45)–––––Net profit 0·8–––––Therefore Joey should adjust the accounting for the period to 31 May 2014 as follows:Dr Profit or loss ($0·45m above + ($2·5m x 10%), i.e. $0·25 million) Cr Accounts payable CP $0·7 million $0·7 millionFrom 1 June 2014, Joey has a share of the net assets rather than direct rights; the joint operation would be classified as a joint venture and must be equity accounted. Therefore the adjustment to the current accounting will be:Remove profit of new entity JCP:Dr Profit or lossCr JCP – profit for period $1·5 million $1·5 millionRecognise Joey’s equity-accounted share of JCP’s profit:Dr Investment in joint venture (($5m – $2m)/2 x 50%) Cr Profit or loss $0·75 million $0·75 million(b) IFRS 2 Share-based Payment includes within its scope transfers of equity instruments of an entity’s parent in return for goodsor services. The standard provides a clear basis to determine the classification of awards in both consolidated and separate financial statements by setting out the circumstances in which group share-based payment transactions are treated as equity settled and cash settled. The entity receiving goods or services should assess its own rights and obligations as well as the nature of awards granted in order to determine the accounting treatment. The amount recognised by the group entity receiving the goods or services will not necessarily be consistent with the amount recognised in the consolidated financial statements. Group share-based payment transactions are treated as equity settled when:(i) the awards granted are the entity’s own equity instruments, or(ii) the entity has no obligation to settle the share-based payment transaction.In the group accounts, the transaction is treated as equity settled as the group is receiving all of the services in consideration for the group’s equity instruments. An expense is charged in the group stat ement of profit or loss for the fair value of the share-based payment at the grant date over the vesting period, with a corresponding credit in equity.In the subsidiaries’ accounts, the grant is treated as an equity settled transaction as the subsidia ries do not have an obligation to settle the award. An expense is charged in the subsidiaries’ statements of profit or loss for the fair value of the share-based payment at the grant date over the vesting period, with a corresponding credit in equity. The credit in equity is treated as a capital contribution as Joey is compensating the employees of Margy and Hulty with no expense to the subsidiaries. In this case the shares vest immediately, therefore the expense recognised in Margy’s and Hulty’s st atement of profit or loss will be the full cost of the grant date fair value.In the separate accounts of Joey, there is no share-based payment charge as there are no employees providing services to the parent. Joey would recognise an increase in its investment in the subsidiaries and a credit to equity.The disclosure requirements of IAS 24 Related Party Disclosures by Joey should be applied if any of the employees are key management personnel.(c) Joey needs a significant injection of capital in order to modernise plant and equipment and the bank requires the companyto demonstrate good projected cash flow and profitability. However, the projected cash flow statement does not satisfy the bank’s criteria and the directors have told the bank that the financial results will meet the criteria. Thus there is pressure on the chief accountant to forward a financial report which meets the bank’s criteria. The chief accountant cannot afford to lo se his job because of his financial commitments and this in itself creates an ethical dilemma for the accountant, as not only is there self-interest of the accountant involved but also the interests of the company and its workforce. The accountant has to rely upon his moral and ethical judgement in these circumstances.Ethical standards are used by members of a profession to decide the right course of action in given circumstances. Ethics rely on logical and rational reasoning to reach a decision, morals are a behavioural code of conduct to which an individual ascribes and ethical rules create an obligation to undertake a particular course of action. Conflict can arise between personal and ethical values but when an individual becomes a member of a profession, there is a recognition that there is acceptance of the standards of that profession which include its code of ethics and values. The ethical rules of the accounting profession represent an attempt to codify principles. A profession is distinguished by having a specialised body of knowledge, a social commitment, the ability to regulate itself and high social status. The profession should seek to promote or preserve public interest. Professional accountants make a bargain with society in which they promise to serve the public interest which may, at times, be at their own expense. Accountants, as professionals, cannot rely exclusively on rules to define how they will act ethically. Members of the profession have a responsibility to present the truth in a fair and honest fashion and in a spirit of public service. In such circumstances, accountants should think carefully before seeking creative accounting solutions to particular problems. Thus, in this case, the chief accountant should insist that the report to the bank is a true reflection of the current financial position, irrespective of the consequences for himself.2 (a) Under IAS 24 Related Party Disclosures, disclosures are required in respect of an entity’s transactions with related parties.Related parties include parents, subsidiaries, members of key management personnel of the entity or of a parent of the entity and post-employment benefit plans.Where there have been related party transactions during the period, management discloses the nature of the relationship, as well as information about the transactions and outstanding balances, including commitments, necessary for users to understand the potential impact of the relationship on the financial statements. Disclosure is made by category of related party and by major type of transaction. Management only discloses that related party transactions were made on terms equivalent to those which prevail in arm’s length transactions if such terms can be substantiated.Government-related entities are defined as entities which are controlled, jointly controlled or significantly influenced by the government. The financial crisis widened the range of entities subject to the related party disclosure requirements. The financial support provided by governments to financial institutions in many countries meant that the government controls significantly influenced some of those entities. A government-controlled bank would, in principle, be required to disclose details of its transactions, deposits and commitments with all other government-controlled banks and with the central bank.However, IAS 24 has an exemption from all of the disclosure requirements of IAS 24 for transactions between government-related entities and the government, and all other government-related entities. Coatmin is exempt from the disclosure requirements in relation to related party transactions and outstanding balances, including commitments, with:(a)(b) a government which has control, joint control or significant influence over the reporting entity; andanother entity which is a related party because the same government has control, joint control or significant influence over both the reporting entity and the other entity.Those disclosures are replaced with a requirement to disclose:(a)(b) the name of the government and the nature of their relationship; and(i) the nature and amount of any individually significant transactions; and(ii) the extent of any collectively significant transactions qualitatively or quantitatively.The disclosures provide more meaningful information about the nature of an entity’s relationship with the government and material transactions.(b) IFRS 9 Financial Instruments says that an entity should classify all financial liabilities as subsequently measured at amortisedcost using the effective interest method, except for:(a)(b)(c) financial liabilities at fair value through profit or loss. Such liabilities, including derivatives which are liabilities, shall be subsequently measured at fair value.financial liabilities which arise when a transfer of a financial asset does not qualify for de-recognition or when the continuing involvement approach applies.financial guarantee contracts as defined in the standard. After initial recognition, an issuer of such a contract shall subsequently measure it at the higher of:(i)(ii)the amount determined in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and the amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with IAS 18 Revenue.In addition, financial guarantees and loan commitments which entities choose to measure at fair value through profit or loss will have all fair value movements in profit or loss, with no transfer to OCI. Changes in the credit risk of liabilities relating to loan commitment and financial guarantee contracts are not required to be presented in other comprehensive income.The accounting entries on the assumption that discounting would not be material will therefore be:1 December 2012Dr Profit or lossCr Financial liabilities $1·2 million $1·2 millionTo record the loss incurred in giving the guarantee.30 November 2013Dr Financial liabilities Cr Profit or loss $0·4 million $0·4 millionTo amortise the initial fair value over the life of the guarantee, reflecting the reduction in exposure as a result of the first repayment by the subsidiary.30 November 2014Dr Profit or lossCr Financial liabilities $39·2 million $39·2 millionTo provide for the calling of the guarantee – the difference between the possible $40 million call and the carrying amount of the guarantee of $0·8 million.Dr Financial liabilities Cr Profit or loss $39·6 million $39·6 millionTo move from the provision back to measurement at amortised initial value following event after the reporting period change in probabilities of the guarantee being called.An event after the reporting period is an event, which could be favourable or unfavourable, which occurs between the end of the reporting period and the date when the financial statements are authorised for issue. The above is an adjusting event which is an event after the reporting period which provides further evidence of conditions which existed at the end of the reporting period.(c) IAS 39 Financial Instruments: Recognition and Measurement permits hedge accounting under certain circumstancesprovided that the hedging relationship is:(a) formally designated and documented, including the entity’s risk management objective and strategy for undertaking thehedge, identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the entity will assess the hedging instrument’s effectiveness; and(b)(c) expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk as designated and documented, and effectiveness can be reliably measured; andassessed on an ongoing basis and determined to have been highly effective.A hedging instrument is an instrument whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item. All derivative contracts with an external counterparty may be designated as hedging instruments except for some written options. A non-derivative financial asset or liability may not be designated as a hedging instrument except as a hedge of foreign currency risk. For hedge accounting purposes, only instruments which involve a party external to the reporting entity can be designated as a hedging instrument. This applies to intragroup transactions as well with the exception of certain foreign currency hedges of forecast intragroup transactions. However, they may qualify for hedge accounting in individual financial statements.IAS 39 requires hedge effectiveness to be assessed both prospectively and retrospectively in order to qualify for hedge accounting at the inception of a hedge and, at a minimum, at each reporting date. The changes in the fair value of the hedged item, in this case, attributable to the hedged risk must be expected to be highly effective in offsetting the changes in the fair value of the hedging instrument on a prospective basis, and on a retrospective basis where actual results are within a range of 80% to 125%. All hedge ineffectiveness is recognised immediately in profit or loss including ineffectiveness within the 80% to 125% window.Fair value Fair value Change in value1 December 2013 30 November 2014$000 2,000Nil $0001,910203$00090203Fixed interest bondInterest rate swapEffectiveness 226% or 44%Therefore hedge accounting is not permitted as the results of the effectiveness test fall outside the acceptable range of 80% to 125%. The main reason for the difference in the fair value movements is likely to be Coatmin’s deterioratingcreditworthiness. IAS 39 allows an entity to designate any portion of the risk in a financial asset as the hedged item. Hedge effectiveness is easier to achieve if the hedged risk matches the hedging instrument as closely as possible. Coatmin should redesignate the risk being hedged and try to exclude the credit risk from the hedging relationship. Maybe it could hedge changes in the bond’s fair value to changes in the risk free interest rate.(d) IFRS 9 requires gains and losses on financial liabilities designated as at fair value through profit or loss to be split into theamount of change in the fair value which is attributable to changes in the credit risk of the liability, which is shown in other comprehensive income, and the remaining amount of change in the fair value of the liability which is shown in profit or loss.IFRS 9 allows the recognition of the full amount of change in the fair value in the profit or loss only if the recognition of chan ges in the liability’s credit risk in other comprehensive income would create an accounting mismatch in profit or loss.This is determined at initial recognition and is not reassessed. Amounts presented in other comprehensive income are not subsequently transferred to profit or loss, and the entity may only transfer the cumulative gain or loss within equity. Thus Coatmin should charge $5 million to OCI and $45 million to profit or loss.3 (a) The accounting for the transaction as an asset acquisition does not comply with the requirements of IFRS 3 BusinessCombinations and should have been accounted as a business combination. This would mean that transaction costs would be expensed, the vessels recognised at fair value, any deferred tax recognised at nominal value and the difference between these amounts and the consideration paid to be recognised as goodwill.In accordance with IFRS 3, an entity should determine whether a transaction is a business combination by applying the definition of a business in IFRS 3. A business is an integrated set of activities and assets which is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants. A business consists of inputs and processes applied to those inputs which have the ability to create outputs. Although businesses usually have outputs, outputs are not required to qualify as a business.When analysing the transaction, the following elements are relevant:(i) Inputs: Shares in vessel owning companies, charter arrangements, outsourcing arrangements with a managementcompany, and relationships with a shipping broker.(ii) Processes: Activities regarding chartering and operating the vessels, financing the business, purchase and sales of vessels.(iii) Outputs: Ceemone would generate revenue from charter agreements and has the ability to gain economic benefit from the vessels.IFRS 3 states that whether a seller operated a set of assets and activities as a business or intends to operate it as a business is not relevant in evaluating whether it is a business. It is not relevant therefore that some activities were outsourced as Ceemone could chose to conduct and manage the integrated set of assets and activities as a business. As a result, the acquisition included all the elements which constitute a business, in accordance with IFRS 3.IFRS 10 Consolidated Financial Statements sets out the situation where an investor controls an investee. This is the case, if and only if, the investor has all of the following elements:(i) power over the investee, that is, the investor has existing rights which give it the ability to direct the relevant activities(the activities which significantly affect the investee’s returns);(ii) exposure, or rights, to variable returns from its involvement with the investee;(iii) the ability to use its power over the investee to affect the amount of the investor’s returns.Where a party has all three elements, then it is a parent; where at least one element is missing, then it is not. In every case, IFRS 10 looks to the substance of the arrangement and not just to its legal form. Each situation needs to be assessed individually. The question arises in this case as to whether the entities created are subsidiaries of the bank. The bank is likely to have power over the investee, may be exposed to variable returns and certainly may have the power to affect the amount of the returns. Thus the bank is likely to have a measure of control but the extent will depend on the constitution of the entity.(b) Kayte’s calculation of the residual value of the vessels with a 10-year useful life is unacceptable under IAS 16 Property, Plantand Equipment because estimating residual value based on acquisition cost does not comply with the requirements of IAS 16. Kayte should prepare a new model to determine residual value which would take account of broker valuations at the end of each reporting period and which would produce zero depreciation charge when estimated residual value was higher than the carrying amount.IAS 16 paragraph 6 defines residual value as the estimated amount which an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already at the age and in the condition expected at the end of its useful life.IAS 16 requires the residual value to be reviewed at least at the end of each financial year end with the depreciable amount of an asset allocated on a systematic basis over its useful life. IAS 16 specifies that the depreciable amount of an asset is determined after deducting its residual value.Kayte’s original model implied that the residual value was constant for the vessel’s entire useful life. The residual valu e has to be adjusted especially when an expected sale approaches, and the residual value has to come closer to disposal proceeds minus disposal costs at the end of the useful life. IAS 16 says that in cases when the residual value is greater than the ass et’s carrying amount, the depreciation charge is zero unless and until its residual value subsequently decreases to an amount below the asset’s carrying amount. The residual value should be the value at the reporting date as if the vessel were alread y of the age and in the condition expected at the end of its useful life. An increase in the expected residual value of an asset because of past events will affect the depreciable amount, while expectation of future changes in residual value other than the effects of expected wear and tear will not. There is no guidance in IAS 16 on how to estimate residual value when the useful life is considered to be shorter than the economic life. Undesirable volatility is not a convincing argument to support the accounting treatment, and broker valuations could be a useful starting point to estimate residual value.As regards the vessels which are kept for the whole of their economic life, a residual value based upon the scrap value of steel is acceptable. Therefore the vessels should be depreciated based upon the cost less the scrap value of steel over the 30-year period. The engine need not be componentised as it will have the same 30-year life if maintained every 10 years. It is likely that the cost of major planned maintenance will increase over the life of a vessel due to inflation and the age of the vessel. This additional cost will be capitalised when incurred and therefore the depreciation charge on these components may be greater in the later stages of a vessel’s life.When major planned maintenance work is to be undertaken, the cost should be capitalised. The engine overhaul will be capitalised as a new asset which will then be depreciated over the 10-year period to the next overhaul. The depreciation of the original capitalised amount will typically be calculated such that it had a net book value of nil when the overhaul is undertaken.This is not the case with one vessel, because work was required earlier than expected. In this case, any remaining net book value of the old engine and overhaul cost should be expensed immediately.The initial carve out of components should include all major maintenance events which are likely to occur over the economic life of the vessel. Sometimes, it may subsequently be found that the initial allocation was insufficiently detailed, in that not all components were identified. This is the case with the funnels. In this situation it is necessary to determine what the net book value of the component would currently be had it been initially identified. This will sometimes require the initial cost to be determined by reference to the replacement cost and the associated accumulated depreciation charge determined using the rate used for the vessel. This is likely to leave a significant net book value in the component being replaced, which will need to be written off at the time the replacement is capitalised.。
ACCA F9 2014年12月真题 简答题精简
2014.Dec1.短期虽然有现金盈余但是马上又要用，所以我们可以投资，比如放银行，但是不能进行风险大的投资。
股票投资风险很大所以不适合在现金短期盈余的时候进行投资。
2.a.不转换的回收面值是100，转换后是131.12，为了利润最大化肯定会选择转换b.问题：要选择合适的P/E ratio，这里选用的平均p/E ratio 是相似公司水平而不是平均公司水平。
●比如2014年股价是10.9美元，比我们计算的4.77多47%。
●Business risk 和financial risk也和其他公司不一样，如资本结构、运营内容、市场地位P/E ratio Method 更适合非上市公司而不是上市公司，如果在证券市场上交易有效，那么Par Co 的股价会公允，可以用相似的非上市公司的P/E ratio 来计算。
从Par Co的P/E ratio来看，我们知道它不是不变的，而是……所以我们发现用历史数据来股价是有问题的，理想的话P/E ratio 应该用预测值3.a.如果公司不选择hedge，可以用future spotexchange rate 。
可能会有更好或者更坏的货币价值；在现在这种情况下，公司最好用forwardexchange contractc.最简单的方法之一就是用本国货币交易，但是外国顾客可能不想承担汇率风险从而减少了我们的竞争优势。
如果经常做欧元交易的话，我们可以专门开一个欧元账户来避免汇率风险。
4.b.任选两个例如Inflation现金流应该是累计的膨胀而这里只用了一年的Interest payments不应该放在这里，因为finance影响已经反映在discount rate里了ment市场价值反映了现在的公司情况，所以如果可以的话，市场价值永远都要被用在计算WACC 如果用了账面价值，WACC容易被接受，因为账面的Ke比市场Ke小，让WACC更小b.讨论一下发行股票来融资时要考虑的问题（一个1-2分，一共6分）Issue price发行价，一般会打折，但是得考虑打几折Relative cost发行成本，比IPO等便宜，因为没有交易成本Ownership and control股权稀释，可能会影响公司所有权和控制权Gearing and financial risk减少杠杆程度和财务风险。
2014年12月ACCA F9考试真题答案
AnswersFundamentals Level – Skills Module， Paper F9Financial Management December 2014 Answers Section A1 AMonetary value of return = $3·10 x 1·197 = $3·71Current share price = ＄3·71 – $0·21 = $3·502 3 4 BCAThe hedge needs to create a peso liability to match the 500，000 peso future income。
6—month peso borrowing rate = 8/2 = 4%6-month dollar deposit rate = 3/2 = 1·5%Dollar value of money market hedge = 500,000 x 1·015/(1·04 x 15） = ＄32,532 or $32,5005 6 7 BCCTotal cash flow（$)Joint probability EV of cash flow($）36，00014,00032,00010,00016,000(6,000）0·11250·03750·45000·15000·18750·06254,05052514,4001，5003,000(375）–––––––23，100Less initial investmentEV of the NPV(12,000）–––––––11,100–––––––8 9 BAMV = (7 x 5·033) + （105 x 0·547) = ＄92·67101112 D D A13 BInventory = 15,000，000 x 60/360 = $2，500，000Trade receivables = 27,000，000 x 50/360 = $3,750，000Trade payables = 15，000,000 x 45/360 = $1，875，000Net investment required = 2,500,000 + 3,750，000 – 1，875,000 = $4，375，00014151617 CDCAGearing = ［（4,000 x 1·05） + 6，200 + （2,000 x 0·8）]/（8,000 x 2 x 5) = 12，000/80,000 = 15%1819 BDDividend growth rate = 100 x (（33·6/32）– 1） = 5% MV = 33·6/(0·13 – 0·05） = ＄4·2020 DSection B1 （a）Cash balances at the end of each month：December January February March April Sales (units）1，200 1,250 1,300 1,400 1，500 Selling price (＄/unit）800 800 840 840––––––––––––––––––––––––Sales （＄000) 960 1,000 1,092 1,176––––––––––––––––––––––––Month received January February March AprilDecember 1，2502，500500 JanuaryJanuary1,3002，600520FebruaryFebruary1,4002，800560March1，5003,000600Production (units）Raw materials （units）Raw materials ($000）Month payable March AprilDecember 1,250125 January1，300130February1,400140March1,500150Production (units）Variable costs（$000）Month payableDecember January February MarchMonthly cash balances：January ＄000 960 February$0001，000March$0001,092ReceivablesLoan 300––––––––––––––––Income：960 1，000 1，392––––––––––––––––Raw materials Variable costs Machine 500130520140560150400 ––––––––––––––––Expenditure：630 660 1,110––––––––––––––––Opening balance Net cash flow40 370 710 330 340 282 ––––––––––––––––Closing balance 370 710 992––––––––––––––––（b) Calculation of current ratioInventory at the end of the three—month period:This will be the finished goods for April sales of 1，500 units, which can be assumed to be valued at the cost of production of ＄400 per unit for materials and ＄100 per unit for variable overheads and wages。
2014年12月ACCA-F9真题
2
Which of the following statements is/are correct? 1 2 3 A B C D Securitisation is the conversion of illiquid assets into marketable securities The reverse yield gap refers to equity yields being higher than debt yields Disintermediation arises where borrowers deal directly with lending individuals 2 only 1 and 3 only 2 and 3 only 1, 2 and 3
What is the expected value of the net present value of the investment project? A B C D $11,850 $28,700 $11,100 $76,300
8
Which of the following statements is correct? A B C D Once purchased, currency futures have a range of close-out dates Currency swaps can be used to hedge exchange rate risk over longer periods than the forward market Banks will allow forward exchange contracts to lapse if they are not used by a company Currency options are paid for when they are exercised
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AnswersFundamentals Level – Skills Module, Paper F9Financial Management December 2014 Answers Section A1 AMonetary value of return = $3·10 x 1·197 = $3·71Current share price = $3·71 – $0·21 = $3·502 3 4 BCAThe hedge needs to create a peso liability to match the 500,000 peso future income.6-month peso borrowing rate = 8/2 = 4%6-month dollar deposit rate = 3/2 = 1·5%Dollar value of money market hedge = 500,000 x 1·015/(1·04 x 15) = $32,532 or $32,5005 6 7 BCCTotal cash flow($)Joint probability EV of cash flow($) 36,00014,00032,00010,00016,000(6,000)0·11250·03750·45000·15000·18750·06254,05052514,4001,5003,000(375)–––––––23,100Less initial investmentEV of the NPV(12,000)–––––––11,100–––––––8 9 BAMV = (7 x 5·033) + (105 x 0·547) = $92·67101112 D D A13 BInventory = 15,000,000 x 60/360 = $2,500,000Trade receivables = 27,000,000 x 50/360 = $3,750,000Trade payables = 15,000,000 x 45/360 = $1,875,000Net investment required = 2,500,000 + 3,750,000 – 1,875,000 = $4,375,00014151617 CDCAGearing = [(4,000 x 1·05) + 6,200 + (2,000 x 0·8)]/(8,000 x 2 x 5) = 12,000/80,000 = 15%1819 BDDividend growth rate = 100 x ((33·6/32) – 1) = 5% MV = 33·6/(0·13 – 0·05) = $4·2020 DSection B1 (a) Cash balances at the end of each month:December January February March April Sales (units) 1,200 1,250 1,300 1,400 1,500 Selling price ($/unit) 800 800 840 840––––––––––––––––––––––––Sales ($000) 960 1,000 1,092 1,176––––––––––––––––––––––––Month received January February March AprilDecember 1,2502,500500 JanuaryJanuary1,3002,600520FebruaryFebruary1,4002,800560March1,5003,000600Production (units)Raw materials (units)Raw materials ($000)Month payable March AprilDecember 1,250125 January1,300130February1,400140March1,500150Production (units)Variable costs ($000)Month payable December January February MarchMonthly cash balances:January $000 960 February$0001,000March$0001,092ReceivablesLoan 300––––––––––––––––Income: 960 1,000 1,392––––––––––––––––Raw materials Variable costs Machine 500130520140560150400 ––––––––––––––––Expenditure: 630 660 1,110––––––––––––––––Opening balance Net cash flow40 370 710 330 340 282 ––––––––––––––––Closing balance 370 710 992––––––––––––––––(b) Calculation of current ratioInventory at the end of the three-month period:This will be the finished goods for April sales of 1,500 units, which can be assumed to be valued at the cost of production of $400 per unit for materials and $100 per unit for variable overheads and wages. The value of the inventory is therefore 1,500 x 500 = $750,000.Trade receivables at the end of the three-month period:These will be March sales of 1,400 x 800 x 1·05 = $1,176,000.Cash balance at the end of the three-month period:This was forecast to be $992,000.Trade payables at the end of the three-month period:This will be the cash owed for March raw materials of $600,000.Forecast current ratioAssuming that current liabilities consists of trade payables alone:Current ratio = (750,000 + 1,176,000 + 992,000)/600,000 = 4·9 times(c) (a) If Flit Co generates a short-term cash surplus, the cash may be needed again in the near future. In order to increase profitability, the short-term cash surplus could be invested, for example, in a bank deposit, however, the investment selected would normally not be expected to carry any risk of capital loss. Shares traded on a large stock market carry a significant risk of capital loss, and hence are rarely suitable for investing short-term cash surpluses.2 Average historical share price growth = 100 x ((10·90/9·15)1/3 – 1) = 6% per yearFuture share price after 7 years = 10·90 x 1·067 = $16·39 per shareConversion value of each loan note = 16·39 x 8 = $131·12The investor is faced with the choice of redeeming the loan notes at their nominal value of $100 or converting them intoshares worth $131·12. The rational choice is to maximise wealth by taking the conversion option.Market value of each loan note = (8 x 5·033) + (131·12 x 0·547) = 40·26 + 71·72 = $111·98(b) The average price/earnings ratio (P/E ratio) of listed companies similar to Par Co has been recently reported to be 12 timesand the most recent earnings per share (EPS) of Par Co is 62 cents per share. The share price calculated using the P/E ratio method is therefore $7·44 (12 x 62/100).One problem with using the P/E ratio valuation method relates to the selection of a suitable P/E ratio. The P/E ratio used here is an average P/E ratio of similar companies and Par Co is clearly not an average company, as evidenced by its year-end share price being $10·90 per share, some 47% more than the calculated value of $7·44. The business risk and financial risk ofPar Co will not be exactly the same as the business risk and financial risk of the similar companies, for example, because of diversification of business operations and differing capital structures. Par Co may be a market leader or a rising star compared to similar companies.The P/E ratio method is more suited to valuing the shares of unlisted companies, rather than listed companies such as Par Co. If the stock exchange on which its shares are traded is efficient, which is likely as it is a large stock exchange, the share price of Par Co will be a fair reflection of its value and its prospects. As a listed company, Par Co would in fact contribute to the average P/E ratio for its business sector, used in valuing similar unlisted companies.Looking at the P/E ratio of Par Co, it can be seen that this is not constant, but has increased each year for four years, from 14·3 times in 2011 to 17·6 times in 2014. This raises questions about using a P/E ratio based on historical information asa way of valuing future activity.Ideally, the P/E ratio method should use forecast maintainable earnings, but the calculated value of $7·44 has used the historical EPS of 2014. As this was the lowest EPS over the four years, forecasting future maintainable earnings may be a problem here.WorkingsYear 2011649·1514·3274·5 2012689·8814·5296·420137010·4915·0314·720146210·9017·6327·0Earnings per share (cents)Year-end share price ($)P/E ratio (times)Value of Par Co ($m)(Note: It is assumed that the number of ordinary shares has remained constant)3 (a) The current dollar value of the future euro receipt =€1,200,000/4·2080 = $285,171If a forward contract is taken out, PZK Co can lock into the six-month forward exchange rate of 4·2606 euros per dollar.Future dollar value using the forward contract =€1,200,000/4·2606 = $281,651Loss using the forward contract = 285,171 – 281,651 = $3,520If PZK Co chooses not to hedge the future euro receipt, it will be able to exchange the euros for dollars at the future spot exchange rate prevailing when the payment is made. This future spot exchange rate may give a better or worse dollar value than using the six-month forward exchange rate. At the current time, PZK Co may prefer the certainty offered by the forward exchange contract to the uncertainty of leaving the future euro receipt unhedged. In addition, the forward exchange rate is an unbiased estimator of the future spot exchange rate.(b)(c) The implied interest rate in the foreign country can be calculated using interest rate parity.From the formulae sheet, F0 = S0 x (1 + i c)/(1 + i b)Hence 4·3132 = 4·2080 x (1 + i c)/1·04Rearranging, (1 + i c) = 4·3132 x 1·04/4·2080 = 1·066The implied annual interest rate in the foreign country is 6·6%.One of the simplest ways for PZK Co to avoiding exchange rate risk is to invoice in its home currency, which passes the exchange rate risk on to the foreign customer, who must effectively find the dollars with which to make the payment.This strategy may not be commercially viable, however, since the company’s foreign customers will not want to take on the exchange rate risk. They will instead transfer their business to those competitors of PZK Co who invoice in the foreign currency and who therefore shoulder the exchange rate risk.If PZK Co is concerned about exchange rate risk, it will need to consider other hedging methods. For example, if the company regularly receives receipts and makes payments in euros, it could open a bank account denominated in euros.4 (a) Revised draft evaluation of investment proposal1 2 3 4 5 $000 2,475 (1,097) $000 2,714 (1,323) $000 4,413 (2,084) $000 4,775 (2,370) $000Sales revenue Variable costs Fixed costs(155) (159) (164) (169) –––––– –––––– –––––– –––––– Cash flow before tax TA depreciation 1,223 1,232 2,165 2,236 (450) (338) (253) (759) –––––– –––––– –––––– –––––– Taxable profit Taxation 773 894 1,912 1,477 (170) (197) (421) (325) –––––– 773 –––––– –––––– –––––– –––––– After-tax profit TA depreciation 724 1,715 1,056 (325) 450 338 253 759 –––––– –––––– –––––– –––––– –––––– (325) After-tax cash flow Discount at 12% 1,223 1,062 1,968 1,815 0·893 0·797 0·712 0·636 0·567 –––––– –––––– –––––– –––––– –––––– Present values1,092 846 1,401 1,154 (184) –––––– ––––––––––––––––––––––––$000 Present value of cash inflows Cost of machine 4,309 (1,800) –––––– NPV2,509 ––––––The revised draft evaluation of the investment proposal indicates that a positive net present value is expected to be produced. The investment project is therefore financially acceptable and accepting it will increase the wealth of the shareholders of Uftin Co. WorkingsYear1 2 3 4 Sales (units/year) Selling price ($/unit) Inflated by 4·2% ($/unit) Sales revenue ($000/year) 95,00025 26·05 2,475 100,00025 27·14 2,714 150,00026 29·42 4,413 150,00027 31·83 4,775 Year1 2 3 4 Sales (units/year) Variable costs ($/unit) Inflated by 5% ($/unit) Variable costs ($000/year) 95,00011 11·55 1,097 100,00012 13·23 1,323150,00012 13·89 2,084150,00013 15·80 2,370Year1 2 3 4 Fixed costs ($000/year) Inflated by 3% ($000/year) 150 155 150 159 150 164 150 169 Year1 2 3 4 Tax allowable depreciation ($/year) Tax benefits at 22% ($/year)450,000 99,000337,500 74,250253,125 55,688759,375 167,063Alternative calculation of after-tax cash flow1 2 3 4 5 $000 2,475 (1,097) $000 2,714 (1,323) $000 4,413 (2,084) $000 4,775 (2,370) $000Sales revenue Variable costs Fixed costs(155) (159) (164) (169) –––––– –––––– –––––– –––––– Cash flow before tax Tax liability1,223 1,232 (269) 2,165 (271) 2,236 (476) (492) TAD tax benefits 99 74 56 167 –––––– –––––– –––––– –––––– –––– After-tax cash flow1,223 1,062 1,968 1,816 (325) ––––––––––––––––––––––––––––(b) The following revisions to the original draft evaluation could be discussed.InflationOnly one year’s inflation had been applied to sales revenue, variable costs and fixed costs in years 2, 3 and 4. The effect of inflation on cash flows is a cumulative one and in this case specific inflation was applied to each kind of cash flow.Interest paymentsThese should not have been included in the draft evaluation because the financing effect is included in the discount rate. Ina large company such as Uftin Co, the loan used as part of the financing of the investment is very small in comparison toexisting finance and will not affect the weighted average cost of capital.Tax allowable depreciationA constant tax allowable depreciation allowance, equal to 25% of the initial investment, had been used in each year.However, the method which should have been used was 25% per year on a reducing balance basis, resulting in smaller allowances in years 2 and 3, and a balancing allowance in year 4. In addition, although tax allowable depreciation had been deducted in order to produce taxable profit, tax allowable depreciation had not been added back in order to produce after-tax cash flow.Year 5 tax liabilityThis had been omitted in the draft evaluation, perhaps because a four-year period was being used as the basis for the evaluation. However, this year 5 cash flow needed to be included as it is a relevant cash flow, arising as a result of the decision to invest.Examiner’s Note: Explanation of only TWO revisions was required.5 (a) Cost of equityUsing the capital asset pricing model, K e = 4 + (1·15 x 6) = 10·9%Cost of debt of loan notesAfter-tax annual interest payment = 6 x 0·75 = $4·50 per loan note.Year $ 5% discount PV($) 4% discount PV($)1–6 6 (103·50)4·50106·001·0005·0760·746(103·50)22·841·0005·2420·790(103·50)23·5979·08 83·74––––––––––––(1·58) 3·83––––––––––––K d = 4 + [(1 x 3·83)/(3·83 + 1·58)] = 4 + 0·7 = 4·7% per yearMarket values of equity and debtNumber of ordinary shares = 200m/0·5 = 400 million sharesMarket value of ordinary shares = 400m x 5·85 = $2,340 millionMarket value of loan notes = 200m x 103·5/100 = $207 millionTotal market value = 2,340 + 207 = $2,547 millionMarket value WACCK0 = ((10·9 x 2,340) + (4·7 x 207))/2,547 = 26,479/2,547 = 10·4%Book value WACCK0 = ((10·9 x 850) + (4·7 x 200))/1,050 = 10,205/1,050 = 9·7%CommentMarket values of financial securities reflect current market conditions and current required rates of return. Market values should therefore always be used in calculating the weighted average cost of capital (WACC) when they are available. If book values are used, the WACC is likely to be understated, since the nominal values of ordinary shares are much less than their market values. The contribution of the cost of equity is reduced if book values are used, leading to a lower WACC, as evidenced by the book value WACC (9·7%) and the market value WACC (10·4%) of Tinep Co.(b) A rights issue raises equity finance by offering new shares to existing shareholders in proportion to the number of shares theycurrently hold. Existing shareholders have the right to be offered new shares (the pre-emptive right) before they are offered to new investors, hence the term ‘rights issue’. There are a number of factors which Tinep Co should consider.Issue priceRights issues shares are offered at a discount to the market value. It can be difficult to judge what the amount of the discount should be.Relative costRights issues are cheaper than other methods of raising finance by issuing new equity, such as an initial public offer (IPO) or a placing, due to the lower transactions costs associated with rights issues.Ownership and controlAs the new shares are being offered to existing shareholders, there is no dilution of ownership and control, providing shareholders take up their rights.Gearing and financial riskIncreasing the weighting of equity finance in the capital structure of Tinep Co can decrease its gearing and its financial risk.The shareholders of the company may see this as a positive move, depending on their individual risk preference positions.Fundamentals Level – Skills Module, Paper F9 Financial ManagementDecember 2014 Marking Scheme MarksMarksSection A 1–20Two marks per question40Section B 1(a) Monthly receivablesLoanRaw materials Variable costs Machine1 0·5 1 1 0·5 Closing balances1 ––– 52(b) (c)Closing finished goods inventoryClosing trade receivables Closing trade payables Current ratio 0·5 0·5 0·5 0·5 ––– Temporary nature of short-term cash surplus Investment should have no risk of capital loss Shares are not suitable for investment1 1 1 –––3 ––– 10 –––2(a) (b)(a) Average historical share price growth rateFuture share price Conversion valueComment on conversion and redemption Market value of loan note 1 1 1 1 1 ––– 5Share price calculation using P/E ratio method Discussion of problems in using P/E ratio method1 4 –––5 ––– 10 –––3Current dollar value of euro receipt Forward contract value of euro receipt Loss using forward contract1 0·5 0·5 Explanation of preference for hedging2 –––4 2(b) (c) Calculation of implied interest rate Recognition of risk transferCommercial considerations Other relevant discussion1 2 1 –––4 ––– 10 –––Marks Marks4(a) Sales revenue1 1 1 1 1 1 1 1 1 1 Inflated sales revenue Inflated variable costs Inflated fixed costsExcluding interest payments Tax allowable depreciation Balancing allowance Tax liabilitiesTiming of taxation liabilities Net present valueComment on financial acceptability1 ––– 11(b) (a) Explanation of first revisionExplanation of second revision1–3 1–3 ––– Maximum4 ––– 15 –––5Cost of equity1 1 1 1 1 1 1 After-tax interest payment Setting up IRR calculationAfter-tax cost of debt of loan notes Market valuesMarket value WACC Book value WACCComment on difference2 ––– 9(b) Issue priceRelative costOwnership and control Gearing and financial risk1–2 1–2 1–2 1–2 ––– Maximum6 ––– 15 –––。