2010.Dec.ACCA.F4_saa_HMH_mock_questions

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ACCA_F4_Revision_Course_Mock_J10_-_QUESTIONS[1]

ACCAPape r F4 (ENG)Corporat e an d Busines s La wRevisio n Cours e Moc k Examinatio n Jun e 2010 Questio n Pape rAL L question s ar e compulsor y an d MUS T b e attempte dTim e Allowe d 15 minute s Readin g an d plannin g 3 hour s Writin gD O NO T OPE N THI S PAPE R UNTI L YO U AR E READ Y T O STAR T UNDE REXAMINATIO N CONDITION S©Debbi e Crossman, Apri l 2010 Al l right s reserved. N o par t o f thi s publicatio n ma y b e reproduced, store d i n aretrieval system, or transmitted, in any form or by any means, electronic,mechanical, photocopying, recording or otherwise, without the prior writtenpermissio n o f Debbi e Crossman.AL L TE N question s ar e compulsor y an d MUS T b e attempte d1 (a) Explai n th e jurisdictio n o f th e Count y Cour t and th e Hig h Cour t i n th e syste m o fcivi l justice. (8 marks)(b) Briefl y explai n wher e appeal s fro m th e decision s o f th e Count y Cour t an d th e Hig hCour t ar e heard. (2 marks)(10 marks)2 (a) Distinguis h betwee n a condition, a warrant y an d a n innominat e term. (5 marks)(b) Explai n th e practica limportanc e o f th e distinction. (5marks) (10 marks)3 I n relatio n t o th e dismissa l o f a n employee, explain:(a) th e ground s o n whic h dismissa l ma y b e fair; (5 marks)(b) th e ground s o n whic h dismissa l wil l b e automaticall y unfair.(5 marks)(10 marks)4 Explai n th e concep t o f ‘dut y o f care’i n th e contex t o f professiona l negligence.(10 marks)5 Explai n th e following i n relatio n t o compan y law:(a) promoter; (5 marks)(b) th e trading certificate. (5 marks) (10 marks)6 I n th e contex t o f corporat e governanc e explai n th e rol e o f th e compan y secretar y o f apubli c company, paying particula r attentio n to:(a) hi s appointment; (4 marks)(b) hi s duties; (2 marks)(c) hi s powe r t o bin d th e compan y i n contract. (4 marks) (10 marks)7 I n relatio n t o compan y la w and, wher e relevant, th e Combined Cod e o n Corporat eGovernanc e explain:(a) th e meaning o f director; (2 marks)(b) th e meaning o f shado w director; (3 marks)(c) th e rol e o f nonexecutiv e director; (3 marks)(d) th e rol e o f executiv e director. (2 marks) (10 marks)8 Angi e advertise d a photocopie r i n a trad e journa l fo r £15,000. Bett y wrot e t o Angi eofferin g t o bu y i t fo r £10,000. Angi e replie d b y retur n o f pos t sayin g sh e woul d accep t £13,000. Whe n sh e hear d nothin g furthe r fro m Betty, Angi e wrot e agai n sayin g sh e woul d accep t £10,000. Bett y say s sh e n o longe r want s t o bu y th e photocopier.Angi e wrot e t o Caro l offerin g fo r sal e a lapto p fo r £500. Th e mornin g tha t sh e receive d th e lette r Caro l wrot e t o Angi e agreein g t o bu y a t th e askin g price. Afte r sh e ha d poste d th e letter, bu t befor e i t wa s delivered, Caro l change d he r min d an d sen t Angi e a fa x askin g he r t o ignor e th e lette r whe n i t arrived.Required:Advis e Angi e a s t o whethe r bindin g contract s exis t betwee n hersel f and:(a) Betty; (6 marks)(b) Carol. (4 marks) (10 marks)9 I n 1998 Ed, Fahi m an d Gig i se t u p busines s i n partnership. The y ar e no w considerin gincorporatin g thei r busines s a s a privat e limite d compan y i n whic h the y wil l b e th e onl y shareholder s an d directors.Required:(a) Advis e the m wha t advantage s wil l accru e fro m incorporatio n a s a privat e limite d company. (8 marks)(b) Woul d ther e b e an y furthe r advantage s i f the y wer e instead t o for m alimited liabilit y partnership? (2 marks)(10 marks)10 Hop e own s 10,000 ordinar y £1 share s i n Indee p Ltd, whic h sh e purchase d i n 2000. A t th e tim e sh e wa sallotte d th e share s sh e wa s onl y calle d upo n t o pa y 75p pe r share. N o furthe r call s hav e ye t bee n made.I n 2004 Hop e mad e a loa n o f £10,000 t o th e compan y t o financ e furthe r expansio n o f th e business. Th edebentur e wa s secure d b y wa y o f a fixe d charg e o n th e company’s freehol d warehous e premises. Th e followin g year, 2005, sh e als o mad e a furthe r loa n o f £2,000 an d thi s tim e th e debentur e wa s secure d b y wa y o f floatin g charg e ove r th e company’s stoc k i n trade. B y a n oversight, thi s charg e wa s no t registere da t Companie s House.I n 2009 th e compan y realise d tha t i t neede d furthe r funds. S o i n orde r t o persuad e Hop e t o provid e th eneede d mone y i t tol d he r tha t i t woul d issu e he r 10,000 mor e £1 shares, full y paid, bu t sh e nee d onl y pa y50 penc e pe r share. Hop e agree d t o thi s an d too k th e shares.Unfortunatel y th e injectio n o f cas h di d no t sav e Indee p Lt d an d i t recentl y wen t int o insolven t liquidation.Required:Advis e Hop e a s t o he r right s and liabilitie s i n respec t o f he r share san d he r debentures. (10 marks)。

ACCA F4-F9模拟题及解析(2)

ACCA F4-F9模拟题及解析（2）1.ALL TEN questions are compulsory and MUST be attempted 1 In relation to the Judicial Interpretation on the Application of the Contract Law by the Supreme People’s Court:(a) state the procedural way to deal with the situation when an obligee has assigned his rights to a third party and a dispute, between the obligator and the assignee, is brought to the people’s court; (3 marks)(b) state the procedural way to deal with the situation when an obligor has assigned his obligations to a third party and a dispute, between the assignee and obligee, is brought to the people’s court; (3 marks)(c) state the procedural way to deal with the situation when a party has assigned his rights and obligations to an assignee and a dispute, between the other party and the assignee, is brought to the people’s court. (4 marks) (10 marks)2．In relation to the Labour Contract Law of China:(a) explain a non-competition clause in a labour contract; (4 marks)(b) state the various persons who are subject to non-competition obligations in their labour contracts with their employer; (2 marks)(c) state the conditions and term of duration for a non-competition clause contained in a labour contract. (4 marks) (10 marks)3．In relation to the Contract Law of China:(a) explain a pre-contractual liability, and distinguish between this kind of liability and the liability for breach of contract; (6 marks)(b) state various conducts of a party that will result in a pre-contractual liability. (4 marks)(10 marks)4．In relation to the Company Law of China:(a) state the composition of the board of directors of a general limited liability company; (3 marks)(b) state the composition of the board of directors of a limited liability company that is incorporated by two or more state-owned enterprises; (4 marks)(c) state the way to deal with the situation where the number of directors is less than a quorum due to various causes and the re-election has not been completed. (3 marks) (10 marks)5．In relation to the Enterprise Bankruptcy Law of China:(a) explain the term rectification; (4 marks)(b) state the legal effect of rectification on the right of guarantee during the period of rectification. (6 marks) (10 marks)6．In relation to the Securities Law of China:(a) explain a takeover by offer of a listed company; (3 marks)(b) explain what happens after the expiration of the duration of the takeover by offer. (7 marks)(10 marks)7．In relation to fraudulent behaviour in corporate management, in terms of capital of the company:(a) describe various activities that shall be regarded as fraudulent behaviour; (6 marks)(b) state the reasons why such activities will be regarded as fraudulent behaviour. (4 marks)(10 marks)8．Aishen Garment Co entered into a contract with Bulinger Store to sell 10,000 pieces of sportswear to the latter. Under the contract Aishen Garment Co would deliver the goods at Bulinger Store’s warehouse by 30 June 2012 and receive payment upon delivery of the goods.Having found market conditions tough after the conclusion of the contract, Bulinger Store asked to decrease the quantity of goods, but Aishen Garment Co disagreed. At this moment, Bulinger Store learnt that a company named Conka Sales intended to buy the same garments and resell them to another province. Therefore, Bulinger Store concluded an agreement with Conka Sales to transfer the rights and obligations under its contract with Aishen Garment Co.Bulinger Store sent a letter to Aishen Garment Co, notifying it that the rights and obligations under the contract had been transferred to Conka Sales. Aishen Garment Co did not reply to the letter.On 15 June 2012, however, Aishen Garment Co sent a fax to advise Conka Sales to be prepared for receiving the goods. At the end of June Aishen Garment Co delivered 10,000 pieces of sportswear to the premises of Conka Sales and received the total price paid by Conka Sales. However, a certificate of inspection issued by an independent institute indicated that nearly 30% of the goods were below the quality standard. Therefore, Conka Sales intended to reject the goods. Aishen Garment Co insisted that there was no contractual relationship between them, since it was merely under its contract with Bulinger Store to directly deliver the goods to Conka Sales. Required:Answer the following questions in accordance with the Contract Law of China, and give your reasons for your answers:(a) state whether there was a contractual relationship between Aishen Garment Co and Conka Sales;(8 marks)(b) state whether Aishen Garment Co or Bulinger Store should be liable for the defects of the goods. (2 marks) (10 marks)9．Tenda Co Ltd was incorporated by five natural persons (Mr A, Mr B, Mr C, Mr D and Ms E). Mr A was the majority shareholder and elected to be the chairman of the board of directors and the legal representative of the company.In the business operations, Mr A, in the name of Tenda Co Ltd, sold a large shipment of goodsat a low price to an enterprise invested by Mr A and other investors, which caused a huge loss to Tenda Co Ltd. Having discovered this, Ms E submitted a formal request to the board of supervisors to file a lawsuit against Mr A for his wrong-doing. However, she did not receive any response from the board of supervisors.Required:Answer the following questions in accordance with the Company Law of China, and give your reasons for your answers:(a) state whether Ms E was entitled to bring a lawsuit against Mr A, due to Mr A’s transaction causing a huge loss to Tenda Co Ltd; (4 marks)(b) state the pre-conditions to be satisfied for Ms E to bring a lawsuit in her own name against Mr A; (3 marks)(c) explain which party should be the beneficiary of a legal action against Mr A, assuming MsE obtained a favourable judgement from the court. (3 marks) (10 marks)10．Dalie Limited Liability Co (Dalie Co) applied to the people’s court for bankruptcy due to its poor business operations. On 30 April 2012, the people’s court rendered an order to accept the bankruptcy application and designated a bankruptcy administrator. At this moment, Dalie Co faced the following key financial matters:(i) Construction Company had brought a lawsuit against Dalie Co for its delay to pay the construction price due, but the case was still pending for trial;(ii) Dalie Co owed a loan totalling RMB 20 million yuan to Industry Bank, of which RMB 12 million yuan was secured by a guarantee agreement on the buildings of Dalie Co;(iii) Dalie Co had provided a guarantee to Merchant Bank for a loan of RMB 10 million yuan borrowed by Jiqing Company. The loan has matured but Jiqing Company failed to repay the principal and interest.Required:Answer the following questions in accordance with the Enterprise Bankruptcy Law of China, and give your reasons for your answers:(a) state how to deal with the pending disputes between Construction Company and Dalie Co; (3 marks)(b) state how to deal with the loan of RMB 20 million yuan owed to Industry Bank; (3 marks)(c) state whether Merchant Bank was entitled to declare the credit and join the bankruptcy procedure.(4 marks) (10 marks)试题答案：略参与ACCA考试的考生可按照复习计划有效进行，另外高顿网校官网ACCA考试辅导高清课程已经开通，还可索取ACCA考试通关宝典，针对性地讲解、训练、答疑、模考，对学习过程进行全程跟踪、分析、指导，可以帮助考生全面提升复习备考效果。

ACCA F4(GLO) 2010年6月真题

Fundamentals Level – Skills ModuleThe Association of Chartered Certiﬁ ed AccountantsCorporate and Business Law (Global)Tuesday 8 June 2010Time allowedReading and planning: 15 minutesWriting: 3 hoursALL TEN questions are compulsory and MUST be attempted.Do NOT open this paper until instructed by the supervisor.During reading and planning time only the question paper may be 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.P a p e r F 4(G L O )ALL TEN questions are compulsory and MUST be attempted1 Explain the meaning and role of the following international organisations paying particular attention to theirdispute resolving functions:ICC; (5 marks)(a)(b)WTO. (5 marks)(10 marks)2 In relation to the UNCITRAL Model Law on International Commercial Arbitration, explain:(a) the implications of the requirement that an arbitration agreement has to be in writing; (6 marks)(b) how arbitration awards may be enforced. (4 marks)(10 marks)3 Within the context of the UN Convention on Contracts for the International Sale of Goods, explain:(a) how an offer may be accepted; (5 marks)(b) when acceptance becomes effective. (5 marks)(10 marks)4 In relation to the ICC Incoterms, explain the meaning and effect of the following:EXW; (3 marks) (a)FOB; (3 marks) (b)CIF. (4 marks)(c)(10 marks) 5 Explain the documents necessary, and the procedure to be followed, in registering a public limited company.(10 marks)6 Explain the meaning of the following terms in company law:debenture; (3 marks) (a)aﬁ xed charge; (3 marks) a(b)ﬂ oating charge. (4 marks) (c)a(10 marks)27 In the context of corporate governance, explain the rules relating to the appointment, duties and powers of acompany secretary in a public limited company.(10 marks)8Axel is a German manufacturer who uses hydrochloric acid in his manufacturing process. In January 2010 he entered into a contract with Boris, a Russian wholesaler of chemicals, for the supply of 100 tonnes of hydrochloric acid to be delivered to his factory in Germany by 1 April. In March Boris found out that his supplier, the company, which actually manufactured the acid, was engaged in a long-standing industrial dispute and would not be able to supply the acid.When Boris failed to deliver the acid by the agreed date Axel was forced to buy an alternative supply of acid to keep his production process operating. The cost of the replacement acid was considerably higher than the price agreed in the contract with Boris. As a result Axel intends suing Boris for breach of contract, claiming compensation for damages, consisting of the difference between the price of the acid established in the contract and the price at which he was obliged to purchase the acid from the third party. Boris denies any liability, claiming that the failure to supply the acid was due to circumstances beyond his control.Required:Within the context of Article 79 of the UN Convention on Contracts for the International Sale of Goods, advise the parties on the extent to which an impediment beyond their control may allow a person to avoid liability for breach of contract, and whether or not Boris will be liable for the damages suffered by Axel.(10 marks)9Chi, Di and Fi formed an ordinary partnership to run an art gallery. Each of them paid $100,000 into the business.As Fi had no prospect of raising any more money it was agreed between them that her maximum liability for any partnership debts would be ﬁxed at her original contribution of $100,000. The partnership agreement speciﬁcally restricted the scope of the partnership business to the sale of ‘paintings, sculptures and other works of art.’ In January 2010 Chi took $10,000 from the partnership’s bank drawn on its overdraft facility. She had told the bank that the money was to ﬁ nance a short-term partnership debt but in fact she used the money to pay for a holiday. In February Di entered into a $25,000 contract on behalf of the partnership to buy some books, which she hoped to sell in the gallery.Required:Advise Chi, Di and Fi as to their various rights and liabilities in relation to the operation of the business under partnership law.(10 marks)3[P.T.O.10Gilt Co is a small company with an issued share capital of 100,000 $1 shares held by 100 members.Harry the managing director of Gilt Co has been approached by Itt Co in respect of its making a takeover bid for Gilt Co. Itt Co has given Harry what is described as a facility fee of $50,000 for ensuring that the takeover is successful.At the next board meeting Harry convinces the other directors that the takeover bid is in the long-term interest of Gilt Co, but they are concerned that the holders of the majority of the issued share capital will not approve of the takeover.In order to ensure the success of the takeover, the directors agree that they should allot sufﬁ cient new shares to Itt Co to ensure that a new majority of members will support the takeover.After the allocation of the shares to Itt Co, a general meeting is called to consider the takeover and it is approved, with Itt Co voting in favour.May, a substantial shareholder in Gilt Co has subsequently found out about the actions of Itt Co, Harry and the other directors.Required:Advise May as to the legality of the share allotment and as to what action can be taken against Harry.(10 marks)End of Question Paper4。

ACCA F6 mock exam answer (for 2010年6月、12月 )

ACCA Fundamentals Level Paper F6 (FA 2009) Taxation (UK)Question Day Final Mock ExaminationGuidance, Marking scheme and Suggested solutionsGuidance on improving your exam performanceWhich questions to do first?It is important for you to decide which order to attempt the questions. Each question will carry different marks so you may prefer to attempt the question with the most marks first or, instead, you may prefer to attempt the topic you are more confident about first. This means you will build up marks early on giving you a solid base to tackle the harder questions later.Whichever you choose, do not spend too long on the questions you are confident about as you need to spend an appropriate amount of time on them all. You can work out how much time you should spend on each by looking at the mark allocation and multiplying by 1.8 (as you have 1.8 minute per mark, not including reading time). For instance, you must not spend more than 18 minutes on a 10-mark question. Remember, you cannot pass the exam answering two or three questions well and the rest poorly.An alternative strategy is to answer all questions in strict order. You could use the time saved choosing the order by starting to plan your answers. You may prefer to use this method if you find yourself spending too long on your favourite questions as it forces you to spend an appropriate amount of time on each before moving on. StrategyMake sure your answers are easy to follow. The focus of the exam is computations, so make sure you use the correct proformas and show your workings, referenced in clearly.If there is a written element to a question do write full sentences, even if you are using bullet points.Time managementUse the reading time to make sure that you get as many of the marks as possible. This is your opportunity to brainstorm areas that you are less confident with and even to make a brief outline of the proformas you are going to use in your answers.Whatever notes/plans you make, use them when writing up your answer when the writing time begins. Tick off each item as you complete it. If you do not use your planning notes it was a waste of time doing them in the first place.Never overrun on any question; once the time is up move on to the next one.1 William WiseMarking schemeMarks(a)Net profit½Depreciation1Private use of light/heat1Private motor expenses1Legal fees1Personal tax1Private rent/rates1Repairs/renewals1Food hampers1Donation1Daughter’s salary1Goods for own use1Capital allowances2½14(b)Taxable income2Income tax2Class 4 NICs15(c)Salary½Bonus1Car1Fuel½Mobile – exempt½Use of private jet½Computer1Healthcare 1625 Suggested solutionChapter references. The income tax computation is in Chapter 2. Employment income is in Chapter 3 and taxable benefits are in Chapter 4. Trading income is dealt with in Chapter 7 with capital allowances covered in Chapter 8. National insurance is in Chapter 12.Top tips. In our answer we have made notes on why various adjustments were made. This is done for tutorial purposes. You did not need to give the explanations in the exam as they were not asked for.Always read the question.Easy marks. The calculation of the tax liability should provide a good opportunity to obtain easy marks – the bands are given to you in the tax rates and allowances tables.(a)£ £ Net profit30,200Add: Depreciation4,760Private light and heat (40%)610Private motor expenses (75%)3,540Legalfees1,200Personaltax250Private rent and rates (40%)1,560Repairsandrenewals1,050Foodhampers640Donation100Daughter’s salary (excessive amount)4,500Goods for own use 65018,860 Less: Capital allowances (W1)(25,245) Taxable trading profit 23,815Notes1 The legal fees incurred in connection with the clothing shop are not allowable since theyrelate to a capital item.2 Personal or private expenses are not allowable.3 The £2,200 spent on repairs in June 2009 is allowable because the shop was in a fit stateto use on purchase.4 Giftsoffood are not allowable. However, the gifts of pens are allowable because the pens carry a conspicuous advertisement for the business and cost less than £50 each.5 A donation to a national charity is not allowable. The donation to the local charity can beallowed as it carried an advertisement for the business and could be said to be made forthe purposes of the trade.6 Goods taken for own use must be brought into the profit and loss account at selling price.7 The excessive part of William's wife's salary is not allowable.Workings1 Capital allowancesPrivate useAIA General pool Car (25%)Allowances£ £ £ £ Additions 24,620 20,000AIA (100%) AIA (10/12 x 50K) (24,620)–24,620WDA x 10/12 (2,500) x 25% 62517,500 25,245(b)Non- savings Dividendincome income££Taxable trading profit (1.6.09 – 31.3.10) 23,815Dividends (× 100/90)7,500Net Income23,8157,500Less: personal allowance(6,475)Taxable Income 17,3307,500£24,830 Tax on non-savings income £ £17,330 × 20%3,466 Tax on dividend income£7,500 × 10% 7504,216 Class 4 NICs:(£23,815 – £5,715) × 8%£1,448 Note: You were not told that a Gift Aid declaration had been made in respect of the gift to the national charity.Mary’s total taxable employment income for the year is as follows:£ Salary80,000 Bonus – receipts basis20,000 Use of company car: 25% × £19,200 (W)4,800 Private fuel: 25% × £16,900 (W)4,225 Use of private jet: 20% × £750,000 ×1/1212,500 Computer: £3,000× 20%600 Private healthcare: (marginal cost to employer) 250 Total employment income122,375 WorkingCar and fuel benefit percentage5135187−= 10% + 15%25% Note: The provision of one mobile phone is an exempt benefit2 Eagle LtdMarking schemeMarks(a)IBAsQualifying expenditure1Offices not qualifying12% allowance1Land not qualifying1CAs:Expensive car120% WDA1FYA 1AIA1Adjusted trading profitPatent royalties 19(b)Trading income1Property income: warehouse 1222 warehouseChargeable gain: 1Gift aid donation1Franked investment income1Divide CT limits1Marginal relief company2CT liability1Due date113(c)Associates 1Group relief group 1Gains group 2Current year in Wing Ltd 1Set against income before charges 1Loss of period since joined group1Effect on gift aid donations 1830 Suggested solutionChapter references. Calculating PCTCT and the corporation tax liability is dealt with in Chapters 18 and19. Groups are in Chapter 22 and losses in Chapter 21. Capital allowances are covered in Chapter 8.Top tips. Try and keep your calculations in separate workings then make sure you reference them into your main answer clearly.(a) Easy marks. If you had learnt your capital allowances proforma you should have been able topick up some easy marks simply by filling in the figures given to you in the question)Tax adjusted trading profit£Trading profit per accounts229,900Less: Patent royalties payable(20,000) Industrial buildings allowances (W1)(3,800)(W2) (48,940)allowancesCapitalcomputation – y/e 31.3.10(b) CT£ Trading income 157,160 Property income (W3) 49,950 Chargeable gain (W4) 22,932230,042 Less: gift aid donation (3,000) PCTCT 227,042 FII (£27,000 × 100/90) 30,000 ‘profits’ 257,042 Tax @ 28% (W5)63,571 Less: marginal relief227,042(7,619) 7/400× (£750,000 – 257,042) ×257,042CT due by 1 January 2011 55,952 (c) Group relationships between Eagle Ltd and Wing Ltd(i) Associates – as Eagle Ltd controls Wing Ltd (ie owns > 50%) the two companies areassociated for corporation tax purposes. Consequently the CT limits are divided by 2.(ii) Group relief group – as Eagle Ltd has at least a 75% shareholding the two companies can surrender trading (and certain other) losses of the current period between each othei)Gains group – as Eagle Ltd has at least a 75% shareholding the two companies are in agains group. This means that assets can be transferred between them at no gain/no lossfor chargeable gains purposes, that they form one ‘unit’ for rollover relief purposes, andthat where an asset is sold to a third party an election may be made to treat the gain/lossas transferred to the other company in the group.Use of Wing Ltd’s lossWing Ltd has a small amount of interest income in the year. This is partly covered by the gift aid donation, and the balance will be taxable at the small companies’ rate of 21%. If it uses its loss in the current year this will be set off before charges and would only save tax at 21% and waste the gift aid donation.As it is in a group relief group with Eagle Ltd, it could surrender its trading loss to that company where this would save tax at 29.75%.However, as Wing Ltd did not join the group until 1 September 2009, only the loss thatcorresponds to the period that it has been in the group may be surrendered. As both companies prepare accounts to 31 March there is no need to further consider corresponding periods.The maximum group relief that could be surrendered to Eagle Ltd would be £30,392 (W6).It is probable that Wing Ltd would not make the current year claim but instead carry forward the remainder of the loss automatically to set against future trade profits.Working1 Industrial buildings allowances£ Factory141,000Canteen32,000Site preparation12,000Archit’ct's fees 5,000190,000 Note. The cost of the general offices does not qualify as it exceeds 25% of the total cost(72,500/262,500 = 27.6%). Always exclude the cost of land.Therefore IBAS @ 2% = £3,82Capital allowancesExpensiveAIA FYA General pool Motor car Allowances£££££TWDV b/f64,70014,700Disposals(12,400)Addition11,300FYA 10% (11,300)2,30011,300WDA @ 20%–(12,940)12,940Balancing allowance(2,300)2,300Addition22,400AIA (100%)(22,400)22,40051,76048,940 -3 Property income£ Warehouse 1Premium (£50,000 – (2% × £50,000 × 7))43,000Rent (£12,600 × 9/12)9,450Warehouse 2Rent (£8,400 × 9/12)6,300Bad debt (8,400 x 3/12) (2,100)Repairs to roof (6,700)49,9504 Capital gain£Proceeds156,000Less: cost(112,800)43,200 Less: indexation(20,268)22,932 Note. Companies are entitled to indexation until the date of disposal of an asset.5 CT limitsAs Wing Ltd becomes an associate part way through the period, the CT limits must be divided by two.££1,500,000 ÷ 2 750,000£300,000 ÷ 2150,000Eagle Ltd’s ‘profits’ are between these limits so marginal relief applies.6 Available trading loss£Loss of y/e 31.3.1052,100Period since joined group: 1.9.09 – 31.3.10 = 7 months ie 7/12 × £52,10030,3923 Yvonne, Sally, Joanne and BelindaMarking schemeMarks(a)Match with shares bought in next 30 days1Gain1Match with Share pool shares1Bonus issues issue 1Gain1Total gain 16(b)Gain on building sold 1Calculation of taxable now1Rolled over amount1Base cost of new asset 14(c)Calculation of gain1Entrepreneurs relief1Annual exemption 1 Taxgain 1on4(d)LandPart disposal calculation 2VaseChattels rule to restrict loss 2Offset loss against gain 1Annual exemption 1620 Suggested solutionChapter references. The basics of calculating chargeable gains are in Chapters 13 . Chattels arecovered in Chapter 14 with shares and securities in Chapter 16. Business reliefs are covered in Chapter15.Top tips. Work through each asset separately, making sure you start with the easier disposals.Easy marks. Part disposal calculations and disposals of chattels have always been common topics in the exam. They are relatively straightforward topics so make sure you know how to deal with them.(a) The sale of Yvonne's shares is initially matched with the shares bought in the next 30 days.£ Proceeds (1,000/5,000 × £23,000)4,600Less: cost (28.3.10)(4,400)Chargeable gain 200Then the shares are matched with the Share pool.£ Disposal proceeds (4,000/5,000)18,400Less: cost (w1)(5,867)12,533 Yvonne's total gain before the annual exemption is £12,733.(W1)No. Cost £ 18.8.97 Purchase 3,000 6,000 19.9.06 Purchase 2,000 5,0005,000 11,000Bonus issue 1:2 2,5007,500 11,000 Disposal (4,000) (5,867) 3,500 5,133(b)Office £ Proceeds 442,800 Less: Cost (187,200)Gain 255,600 Taxable in 09/10 (£442,800 - £400,000) (2,800) Gain rolled over 252,800Base cost of new asset £ Price paid440,000 Less: gain rolled over (252,800)(c)Entrepreneurs’ relief £Proceeds 580,000 Less Costs (325,000)Gain 255,000 Less Entrepreneurs’ relief (255,000 x 4/9) (113,333) Gain 141,667 Annual exemption (10,100) Taxable gain 131,567 Tax at 18% 23,682 (d)Part disposal of land£ Proceeds15,000Less: costB A A + ie 65,00015,00015,000+× £24,000 (4,500) Chargeable gain 10,500 Vase – chattels rules£ Proceeds (deemed) 6,000 Less: cost (10,000) Loss(4,000)Taxable gain£ Gain 10,500 Less: loss (4,000) Gain 6,500£ Gain 6,500 Less: annual exemption(10,100) Taxable gain Nil4 Mr MurphyMarking schemeMarks 2004/05Profits – actual basis12005/06Profits – first 12 months2Overlap profits1½ 2006/07Current year basis profits12007/08Current year basis profits12008/09Profits of gap period2Overlap relief1½2009/10Current year basis to new date 111 Payment dates for 2009/10– Payments on account1– Based on previous year1– Balancing payment & 1st POA1– Once actual tax calculated1415 Suggested solutionChapter references. The basis period rules are in Chapter 9. Self-assessment for individuals is covered in Chapter 18.Top tips. You must set out the tax years that you are dealing with in order to pick up all of the available marks – simply stating ‘1st tax year’ is not enough.Easy marks. Stating payment dates should provide a good opportunity to pick up easy marks so long as you have learnt the material.(a)2004/05 Actual basis 1.8.04 – 5.4.05× £13,000£10,400 8/102005/06 First 12 months’ profit 1.8.04 – 31.7.0531.5.05£13,0001.8.04–1.6.05 – 31.7.05 2/12 × £36,000£ 6,000£19,000 2006/07 Current year basis31.5.06£36,0001.6.05–Overlap profits£1.8.04 – 5.4.05 8 months10,40031.7.052 months 6,0001.6.05–10 months16,4002007/08 Current year basis31.5.07£44,000–1.6.062008/09 19 months to new accounting date£1.6.07 – 31.5.08 (12 months)38,0001.6.08 – 31.12.08 (7 months) 16,00054,000 Overlap relief for 7 months profits7/10 x £16,400 (11,480)£42,520 2009/10 Current year basis–31.12.09£40,0001.1.09Overlap profits to carry forward = 3 months11,480)£4,920 (16,400–(b) Payment dates for 2009/10Two payments on account (POA) will have been made as follows:1st on 31 January 20102nd on 31 July 2010Based on 2008/09 liability (½ paid each time)Balancing payment to be made 31 January 2011 once final liability has been calculated, along with the first POA for 2010/11.5 Confused Ltd and Puzzled LtdMarking schemeMarks(a)(i)Training2(ii)Transport2(iii)Air ambulance services26(b)Errors up to £10,0002Errors over £10,0002410Suggested solutionChapter references. VAT is in Chapters 25 and 26.Top tips. You must allocate sufficient time to deal with both parts of the requirement. You only had 18minutes for this question, so do not allow yourself to overrun.Easy marks. Easy marks can be obtained simply by calculating the VAT on a VAT exclusive figure using17.5% or a VAT inclusive figure at 7/47, so read the question carefully to ensure you are using the correctrate.(a) (i) TrainingConfused Ltd will be required to register for VAT as it will be making taxable supplies inexcess of the registration threshold.Output tax£Sales (£75,000 × 17½%)13,125Less: input tax (£10,000 × 7/47) (1,489)VAT due11,636(ii) TransportConfused Ltd will be required to notify HMRC of a need to register for VAT but because itis making only zero-rated supplies it may ask HMRC's permission not to register for VAT.The advantage of registration is that input VAT of £1,489 per month will be reclaimable.£Output tax NILLess: input tax(1,489)VAT repayment due (1,489)(iii) Air ambulance servicesIf exempt supplies only are made the company will not be permitted to register for VAT. NoVAT will be due or reclaimable.(b) Errors on a VAT return of up to £10,000 (net under declaration minus over declaration) may becorrected on the next VAT return without giving rise to either a common penalty or default interest.Other errors may be voluntarily disclosed separately to HMRC. Default interest and, in certaincircumstances, the common penalty, will apply in respect of these errors.BPP House, Aldine Place, London W12 8AA Tel: 0845 0751 100 (for orders within the UK) Tel: +44 (0)20 8740 2211Fax: +44 (0)20 8740 1184。

ACCA F4&F7 中国第一名访谈

ACCA F4&F7 中国第一名访谈本文由高顿ACCA整理发布，转载请注明出处基本信息姓名：刘聪就读于：武汉纺织大学住在: 湖北荆州石首选择ACCA的原因：ACCA有着更全面的知识体系，更高更广的视野，更好的就业前景。

ACCA: 对你取得全国第一的这门科目，有什么特别的学习方法和技巧吗？刘聪:对于F4而言，它虽然是一门背诵量很大的学科，但值得庆幸的是它所考的知识点比较固定，在考试中碰见原题的机率很大，所以在考前可以根据历年真题并结合书本来复习，平时尽量用自己的话组织答案，这样记忆的效果会比较好，不至于在考场上由于紧张而出现大脑一片空白的情况。

对于F7而言，它主要是要求我们编各种报表和评价公司的performance以及掌握一些重要的准则。

在编报表时，对于一些科目的处理方法，我会在平时学习的时候用自己的话总结在笔记本上，碰见不会的题目可以直接翻看笔记本而不是厚厚的课本，可以节约时间，提高效率。

总之，无论是F4还是F7，我认为能够pass的必经之路就是做题-总结-做题。

ACCA: 你在ACCA的学习过程中碰到的最大的困难和挑战是什么？你是如何克服的？（可以不止一个刘聪: 部分科目的知识点多且杂，很容易记忆混淆，所以可以将每个知识点用自己的话进行归纳总结，努力形成知识框架。

ACCA: 在你学习ACCA的过程中，谁对你的帮助最大？你想特别感谢谁？刘聪: 在这次考试中能够取得这样的成绩，主要取决于三个方面：（1）,老师的高效率教学。

（很感谢上海Kaplan的马丹老师，susan老师，nancy老师以及我校杨金键老师平时的指导,尤其是最后复习阶段马丹老师提供的方法。

真的很崇拜Kaplan的老师们，真心地觉得她们的每一天都像是一次说走就走的旅行，她们可以上午在湖南上5堂课，下午在武汉上5堂课，然后晚上继续上课，感觉每个人都是一个能量无限的小宇宙）。

（2），同学们的帮助（其实我的英语基础不算太好，在学习F4的时候会有些case不能完全理解，这时我的室友们会帮我逐字逐句的翻译，真的很感谢她们）。

acca f4科目包含哪些内容？如何学好acca f4科目？

acca f4科目包含哪些内容？如何学好acca f4科目？ACCAF4科目介绍：F4《公司法和商法》被分为八个部分。

大纲以介绍总体的英国法律体系开始整个课程，例如法院系统、法律的来源包括人权法案。

然后介绍了债权法包括合同法和侵权法。

大纲涉及与财务相关的一些法律范围领域，这些法律领域包括：劳动合同法和公司法。

这些法律包括公司的形成和设立，公司的融资和资本的种类，和经营上的管理，公司的管理和规范，和公司在法律方面将会面临的危机。

最后一部分又和我们以前学的知识点有联系。

包括公司治理、道德和与民法相关的道德行为F4 考试大纲：F4 Corporate & Business Law (English) 是ACCA 考试中唯一的一门法律科目，它的大纲设置主要涵盖了：lEnglish Legal System (英国法律体系)lLaw of Contract (合同法)lTort Law (民法)lLaw of Employment (劳动合同法)lAgency (代理)lPartnership (合伙企业)lCompany Law (公司法), 以及lProfessional ethics and Corporate Governance (职业道德与公司治理)。

ACCA F4科目考试结构：15分钟阅读及180分钟答题时间，共10题，每题10分，均为必做题，问题内容涉及整个大纲，其中：l第1-7题为问答题，考官直接在问题中明确要测试的知识点，要求考生回答相应法律条款及以往案例。

l第8-10题为案例分析题，考官会给出一个涉及多个人物或组织的案例，问题往往不明确指出所涉及的知识点，需要考生根据案情自己寻找考点，选择适用的条款及案例做答，并适当加入自己的分析结论。

在F4 考题由可选题变成必做题后，F4考试的难度也随之加大，这就要求考生要对大纲中的每一章节都能熟练掌握，不能遗漏。

ACCA F4科目答题方法：-考生应充分利用考前15分钟阅读时间，梳理思路，尤其应仔细阅读案例分析题，并明确考点，写下答题纲要，切忌盲目做答。

ACCA考试F4公司法与商法Irish真题2010年12月_真题-无答案

ACCA考试F4公司法与商法（Irish）真题2010年12月(总分100,考试时间180分钟)ALL TEN questions **pulsory and MUST be attempted** relation to the Irish legal system:(a) explain and distinguish between: (i) primary legislation; and (ii) secondary/delegated legislation. (6 marks)(b) explain the powers of the courts in relation to challenging the validity of primary and secondary/delegated legislation. (4 marks)2. State and explain the remedies available for breach of contract. (10 marks)** relation to the law of tort explain:(a) the neighbour principle; (4 marks)(b) remoteness of damage; (4 marks)(c) liability for economic/financial loss. (2 marks)** relation to the issuing of company shares explain:(a) pre-emption rights; (3 marks)(b) rights issues; (3 marks)(c) bonus issues. (4 marks)** relation to company law:(a) state, and explain the purpose of, the various registers that have to be kept by a company; (4 marks)(b) describe what accounting records will have to be produced and maintained by a company. (6 marks)6. In relation to company law, explain the duties owed by directors to **panies. (10 marks)** relation to employment law explain:(a) the meaning of unfair dismissal; and (6 marks)(b) the remedies available for unfair dismissal. (4 marks)8. In January 2009, Amy started a business as an independent website designer.To give her a start in her career, her brother Ben, who ran a retail business, said he would give her €1,000 if she updated his business website. At the same time, her friend Che asked her to do work for his business, also for a set fee of €1,000.However, by the time Amy **pleted the two projects her design business had become a huge success and she had lots of other business. When Ben and Che discovered how successful Amy’s business had become they both felt that they should not be asked to pay for the work they **missioned.Ben said he would not pay anything as he had only offered the work to help his sister out. Che said he would not pay anything either, on the basis that he had only given her work to do on the basis of their friendship.Required:Advise Amy as to whether she can insist on Ben and Che paying the full amounts of their initial promises. (10marks)9.Dee and Eff are major shareholders in and the directors of the **pany Fan plc. For the year ended 30 April 2009 Fan plc’s financial statements showed a loss of €2,000 for the year.For the year ended 30 April 2010 Fan plc made a profit of €3,000 and, due to a revaluation, the value of its land and buildings increased by €5,000.As a conseq uence, Dee and Eff recommended, and the shareholders approved, the payment of €4,000 in dividends.Required:Advise Dee and Eff as to:(a) the legality of the dividend payment; and (6 marks)(b) any potential legal liability in regard to the dividend payment. (4 marks)10. Geo, Ho and Io formed a partnership three years ago to run a hairdressing business. They each provided capital to establish the business as follows:Geo €20,000;Ho €12,000; andIo €8,000.The partnership agreem ent stated that all profits and losses were to be divided in proportion to the capital contribution.After 18 months Geo provided the partnership with a loan of €3,000 in order to finance the purchase of more stock. The loan was to be paid back from the profits of the business.Unfortunately the business was not successful and the partners decided to dissolve the partnership rather than risk running up any more losses. At the time of the dissolution of the partnership its assets were worth €20,000. Its extern al debts were €7,000 and none of the debt to Geo has ever been paid.Required:Advise the partners as to how the financial aspects of the dissolution will be conducted and how the assets will be distributed. (10 marks)。

2010年ACCAF4-F9真题

2010年ACCA F4-F9真题1.Describe the structure and functions of the main civil courts in the English legal system, including the Supreme Court.2. Brick by Brick (BBB) is a building business that provides a range of building services to the public. Recently they have been asked to quote for garage conversions (GC) and extensions to properties (EX) and have found that they are winning fewer GC contracts than expected.BBB has a policy to price all jobs at budgeted total cost plus 50%. Overheads are currently absorbed on a labour hour basis. BBB thinks that a switch to activity based costing (ABC) to absorb overheads would reduce the cost associated to GC and hence make them more competitive.You are provided with the following data:Overhead Annual Activity driver Total numbercategory overheads $ of activities peryearSupervisors 90,000 Site visits 500Planners 70,000 Planning documents 250Property related 240,000 Labour hours 40,000––––––––Total 400,000––––––––A typical GC costs $3,500 in materials and takes 300 labour hours to complete. A GC requires only one site visit by a supervisor and needs only one planning document to be raised. The typical EX costs $8,000 in materials and takes 500 hours to complete. An EX requires six site visits and fi ve planning documents. In all cases labour is paid $15 per hour.Required:(a) Calculate the cost and quoted price of a GC and of an EX using labour hours to absorb the overheads.(b) Calculate the cost and the quoted price of a GC and of an EX using ABC to absorb the overheads.(c) Assuming that the cost of a GC falls by nearly 7% and the price of an EX rises by about 2% as a result ofthe change to ABC, suggest possible pricing strategies for the two products that BBB sells and suggest two reasons other than high prices for the current poor sales of the GC.(d) One BBB manager has suggested that only marginal cost should be included in budget cost calculations as this would avoid the need for arbitrary overhead allocations to products. Briefl y discuss this point of view and comment on the implication for the amount of mark-up that wouldbe applied to budget costs when producing quotes for jobs.3. Auy Man and Bim Men have been in partnership since 6 April 2000 as management consultants. The followinginformation is available for the tax year 2009–10:Personal informationAuy is aged 32. During the tax year 2009–10 she spent 190 days in the United Kingdom. Bim is aged 56. During the tax year 2009–10 she spent 100 days in the United Kingdom. Bim has spent the same amount of time in the United Kingdom for each of the previous five tax years.Profit and loss account for the year ended 5 April 2010The partnership’s summarised profit and loss account for the year ended 5 April 2010 is as follows:Note £ £Sales 1 142,200Expenses 2Depreciation 3,400Motor expenses 3 4,100Other expenses 4 1,800Wages and salaries 5 50,900–––––––60,200––––––––Net profit 82,000––––––––(1) The sales figure of £142,200 is exclusive of output value added tax (VAT) of £21,600.(2) The expenses figures are exclusive of recoverable input VAT of:Motor expenses £180Other expenses £140(3) The figure of £4,100 for motor expenses includes £2,600 in respect of the partners’ motor cars, with 30% of this amount being in respect of private journeys.(4) The figure of £1,800 for other expenses includes £720 for entertaining employees. The remaining expenses are all allowable.(5) The figure of £50,900 for wages and salaries includes the annual salary of £4,000 paid to Bim (see the profit sharing note below), and the annual salary of £15,000 paid to Auy’s husband, who works part-time for the partnership. Another part-time employee doing the same job is paida salary of £10,000 per annum.Plant and machineryOn 6 April 2009 the tax written down values of the partnership’s plant and machinery were as follows:£Main pool 3,100Motor car [1] 18,000Motor car [2] 14,000The following transactions took place during the year ended 5 April 2010:Cost/(Proceeds)£8 May 2009 Sold motor car [2] (13,100)8 May 2009 Purchased motor car [3] 11,60021 November 2009 Purchased motor car [4] 14,20014 January 2010 Purchased motor car [5] 8,700Motor car [1] has a CO2 emission rate of 185 grams per kilometre. It is used by Auy, and 70% of the mileage is for business journeys.Motor car [2] had a CO2 emission rate of 145 grams per kilometre. It was used by Bim, and 70% of the mileage was for business journeys. Motor car [3] purchased on 8 May 2009 has a CO2 emission rate of 105 grams per kilometre.It is used by Bim, and 70% of the mileage is for business journeys.Motor car [4] purchased on 21 November 2009 has a CO2 emission rate of 135 grams per kilometre. Motor car [5] purchased on 14 January 2010 has a CO2 emission rate of 200 grams per kilometre. These two motor cars are used by employees of the business.Profit sharingProfits are shared 80% to Auy and 20% to Bim. This is after paying an annual salary of £4,000 to Bim, and interest at the rate of 5% on the partners’ capital account balances. The capital account balances are:£Auy Man 56,000Bim Men 34,000VATThe partnership has been registered for VAT since 6 April 2000. However, the partnership has recentlystarted invoicing for its services on new payment terms, and the partners are concerned about output VAT being accounted for at the appropriate time.Required:(a) Explain why both Auy Man and Bim Men will each be treated for tax purposes as resident in the United Kingdom for the tax year 2009–10.(b) Calculate the partnership’s tax adjusted trading profit for the year ended 5 April 2010, and the trading income assessments of Auy Man and Bim Men for the tax year 2009–10.Note: Your computation should commence with the net profit figure of £82,000, and should also list all of the items referred to in notes (2) to (5) indicating by the use of zero (0) any items that do not require adjustment.(c) Calculate the class 4 national insurance contributions payable by Auy Man and Bim Men for the tax year 2009–10.(d) (i) Advise the partnership of the VAT rules that determine the tax point in respect of a supply of services;(ii) Calculate the amount of VAT paid by the partnership to HM Revenue & Customs throughout the year ended 5 April 2010;Note: you should ignore the output VAT scale charges due in respect of fuel for private journeys. (iii) Advise the partnership of the conditions that it must satisfy in order to join and continue to use the VAT flat rate scheme, and calculate the tax saving if the partnership had used the flat rate scheme to calculate the amount of VAT payable throughout the year ended 5 April 2010. Note: you should assume that the relevant flat rate scheme percentage for the partnership’s trade was 11% throughout the whole of the year ended 5 April 2010.4.On 1 April 2009 Picant acquired 75% of Sander’s equity shares in a share exchange of three shares in Picant for every two shares in Sander. The market prices of Picant’s and Sander’s shares at the date of acquisition were $3·20 and $4·50 respectively.In addition to this Picant agreed to pay a further amount on 1 April 2010 that was contingent upon the post-acquisition performance of Sander. At the date of acquisition Picant assessed the fair value of this contingent consideration at $4·2 million, but by 31 March 2010 it was clear that the actual amount to be paid would be only $2·7 million (ignore discounting). Picant has recorded the share exchange and provided for the initial estimate of $4·2 million for the contingent consideration.On 1 October 2009 Picant also acquired 40% of the equity shares of Adler paying $4 in cash per acquired share and issuing at par one $100 7% loan note for every 50 shares acquired in Adler.This consideration has also been recorded by Picant.Picant has no other investments.The summarised statements of fi nancial position of the three companies at 31 March 2010 are:The following information is relevant:(i) At the date of acquisition the fair values of Sander’s property, plant and equipment was equal to its carrying amount with the exception of Sander’s factory which had a fair value of $2 million above its carrying amount. Sander has not adjusted the carrying amount of the factory as a result of the fair value exercise. This requires additional annual depreciation of $100,000 in the consolidated fi nancial statements in the post-acquisition period.Also at the date of acquisition, Sander had an intangible asset of $500,000 for software in its statement of fi nancial position. Picant’s directors believed the software to have no recoverable value at the date of acquisition and Sander wrote it off shortly after its acquisition.(ii) At 31 March 2010 Picant’s current account with Sander was $3·4 million (debit). This did not agree with the equivalent balance in Sander’s books due to some goods-in-transit invoiced at $1·8 million that were sent by Picant on 28 March 2010, but had not been received by Sander until after the year end. Picant sold all these goods at cost plus 50%.(iii) Picant’s policy is to value the non-controlling interest at fair value at the date ofacquisition. For this purpose Sander’s share price at that date can be deemed to be representative of the fair value of the shares held by the non-controlling interest.(iv) Impairment tests were carried out on 31 March 2010 which concluded that the value of the investment in Adler was not impaired but, due to poor trading performance, consolidated goodwill was impaired by $3·8 million.(v) Assume all profi ts accrue evenly through the year.Required:(a) Prepare the consolidated statement of fi nancial position for Picant as at 31 March 2010.(b) Picant has been approached by a potential new customer, Trilby, to supply it with a substantial quantity of goods on three months credit terms. Picant is concerned at the risk that such a large order represents in the current diffi cult economic climate, especially as Picant’s normal credit terms are only one month’s credit. To support its application for credit, Trilby has sent Picant a copy of Tradhat’s most recent audited consolidated fi nancial statements. Trilby is a wholly-owned subsidiary within the Tradhat group. Tradhat’s consolidated fi nancial statements show a strong statement of fi nancial position including healthy liquidity ratios.Required:Comment on the importance that Picant should attach to Tradhat’s consolidated fi nancial statements when deciding on whether to grant credit terms to Trilby.5. Introduction and client backgroundYou are an audit senior in Staple and Co and you are commencing the planning of the audit of Smoothbrush Paints Co for the year ending 31 August 2010.Smoothbrush Paints Co is a paint manufacturer and has been trading for over 50 years, it operates from one central site, which includes the production facility, warehouse and administration offi ces.Smoothbrush sells all of its goods to large home improvement stores, with 60% being to one large chain store Homewares. The company has a one year contract to be the sole supplier of paint to Homewares. It secured the contract through signifi cantly reducing prices and offering a four-month credit period, the company’s normal credit period is one month.Goods in/purchasesIn recent years, Smoothbrush has reduced the level of goods directly manufactured and instead started to import paint from South Asia. Approximately 60% is imported and 40% manufactured. Within the production facility is a large amount of old plant and equipment that is now redundant and has minimal scrap value. Purchase orders for overseas paint are made six months in advance andgoods can be in transit for up to two months. Smoothbrush accounts for the inventory when it receives the goods.To avoid the disruption of a year end inventory count, Smoothbrush has this year introduced a continuous/perpetual inventory counting system. The warehouse has been divided into 12 areas and these are each to be counted once over the year. The counting team includes a member of the internal audit department and a warehouse staff member. The following procedures have been adopted;1. The team prints the inventory quantities and descriptions from the system and these records are then compared to the inventory physically present.2. Any discrepancies in relation to quantities are noted on the inventory sheets, including any items not listed on the sheets but present in the warehouse area.3. Any damaged or old items are noted and they are removed from the inventory sheets.4. The sheets are then passed to the fi nance department for adjustments to be made to the records when the count has fi nished.5. During the counts there will continue to be inventory movements with goods arriving and leaving the warehouse.At the year end it is proposed that the inventory will be based on the underlying records. Traditionally Smoothbrush has maintained an inventory provision based on 1% of the inventory value, but management feels that as inventory is being reviewed more regularly it no longer needs this provision.Finance DirectorIn May 2010 Smoothbrush had a dispute with its fi nance director (FD) and he immediately left the company. The company has temporarily asked the fi nancial controller to take over the role while they recruit a permanent replacement.The old FD has notifi ed Smoothbrush that he intends to sue for unfair dismissal. The company is not proposing to make any provision or disclosures for this, as they are confi dent the claim has no merit.Required:(a) Identify and explain the audit risks identifi ed at the planning stage of the audit of Smoothbrush Paints Co.(b) Discuss the importance of assessing risks at the planning stage of an audit.(c) List and explain suitable controls that should operate over the continuous/perpetual inventory counting system, to ensure the completeness and accuracy of the existing inventory records at Smoothbrush Paints Co.(d) Describe THREE substantive procedures the auditor of Smoothbrush Paints Co should performat the year end in confi rming each of the following:(i) The valuation of inventory;(ii) The completeness of provisions or contingent liabilities.6. ZSE Co is concerned about exceeding its overdraft limit of $2 million in the next two periods. It has been experiencing considerable volatility in cash fl ows in recent periods because of trading diffi culties experienced by its customers, who have often settled their accounts after the agreed credit period of 60 days. ZSE has also experienced an increase in bad debts due to a small number of customers going into liquidation.The company has prepared the following forecasts of net cash fl ows for the next two periods, together with their associated probabilities, in an attempt to anticipate liquidity and fi nancing problems. These probabilities have been produced by a computer model which simulates a number of possible future economic scenarios. The computer model has been built with the aid of a fi rm of fi nancial consultants.Period 1 cash flow Probability Period 2 cash flow Probability$000 $0008,000 10% 7,000 30%4,000 60% 3,000 50%(2,000) 30% (9,000) 20%ZSE Co expects to be overdrawn at the start of period 1 by $500,000.Required:(a) Calculate the following values:(i) the expected value of the period 1 closing balance;(ii) the expected value of the period 2 closing balance;(iii) the probability of a negative cash balance at the end of period 2;(iv) the probability of exceeding the overdraft limit at the end of period 2.Discuss whether the above analysis can assist the company in managing its cash flows.(b) Identify and discuss the factors to be considered in formulating a trade receivables management policy for ZSE Co.(c) Discuss whether profi tability or liquidity is the primary objective of working capital management.参与ACCA考试的考生可按照复习计划有效进行，另外高顿网校官网ACCA考试辅导高清课程已经开通，还可索取ACCA考试通关宝典，针对性地讲解、训练、答疑、模考，对学习过程进行全程跟踪、分析、指导，可以帮助考生全面提升复习备考效果。

acca afm题型

acca afm题型
ACCA F4科目考试题型如下：
1.简答题：这部分会询问你一些关于金融或经济学的简单问题，你需要简要
解释相关的知识点，阐述并回答。

2.计算题：包括涉及贷款、股本、投资等的计算，需要掌握一定的数学和金
融计算技巧。

3.案例分析题：这部分会给你一个具体的案例，你需要分析并回答相关的问
题，例如，如何评估一个公司的财务状况，或者如何进行风险评估等。

4.论述题：一般要求论述相关的经济学原理、概念和理论，并解释其在现实
生活中的应用。

以上信息仅供参考，建议查阅ACCA官网或咨询ACCA协会以获取更准确的信息。

ACCA 历年真题f7int_2010_dec_ans

AnswersFundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International) December 2010 Answers 1 (a)PremierConsolidated statement of comprehensive income for the year ended 30 September 2010$’000 Revenue (92,500 + (45,000 x 4/12) – 4,000 intra-group sales) 103,500Cost of sales (w (i)) (78,850 )––––––––proﬁt 24,650GrossDistribution costs (2,500 + (1,200 x 4/12)) (2,900 )Administrative expenses (5,500 + (2,400 x 4/12)) (6,300 )costs (100 )Finance––––––––Proﬁttax 15,350 beforeIncome tax expense (3,900 + (1,500 x 4/12)) (4,400 )––––––––Proﬁ t for the year 10,950––––––––income:OthercomprehensiveGain on available-for-sale investments 300Gain on revaluation of property 500––––––––T otal other comprehensive income for the year 800––––––––income 11,750 comprehensiveT otal––––––––Proﬁ t for year attributable to:Equity holders of the parent 10,760Non-controlling interest ((1,300 see below – 400 URP + 50 reduced depreciation) x 20%) 190––––––––10,950––––––––T otal comprehensive income attributable to:Equity holders of the parent (10,760 + 300 + 500) 11,560interest 190Non-controlling––––––––11,750––––––––Sanford’s proﬁ ts for the year ended 30 September 2010 of $3·9 million are $2·6 million (3,900 x 8/12) pre-acquisition and $1·3 million (3,900 x 4/12) post-acquisition.(b)Consolidated statement of ﬁ nancial position as at 30 September 2010.$’000AssetsassetsNon-currentProperty, plant and equipment (w (ii)) 38,250Goodwill (w (iii)) 9,300Available-for-sale investments (1,800 – 800 consideration + 300 gain) 1,300–––––––48,850 Current assets (w (iv)) 14,150–––––––assets 63,000T otal–––––––liabilitiesandEquityEquity attributable to owners of the parentEquity shares of $1 each ((12,000 + 2,400) w (iii)) 14,400Share premium (w (iii)) 9,600reserve 2,000LandrevaluationOther equity reserve (500 + 300) 800Retained earnings (w (v)) 13,060–––––––39,860 Non-controlling interest (w (vi)) 3,690–––––––equity 43,550T otalliabilitiesNon-current6% loan notes 3,000Current liabilities (10,000 + 6,800 – 350 intra group balance) 16,450–––––––T otal equity and liabilities 63,000–––––––Workings in $’000sales(i) CostofPremier 70,5004/12) 12,000Sanfordx(36,000)purchases (4,000Intra-groupinventory 400URPinReduction of depreciation charge (50 )–––––––78,850–––––––The unrealised proﬁ t (URP) in inventory is calculated as $2 million x 25/125 = $400,000.assetsNon-current(ii)Premier 25,500Sanford 13,900Fair value reduction at acquisition (1,200 )depreciation 50Reduced–––––––38,250–––––––inSanfordGoodwill(iii)costInvestmentatShares (5,000 x 80% x 3/5 x $5) 12,0006% loan notes (5,000 x 80% x 100/500) 800Non-controlling interest (5,000 x 20% x $3·50) 3,500–––––––16,300Net assets (equity) of Sanford at 30 September 2010 (9,500 )Less: post-acquisition proﬁ ts (see above) 1,300Less: fair value adjustment for property 1,200––––––Net assets at date of acquisition (7,000 )–––––––Goodwill 9,300–––––––The 2·4 million shares (5,000 x 80% x 3/5) issued by Premier at $5 each would be recorded as share capital of$2·4 million and share premium of $9·6 million.Currentassets(iv)Premier 12,500Sanford 2,400)inventory (400inURP)Intra-groupbalance (350–––––––14,150–––––––earnings(v)RetainedPremier 12,300proﬁtSanford’sadjustedpost-acquisition((1,300 – 400 URP + 50 reduced depreciation) x 80%) 760–––––––13,060–––––––(vi) Non-controlling interest in statement of ﬁ nancial positionacquisition 3,500ofAtdatePost-acquisition proﬁ t from income statement 190–––––––3,690–––––––2 (a) Cavern – Statement of comprehensive income for the year ended 30 September 2010$’000 Revenue 182,500 Cost of sales (w (i)) (137,400 )––––––––– Gross proﬁ t 45,100 Distribution costs (8,500 ) Administrative expenses (25,000 – 18,500 dividends (w (iii))) (6,500 ) Investment income 700 Finance costs (300 + 400 (w (ii)) + 3,060 (w (iv))) (3,760 ) ––––––––– Proﬁ t before tax 27,040 Income tax expense (5,600 + 900 – 250 (w (v))) (6,250 ) ––––––––– Proﬁ t for the year 20,790 ––––––––– Other comprehensive income Loss on available-for-sale investments (15,800 – 13,500) (2,300 ) Gain on revaluation of land and buildings (w (ii)) 800 ––––––––– T otal other comprehensive losses for the year (1,500 )––––––––– T otal comprehensive income 19,290 –––––––––(b) Craven – Statement of changes in equity for the year ended 30 September 2010Share Share Other equity Revaluation Retained Totalcapital premium reserve reserve earnin gs equity$’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 October 2009 40,000 nil 3,000 7,000 12,100 62,100 Rights issue (w (iii)) 10,000 11,000 21,000Dividends (w (iii)) (18,500 ) (18,500 ) Comprehensive income (2,300 ) 800 20,790 19,290––––––– ––––––– –––––– –––––– ––––––– ––––––– Balance at 30 September 2010 50,000 11,000 700 7,800 14,390 83,890 ––––––– ––––––– –––––– –––––– ––––––– –––––––(c) Cavern – Statement of ﬁ nancial position as at 30 September 2010Assets$’000 $’000Non-current assets Property, plant and equipment (41,800 + 51,100 (w (ii))) 92,900Available-for-sale investments 13,500 ––––––––106,400Current assets Inventory 19,800T rade receivables 29,000 48,800 ––––––– ––––––––T otal assets 155,200 ––––––––Equity and liabilities Equity (see (b) above) Equity shares of 20 cents each 50,000Share premium 11,000Other equity reserve 700 Revaluation reserve 7,800Retained earnings 14,390 33,890 ––––––– ––––––––83,890 Non-current liabilities Provision for decontamination costs (4,000 + 400 (w (ii))) 4,400 8% loan note (w (iv)) 31,260 Deferred tax (w (v)) 3,750 39,410–––––––Current liabilities T rade payables 21,700 Bank overdraft 4,600Current tax payable 5,600 31,900 ––––––– ––––––––T otal equity and liabilities 155,200––––––––Workings (monetary ﬁ gures in brackets in $’000)salesof(i) Costbalance 128,500PertrialDepreciation of building (36,000/18 years) 2,000Depreciation of new plant (14,000/10 years) 1,400Depreciation of existing plant and equipment ((67,400 – 10,000 – 13,400) x 12·5%) 5,500––––––––137,400––––––––(ii) Property, plant and equipmentThe new plant of $10 million should be grossed up by the provision for the present value of the estimated futuredecontamination costs of $4 million to give a gross cost of $14 million. The ‘unwinding’ of the provision will give rise toa ﬁ nance cost in the current year of $400,000 (4,000 x 10%) to give a closing provision of $4·4 million.The gain on revaluation and carrying amount of the land and building will be:Valuation – 30 September 2009 43,000)(i)) (2,000(wdepreciationBuilding–––––––revaluation 41,000beforeamountCarryingRevaluation – 30 September 2010 41,800–––––––revaluation 800onGain–––––––The carrying amount of the plant and equipment will be:New plant (14,000 – 1,400) 12,600Existing plant and equipment (67,400 – 10,000 – 13,400 – 5,500) 38,500–––––––51,100–––––––paidissue/dividends(iii)RightsBased on 250 million (50 million x 5 – as shares are 20 cents each) shares in issue at 30 September 2010, a rightsissue of 1 for 4 on 1 April 2010 would have resulted in the issue of 50 million new shares (250 million – (250 millionx 4/5)). This would be recorded as share capital of $10 million (50,000 x 20 cents) and share premium of $11 million(50,000 x (42 cents – 20 cents)).The dividend of 3 cents per share paid on 30 November 2009 would have been based on 200 million shares andbeen $6 million. The dividend of 5 cents per share paid on 31 May 2010 would have been based on 250 millionshares and been $12·5 million. Therefore the total dividends paid, incorrectly included in administrative expenses, were$18·5 million.note(iv)LoanThe ﬁnance cost of the loan note, at the effective rate of 10% applied to the carrying amount of the loan note of$30·6 million, is $3·06 million. The interest actually paid is $2·4 million. The difference between these amounts of$660,000 (3,060 – 2,400) is added to the carrying amount of the loan note to give $31·26 million (30,600 + 660)for inclusion as a non-current liability in the statement of ﬁ nancial position.tax(v)DeferredProvision required at 30 September 2010 (15,000 x 25%) 3,750Provision at 1 October 2009 (4,000 )––––––Credit (reduction in provision) to income statement 250––––––3Note: references to 2009 and 2010 should be taken as being to the years ended 30 September 2009 and 2010 respectively.Proﬁ tability:Income statement performance:Hardy’s income statement results dramatically show the effects of the downturn in the global economy; revenues are down by 18% (6,500/36,000 x 100), gross proﬁ t has fallen by 60% and a healthy after tax proﬁ t of $3·5 million has reversed to a loss of $2·1 million. These are reﬂ ected in the proﬁ t (loss) margin ratios shown in the appendix (the ‘as reported’ ﬁ gures for 2010). This in turn has led to a 15·2% return on equity being reversed to a negative return of 11·9%. However, a closer analysis shows that the results are not quite as bad as they seem. The downturn has directly caused several additional costs in 2010: employee severance, property impairments and losses on investments (as quantiﬁed in the appendix). These are probably all non-recurring costs and could therefore justiﬁ ably be excluded from the 2010 results to assess the company’s ‘underlying’ performance. If this is done the results of Hardy for 2010 appear to be much better than on ﬁ rst sight, although still not as good as those reported for 2009. A gross margin of 27·8% in 2009 has fallen to only 23·1% (rather than the reported margin of 13·6%) and the proﬁ t for period has fallen from $3·5 million (9·7%) to only $2·3 million (7·8%). It should also be noted that as well as the fall in the value of the investments, the related investment income has also shown a sharp decline which has contributed to lower proﬁ ts in 2010.Given the economic climate in 2010 these are probably reasonably good results and may justify the Chairman’s comments. It should be noted that the cost saving measures which have helped to mitigate the impact of the downturn could have some unwelcomeeffects should trading conditions improve; it may not be easy to re-hire employees and a lack of advertising may cause a loss of market share.Statement of ﬁ nancial position:Perhaps the most obvious aspect of the statement of ﬁ nancial position is the fall in value ($8·5 million) of the non-current assets, most of which is accounted for by losses of $6 million and $1·6 million respectively on the properties and investments. Ironically, because these falls are reﬂ ected in equity, this has mitigated the fall in the return of the equity (from 15·2% to 13·1% underlying) and contributed to a perhaps unexpected improvement in asset turnover from 1·6 times to 1·7 times.Liquidity:Despite the downturn, Hardy’s liquidity ratios now seem at acceptable levels (though they should be compared to manufacturing industry norms) compared to the low ratios in 2009. The bank balance has improved by $1·1 million. This has been helped by a successful rights issue (this is in itself a sign of shareholder support and conﬁ dence in the future) raising $2 million and keeping customer’s credit period under control. Some of the proceeds of the rights issue appear to have been used to reduce the bank loan which is sensible as its ﬁ nancing costs have increased considerably in 2010. Looking at the movement on retained earnings (6,500 – 2,100 – 3,600) it can be seen that the company paid a dividend of $800,000 during 2010. Although this is only half the dividend per share paid in 2009, it may seem unwise given the losses and the need for the rights issue. A counter view is that the payment of the dividend may be seen as a sign of conﬁ dence of a future recovery. It should also be mentioned that the worst of the costs caused by the downturn (speciﬁ cally the property and investments losses) are not cash costs and have therefore not affected liquidity.The increase in the inventory and work-in-progress holding period and the trade receivables collection period being almost unchanged appear to contradict the declining sales activity and should be investigated. Although there is insufﬁ cient information to calculate the trade payables credit period as there is no analysis of the cost of sales ﬁ gures, it appears that Hardy has received extended credit which, unless it had been agreed with the suppliers, has the potential to lead to problems obtaining future supplies of goods on credit.Gearing:On the reported ﬁ gures debt to equity shows a modest increase due to income statement losses and the reduction of the revaluation reserve, but this has been mitigated by the repayment of part of the loan and the rights issue.Conclusion:Although Hardy’s results have been adversely affected by the global economic situation, its underlying performance is not as bad as ﬁ rst impressions might suggest and supports the Chairman’s comments. The company still retains a relatively strong statement of ﬁ nancial position and liquidity position which will help signiﬁ cantly should market conditions improve. Indeed the impairment of property and investments may well reverse in future. It would be a useful exercise to compare Hardy’s performance during this difﬁ cult time to that of its competitors – it may well be that its 2010 results were relatively very good by comparison.Appendix:An important aspect of assessing the performance of Hardy for 2010 (especially in comparison with 2009) is to identify the impact that several ‘one off’ charges have had on the results of 2010. These charges are $1·3 million redundancy costs and a $1·5 million (6,000 – 4,500 previous surplus) property impairment, both included in cost of sales and a $1·6 million loss on the market value of investments, included in administrative expenses. Thus in calculating the ‘underlying’ ﬁ gures for 2010 (below) the adjusted cost of sales is $22·7 million (25,500 – 1,300 – 1,500) and the administrative expenses are $3·3 million (4,900 – 1,600). These adjustments feed through to give an underlying gross proﬁ t of $6·8 million (4,000 + 1,300 + 1,500) and an underlying proﬁ t for the year of $2·3 million (–2,100 + 1,300 + 1,500 + 1,600).Note: it is not appropriate to revise Hardy’s equity (upwards) for the one-off losses when calculating equity based underlying ﬁ gures, as the losses will be a continuing part of equity (unless they reverse) even if/when future earnings recover.2010 2009underlying as reportedGross proﬁ t % (6,800/29,500 x 100) 23·1% 13·6% 27·8%Proﬁ t (loss) for period % (2,300/29,500 x 100) 7·8% (7·1)% 9·7%Return on equity (2,300/17,600 x 100) 13·1% (11·9)% 15·2%Net asset (taken as equity) turnover (29,500/17,600) 1·7 times same 1·6 timesDebt to equity (4,000/17,600) 22·7% same 21·7% Current ratio (6,200:3,400) 1·8:1 same 1·0:1Quick ratio (4,000:3,400) 1·2:1 same 0·6:1 Receivables collection (in days) (2,200/29,500 x 365) 27 days same 28 days Inventory and work-in-progress holding period (2,200/22,700 x 365) 35 days 31 days 27 daysNote: the ﬁ gures for the calculation of the 2010 ‘underlying’ ratios have been given; those of 2010 ‘as reported’ and 2009 are based on equivalent ﬁ gures from the summarised ﬁ nancial statements provided.Alternative ratios/calculations are acceptable, for example net asset turnover could be calculated using total assets less current liabilities.4 (a)Management’s choices of which accounting policies they may adopt are not as wide as generally thought. Where an InternationalAccounting Standard, IAS or IFRS (or an Interpretation) speciﬁcally applies to a transaction or event the accounting policy used must be as prescribed in that Standard (taking in to account any Implementation Guidance within the Standard). In the absence of a Standard, or where a Standard contains a choice of policies, management must use its judgement in applying accounting policies that result in information that is relevant and reliable given the circumstances of the transactions and events. In making such judgements, management should refer to guidance in the Standards related to similar issues and the deﬁnitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the IASB’s Framework for the preparation and presentation of ﬁ nancial statements. Management may also consider pronouncements of other standard-setting bodies that use a similar conceptual framework to the IASB.A change in an accounting policy usually relates to a change of principle, basis or rule being applied by an entity. Accountingestimates are used to measure the carrying amounts of assets and liabilities, or related expenses and income. A change in an accounting estimate is a reassessment of the expected future beneﬁ ts and obligations associated with an asset or a liability.Thus, for example, a change from non-depreciation of a building to depreciating it over its estimated useful life would be a change of accounting policy. T o change the estimate of its useful life would be a change in an accounting estimate.(b) (i)The main issue here is the estimate of the useful life of a non-current asset. Such estimates form an important part ofthe accounting estimate of the depreciation charge. Like most estimates, an annual review of their appropriateness isrequired and it is not unusual, as in this case, to revise the estimate of the remaining useful life of plant. It appears,from the information in the question, that the increase in the estimated remaining useful life of the plant is based on agenuine reassessment by the production manager. This appears to be an acceptable reason for a revision of the plant’slife, whereas it would be unacceptable to increase the estimate simply to improve the company’s reported proﬁ t. Thatsaid, the assistant accountant’s calculation of the ﬁnancial effect of the revised life is incorrect. Where there is anincrease (or decrease) in the estimated remaining life of a non-current asset, its carrying amount (at the time of therevision) is allocated over the new remaining life (after allowing for any estimated residual value). The carrying amount at1 October 2009 is $12 million ($20 million – $8 million accumulated depreciation) and this should be written off overthe estimated remaining life of six years (eight years in total less two already elapsed). Thus a charge for depreciationof $2 million would be required in the year ended 30 September 2010 leaving a carrying amount of $10 million($12 million – $2 million) in the statement of ﬁ nancial position at that date. A depreciation charge for the current yearcannot be avoided and there will be no credit to the income statement as suggested by the assistant accountant. It shouldbe noted that the incremental effect of the revision to the estimated life of the plant would be to improve the reportedproﬁt by $2 million being the difference between the depreciation based on the old life ($4 million) and the new life($2 million).(ii)The appropriateness of the proposed change to the method of valuing inventory is more dubious than the previous example. Whilst both methods (FIFO and AVCO) are acceptable methods of valuing inventory under IAS 2 Inventories,changing an accounting policy to be consistent with that of competitors is not a convincing reason. Generally changesin accounting policies should be avoided unless a change is required by a new or revised accounting standard or thenew policy provides more reliable and relevant information regarding the entity’s position. In any event the assistantaccountant’s calculations are again incorrect and would not meet the intention of improving reported proﬁt. Themost obvious error is that changing from FIFO to AVCO will cause a reduction in the value of the closing inventory at30 September 2010 effectively reducing, rather than increasing, both the valuation of inventory and reported proﬁt.A change in accounting policy must be accounted for as if the new policy had always been in place (retrospectiveapplication). In this case, for the year ended 30 September 2010, both the opening and closing inventories would needto be measured at AVCO which would reduce reported proﬁ t by $400,000 (($20 million – $18 million) – ($15 million –$13·4 million) – i.e. the movement in the values of the opening and closing inventories). The other effect of the changewill be on the retained earnings brought forward at 1 October 2009. These will be restated (reduced) by the effect of thereduced inventory value at 30 September 2009 i.e. $1·6 million ($15 million – $13·4 million). This adjustment wouldbe shown in the statement of changes in equity.5From the information in the question, the closure of the furniture making operation is a restructuring as deﬁ ned in IAS 37 Provisions, contingent liabilities and contingent assets and, due to the timing of the decision, a provision for the closure costs will be required in the year ended 30 September 2010. Although the Standard says that a Board of directors’ decision to close an operation is alone not sufﬁ cient to trigger a provision the other actions of the management, informing employees, customers and a press announcement indicate that this is an irreversible decision and that therefore there is an obligating event.Commenting on each element in turn for both years:(i) Factory and plantAt 30 September 2010 – these assets cannot be classed as ‘held-for-sale’ as they are still in use (i.e. generating revenue) and therefore are not available for sale. Both assets will therefore continue to be depreciated.Despite this, it does appear that the plant is impaired. Based on its carrying amount of $2·8 million an impairment charge of $2·3 million ($2·8 million – $0·5 million) would be required (subject to any further depreciation for the three months from July to September 2010). The expected gain on the sale of the factory cannot be recognised or used to offset the impairment charge on the plant. The impairment charge is not part of the restructuring provision, but should be reported with the depreciation charge for the year.At 30 September 2011 – the realised proﬁ t on the disposal of the factory and any further loss on the disposal of the plant will both be reported in the income statement.(ii) Redundancy and retraining costsAt 30 September 2010 – a provision for the redundancy costs of $750,000 should be made, but the retraining costs relate to the ongoing actives of Manco and cannot be provided for.At 30 September 2011 – the redundancy costs incurred during the year will be offset against the provision created last year.Any under- or over-provision will be reported in the income statement. The retraining costs will be written off as they are incurred.losses(iii)T radingThe losses to 30 September 2010 will be reported as part of the results for the year ended 30 September 2010. The expected losses from 1 October 2010 to the closure on 31 January 2011 cannot be provided in the year ended 30 September 2010 as they relate to ongoing activities and will therefore be reported as part of the results for the year ended 30 September 2011 as they are incurred.It should also be considered whether the closure fulﬁls the deﬁnition of a discontinued operation in accordance with IFRS 5 Non-current assets held for sale and discontinued operations. As there is a co-ordinated plan to dispose of a separate major line of business (the furniture making operation is treated as an operating segment) this probably is a discontinued operation. However, the timing of the closure means that it is not a discontinued operation in the year ended 30 September 2010; rather it is likely that it will be such in the year ended 30 September 2011. Some commentators believe that this creates an anomalous situation in that most of the closure costs are reported in the year ended 30 September 2010 (as described above), but the closure itself is only identiﬁ ed and reported as a discontinued operation in the year ended 30 September 2011 (although the comparative ﬁ gures for 2010 would then restate this as a discontinued operation).Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International) December 2010 Marking SchemeThis marking scheme is given as a guide in the context of the suggested answers. Scope is given to markers to award marks for alternative approaches to a question, including relevant comment, and where well-reasoned conclusions are provided. This is particularly the case for written answers where there may be more than one acceptable solution.Marks1 (a)statement of comprehensive income:revenue 1½sales 3costofcosts ½distributionexpenses ½administrativecosts ½ﬁnancetax ½incomeother comprehensive income – gain on investments ½other comprehensive income – gain on property ½non-controlling interest – proﬁ t for year 1split of total comprehensive income ½9(b)statement of ﬁ nancial position:property, plant and equipment 2goodwill 3½investments 1available-for-saleassets 1½currentshares 1equitysharepremium 1reserve ½revaluationreserve 1equityotherearnings 1½retainedinterest 1½non-controllingnotes ½6%loanliabilities 1current16Total for question 25Marks2 (a)statement of comprehensive incomerevenue ½sales 3 ofcostcosts ½ distributionexpenses 1 administrativeincome ½ investmentcosts 2½ ﬁnanceexpense 2 incometaxloss on available-for-sale investments ½gain on revaluation of land and buildings ½11(b)statement of changes in equityb/f 1 balancesrightsissue 1dividends 1loss on available-for-sale investments ½revaluationgain ½proﬁ t for year 15(c)statement of ﬁ nancial positionproperty, plant and equipment 2½investments ½ available-for-saleinventory ½receivables ½ tradeprovision 1 contaminationnote 1 8%loantax 1 deferredpayables ½ tradeoverdraft ½ bankpayable 1 taxcurrent9Total for question 253comments – 1 mark per valid point, up to 15a good answer must consider the effects of the ‘one off’ costsratios – up to 10Total for question 254 (a) 1 mark per valid point 5(b) (i)recognise as a change in accounting estimate 1appears an acceptable basis for change 1correct method is to allocate carrying amount over new remaining life 1depreciation for current year should be $2 million 1carrying amount at 30 September 2010 is $10 million 15 (ii)proposed change is probably not for a valid reason 1 change would cause a decrease (not an increase) in proﬁ t 1changes in policy should be applied retrospectively 1decrease in year to 30 September 2010 is $400,000 1retained earnings restated by $1.6 million 15Total for question 15。

ACCA-F4考试如何得高分

ACCA-F4考试如何得高分本文由高顿ACCA整理发布，转载请注明出处写给那些仍然对F4茫然的童鞋们：一份好的试题就像一桌大餐一样，仅有大鱼大肉是不科学的，所以就有了素菜和饭后甜点。

考试也是一样的，只有难题、重点问题也是不科学的，总要配上几道小题，这样才更完美。

F4考题的重复率是很高的，这些反复考的题就是大家复习的重中之重了！这些简答题有（重考率在3次以上）：dismissal, shares, offer acceptance, consideration, terms, remedies for breach, duties of directors, winding up, the doctrine of binding precedent, memorandum & limitation on names, types of director, torts, authority of agency, types of director针对于6月份考试的话，shares, duties of directors，types of director由于上几次刚刚考过，所以出现的机率不大。

以每次考试出现率来说，每次7道简会有3~4道以上的题目出自上面，甚至是原封不动的copy下来。

每次考试的难度其实不取决与上面的题目，应为他们出现太多次了，大家都认真准备了，在考场上见到他们也不打怵。

所以反倒是那些不常出现的小题能体现F4的灵活性与难度，像上次考试大家见到题目都蒙了。

对于这些题目我只能说说我大概的感觉。

第一章，我觉得会出the doctrine of binding precedent, delegated legislation, interpretation,其中后两个可能跟HRA结合。

第二章基本都是重点，只有几个小题上几次考过了，the doctrine of privity, intention, damage, breach of contract,这几个应该不用准备简答题，案例题可能要看看damage,breachmeeting和winding up 中应该出一道题directors 那章是重点，简答+案例，应该好好看看redundancy有可能会代替dismissal出现更多ACCA资讯请关注高顿ACCA官网：。

2010.Dec.ACCA.F8_int_revision_mock_questions

2010.Dec.ACCA.F8_int_revision_mock_questionsP a p e r F 8 ( I N T )ACCA F8 (INT) Audit and Assurance2 KAPLAN PUBLISHINGKaplan Financial Limited, 2010The text in this material and any others made available by any Kaplan Group company doesnot amount to advice on a particular matter and should not be taken as such. No relianceshould be placed on the content as the basis for any investment or other decision or inconnection with any advice given to third parties. Please consult your appropriateprofessional adviser as necessary. Kaplan Publishing Limited and all other Kaplan groupcompanies expressly disclaim all liability to any person in respect of any losses or otherclaims, whether direct, indirect, incidental, consequential or otherwise arising in relation tothe use of such materials.All rights reserved. No part of this examination may bereproduced or transmitted in anyform or by any means, electronic or mechanical, including photocopying, recording, or byany information storage and retrieval system, without prior permission from KaplanPublishing.Revision Mock QuestionsKAPLAN PUBLISHING 3All FIVE questions are compulsory and MUST be attempted QUESTION 1Accounts receivable confirmations are a useful method of obtaining audit evidence relatingto accounts receivables.Required:(a) In relation to accounts receivables confirmations:(i) explain the difference between a positive and a negative confirmation(ii) explain the two different types of positive confirmation and state theadvantages and disadvantages of each(iii) list some examples of reconciling items highlighted by accounts receivablesconfirmations. (7 marks)(b)Explain the principal risks associated with financial statement assertions relating to accounts receivables. (3 marks) (c) Goodfoot is a small company which manufactures high quality shoes and sells them tosmall retailers. This is your first year as auditor. Goodfoot has a receivables ledgerwith approximately 750 accounts. A number of the accounts are old, some have nil orcredit balances and some should probably be written off. The company’s client base ismixed. Bad accounts have generally represented about 2% of the total accountsreceivable figure and a general provision of 1.5% has been made in the past inaddition to any specific provisions. Most of the bad receivables relate to smallercustomers but there are some very slow-moving larger accounts in the current year.The total value of accounts receivable is $750,000, 60% of which comprises some 30large accounts and 40% of which comprises a large number of small accounts.You have tested the system of internal controls over receivables and it appears to beworking adequately. In your experience accounts receivable confirmations in thissector generally have a response rate of just over 50%.Required:(i) Recommend and explain the audit work to be performed on accountsreceivable and bad debts at Goodfoot. (12 marks)(ii) Draft a lead schedule for the receivables section of your audit working papers.(8 marks)Note: You are not required to perform numerical calculations in this question.(Total: 30 marks)ACCA F8 (INT) Audit and Assurance4 KAPLAN PUBLISHINGQUESTION 2Fraud and error present risks to an entity. Both internal and external auditors are requiredto deal with risks to the entity. However, the responsibilities of internal and externalauditors in relation to the risk of fraud and error differ.Required:(a) Explain how the internal audit function helps an entity deal with the risk of fraud anderror. (5 marks)(b) State the responsibilities of external auditors in respect of the risk of fraud and errorin an audit of financial statements. (5 marks)(Total: 10 marks)QUESTION 3Richard Pine is a senior audit manager for Ratcliffe, Barnes and Soames, a firm with severaloffices around two large towns in different parts of the country. These split locations havearisen from the merger two years previously of Barnes & Soames, a firm specialising in theaudit of property and service companies, with Ratcliffe, whose fee income was based on theaudit of farms and holiday resorts. The merger was seen as an opportunity for both firms tobreak away from their restricted markets.Richard moved from the property and service division intothe farms and resorts division, totake up a new portfolio of clients, including Golden Pond Fisheries. This is a family businesswith John Carnes running the 80-acre farm, and his wife, Claire, taking responsibility for theholiday cottages, fishing lakes and completion of the books and records.The farming operation has been significantly curtailed in recent years and now comprises asmall herd of cows and, as a recent addition, two geese sheds. These birds are fed on achemical-free diet to offer a high quality alternative to turkeys over the Christmas period.John supplements the farm revenue by renting out pastures on a rotational basis toneighbouring farms for sheep grazing.John is also considering the introduction of rare breeds (pigs and goats) to provide anadditional attraction to holidaymakers with young families.Claire Carnes trained as a bookkeeper before her marriage 30 years ago, and has informedRichard that the accounts are now maintained to a ‘high standard’ on her son’s personalcomputer. This has apparently saved a lot of time, and much of the previous paperwork isnow not considered necessary.Five years previously the family borrowed a substantial sum to convert three derelict barnsinto luxury holiday cottages, and these have proved to be a huge success, being fully bookedfrom late May to November. During this period two extra helpers are employed on a part-time basis to assist with cleaning and maintenance. Both are paid in cash at the end of eachweek.Most of the visitors are fishermen and their families, as the farm boasts excellent fishing.John Carnes is keen to maintain this quality and is always on the lookout for big fish to stock.He has recently become interested in the possibility of introducing from China some 30kgblue carp, which could be ‘sneaked in’ with a batch of koi carp being imported for a localgarden centre.Revision Mock QuestionsKAPLAN PUBLISHING 5A good relationship has always existed with the auditors and the Carnes are confident thatthis will be another quick audit.Required:(a) State what you understand by audit risk and explain why it is an important factor foran auditor to consider when conducting an audit. (6 marks)(b) Identify, from the information above, the potential audit risks, and for each riskexplain why it is a risk. (14 marks)(Total: 20 marks)QUESTION 4(a)State the auditor's responsibility in relation to going concern.(5 marks) (b) You are a partner of Heaton & Partners in charge of the audit of Caffyn, a public listedcompany; the audit manager has completed the audit for the financial year October20X9 to September 20Y0 and has given you the draft financial statements and auditfile containing all the working papers. You are conducting your final review prior tosigning the audit report and have identified that Caffyn currently has borrowings of$10 million which are due for repayment on 1 November 20Y0 but it is currently tryingto extend the due date; in addition it also has an overdraft of $250,000 which is$50,000 over the authorised limit; this was not identified as a cause for concern by theaudit manager.Required:(i) Identify and explain ten issues that you think the audit manager should haveconsidered when assessing whether or not Caffyn is a going concern.(10 marks)(ii) Recommend typical types of evidence that you would have expected the auditmanager to have considered when performing her going concern review.(5 marks)(Total: 20 marks)QUESTION 5(a)Explain the difference between positive and negative assurance? (5 marks) (b) Described below are situations which have arisen in three audits. The year-end in eachcase is 31 March 20Y0.MercuryOn 21 March 20Y0, the tax authorities commenced a major inquiry into all aspects ofthe tax affairs of the company. Until the inquiry is completed it is not possible toestimate, with any reasonable degree of certainty, any ultimate liability which may fallupon the company. Consequently, no liability in respect of this matter has beenincluded in the financial statements. The directors have included a note to theaccounts explaining the situation.ACCA F8 (INT) Audit and Assurance6 KAPLAN PUBLISHING PlutoIncluded in the balance sheet at 31 March 20Y0 are non-current assets at cost of $2.5million which have been constructed by the company during the year. The costsinclude own labour capitalised of $180,000. The labour costs are based on thedirectors’ estimates of time spent by employees on the construction work, which areunsupported by time records. There are no satisfactory audit procedures to confirmthat labour costs have been appropriately capitalised.The pre-tax profit of Pluto for the year ended 31 March 20Y0 is $650,000.NeptuneIn January 20Y0, the company received a government cash grant of $1.6 million inrespect of assistance with the acquisition of tangible non-current assets which haveestimated useful economic lives of between five and ten years. The $1.6 million hasbeen credited directly to the income statement for the year ended 31 March 20Y0.The directors insist on continuing with this treatment despite having been informedthat this is not in accordance with the relevant accounting standard, which requiressuch grants to be credited to income statement over the useful economic lives of theassets to which the grant relates.The pre-tax profit of Neptune for the year ended 31 March 20Y0 is $950,000.Required:In respect of each of the situations outlined above, discuss whether or not you wouldqualify your audit report. Explain the reasons for your conclusion, and state the effecton your audit report. (15 marks)(Total: 20 marks)。

F4_Mock_A_Jun11

ACCA F4CORPORATE AND BUSINESS LAWMOCK EXAM DECEMBER 2011 ANSWER______________________________________________________________________Answer Guide – F4 Mock Exam1.Literal approach-ordinary meaning, dictionary meaning, student to give an example.Golden rule approach-to avoid absurdities in the literal approach, student to give an example.Purpose approach-to statutory interpretation is to achieve the purpose of the statutes. Student to provide an example.2.Representations are statements made before the contract, it is not an integral part of the contract,representations are not part of the contract.Distinction between terms and conditions hinge on the intention of the parties. Guidelines to distinguish between terms and representations:When statements made – long interval between statement and contract formed indicates representations Routledge v MackayMaker’s emphasis.If maker made more emphasis, then likely to be a term Bannerman v WhiteMaker’s special knowledge.Where the maker of the statement has greater knowledge concerning the statement is compared to the other party, it is more likely to be a term Oscar Chess v Williams, Dick Bentley Productions Invitation to verify statementIf the maker of the statement invited the other party to verify the truth of the statement made, then the statement is likely to be a representation Ecay v GodfreyWritten statement-If the statement was originally made orally and later reduced into writing, then it is more likely to be a term of the contract.-Whether terms or representations depend on intention of the parties. The court has provided some guidelines such as:-Importance in the minds of the parties-Expert knowledge of the parties etc.3.The grounds under the Partnership Act in which a court may order dissolution of a partnership:i)Insanity of a partner-lunatic or permanently of unsound mind, application can be made by other partners or by lunatic’s committee, next friend or any person having title to intervene.ii)Permanent incapacity-Application made by the other partner, permanently incapable of performing his part of the partnership contract.iii)Prejudicial conduct-partner guilty of such misconduct in the opinion of the court is calculated to prejudicially affect the carrying on of the business, regard being had to the nature of the businessCarmichael v Evans.iv)Wilful or persistent breach-of the partnership agreement or conducts himself that is not reasonably practicable for the other partners to carry on business in partnership with him. Cheeseman v Price v)Carrying on business at a loss-It must be shown that there is no more possibility of making a profit. If there is still some possibility, the court will not order a dissolution.vi)Just and equitable grounds-Eg is when the partners are no longer working together and have reached a deadlock-Ebrahimi v Westbourne Galleries4.Separate personality means the company is a legal person. The company can be sued, can sue andcan own properties. The liabilities of the company are its own. The veil of incorporation may belifted up if there is fraud, when there is substantial wrong doing by the company and the wrongdoing was attributed to the members, when the company is used as a vehicle for cover up etc. Thecourt imposes liability on the members when the veil is lifted.The veil is lifted when the business of the company has been carried on with intent to defraudcreditors or for any fraudulent purposes, the court may declare any person who was knowingly aparty thereto to be personally liable for the debts of other liabilities of the company.An officer who has been convicted of wrongful trading, incurring a debt on behalf of the companywhere there was no reasonable prospect of the company being able to pay the debt may be madepersonally liable for the whole or part of the debt.5.Differences between fixed and floating charges:i. A fixed charge attaches immediately to the asset concerned ie land and machinery and preventsthe chargor company from disposing the asset freely.ii. A fixed charge is a charge on specific assets of the company.iii. A floating charge is a charge that does not immediately attach to the assets concerned gives the chargor company the freedom to continue to deal with the floating charge ( raw materials) in theordinary course of business In Re Yorkshire Woolcombers Association, Romer J said that afloating charge has the following characteristics:iv.It is a charge on a class of assets present and future.v.The class of assets fluctuates in the ordinary course of business.vi.It is a more vulnerable form of security compared to a fixed charge. The assets subject to a floating charge may be utilized to pay off certain preferential creditors, if the company does nothave sufficient funds to pay the statutory preferred creditors. Prior to crystallization, the assetssubject to a floating charge may be seized and sold by a landlord who has taken distressproceedings for overdue rent. Floating charges created within six months of the commencementof a winding up will be invalid except to the amount of cash paid to the company at the time ofor subsequent to the creation of the charge, unless the company was solvent immediately afterthe creation of the charge.vii.The floating charge usually ranks lower in priority in comparison with a fixed charge.6.Corporate governance refers to the set of processes, customs, policies, laws and institutionsaffecting the way a company is directed, administered and controlled. CG also includes therelationship between the various stakeholders and the goals of the company.Corporate governance is the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking into account the interest of other stakeholders. CG is a set of principles and best practices which a company should follow.The broad principles of corporate governance pertaining to directors are as follows:i.The BoardEvery listed company should be headed by an effective board which should lead and control the company.ii.Board BalanceThis should include a balance of executive directors, non executive directors, independentdirectors such that no individual or small group of individuals can dominate the board’sdecision making.iii.Appointment to the BoardThere should be a formal and transparent procedure for the appointment of new directors to the board.7.If in the course of winding up or in any proceedings against a company, it appears that the businessof the company has been carried on with intent to defraud creditors of the company for any fraudulent purposes, the court on the application of the liquidator/contributory may if it thinks proper to do so, declare that any person who was knowingly a party to the carrying on of the business in that manner shall be personally responsible, without any limitation of liability, for all or any of the debts of the company as the court directs. Fraudulent trading including the following:i.carrying on business with intent to defraud creditors of the companyii.carrying on business for any fraudulent purposesIt is necessary to prove dishonest intention.Fraud is actual dishonestly involving according to current notions of fair trading among commercial men, real moral blame Patrick & Lyon Ltd.The court can direct that the person to be personally liable for all debts or as the court directs. Any person who was knowingly parties to the fraudulent trading may incur personal liability.The liquidator, the creditor or the contributory may make an application to the court to make someone personally liable for fraudulent trading. In addition to civil liability, there is also criminal liability.8.Advise John – Define the term ultra vires-Contents - Common law position of ultra vires transaction-Contents - Significance of Companies (Amendment) Act 2004-Contents - Significance of Section 23(1) of the Companies Act-Contents - Significance of Section 25(1) of the Companies Act-Conclusion9.(a) Directors are fiduciaries of the company. They must at all time act honestly and in good faithfor the benefit of the company Re W&M Roith and directors also have a duty to act with proper purposes Howard Smith v Ampol Petroleum.Putting the painting in the toilet and providing $1 million medical equipment donation so that Jacinth’s mother can be more comfortable is not beneficial to the company and is unlikely to be in the interest of the company.(b) The directors have breached their fiduciary duties to the company. As such the proper plaintiffis the company. Foss v Harbottle.However, there are several exceptions to the rule in Foss v Harbottle. The most important one is where the wrongdoers are in control of the company and their acts amount to a fraud on the minority. There would be a fraud on the minority where the wrongdoers have breached their fiduciary duties. Where the minority can show that there is a fraud on the minority, they may institute a derivative action on behalf of the company. From the facts, it appears that it is likely that Ruth and Boaz will be able to institute a derivative action on behalf of the company to make Adam and Jacinth liable for their breach of fiduciary duties.Ruth and Boaz may also have statutory remedies for minority shareholders.10Advise Ramu – Define misrepresentation-Contents – State the types of misrepresentation – fraudulent, negligent and innocent-Contents - Rules on misrepresentation-Conclusion。

2010.Dec.ACCA.F2_saa_BL_mock_questions

1 Which of the following would normally be carried out by higher level management?1 Day to day planning and control2 Defining the objectives of the business3 Making strategic decisionsA 2 and 3B 1, 2 and 3C 1 and 3D 1 and 2 ( )2 The total cost of production for two levels of activity is as follows:2Level1 Level5,0003,000(units)Production6,7509,250costTotal($)The variable production cost per unit and the total fixed production cost both remainconstant in the range of activity shown.What is the variable production cost per unit?A $0.80B $1.25C $1.85( )D $2.253 A manufacturing company has four types of cost (identification as T1, T2, T3 andT4). The total cost of each type at two different production levels is:costTotalforforTotalcostunitsunits 180Type125Cost$ $1,2601,000T11,7502,520T22,8262,475T34,644T43,225Which two cost types would be classified as being semi-variable?A T1 and T3B T1 and T4C T2 and T3D T2 and T4 ( )4 A company has recorded its total cost for different levels of activity over the last fivemonths as follows:Total($)coast(units)levelMonthActivity7 300 17,5008 360 19,5009 400 20,50010 320 18,50011 280 17,000The equation for total cost is being calculated using regression analysis on the abovedata. The equation for total cost is of the general form ‘y = a + bx’ and the value of ‘b’has been calculated correctly as $29.53.What is the value of ‘a’ (to the nearest $) in the total cost equation?A 7,338B 8,796C 10,430D 10,995( )5 Which of the following correlation coefficients indicates the weakest relationshipbetween two variables?A +1.00.4B +C - 0.6( )D -1.06 Connie Furwood estimates the following probabilities of returns on an investmentshe has made depending on the behaviour of the economy,Estimated returnProbability %13Boom0.108Normal 0.655Recession 0.25What is the expected return on Connie’s investment?A 9.00%B 8.67%C 7.75%( ) D 8.00%7 There are 27,500 units of part number X35 on order with the suppliers and 16,250units outstanding on existing customers’ orders.If the free inventory is 13,000 units, what is the physical inventory?A 1,750B 3,250C 24,250( )D 29,2508 Data relating to a particular stores item as follows:units400usageAveragedailyunitsusage 520Maximumdaily180usageunitsdailyMinimumLead time for replenishment of inventory 10 to 15 daysunitsReorderquantity 8,000What is the reorder level (in units) which avoids stockouts (running out of i nventory)?A 5,000B 6,000C 7,800( )D 8,0009 An organization’s stock records for last month show the following transactions in respectof one item:receipts issuesstockDate(units)(units)(units)1st 3002005th 10080013th 60050020th 30030028th 200The opening stock was valued at a total cost of $9,300 and all receipts on the 13th werepurchased at a cost of $33 per unit.The organization uses the weighted average method of valuation and calculates a newweighted average after each stores receipt.What was the total value of the closing stock?A $9,500B $9,700C $9,750( ) D $9,90010 An employee is paid on a piecework basis. The basis of the piecework scheme isfollows:as1 to 100 units - $0.20 per unit101 to 200 units - $0.30 per unit201 to 299 units - $0.40 per unitWith only the additional units qualifying for the higher rates. Rejected units do notqualify for payment.During a particular day the employee produced 210 units of which 17 wererejected as faulty.What did the employee earn for their day’s work?A $47.90B $54.00C $57.90( )D $63.0011 A company operates a job costing system. Job number 605 requires $300 of directmaterials and $400 of direct labour. Direct labour is paid at the rate of $8 per hour.Production overheads are absorbed at a rate of $26 per direct labour hour and non-production overheads are absorbed at a rate of 120% of prime cost.What is the total cost of job number 605?A $2,000B $2,400C $2,840( ) D $4,40012 A factory consists of two production cost centres (P and Q) and two service costcentres (X and Y). The total allocated and apportioned overhead for each is asfollows:P Q X Y$95,000 $82,000 $46,000 $30,000 It has been estimated that each service cost centre does work for the other cost centresin the following proportions:P Q X YPercentage of service cost centre X to 40 40 - 20Percentage of service cost centre Y to 30 60 10 -After the reapportionment of service cost centre costs has been carried out using amethod that fully recognises the reciprocal service arrangments in the factory, what is the total overhead for production cost centre P?A $122,400B $124,716C $126,000D $127,000 ( )13 A company manufactures two products, X and Y, in a factory divided into twoproduction cost centres, Primary and Finishing. The following budgeted data areavailable:CostPrimary FinishingCentreAllocated and apportioned fixedcosts $96,000 $82,500OverheadDirect labour minutes per unit:X 36 25- productY 48 35- productBudgeted production is 6,000 units of product X and 7,500 units of product Y. Fixedoverhead costs are to be absorbed on a direct labour hour basis.What is the budgeted fixed overhead cost per unit for product Y?A $11B $12C $14( ) D $1514 A company produces and sells a single product whose variable cost is $6 per unit.Fixed costs have been absorbed over the normal level of activity of 200,000 units andhave been calculated as $2 per unit.The current selling price is $10 per unit.How much profit is made under marginal costing if the company sells 250,000 units?A $500,000B $600,000C $900,000( )D $1,000,00015 The overhead absorption rate for product T is $4 per machine hour. Each unit of Trequires 3 machine hours. Inventories of product T last period were:Units2,400inventoryOpening2,700inventoryClosingCompared with the marginal costing profit for the period, the absorption costing profitfor product T will be:higherA $1,200higherB $3,600lowerC $1,200lower( )D $3,60016 A company has the following budgeted information for the coming month:Budgeted sales revenue $500,000contribution $200,000BudgetedBudgeted profit $50,000What is the budgeted break-even sales revenue?A $125,000B $350,000C $375,000D $450,000 ( )17 An organisation manufactures a single product which is sold for $60 per unit. Theorganization’s total monthly fixed costs are $54,000 and it has a contribution to salesratio of 40%. This month it plans to manufacture and sell 4,000 units.What is the organisation’s margin of safety this month (in units)?A 1,500B 1,750C 2,250( ) D 2,50018 Adverse material price variance cannot be caused by:A market changes in demand and supply of materialB poor quality raw materialsworkers.C Unskilled( )Use the following information to solve questions 19 - 20Jackstar has a standard variable overhead rate of $4 per machine hour, and each unit produced has a standard time allowed of three hours. The company’s budget was based on 50,000 units. Actual results for the year follow.: 45,000producedunitsActualActual machine hours worked : 120,000Actual variable overhead incurred : $500,00019 Jackstar’s variable-overhead spending variance:adverseA $40,000favorableB $60,000adverseC $20,000( ) favorableD $50,00020 Jackstar’s variable-overhead efficiency variance is:adverseA $40,000favorableB $60,000adverseC $20,000favorableD $50,000( )21 Which of the following statements is correct?A A stores ledger account will be updated from a goods received note onlyB The term 'lead time' is best used to describe the time between receiving an orderand paying for itC Authorisation is required to make an issue from stores( )22 A company manufactures and sells a single product. The following data relate to aweekly output of 2,880 units:$ per unit $ per unitprice 80Sellingcosts:LessVariable production 30Other variable 10Fixed 25(65)Profit 15What is the weekly break-even point (in units)?A 900B 1,440C 1,800( )D 4,80023. The order quantity of a raw material is 450 kg. A safety stock of 120 kg is planned to beheld, the annual stock holding cost of the material is $4 per kg and total purchases in ayear are 3,000 kg.What is the total annual stock-holding cost of the raw material?Ans :___24 The following process account has been drawn up for the last month:accountProcessUnits $ Units $ Opening WIP 250 3,000 Normal loss 225 450Output 4,100Input:Materials 4,500 22,500 Abnormal Loss 275Labour 37,500 Closing WIP 150______ _______4,750 4,750====== ======= Work in progress has the following level of completion:Material Labour40%100%WIPOpening30%100%ClosingWIPThe company uses the FIFO method for valuing the output from the process and alllosses occurred at the end of the process.What were the equivalent units for labour?unitsA 4,380unitsB 4,270unitsC 4,320( ) D 4,420units25 Perth operates a process costing system. The process is expected to lose 25% of inputand this can be sold for $8 per kg.Inputs for the month were:at a total cost of $52,500kgDirectmaterials 3,500theforperiodDirectlabour$9,625There is no opening or closing work in progress in the period. Actual output was 2,800kg.What is the valuation of the output?A $44,100B $49,700C $58,800D $56,525 ( )26 A company uses process costing to value its output. The following was recorded for the period:Input materials 2,000 units at $4.50 per unitConversion costs $13,340input valued at $3 per unitoflossNormal5%units150ActuallossThere were no opening or closing stocks.What was the valuation of one unit of output to one decimal place?A $11.8B $11.6C $11.2( )D $11.027 A company is considering its option with regard to a machine which cost $60,000 f ouryears ago. If sold the machine would generate scrap proceeds of $75,000. If kept, thismachine would generate net income of $90,000.The current replacement cost for this machine is $105,000.What is the relevant cost of the machine?A $105,000B $90,000C $75,000D $60,000 ( )28 A company is evaluating a project that requires 4,000 kg of a material that is usedregularly in normal production. 2,500 kg of the material, purchased last month at a total cost of $20,000, are in inventory. Since last month the price of the material has increased by 2.5 per cent.What is the total relevant cost of the material for the project?A $12,300B $20,500C $32,300D $32,800 ( )29 A contract is under consideration that requires 800 labour hours to complete. There are450 hours of spare labour capacity for which the workers are still being paid the normalrate of pay. The remaining hours required for the contract can be found either byovertime working paid at 50% above the normal rate of pay or by diverting labour fromthe manufacture of product OT. If the contract is undertaken and labour is diverted, thensales of product OT will be lost. Product OT takes seven labour hours per unit tomanufacture and makes a contribution of $14 per unit. The normal rate of pay for labour is $8 per hour.What is the total relevant labour cost to the contract?A $3,500B $4,200C $4,500D $4,900( )30 A company requires 600 kg of raw material Z for a contract it is evaluating. It has 400 kgof material Z in inventory that was purchased last month. Since then the purchase price of material Z has risen by 8% to $27 per kg. Raw material Z is used regularly by thecompany in normal production.What is the total relevant cost of raw material Z to the contract?A $15,336B $15,400C $16,200D $17,496 ( )31 In a short-term decision-making context, which ONE of the following would be acost?relevantA Specific development costs already incurred.B The cost of special material which will be purchased.C Depreciation on existing foxed assets.D The original cost of raw materials currently in stock which will be used ontheproject.( )32 GR is currently experiencing a shortage of skilled labour. In the coming quarter only3,600 hours will be available for the production of the firm’s three products of whichdetails are shown below:Product X Y ZSelling price per unit $66 $100 $120 Variable cost per unit $42 $75 $90 Fixed cost per unit $30 $34 $40 Skilled labour per unit 0.40 hours 0.50 hours 0.75 hours Maximum quarterly demand 5,000 5,000 2,000The optimum production plan that will maximise profit for the quarter is:Xs Ys ZsA 0 2,200 2,000B 5,000 200 2,000C 5,000 3,200 0D 9,000 0 0 ( )33 A process has a normal loss of 10% and budgeted output is 4,500 litres for the period. Opening inventory of raw material is 600 litres and is expected to increase by 20% by the end of the period.The material usage budget is:A 4,500 litresB 5, 000 litresC 5,133 litresD 5,120 litres ( )34 A company makes three products X, Y and Z. The following information isavailable:X Y ZBudgeted production (units) 200 400 300Machine hours per unit 5 6 2Variable overheads $2.30 per machine hourFixed overheads $0.75 per machine hourThe overhead budget is:A $10,980B $12,200C $12,000D $11,590 ( )35 Which of the following would be considered to be an investment centre?A Managers have control over marketing.B Management has a sales team.C Management has a sales team and is given a credit control function.D Managers can purchase capital assets and are given a credit control function.( )For a particular accounting period, the normal level of activity was 30,000 units, although 34,500 units were produced. Fixed overheads are absorbed at a rate of $9 per directlabour hour.What was the under or over absorption of fixed overheads in the period?A $40,500 under-absorbedB $40,500 over-absorbedC $486,000 over-absorbedD $54,000 over-absorbed( )37 A company determines its order quantity for a raw material by using the Economic Order QuantityWhat would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?EOQ Total annual holding costA Higher LowerB Higher HigherC Lower HigherD Lower Lower ( )36 ABC Limited uses an absorption costing system, and manufactures a singleproduct. Each unit of this product requires 12 labour hours to complete.Which points are the most likely to give the optimal solution?A A andB onlyB B, D and E onlyC D and E onlyD A, B and C only ( )39 Which department would normally be responsible for completing a standard purchase requisition for goods in a service organisation?A The buying (purchasing) departmentB The department that requires the goodsC The goods inwards department( )38 BAK Limited uses linear programming to establish the optimal production plan for the production of its two products, A and U, given that it has the objective of minimisingcosts. The following graph has been established bearing in mind the various constraints of the business. The dotted area indicates the feasible region.40 A cost is described as staying the same over a certain activity range and then increasingbut remaining stable over a revised activity range in the short term.What type of cost is this?A A fixed costB A variable costC A semi-variable costD A stepped fixed cost ( )41 The following statements relate to business objectives:(i) The short-term objectives of an organisation are described in very general terms.(ii) Corporate objectives relate to the organisation as a whole.(iii) It is possible for a division of an organisation to have its own specific objectives.Which of the above are correct?A (i) and (ii) onlyB (i) and (iii) onlyC (ii) and (iii) only( )42 Which one of the following groups of workers would be classified as indirect labour?A Machinists in an organisation manufacturing clothesB Bricklayers in a house building companyC Maintenance workers in a shoe factory( )43 Which of the following is NOT correct?A Management accounting provides appropriate information for decision-making,planning, control and performance evaluationB Routine information can be used for both short-term and long run decisionsC Cost accounting can be used for stock valuation to meet the requirements ofonlyinternalreporting( )44 Atlanta Inc, which uses the high-low method to analyze cost behavior, has determinedthat machine hours best explain the company’s utilities cost. The company’s relevantrange of activity varies from a low of 600 machine hours to a high of 1,100 machinehours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8,700 800February 8,360 720March 8,950 810April 9,360 920May 9,625 950June 9,150 900Using the high-low method, the utilities cost associated with 980 machine hours would be:A $9,510B $9,660C $9,700D $9,790( )45 Hill Limited sells a single product. In the coming month, it is planned that this product will generate a total revenue of $300,000 with a total contribution of $125,000. Fixed costs are $100,000 per month.What is the margin of safety?A 20%B 30%C 40% ( )46 Which of the following best describes joint products?A Two or more products output from the same process which have significant salesvalue but which are indistinguishable up to the point of separationB Two or more products output from a process which require further processingbefore being completed and available for saleC Two or more products output from a process recognised by a relatively low salesvalue compared to the main output produced( )47 A company carry out work to customer order. A job costing system is used to collect production cost on each customer order. Non production overhead are applied to each job at 15% of total production cost.The following information relates to job ABC which has been completed by the company.Department X YDirect material used ( $ ) 6,700 1,260Direct labour hour worked 246 98Direct labour rate $ per hour 8.00 10.00 Production overhead $ per direct labour hour 12.00 12.00What is the total production cost of job ABC?Ans :____ ______48 What will be the effect of increasing the re-order level?A There will be a decrease in stock-out costsB There will be a decrease in holding costs( )direct wages normally appear?A Direct labour costB Production overheadC Prime cost ( )50 Completed output from a process was 6,690 units. At the beginning of the period, 410units were in work in progress, 50% completed as to conversion cost. At the end of the period, 630 units were in work in progress, 70% completed as to conversion costs.What are the equivalent unit of production in the period relating to conversion cost?Ans :_ ______ equivalent units49 In which cost classification would the amount of overtime premium contained in。

2010年12月份ACCA(国际注册会计师)考试真题(F4)

2010年12月份ACCA(国际注册会计师)考试真题(F4)ALL TEN questions are pulsory and MUST be attempted1 In relation to the Civil Procedure Law of China:(a)explain the term exclusive jurisdiction; (2 marks)(b)state the major legal characteristics of exclusive jurisdiction,in terms of:(i)the basis of exclusive jurisdiction; and (4 marks)(ii)the effect of the rule of exclusive jurisdiction. (4 marks)(10 marks)2 In relation to the Property Law of China:(a)explain the term right of lien; (4 marks)(b)state THREE conditions to be met for a party to claim the right of lien.(6 marks)(10 marks)3 In relation to the Labour Contract Law of China:(a) state the various powers of the labour administration in exercising its supervisory and examining functions;(2 marks)(b) state any FOUR kinds of situations under which the labour administration may issue administrative orders to an employer for violations of Labour Contract Law. (8 marks)(10 marks)4 In relation to the Contract Law of China:(a)explain the term termination of contract; (2 marks)(b)explain and distinguish between termination of contract and dissolution o f contract. (8 marks)(10 marks)5 In relation to the pany Law of China:(a)state the basic rules regarding the shareholders of:(i)a general limited liability pany; (2 marks)(ii)a soleperson limited liability pany and a wholly stateowned pany; and (2 marks)(b)state the requirements for capital of:(i)a general limited liability pany; (2 marks)(ii)a soleperson limited liability pany; and (2 marks)(iii)a pany with exclusive stateownership. (2 marks)(10 marks)6 In relation to the Enterprises Bankruptcy Law of China,state the legal effec t of the acceptance of an application for bankruptcy by the court:(a)in terms of the preservative measures against the assets of the debtor;(4 marks)(b)in terms of the enforcement procedure against the relevant debtor; (4 mar ks)(c)in terms of pending legal actions against a debtor. (2 marks)(10 marks)7 In relation to the Securities Law of China:(a)explain the term sponsor in underwriting securities; (2 marks)(b)state the objective of the legislation to set up the system of sponsorshi p in underwriting securities;(2 marks)(c)state the various legal liabilities of a sponsor,in providing professiona l services,for his wrong doings or failure to perform his functions. (6 marks)(10 marks)8 In 2009 Mr Lee and the villager mittee entered into a contract for the man agement of land,under which he obtained the right to manage the contracted piece of land in a small mountain for 30 years.The contract was duly registered with t he relevant government authority in light of the Property Law.One day when Mr Lee was planting trees on the mountain,he accidentally found a small coal mine in the mountain. Having discovered this information many villa gers rushed to the mountain to exploit coal for sale. Mr Lee demanded the villag ers stop the exploitation of coal,on the ground that he has been a legitimate ho lder of the right of management of land. Therefore，he should be a lawful holder of right to the coal mine under the land. On the other hand,the villagers refuse d to accept Mr Lee‘s position and insisted that Mr Lee’s right to management o f land would not extend to natural resources under the land.They held that the c oal mine should be the mon property of the villagers as a whole and they were en titled to dig coal.Since Mr Lee and the villagers could not reach a settlement themselves,they filed a lawsuit against each other before the court for the determination of rig ht.Required:Answer the following questions in accordance with the relevant provisions of the Property Law of China,and give reasons for your answer:(a)describe what kind of property right Mr Lee has held regarding the mounta in; (2 marks)(b)describe who should hold the ownership of the coal mine in the mountain;(4 marks)(c)state how the court should deal with the claim brought by Mr Lee for dama ges against villagers because some of the trees in the land were destroyed by vi llagers in digging coal. (4 marks)(10 marks)9 Natural Gas pany(Gas pany)and Yaowa Glass pany(Yaowa pany)entered into a s upply contract.The major terms and conditions of the contract were that Gas pany would provide a minimum 4,000 m3 of natural gas daily for a period of five years at a fixed price;it should give a written notice five days in advance where it r educes the quantity of supply;Yaowa pany would provide a sum of RMB 100,000 yuan as a deposit for the performance of the contract. Yaowa pany paid the deposit pu rsuant to the supply contract upon the conclusion of the contract. Gas pany has been in decline since the beginning of 2010. In order to achieve extra profit,Ga s pany sold more natural gas to other customers at a higher price by reducing th e quantity of supply to Yaowa pany.One day Gas pany suddenly stopped providing n atural gas to Yaowa pany without a notice in advance,which resulted in serious d amage to the equipment of the latter.Due to unsuccessful negotiation between the two parties,Yaowa pany intended to seek the assistance from the people‘s court.Required:Answer the following questions in accordance with the relevant provisions of the Contract Law of China,and give your reasons for your answer:(a)explain the legal nature of the deposit under the contract law,and state whether a claim for a refund of twice the amount of the deposit should be suppor ted by the court; (4 marks)(b)state whether a claim requiring specific performance of contract by Gas p any should be supported by the court where the Yaowa pany has already requested a refund of twice the amount of the deposit.(6 marks)(10 marks)10 Kingmart Joint Stock pany(Kingmart pany)was a listed joint stock pany lis ting in Shanghai Securities Exchange,with total assets of RMB 500 million yuan; while Dahua Limited Liability pany’s(Dahua pany)registered capital was RMB 160million yuan.At the end of 2009 the board of directors of Kingmart pany adopted a special board of directors‘ resolution to merge with Dahua pany in a form of merger by absorption. after the pletion of the merger plan Dahua pany would be d issolved. For the purpose of carrying forward the merger plan,Kingmart pany and Dahua pany should take some procedural steps before the merger plan could be imp lemented and settle the credit and/or debt of these two panies with other partie s.Required:Answer the following questions in accordance with the relevant provisions of the pany Law， and give reasons for your answer:(a)state the relevant voting requirement by the general shareholders' meetin g; (3 marks)(b)state the relevant rules with respect to public notice; (3 marks)(c)state how to deal with Dahua p any‘s debts of RMB 500,000 yuan owed to a local electricity plant.(4 marks)(10 marks)332617611。

2010.Dec.ACCA.P1_revision_mock_questions

P a p e r P 1ACCA P1 Professional Accountant2 KAPLAN PUBLISHING© Kaplan Financial Limited, 2010The text in this material and any others made available by any Kaplan Group company doesnot amount to advice on a particular matter and should not be taken as such. No relianceshould be placed on the content as the basis for any investment or other decision or inconnection with any advice given to third parties. Please consult your appropriateprofessional adviser as necessary. Kaplan Publishing Limited and all other Kaplan groupcompanies expressly disclaim all liability to any person in respect of any losses or otherclaims, whether direct, indirect, incidental, consequential or otherwise arising in relation tothe use of such materials.All rights reserved. No part of this examination may be reproduced or transmitted in anyform or by any means, electronic or mechanical, including photocopying, recording, or byany information storage and retrieval system, without prior permission from KaplanPublishing.Revision Mock QuestionsKAPLAN PUBLISHING 3SECTION AThis question is compulsoryQUESTION 1The Perkins Group is a major player in the oil industry listed on a European stock exchange.Its primary business involves oil exploration and extraction. The Perkins board have taken astrategic decision to increase its international presence as a means of gaining global marketshare, and have identified Pillar as a potential acquisition target. Pillar is based outsideEurope in an oil industry growth area and is seen by analysts as a good expansionopportunity for Perkins, especially as its recent flotation (75% of its share capital) providespotential access to a controlling shareholding through the regional stock market where Pillaroperates.Although Pillar is a leading player in oil extraction, it has been responsible for considerablecontamination of land and the pollution of seas and rivers. Company policy is to only cleanup contamination if it is a legal requirement in the country of operation.The directors of Pillar have a widely publicised environmental attitude which shows littleregard to the effects of their business on the environment. No provision for environmentalcosts has been made in the financial statements of the company. Pillar has never felt theneed to promote socially responsible policies and practices or make positive contributions tosociety because it has always maintained its market share. It is renowned for poor customersupport, bearing little regard for the customs and cultures in the communities where it doesbusiness.Perkins Group was a formerly publically owned business. Since its privatisation it has beenmanaged by a unitary board, with Don Hean as the current chief executive. At a recent boardmeeting the proposed acquisition of Pillar featured highly on the agenda. Directors raised anumber of points with Don Hean who has been leading the acquisition process to date.Nico Giordino, operations director, raised the concern that Perkins could be exposed to anumber of risks resulting from the proposed acquisition of Pillar. He requested details on therisk management policies operated by Pillar and any exposure to significant risks that thefirm is already facing. An industry colleague had told him of rumours circulating that Pillarwas facing investigation relating to its poor environmental record in a number of countries.Don stated that he was unaware of such rumours but would seek further information on therisk management process if the acquisition discussions progressed to the next stage.The next agenda item was for Jessica Smith, the company secretary, to provide a summaryto the board on her analysis of the governance structure of Pillar. She stated that Pillar hadbeen family owned for most of its 23 year history, having been floated only 3 years ago.Family members still play an active role in its governance through the use of a two tier boardstructure, with family being on the upper tier. The remaining executives are the departmentheads of the business.Jessica stated that she felt the family dominance remains prevalent within Pillar. Despitebeing directors the department heads are not present at board meetings where strategy andperformance issues are discussed. This may lead to significant decisions being taken withoutthe input from those who will be required to deliver upon them. A recent comment from aninstitutional shareholder of Pillar also indicated that the annual general meeting was strictlycontrolled by the family directors, allowing for little discussion or questioning fromACCA P1 Professional Accountant4 KAPLAN PUBLISHINGshareholders. Jessica’s conclusion was that these matters create the impression that theboard of Pillar is not accountable to external shareholders, and would need to be rectified ifPerkins were to become owner, or at least major shareholder, of the company.The final item on the board agenda was a review of an environmental audit produced for theaudit committee of Perkins by a firm of external environmental consultants. The reportreferred to the ‘environmental footprint’ of Perkins Group. Jessica Smith stated that she wasunfamiliar with this term, though she fully supported the idea of providing additionalenvironmental information to shareholders.This discussion promoted Nico Giordino to raise a further question in relation to theacquisition of Pillar. In the light of the rumours of environmental issues within Pillar he askedwhether it would be possible to review their latest environmental statement. Don Heanstated that they did not produce any such reporting, but that future attempts should bemade to encourage this form of disclosure in future. Perkins board agreed to discuss thismatter further at the next board meeting, along with the progress of negotiations with Pillar.Required:(a)Describe the normative and instrumental views of stakeholders, and discuss the views of Pillar towards its stakeholders. (10 marks) (b) Nico suggested that the acquisition of Pillar might expose Perkins to a number ofrisks. Define ‘reputation risk’ and assess the potential effects of Pillar’s poorreputation on Perkins if the acquisition were to go ahead. (10 marks)(c)Explain the main responsibilities of a risk committee and assess the contributionthat such a committee could make to the confidence of shareholders in Perkins’acquisition strategy. (8 marks) (d) Construct the case for Pillar adopting a unitary board structure after the proposedacquisition by Perkins. Your answer should include an explanation of the advantagesof unitary boards and a convincing case FOR the Pillar board changing to a unitarystructure. (10 marks) (including 2 professional marks)(e)Write a memo to Jessica Smith defining ‘environmental footprint’ and briefly explain the benefits of introducing environmental reporting for Pillar. (12 marks)(including 2 professional marks) (Total: 50 marks)Revision Mock Questions KAPLAN PUBLISHING 5SECTION BTwo questions only to be attemptedQUESTION 2Moonbeams have emerged as market leader in high street ‘American style’ coffee.According to Geoff Obson, Director of Marketing ‘beyond a desire for advertising andpromotion ethics there is a fundamental focus on the ethical culture of the brand’. Theircore beliefs can be read on their website:‘To operate a profitable company which makes our love and talent manifest’Moonbeams dedication to quality, the environment, and its employees and customers isexpressed in its mission statement:•Producing world class coffee •Dedication to using fair-trade suppliers •Transcending customers’ expectations •Environmental stewardship • Balancing the needs of company, staff and their families• Having funMoonbeams’ employees now own one third of the company. In addition to usingenvironment-friendly technologies and innovations, Moonbeams seek to improvecommunities and enhance people’s lives through corporate giving, event sponsorship andphilanthropic involvement. Moonbeams’ efforts have paid off with numerous business ethicsawards.In the current economic climate however Moonbeams is experiencing spiralling costs and adownturn in revenues. They have just reported their first ever operating loss. The companyis having to consider options surrounding cost cutting and closures of branches, alongsidenew business ideas including a proposal to open certain branches in the evenings and obtainlicences for selling alcohol and tobacco.The finance director, Arthur Yule, is very concerned with the latter suggestion believing thatcompanies that sell alcoholic beverages and tobacco products cannot be socially responsibleorganisations. To counter this argument Geoff Obson has suggested that all alcohol could besourced from organic producers, providing the business with a differentiating factor, as wellas supporting its environmentally sound reputation.Required:(a) Using Tucker’s model, assess the ethical dilemma faced by Moonbeamsmanagement surrounding the evening opening proposal. (14 marks)(b)Discuss the different conclusions that could be reached if Moonbeams management were to take a deontological as opposed to a teleological perspective. (4 marks) (c) Briefly explain the steps involved in the American Accounting Association (AAA)model which may be used as a framework for ethical decision-making. (7 marks)(Total: 25 marks)ACCA P1 Professional Accountant6 KAPLAN PUBLISHING QUESTION 3The VGT Company is listed on its country’s stock exchange. The corporate governancesystem in that country is code based. VGT has an audit committee, which is established as asub-committee of the main board. The audit committee comprises three non-executivedirectors. In accordance with the codes of corporate governance, the main board reviewsthe work of the audit committee on an annual basis and also determines the authority ofthat committee. For example, the audit committee:•reviews the annual financial statements with the external auditors prior to publication •reviews the report of the external auditors on the annual financial statements • monitors the work of the internal audit department, including reviewing reports, butnot determining the work of the internal auditor.The main board still considers the appointment of the auditor and other professionaladvisors, as the finance director and CEO have the most recent and relevant financialknowledge on the board and therefore understand which auditors are capable of auditingVGT’s financial statements.The internal audit department comprises a chief internal auditor (who is a qualified certifiedaccountant) and 12 staff ranging from qualified accountants to junior accountants studyingfor their ACCA qualification. The department follows a set work programme ensuring all theprinciple systems in VGT are audited in rotation every three years. In some situations, theinternal auditor implements control systems for VGT – the delay in review helping to ensurethat there is no conflict of interest in this respect. Special reports are produced for thefinance director on request, for example valuations of property or assessments of financialstatements for takeover targets of VGT. All staff follow a programme of training to ensurethey have the appropriate internal audit skillsRequired:(a) Discuss the roles of an audit committee in corporate governance and evaluate theextent to which the audit committee in VGT meets those roles. Recommend anychanges necessary to comply with good corporate governance. (15 marks)(b) Evaluate the effectiveness of the internal audit department in VGT.(10 marks)(Total: 25 marks)Revision Mock Questions KAPLAN PUBLISHING 7QUESTION 4ABC is a relatively small manufacturing company listed on a European stock exchange. JamesToon, the CEO, is in buoyant mood following a meeting with the company’s CFO. He hasbeen told that interim profits are likely to exceed expectations and that subsequently hecould confidently expect share price to rise considerably once the figures are released intothe market next month.This is good news since Mr Toon has been concerned about the company’s future given theincreasing pressure placed on exports due to local competition in overseas markets. Duringthe meeting he reminded the CFO of the need for continued vigilance in relation to costcontrol in order to sustain profits. The CFO pointed out that the weight of governanceregulation placed on companies such as ABC did not help their position. In particular, he feltthat placing the same constraints on a small listed company as larger concerns in their homemarket and the fact that overseas competitors had to operate under much less regulatedregimes damaged the organisation’s ability to compete.Mr Toon agrees, and is adamant that the company will not employ board committees asidentified by the principles-based governance code through which ABC has gained listing. Hefeels that this is an unnecessary overhead and will not cede to the “unacceptable demand”.He is however concerned as to the possible consequence of this action should he choose notto comply.Mr Toon is the majority share holder in the company and, following the news relayed to himat the meeting, has contacted his wealthy friend, Joe Ng, asking him to purchase a largeblock of ABC shares. The two men hope to sell the shares following the interimannouncement and split the profits between them. During their discussion, Mr Toon statedthat he would rather not purchase the shares himself since such an action “might look bad”if minority investors were to discover what he had done .Required:(a) Discuss the scope of governance regulation affecting the board at ABC and considerthe extent to which governance regulation can have a negative impact oncompanies such as ABC. (15 marks)(b) Discuss the likely regulatory reaction to Mr Toon’s decision not to employcommittee structures in board operations. (5 marks)(c) Discuss possible outcomes to the agreement made between Mr Finn and Joe Ng.(5 marks)(Total: 25 marks)ACCA P1 Professional AccountantPUBLISHING 8KAPLAN。

ACCA F4考试科目详细介绍

很多学习ACCA的小伙伴可能对于F4这项考试科目没有一个全面总结性的认识。

下面中公财经小编就从F4阶段的科目简介，主要内容以及学习建议等方面给大家详细的介绍一下吧;科目简介F4是ACCA科目当中纯正的法律科目。

以学习英国法律基本知识为出发点，进而了解作为专业的财会人员会接触到的特定的领域的法律相关规定，保证在将来提供专业工作过程中是符合法律法规的。

F4是文字性的理论科目，逻辑分析能力与背诵记忆能力并重。

一些复杂的法律规定需要理解并且掌握应用，另一些法律的强制性规定操作需要记忆并且熟知。

在学习的过程中会接触到一些法律相关专业的英文词句，以及大约十几个拉丁文规定，对英文能力也是有一定要求。

F4的科目内容设置主要是培养出具备基本的英国法律知识专业财会人士，对于特定的相关财会领域的法规熟悉了解。

主要内容1. The law of obligation债法根据债务产生途径，主要学习两个法律：合同法与侵权法2. Company related law 公司相关法律主要学习公司法和破产法相关的规定3. Others其他的法律知识包括：英国法律系统及基本知识，劳动法，以及企业相关法律知识。

考试形式及题型考试为机考，没有固定考试时间限制，提前预约机考中心即可参加考试，提交试卷之后即出成绩，50分通过。

Section A45道选择题，25道2分题，20道1分题，共70分。

Seciton B5道案例题，每个案例之后一般有三个选择题，每道2分，共30分。

学习建议法律内容逻辑性比较强，基本为理解加记忆的知识点。

所以要建立起整体的知识框架和脉络，按照一定的思路来梳理知识点，然后再加强记忆。

通过题目的来提高知识点的记忆和细致内容的掌握，从而保证记清楚每一个规则，每一个要点。

能够理解到位规则并且把知识点能够应用到题目当中，也是F4的考察重点。

2010年ACCAF4-F9真题答案

2010年ACCA F4-F9真题答案1.The civil court structure in ascending order of authority is as follows:Magistrates’ courtsMagistrates’ courts have a signifi cant, if limited, civil jurisdiction. They hear family proceedings and in such cases the court is referred to as a ‘family proceedings court’. More generally, magistrates’ courts have powers of recovery in relation to the council tax arrears and charges for water, gas and electricity. They also hear appeals against refusal by local authorities to grant licences for selling liquor in their area. Importantly the magistrates’ courts have no jurisdiction over claims in contract or tort.County courtsThe network of county courts was introduced in 1846 to provide for local adjudication of relatively small-scale litigation. There are currently 243 county courts. The county court jurisdiction extends to probate, property cases, tort, contract, bankruptcy, and insolvency.Of particular importance with regard to the county court is the provision of a small claims procedure operated under its auspices.This procedure essentially allows for an arbitration hearing to be conducted by a district judge in most cases involving claims of no more than £5,000. This small claims procedure is designed to be quicker, less formal and less expensive than a county court hearing.The High Court of JusticeThe High Court has three administrative divisions: the Court of Chancery, the Queen’s Bench Division and the Family Division.The Queen’s Bench DivisionThis is the main common law court and is the division with the largest workload. It has some criminal jurisdiction and appellate jurisdiction, but its main jurisdiction is civil concerning contract and tort cases.The Queen’s Bench Divisional CourtThis court, as distinct from the Queen’s Bench Division, exercises appellate jurisdiction on a point of law by way of case stated from magistrates’ courts, tribunals and the Crown Court. It also exercises the power of judicial review of the decisions made by governmental and public authorities, inferior courts and tribunals.The Chancery DivisionThe jurisdiction of the Chancery Division includes matters relating to: the sale or partition of land and the raising of charges on land; mortgages; trusts; the administration of the estatesof the dead; contentious probate business, such as the validity and interpretation of wills; copyright, company law, partnership and revenue law; and insolvency.Chancery Divisional CourtComprising one or two Chancery judges, this appellate court hears appeals from the Commissioners of Inland Revenue on income tax cases, and from county courts on certain matters like bankruptcy. The Family DivisionThe Family Division of the High Court deals with all matrimonial matters both fi rst instance and on appeal. Amongst other matters, it deals with issues relating to minors, legitimacy, adoption, and proceedings involving domestic violence.The Family Divisional CourtThe Family Divisional Court, consisting of two High Court judges, hears appeals from decisions of magistrates’ courts and county courts in family matters.The Court of Appeal (Civil Division)The Court of Appeal was established by the Judicature Act 1873. The court hears appeals from the three divisions of the High Court;the divisional courts; the county courts; the Employment Appeal Tribunal; the Lands Tribunal and the Transport Tribunal. The most senior judge is the Master of the Rolls. Usually, three judges will sit to hear an appeal although for very important cases fi ve may sit.The Supreme CourtThe Supreme Court, which came into operation in the autumn of 2009, is the highest court within the English civil system. It replaces the House of Lords as the highest judicial forum and exercises all of that court’s functions. It was felt that the previous location of the highest court in the land in the legislature was contrary to the separation of powers and consequently the members of the Supreme Court no longer sit in the House of Lords. It consists of 12 justices and hears appeals on the most important legal issues.2.(a) Costs and quoted prices for the GC and the EX using labour hours to absorb overheads:(b) Costs and quoted prices for the GC and the EX using ABC to absorb overheads:(c) The pricing policy is a matter for BBB to decide. They could elect to maintain the current 50% mark-up on cost and if they did the price of the GC would fall by around 7% in line with the costs. This should make them more competitive in the market.They could also reduce the prices by a little less than 7% (say 5%) in order to increase internal margins a little.It is possible that the issue lies elsewhere. If the quality of the work or the reputation and reliability of the builder is questionable then reducing prices is unlikely to improve sales. It is conceivable that BBB has a good reputation for EX but not for GC, but more likely that a poor reputation would affect all products. Equally poor service levels or lack of fl exibility in meeting customer needs may be causing the poor sales performance. These too will not be‘corrected’ by merely reducing prices.It is also possible that the way salesmen discuss or sell their products for the GC is not adequate so that in some way customers are being put off placing the work with BBB.BBB is in competition and it perhaps needs to refl ect this in its pricing more (by ‘going rate pricing’) and not seek to merely add a mark-up to its costs.BBB could try to penetrate the market by pricing some jobs cheaply to gain a foothold. Once this has been done the completedEX or GC could be used to market the business to new customers.The price of the EX would also need consideration. There is no indication of problems in the selling of the EX and so BBB could consider pushing up their prices by around 2% in line with the cost increase. On the fi gures in my answer the price goes up for a typical extension to $31,470 from $30,750 a rise of $720. This does not seem that signifi cant and so might not lose a signifi cant number of sales.The reliability and reputation of a builder is probably more important than the price that they charge for a job and so it is possible that the success rate on job quotes may not be that price sensitive.(d) Marginal costs are those costs that are incurred as a consequence of the job being undertaken. In this case they would include only the materials and the labour. If overheads are included then this is known as total absorption costing.Overheads are for many businesses fi xed by nature and hence do not vary as the number of jobs changes. In a traditional sense any attempt to allocate costs to products (by way of labour hours for example) would be arbitrary with little true meaning being added to the end result. The overhead absorption rate (OAR) is merely an average of these costs (over labour hours) and is essentially meaningless. This switch (to marginal costing) would also avoid the problem of the uncertainty of budget volume.Budget volume is needed in order to calculate the fi xed cost absorption rate.The marginal cost (MC) is more understandable by managers and indeed customers and a switch away from total absorption cost (TAC) could have benefi ts in this way. Clearly if overheads are going to be excluded for the cost allocations then they would still have to be covered by way of a bigger margin added to the costs. In the end all costs have to be paid for and covered by the sales in order to show a profi t.A more modern viewpoint is that activity causes costs to exist. For example, it is the existence of the need for site visits that gives rise to the need for a supervisor and therefore, for his costs. If the activities that drive costs are identifi ed, more costs can then be directly traced to products, hence eradicating the need for arbitrary apportionment of many overhead costs. This has the benefi t of all costs being covered, rather than the potential shortfall that can arise if marginal cost plus pricing is used.In the long run businesses have to cover all costs including fi xed overheads in order to make a profi t, whichever pricing strategy is adopted.3. (a) (1) Auy will be treated as resident in the United Kingdom for 2009–10 as she was present in the United Kingdom for183 days or more.(2) Bim will be treated as resident in the United Kingdom for 2009–10 as she has made substantial visits to the UnitedKingdom. Her visits have averaged 91 days or more over four consecutive years.(b) Trading profit for the year ended 5 April 2010Tutorial notes:(1) No adjustment is required in respect of the input VAT as the expense figures are already exclusive of VAT.(2) The only exception to the non-deductibility of entertainment expenditure is when it is in respect of employees.Working – Capital allowancesTutorial notes:(1) Motor car [1] was owned at 6 April 2009 and therefore continues to qualify for writing down allowance at the rate of 20% subject to a maximum of £3,000.(2) Motor car [3] has CO2 emissions of less than 110 grams per kilometre and therefore qualifies for the 100% first year allowance.(3) Motor car [4] has CO2 emissions between 111 and 160 grams per kilometre, and therefore qualifies for writing down allowances at the rate of 20%.(4) Motor car [5] has CO2 emissions over 160 grams per kilometre and therefore qualifies for writing down allowances at the rate of 10%.Trading income assessments 2009–10Total Auy Man Bim Men£ £ £Salary 4,000 4,000Interest (56,000/34,000 at 5%) 4,500 2,800 1,700Balance (80%/20%) 71,500 57,200 14,300––––––– ––––––– –––––––80,000 60,000 20,000––––––– ––––––– –––––––(c) (1) Auy’s class 4 NIC for 2009–10 will be £3,214 ((43,875 – 5,715 = 38,160 at 8%) + (60,000 – 43,875 = 16,125 at 1%)).(2) Bim’s class 4 NIC for 2009–10 will be £1,143 (20,000 – 5,715 = 14,285 at 8%).(d) (i) Tax point(1) The basic tax point is the date when services are completed.(2) If an invoice is issued or payment received before the basic tax point, then this becomes the actual tax point.(3) If an invoice is issued within 14 days of the basic tax point, the invoice date will usually replace that in (1).(ii) VAT paid for the year ended 5 April 2010(1) The partnership’s output VAT is £21,600 and its total input VAT is £320 (180 + 140).(2) Therefore VAT of £21,280 (21,600 – 320) will have been paid to HM Revenue & Customs during the year ended5 April 2010.(iii) Flat rate scheme(1) The partnership can join the flat rate scheme if its expected taxable turnover (excluding VAT) for the next 12 months does not exceed £150,000.(2) The partnership can continue to use the scheme until its total turnover (including VAT, but excluding sales of capital assets) for the previous year exceeds £225,000.(3) If the partnership had used the flat rate scheme throughout the year ended 5 April 2010 then it would have paid VAT of £18,018 (142,200 + 21,600 = 163,800 x 11%).(4) This is a saving of £3,262 (21,280 – 18,018) for the year.4.(a) Consolidated statement of fi nancial position of Picant as at 31 March 2010Workings (fi gures in brackets are in $’000)(i) Goodwill in SanderGoodwill is impaired by $3·8 million and therefore has a carrying amount at 31 March 2010 of $12·2 million. The goodwill impairment is charged against Sander’s retained earnings (see working (iv)), thus ensuring it is allocated between the controlling and non-controlling interests in proportion to their share ownership in Sander.The effect of the software having no recoverable amount is that its write-off in the post-acquisition period should be treated as a fair value adjustment at the date of acquisition for consolidation purposes. The consequent effect is that this will increase the post-acquisition profi t for consolidation purposes by $500,000.ii) Carrying amount of Adler at 31 March 2010$’000Cash consideration (5,000 x 40% x $4) 8,0007% loan notes (5,000 x 40% x $100/50) 4,000Share of post-acquisition profi ts (6,000 x 6/12 x 40%) 1,200–––––––13,200–––––––(iii) Goods in transit and unrealised profi t (URP)The intra-group current accounts differ by the goods-in-transit sales of $1·8 million on which Picant made a profi t of $600,000 (1,800 x 50/150). Thus inventory must be increased by $1·2 million (its cost), $600,000 is eliminated from Picant’s profi t, $3·4 million is deducted from trade receivables and $1·6 million (3,400 – 1,800) is deducted from trade payables (other current liabilities).(iv) Consolidated retained earnings$’000 Picant’s retained earnings 27,200 Sander’s post-acquisition losses (2,400 x 75% see below) (1,800)Gain from reduction of contingent consideration (4,200 – 2,700 see below) 1,500URP in inventory (w (iii)) (600)Adler’s post-acquisition profi ts (6,000 x 6/12 x 40%) 1,200–––––––27,500–––––––The adjustment to the provision for contingent consideration due to events occurring after the acquisition is reported inincome (goodwill is not recalculated).Post-acquisition adjusted losses of Sander are:Profi t as reported 1,000Add back write off software (treated as a pre-acquisition fair value adjustment) 500Additional depreciation on factory (100)Goodwill written off (w (i)) (3,800)–––––––(2,400)–––––––(b) Although the concept behind the preparation of consolidated fi nancial statements is to treat all the members of the group as if they were a single economic entity, it must be understood that the legal position is that each member is a separate legal entity and therefore the group itself does not exist as a separate legal entity. This focuses on a criticism of group fi nancial statementsin that they aggregate the assets and liabilities of all the members of the group. This can give the impression that all of the group’s assets would be available to discharge all of the group’s liabilities. This is not the case.Applying this to the situation in the question, it would mean that any liability of Trilby to Picant would not be a liability of any other member of the Tradhat group. Thus the fact that the consolidated statement of fi nancial position of Tradhat shows a strong position with healthy liquidity is not necessarily of any reassurance to Picant. Any decision on granting credit to Trilby must be based on Trilby’s own (entity) fi nancial statements (which Picant should obtain), not the group fi nancial statements. The other possibility, which would take advantage of the strength of the group’s statement of fi nancial position, is that Picant could ask Tradhat if it would act as a guarantor to Trilby’s (potential) liability to Picant. In this case Tradhat would be liable for the debt to Picant in the event of a default by Trilby.5.(b) ISA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment, requires auditors ‘to identify and assess the risks of material misstatement, whether due to fraud or error, at the fi nancial statement and assertion levels’. It is vitally important for auditors to assess engagement risks at the planning stage, this will ensure that attention is focused early on the areas most likely to cause material misstatements.A thorough risk assessment will also help the auditor to fully understand the entity, which is vital for an effective audit.Any unusual transactions or balances would also be identifi ed early, so that these could be addressed in a timely manner.In addition, as most auditors adopt a risks based audit approach then these risks need to be assessed early in order for the audit strategy and detailed work programmes to be developed.Assessing risks early should also result in an effi cient audit. The team will only focus their time and effort on key areas as opposed to balances or transactions that might be immaterial or unlikely to contain errors.In addition assessing risk early should ensure that the most appropriate team is selected with more experienced staff allocated to higher risk audits and high risk balances.A thorough risk analysis should ultimately reduce the risk of an inappropriate audit opinion being given. The audit would have focused on the main risk areas and hence all material misstatements should have been identifi ed, resulting in the correct opinion being given.It should enable the auditor to have a good understanding of the risks of fraud, money laundering, etc.Assessing risk should enable the auditor to assess whether the client is a going concern.(c) Controls over the perpetual/continuous inventory system.(d) Substantive procedures to confi rm valuation of inventory– Select a representative sample of goods in inventory at the year end, agree the cost per the records to a recent purchase invoice and ensure that the cost is correctly stated.– Select a sample of year end goods and review post year end sales invoices to ascertain if NRV is above cost or if an adjustment is required.– For a sample of manufactured items obtain cost sheets and confi rm:– raw material costs to recent purchase invoices– labour costs to time sheets or wage records– overheads allocated are of a production nature.– Review aged inventory reports and identify any slow moving goods, discuss with management why these items have not been written down.– Compare the level/value of aged product lines to the total inventory value to assess whether the provision for slow moving goods of 1% should be reinstated.– Review the inventory records to identify the level of adjustments made throughout the year for damaged/obsolete items.If signifi cant consider whether the year end records require further adjustments and discuss with management whether any further write downs/provision may be required.– Follow up any damaged/obsolete items noted by the auditor at the inventory counts attended, to ensure that the inventory records have been updated correctly.– Perform a review of the average inventory days for the current year and compare to prior year inventory days. Discuss any signifi cant variations with management.– Compare the gross margin for current year with prior year. Fluctuations in gross margin could be due to inventory valuation issues. Discuss signifi cant variations in the margin with management. Substantive procedures to confi rm completeness of provisions or contingent liability– Discuss with management the nature of the dispute between Smoothbrush and the former fi nance director (FD), to ensure that a full understanding of the issue is obtained and to assess whether an obligation exists.– Review any correspondence with the former FD to assess if a reliable estimate of any potential payments can be made.– Write to the company’s lawyers to obtain their views as to the probability of the FD’s claim being successful.– Review board minutes and any company correspondence to assess whether there is any evidence to support the former FD’s claims of unfair dismissal.– Obtain a written representation from the directors of Smoothbrush confi rming their view that the former FD’s chances of a successful claim are remote, and hence no provision or contingent liability is required.Credit will be awarded for any substantive procedures which test for additional provisions or contingent liabilities of Smoothbrush.6. (a) (i) Period 1 closing balanceThe expected value of the period 1 closing balance is $2,100,000(ii) Period 2 closing balanceThe expected value of the period 2 closing balance is $3,900,000(iii) The probability of a negative cash balance at the end of period 2 = 0·02 + 0·12 + 0·06 = 20%(iv) The probability of exceeding the overdraft limit in period 2 is 0·12 + 0·06 = 18% DiscussionThe expected value analysis has shown that, on an average basis, ZSE Co will have a positive cash balance at the end of period 1 of $2·1 million and a positive cash balance at the end of period 2 of $3·9 million. However, the cash balances that are expected to occur are the specifi c balances that have been averaged, rather than the average values themselves.There could be serious consequences for ZSE Co if it exceeds its overdraft limit. For example, the overdraft facility could be withdrawn. There is a 30% chance that the overdraft limit will be exceeded in period 1 and a lower probability, 18%, that the overdraft limit will be exceeded in period 2. To guard against exceeding its overdraft limit in period 1, ZSE Co must fi nd additional fi nance of $0·5 million ($2·5m – $2·0m). However, to guard against exceeding its overdraft limit in period 2, the company could need up to $9·5 million ($11·5m – $2·0m). Renegotiating the overdraft limit in period 1 would therefore be only a short-term solution. One strategy is to fi nd now additional fi nance of $0·5 million and then to re-evaluate the cash fl ow forecasts at the end of period 1. If the most likely outcome occurs in period 1, the need for additional fi nance in period 2 to guard against exceedingthe overdraft limit is much lower.The expected value analysis has been useful in illustrating the cash fl ow risks faced by ZSE Co. Although the cash flowforecasting model has been built with the aid of a fi rm of fi nancial consultants, the assumptions used in the model must be reviewed before decisions are made based on the forecast cash fl ows and their associated probabilities.Expected values are more useful for repeat decisions rather than one-off activities, as they are based on averages. They illustrate what the average outcome would be if an activity was repeated a large number of times. In fact, each period and its cash flows will occur only once and the expected values of the closing balances are not closing balances that are forecast to arise in practice. In period 1, for example, the expected value closing balance of $2·1 million is notforecast to occur, while a closing balance of $3·5 million is likely to occur.(b) The factors to be considered in formulating a policy to manage the trade receivables of ZSE Co will relate to the key areas of credit assessment or analysis, credit control and collection procedures. A key factor is the turbulence in the company’s business environment and the way it affects the company’s customers.Credit analysisThe main objective of credit analysis is to ensure that credit is granted to customers who will settle their account at regular intervals in accordance with the agreed terms of sale. The risk of bad debts must be minimised as much as possible.Key factors to consider here are the source and quality of the information used by ZSE Co to assess customer creditworthiness.The information sources could include bank references, trade references, public information such as published accounts, credit reference agencies and personal experience. The quality of the information needs to be confi rmed as part of the credit analysis process. Some organisations have developed credit scoring systems to assist in the assessment of creditworthiness.Credit controlOnce credit has been granted, it is essential to ensure that agreed terms and conditions are adhered to while the credit is outstanding. This can be achieved by careful monitoring of customer accounts and the periodic preparation of aged debtor analyses. A key factor here is the quality of the staff involved with credit control and the systems and procedures they use to maintain regular contact with customers, for example invoices, statements, reminders, letters and telephone contacts.ZSE Co has been experiencing diffi culties in collecting amounts due because its customers have been experiencing diffi cult trading conditions. Close contact with customers is essential here in order to determine where revised terms can be negotiated when payment is proving hard, and perhaps to provide advance warning of serious customer liquidity or going concern problems. Collection proceduresThe objective here is to ensure timely and secure transfer of funds when they are due, whether by physical means or by electronic means. A key factor here is the need to ensure that the terms of trade are clearly understood by the customer from the point at which credit is granted. Offering credit represents a cost to the seller and ensuring that payment occurs as agreed prevents this cost from exceeding budgeted expectations.Procedures for chasing late payers should be clearly formulated and trained personnel must be made responsible for ensuring that these procedures are followed. Legal action should only beconsidered as a last resort, since it often represents the termination of the business relationship with a customer.(c) Profi tability and liquidity are usually cited as the twin objectives of working capital management. The profi tability objective refl ects the primary fi nancial management objective of maximising shareholder wealth, while liquidity is needed in order to ensure that fi nancial claims on an organisation can be settled as they become liable for payment.The two objectives are in confl ict because liquid assets such as bank accounts earn very little return or no return, so liquid assets decrease profi tability. Liquid assets in fact incur an opportunity cost equivalent either to the cost of short-term fi nance or to the profi t lost by not investing in profi table projects.Whether profi tability is a more important objective than liquidity depends in part on the particular circumstances of an organisation. Liquidity may be the more important objective when short-term fi nance is hard to fi nd, while profi tability may become a more important objective when cash management has become too conservative. In short, both objectives are important and neither can be neglected.参与ACCA考试的考生可按照复习计划有效进行，另外高顿网校官网ACCA考试辅导高清课程已经开通，还可索取ACCA考试通关宝典，针对性地讲解、训练、答疑、模考，对学习过程进行全程跟踪、分析、指导，可以帮助考生全面提升复习备考效果。

2010.Dec.ACCA.F9_OpenTuition-Paper-Mock-exam-Solutions

MOCK EXAM SolutionsYou can download Mock Exam Questions on:/acca/PAPER F9FINANCIAL MANAGEMENT This material is © protected and is licensed by Kevin J Kelly to Live Online tuition includes•Focused advice & help on WHAT and HOW to learn for the December F9 Exam, plus targeted EXAM TIPS•Revise a topic that you nd di ﬃcult,•Essential THEORY skills – I will teach you theAPPROACH required to be MARK – TIMEaware in the exam … don’t lose easy marksanymore. Instead, let me show you how to pick up the easy marks to help you passrst time! Students frequently forget that inF9 50% of the marks are available fortheory!•Essential NUMERIC skills – don’t risk failing theexam because you have got bogged down on aparticular numeric question in the exam. Do you have a reliable and structured approach for dealing with important numerical questions on Investment Appraisal, Financial Analysis, Working Capital Management, Cost of Capital, calculating WACC, Foreign Exchange calculations, etc., ? I will teach you essential numeric skills quickly and e ﬀectively using my unique “TEMPLATES ”.Can you provide your answers to numeric and theory questions at speed, demonstrating e ﬀective planning & logical layout? If not, let me show you how.•EXAM TECHNIQUE skills signi cantly improved – students often frequently under-perform in the exam when dealing with questions on Financial analysis, Investment Appraisal. Calculating WACC, Forex, etc., •Past F9 Exam Papers - explained in a simple and easy to understand fashionone-to-one tuition with ACCA Tutor Kevin Kelly For further information email Kevin Kelly: info@ or visit: Paper F9Book your one-to-one tuition with ACCA F9 Tutor, Kevin Kelly,(You choose any topic from within the F9 syllabus)Available Live on-line now £9.99 for 15 minutes or only £35.00 for 1 hr (All you will need is access to the internet and Skype)Contact: info@ or Mock Exam Service – Correction, Feedback and Assessment•Mock exam Assessment and Feedback. Correction Service for only £3.00 per question (£9.99 per paper - 4 questions). Marked and returned to you with DETAILED comments and suggestions for improvements online within 24 hours.•Revision questions marked and returned to you with comments and suggestions forimprovements £3.00 per question (£9.99 per paper - 4 questions)Mock Exam Assessment From only £3.00Solution 1Cost of Capital and Investment AppraisalBefore attempting this question you are advised to have carefully revised the following chapters of the Course NotesChapter 6 Management of Working Capital (4) - CashChapter 7 Investment AppraisalChapter 8 Relevant Cash Flows for DCFChapter 11 Sources of Finance - EquityChapter 12 Sources of Finance – DebtChapter 14 The Valuation of Securities – theoretical approachChapter 15 The Valuation of Securities – practical issuesChapter 16 The Cost of CapitalChapter 17 When (and when not!) to use the WACC for Investment AppraisalSolution 1a)Calculate the after-tax weighted average cost of capital of Orihuela SA (6 marks)*Tutors Note: Firstly, let’s recap on the procedure (Answer Plan) to follow in the exam … so that you produce an answer with a well structured layout that the marker can easily follow.WACC procedure may be summarised under the following headings. You will then only need to decide on which components of the following structure will be relevant to answering our specific exam question.WACC states: Ko = Ke (%) + Kdat (%)Approach / Procedure in the EXAMKe DVM (Growth or no Growth in Dividends?)P/E modelCAPMNPV # 1 Kdat Redeemable => IRR => NPV # 2InterpolateIRRedeemable => IRR => CI (1-t) / MV Weightings Preferably Market Values*Tutors Note: Looking at our question it is easily apparent that in our answer we will need to calculate Ke (the cost of equity) by reference to a suitable Dividend Valuation Model (DVM.. in this case Gordon’s Dividend Growth Formula) and the Kdat (the cost of redeemable debt AFTER TAX) by reference to first principles, using IRR.1This material is © protected and is licensed by Kevin J Kelly to Ke - Cost of EquityGordon’s formula states that Ke = Do (1+g) + gPe*Tutors Note: “Just Paid” = Do = $53, Current MPS = $18, Growth = g = 0.06Filling in the blanks we get:Ke = 3.0 (1+.06) + .0618Ke= 23.67%KDAT - Cost of Redeemable Debt*Tutors Note: We calculate Kdat from first principles - based on examination of the Relevant Cash Flows (Relevant Costs) associated with the bond. These c/f’s may be summarized as followsCalculation of NPV @ say 5%Table of Relevant Cash FlowsT o t1t2!!!.>t10Cost (MV) (93)Coupon Interest (1-t) 4.2 4.2……..> 4.2Redemption @par 100Redemption premium 10% 10Net Cash Flows (93) 4.2 4.2……. 114.20Df @5% 1 0.952 0.907 …. 0.614P.V. (93) 4.0 3.81 ……. 70.12NPV = 6.97*Tutors Note: Within the strict time constraints of the exam it would be a little time consuming to work out the NPV in this “normal” fashion. Clearly, it would be more efficient to use the Cumulative Discount Tables (or Annuity Factor Tables) to work out the Present Value of the constant CI cash flow ($4.20) between years 1 & 10 as follows:KDAT- Cost of Redeemable DebtCalculation of NPV @ say 5%Summary of Relevant Cash FlowsPVCost T o (93) x 1.00 (Real Cost) (93)CI after tax t1 to t10 4.20 x 7.722 (AF for 10 yrs) 32.43 Redemption t10 110 x .614 (df for yr 10) 67.54NPV+ 6.972This material is © protected and is licensed by Kevin J Kelly to This material is © protected and is licensed by Kevin J Kelly to 3*Tutors Note: The 2nd approach to calculating the NPV is much faster in this instance. Therefore, I will derive the 2nd NPV in this way also.Calculation of NPV @ say 10%Summary of Relevant Cash Flows PV Cost T o (93) x 1.00 (Real Cost) (93)CI after tax t 1 to t 10 4.20 x 6.145 (AF for 10 yrs) 25.81Redemption t 10 110 x .386 (df for yr 10) 42.46NPV - 24.73NPV = (24.73)*Tutors Note: We can now proceed to INTERPOLATE in order to estimate the Cost of Capital (df) that gives us a breakeven NPV … => the Kdat (of Redeemable Debt).*Tutors Note: The Formula for the IRR is either:IRR !- or if you prefer -Difference in Pos. NPV IRR ! Pos. Coc + Coc X Sum of NPV’s Where:L = Lower rate of InterestH = Higher rate of InterestN L = NPV @ Lower rate of InterestH L = NPV @ Higher rate of InterestInterpolateKdat = IRR ! ! 6.10%Weightings (based on Market Values)Market# ‘000 MPU Value %[E ] Equity 1,500 18.00 27,000 85.31[D ] Debt 5,000 93% 4,650 14.69[V ] Value 31,650 100%WACC states: Ko = Ke (%) + Kdat (%)*Tutors Note: Now, filling in the blanks in the formula we get:! Ko = 23.67(.8531) + 6.10(.1469) ! 21.09%Solution 1 contd.,(b)Advise the MD of Orihuela SA, with reasons, whether or not you believe theinvestment appears worthwhile. (6 marks) *Tutors Note: Questions of this nature, which question the economic value of investments (whether or not they are worthwhile) require you ALWAYS (unless you are instructed otherwise) to calculate the NPV of the investments. The DECISION CRITERION is then to choose the investment with the highest NPV.Why is this? The answer is simple, NPV is THEORETICALLY, the superior decision making technique.Calculation of NPVBased on examination of the Relevant Cash Flows (Relevant Costs)Table of Relevant Cash Flows- 000’s -t0 t1 t2 t3 t4 t5 t6Cash from Operations:Operating cash flows 710 745.5 782.8 821.9 863Tax - Payable (213) (223.6) (234.8) (246.6) (258.9) - Saved on CA’s (W1) 225 168.7 126.6 94.9 248.8 Other Relevant Cash Flows:Cost (3,000)Scrap Value 120Working Capital (W2)(390) (19.50) (20.5) (21.5) (22.5) 474Net Cash Flow (3,390)690.5 737 706.4 691.2 1305.3(10.1)d.f @21%(W3) 1.0 .826 .683 .564 .466 .385 .319P.V. (3,390) 570.3 503.4 398.4 322.1 502.5 (3.2) NPV = (1,096) Negative REJECT(W1)Calculation of Tax Relief on Capital AllowancesTaxYear WDV CA Relief Timing1 3,000 750 225 t22 2,250 562.5 168.75 t33 1,687.5 421.9 126.57 t44 1,265.6 316.4 94.92 t55 949.2 *829.2 248.76 t6Total Entitlement 2,880 x 30% 864This material is © protected and is licensed by Kevin J Kelly to 4* Calculation of Balancing Allowance / ChargeTax WDV of 949.2 – Sale Proceeds of 120 = Balancing Allowance of 829.2(W2)Calculation of annual Incremental Working Capital requirementBeginning Opening AnnualYear Balance Increment Timing1 390 (390) t02 409.5 (19.5) t13 429.975 (20.475) t24 451.474 (21.499) t35 474.047 (22.573) t4End of year 5 Repayment 474.047 t5(W3)Calculation of an appropriate df (Discount Factor) to use in the evaluationAssumption: that 21.09%, the WACC calculated in part (a) rounded to 21%, is the correct average cost of capital (df) to use in this instance. This assumption is based on the assertion that the new investment will have the same Business Risk (same Industry) and will be financed in the same way (the same Financial Risk / same Financing mix of capital, D:E) as the company’s existing operations. Consequently, it is considered appropriate to use the existing company WACC. If both of these conditions were not met then a project specific WACC would have to be calculated using CAPMAdvise the MD, with reasons, whether or not you believe the investment appears worthwhile.Purely on financial grounds I would advise the MD not to proceed with the proposed investment.The principle reason is that, in THEORY, proceeding with the proposed investment will result in an immediate DECREASE in shareholders wealth in the amount of $1,096,000.This advice however ignores consideration of a range of non-financial and/or qualitative factors which will necessarily be an important part of the strategic decision making process of the MD and the board of Orihuela Plc in this instance.*Tutors Note: Refer to the points listed under part ( c) below for further information on non-financial/qualitative factors.5This material is © protected and is licensed by Kevin J Kelly to Solution 1 contd.,(c)Advise the Managing Director on what factors he should consider before decidingon a “correct” buying price to pay for the target company. (3 marks) *Tutors Note: It is important to appreciate, when considering what price the predator company should pay for the target company, that questions about “correct price” are like trying to consider “how long is a piece of string”! There are many practical considerations to take into a/c, each varying in importance depending on the circumstances or motivations surrounding the takeover discussions. There are financial considerations (valuation methods, funding issues, stock market & share price reaction, synergies,…) as well as non-financial considerations (strategic, managerial, operational issues,…) to take into a/c. Suffice it to say that every minute aspect of the business and the industry in which it operates in are likely to be considered. …… Thus following on from this logic you should now be able to appreciate that there is NO SUCH THING as a “correct buying price” – in the final analysis it will depend on the negotiation skills of the people involved and sitting around the table! Having said all this an acceptable answer for 3 marks might look like this:(i) Range of Prices - Valuation methodsThere are several possible valuation models available, each of which have different underlying assumptions and thus each model will produce a different BUYING PRICE. For example, there are;•Dividend valuation models•Price / Earnings models•Discounted Cash Flow Models•Net Asset based modelsThe Net Assets or Balance Sheet approaches are often quite useful in these types of negotiations; the Net Realizable Value basis can provide a useful MINIMUM PRICE and the Net Replacement Cost basis can provide a useful MAXIMUM PRICE….around which the negotiations can take place.The other bases (P/E, DVM and DCF models) tend to provide prices which lie between the two extremities of the price range provided by the NRV and NRC.As I have stated above, the FINAL or “correct” buying price will be a matter of judgment and will very much depend on the negotiation skills of the people involved in the discussions.*Tutors Note: To recap:EQUITY valuation models include:•Dividend valuation models•Price / Earnings models•Discounted Cash Flow Models•Net Asset (Balance Sheet) based models providing valuations based on:N.B.V !Little useN.R.V !Min. (Seller)N.R.C !Max. (Buyer)6This material is © protected and is licensed by Kevin J Kelly to (ii) Other Financial considerationsCosts (accountants, legal, brokers, underwriting), Goodwill, stock marketreaction, EPS, Share Price, Funding arrangements,(iii) Other Non-Financial considerationsStrategic (rapid growth, acquire expertise, diversification, enhance EPS),Managerial & Operational….Solution 1 contd.,(d)(i)Calculate the theoretical ex-rights price of an ordinary share. (2 marks) Theoretical ex-rights price per ordnary share.Shares Price MVExisting (original) holding 4 2.80 11.20Rights Issue 1 2.20 2.2013.40TERP=> 13.40/5= $2.68*Tutors Note: => this implies that the value of the rights are $2.68 -$2.20 = $0.48 for every 4 shares held or new share acquired.(d)(ii)H ow will the wealth of an investor holding 10,000 ordinary shares in Murcia Plc be affected by the rights issue if they take up their rights to buy new shares or decline the option to do so. (3 marks) Expected effect on Wealth of Shareholders - Wealth -$ 10,000 sharesBefore $Current position (as above) 4 x 2.80 = 11.20 28,000Take up RightsNew position 5 x 2.68 = 13.40Cost of new share 1 x 2.20 = (2.20)Wealth 11.2028,000Before = 11.20After = 11.20of the ShareholderDecline Rights Issue offer but sells rightsNew value of existing sh/holding 4 x 2.68 = 10.72Proceeds from sale of rights 1 x 0.48 = 0.48Wealth 11.20 28,000 Before = 11.20 After = 11.20of the ShareholderThis material is © protected and is licensed by Kevin J Kelly to 7Decline Rights Issue offer and does nothing (does not sell rights)New value of existing sh/holding 4 x 2.68 = 10.72 26,800Before = 11.20After = 10.72 Wealth of the*Tutors Note: => this implies that the Wealth of the shareholder has decreased by the value of the rights that have not been taken up ($2.68 -$2.20 = $0.48). On 10,000 shares this is a fall in wealth of 2,500 shares x $0.48 = $1,200.To recap: In THEORY, the only way the investor can lose is if he IGNORES the rights issue offer and neglects to SELL the rights. Consequently, in THEORY, there is NO EFFECT on the wealth of the shareholder whether he decides to take up the rightsand/or sells the rights. But, from the point of view of retaining some influence within the company however, the decision whether to invest in the rights or not would be an important one.Solution 1 contd.,(e)Explain what you understand by the term “Funding Gap” and suggest remediesthat an SME (small or medium sized enterprise) finding itself in this positionmight consider. (5 marks) *Tutors Note: Given the economic climate that exists within the UK and Europeat present, it would be unwise not to be prepared for a question that refers to the current“Liquidity Crisis”, “Banking Crisis” or “Credit Crisis”.More than ever before, if companies are to survive these harsh economic times it is imperative that they operate sound principles of working capital management – note specifically that from a practical point of view good Cash Management involves knowing not only how to raise more money and/or spend less money but also importantly an understanding of the variety of Sources of Finance available through the EQUITY Markets, BOND Markets, MONEY MARKETS and central and regionalGovernment/European initiatives.As a corollary, part (e) should be an important part of your THEORY preparations for the forthcoming December 2010 examination. For this reason I am providing you with a solution that goes WAY BEYOND what might be expected in the exam for 5 marks but nevertheless I hope that you find this summary of Sources of Finance generally useful and that it helps to “bring together” what is an otherwise potentially expansive part of the syllabus.The FUNDING GAP ... facing SME’sThis material is © protected and is licensed by Kevin J Kelly to 8Funding Gap…. arises when the SME wants to expand beyond its existing Funding Capacity and finds that it is unable to access suitable Debt and/or Equity Finance to do so.•For investments below £500,000 most SME’s can access an informal funding network of their friends, families and business angels. Once companies requirefunding above £2m they are usually quite established and therefore perceived as lower risk and therefore are more likely to be able to secure funding frominstitutional investors.•The gap between these two finance situations is known as the Funding Gap.Maturity Gap……arises because LT loans are easier to raise than MT or ST loans.•LT loans can be secured against Personal Property and/or other assets via Mortgages.•Banks are basically unwilling to lend further without a corresponding increase in SECURITYEquity Gap…..arises out of the difficulty associated with obtaining additional Equity Finance beyond the Initial equity finance injected by the Owners and/or BUSINESS ANGELS… many assets are intangible.Compounding the Funding Gap difficulties being faced by SME’s are also the following:SecurityLack of suitable assets available to PLEDGE as security on Bank Borrowings - Fixed and/or Floating Charges on assetsSizeUsually SME is un-quoted…..a draw back to raising D and EUn-quoted (normally the SME is unquoted)•Greater difficulty in raising finance thru a Rights Issue or a Placing …. often family and friends will be exhausted (as well as financially!) from the SME.•Other external Investors are difficult to attract because of greater perceived Systematic Financial Risk and Systematic Business RiskTrack RecordYoung Entrepreneurial companies often have no or limited borrowing history / track record.Competitive Market Place for FinanceLarge quoted companies, government all competing for a limited pool of deposits.Lack of Financial ExpertiseDeficit of knowledge in identifying and raising suitable sources of financeRisk•Both D and E Investors consider SME’s more risky investments•High Failure rate of start-ups and SME’sUncertaintyNo or Poor Credit Rating with Credit Rating Agencies or the Banks themselves.Lack of adequate MIS or FISDetailed Accounting Records, Fixed Asset Registers (re; Fixed or Floating Charges), Projections, Budgets, Business Plans, suitably Qualified Directors with Financial Skills (ACCA qualified accountants)Exit Route• A problem for Equity Investors as the company is usually Un-quoted.•If company tries to buy back its own shares this can often just exacerbate C/F problemsPotential Sources of Finance for SME’s ….. REMEDIAL ACTIONEquity (E)Debt (D)Government AidShare Issues R.E’s ST LTOwners Div Policy B/Overdraft Loans (SFLGS)Business Angels Operating Lease Finance LeaseRI (Rights Issue) Factoring Mortgage LoansPrivate Placing Invoice Discounting MezanineFinanceVenture Capital Commercial Paper Franchise Finance(see definition in OT Course Notes) Trade Credit Sale & Lease back Flotation (IPO on AIM or maybe Official List) Euro-CurrencyLoansAfter Flotation could lead to: Working Capital mgt PreferenceShares- Offer for Sale -by Tender Cash Operating Cycle Public Debt- Offer for Sale -@ Fixed Price Debentures - if SME isquotedScrip DividendsIrredeemable DebenturesConvertible DebenturesDebentures with WarrantsZero Coupon BondsDeep Discount BondsJunk Bonds- SFLGS- Govt Grants- Govt.Loans- Govt. Tax Incentives- E.C.F’s (Enterprise Capital Funds)Government AidThe assistance available, in order to encourage Loans and/or Equity Investment into SME’s, is very Country Specific …. the various schemes available in the UK can differ to the variety and extent of the schemes available in Ireland, Spain, Germany, etc.,Considering the UK situation.., the main points to consider are:SFLGS- Definition. .. The Small Firms Loan Guarantee Scheme is designed to help Small Firms get a loan from the bank…..especially when they lack the SECURITY the Bank ordinarily needs.- Under the scheme, the bank can lend up to £250,000 without SECURITY over PERSONAL assets or a PERSONAL GUARANTEE being required of the borrower.- All available BUSINESS assets must be used as security if required by the bank.- The Government will guarantee 75% of the Loan.- A PREMIUM of 2% is payable on the guaranteed part of the loan.GRANTS- Definition…a CAPITAL or REVENUE Grant is a sum of money given to an individual or business for a specific project or purpose. The Grant usually covers only part of the total costs involved.- Grants to help with Business Development are available from a variety of sources such as the following sources:•Government•European Union•Regional Development Agencies•Business Link•Local Authorities•Charitable Organisations- Grants are awarded on the basis of:•Business Activity•Specific Industry Sector (e.g. Technology)•Geographical Area (e.g. areas in need of economic Regeneration or Regional Development)- Examples of various Government Grant schemes:•RSA – REGIONAL SELECTIVE ASSISTENCE SCHEME•RIG – REGIONAL INNOVATION GRANTS•ENTERPRISE GRANTS- Examples of various Government Loan schemes:•SFLGS – SMALL FIRMS LOAN GUARANTEE SCHEME•STFL – SMALL FIRMS TRAINING LOANS•EIB – EUROPEAN INVESTMENT BANK•EIF – EUROPEAN INVESTMENT FUND- Examples of various Government Tax Incentive schemes:•EIS – ENTERPRISE INVESTMENT SCHEME•VCT – VENTURE CAPITAL TRUSTS•EMPLOYEE SHARE INCENTIVE SCHEMES•DECREASING CORPORATION TAX THRESHOLD•INCREASING SALES TAX THRESHOLD•ECF - ENTERPRISE CAPITAL FUNDS- Definition…ECFs were launched in the UK in 2005. ECF’s are designed to becommercial funds, investing a combination of private and public money/funds in high-growth businesses.- Each ECF will be able to make Equity investments of up to 2 million intoeligible SMEs that have genuine growth potential but whose funding needs arenot currently met.Further Points to remember on the …“Equity” Sources of Finance mentioned above Business AngelsHigh net worth individuals who invest in Start-Ups and Development Stage of SMEs Usually have very good knowledge / expertise of INDUSTRY ( BUSINESS RISK ) they are buying into…..do you watch ‘Dragons Den” ? !RIThe key points to remember with Rights Issues are:Voting Rights remain Unchanged / RIs are at Directors Discretion / Rarely Fails / Cheaper / Pre-emption RightsVCDefinition…Venture Capital is the provision of Risk Finance to young Entrepreneurial Companies on a 5 – 7 year investment time horizon.Consider the following points in Choosing between Sources (E -v- D) Finance •Amount of Finance (Loan or Equity) required•Cost (Interest Rates – Fixed or Floating - versus Dividends)•Term Structure of Interest Rates (The Yield Curve)•Duration / Maturity / Redemption•Gearing / Capital Structure (Optimal balance reached?)•Accessibility•Control•Dividend Policy•Memorandum and Articles of Association•Debt CovenantsSolution 2Working Capital Management & Financial AnalysisBefore attempting this question you are advised to have carefully revised the following chapters of the Course NotesChapter 3 Management of Working Capital (1)Chapter 4 Management of Working Capital (2) - Inventory Chapter 5 Management of Working Capital (3) – Receivables & Payables Chapter 6 Management of Working Capital (4) - CashChapter 11 Sources of Finance - EquityChapter 12 Sources of Finance - DebtChapter 13 Capital Structure and Financial RatiosChapter 18 Cost of Capital – the Effect of Changes in Gearing Solution 2(a)Comment on why you think the bank has refused the additional loan facilityrequested and advise on what remedial action you think might be available.(13 marks) Tutor’s note: a discussion on the working capital financing policy, capital structure and the financial performance of UK Plc is required hereFirstly, a quick Tutorial on RatiosFINANCIAL ANALYSIS: SOME BASIC EXAMPLESRatios are potentially useful in financial analysis since they help summarize extensive amounts of data in a meaningful format.Ratios may be grouped into 5 broad categories:1. Profitability }Return on Capital employed (ROCE) + Return on Equity (ROI)2. Liquidity3. Working Capital4. Capital Structure5. Investor RatiosTutor’s note: There is no universal agreement on the definitions of the ratios to use here. Different textbooks/professors utilize alternative measures and even use alternative grouping schemes. For the purposes of ACCA F9 this classification is fine.Remember1.Be Selective……. Choose to calculate /use those ratios that will help you toanswer what you want to know:1.How well is the Company managed?2.How well is the Working Capital managed?3.How is the company financed?4.How good is the company’s Liquidity?5.How good an Investment is the company?2.Individual Ratios are of little use…... Look at the (a) TREND over timeand/or (b) inter-company comparisons within the SAME INDUSTRY and/or (c) BUDGETS.3.Look at trends over time in terms of ……..1. E.P.S.2.Dividends3.Sales4.Do not forget to adjust for INFLATION5.Look out for OVER-TRADING….. a successful company with insufficientinvestment in w/c (under-capitalized for Working Capital).Symptoms:1)HIGH ROCE2)POOR Liquidity Ratios3)POOR Creditors day ratio6.Working Capital Management can be assessed by an analysis of the CashOperating Cycle+ Debtors + Trade Debtors * 365 = x daysAnnual Credit Sales+ Stocks + Raw Material Stocks *365 = x daysAnnual Purchases+ Work in Progress *365 = x daysCost of Sales+ Finished Goods Stocks *365 = x daysCost of Sales- Creditors - Trade Creditors *365 = (x days)Annual Purchases…………Length of Cash Operating (W/C) Cycle X……….7.If a company Requires Finance consider:!Equity!Debt - rem: Loan Guarantee Scheme!Factoring / Invoice Discounting!Better Debtors Control!Better Stock management!Take more Credit from supplier!Sale and lease-back of Free Hold property!Sale of Investments and / or Assets!“Management-Buyout” …. Sell–off one of your divisions for cash.Finally, remember that in a Financial Analysis (ratio analysis) question you can expect the marks for the CALCULATIONS and the marks for COMMENTS to be broadly evenly split. In other words, expect a MAXIMUM of 50% of the marks for the calculations….. You have been warned!Tutor’s note: For those of you who find answering exam questions on Financial Analysis difficult can I suggest that you Study and Learn the following TEMPLATE and I hope you will thus find that your understanding and approach to answering questions on Financial Analysis improves accordingly. Use this template approach to practice ALL previous ACCA F9 questions on Financial Analysis so far examined.Financial Analysis TEMPLATE for UK Plc。