02 2020年二级课后题最新cfafrm网课微信cfawangke财报

1、 CFA Institute. For candidate use only. Not for distribution.Practice Problems47The following information relates to Questions 15Cinnamon, Inc. is a diversified manufacturing company headquartered in the United Kingdom. It complies with IFRS. In 2017, Cinnamon held a 19 percent passive equity owners

2、hip interest in Cambridge Processing. In December 2017, Cinnamon announced that it would be increasing its ownership interest to 50 percent effective 1 January 2018 through a cash purchase. Cinnamon and Cambridge have no intercompany transactions. Peter Lubbock, an analyst following both Cinnamon an

3、d Cambridge, is curious how the increased stake will affect Cinnamons consolidated financial statements. He asks Cinnamons CFO how the company will account for the investment, and is told that the decision has not yet been made. Lubbock decides to use his existing forecasts for both companies financ

4、ial statements to compare the outcomes of alternativeaccounting treatments.Lubbock assembles abbreviated financial statement data for Cinnamon (Exhibit 1) and Cambridge (Exhibit 2) for this purpose.Year ending 31 December20172018*Revenue Operating income Net income1,400126621,5751426931 December2017

5、2018*Total assets Shareholders equity1,1706161,317685* Estimates made prior to announcement of increased stake in Cambridge.Year ending 31 December20172018*Revenue Operating income Net income Dividends paid1,0008040201,10088442231 December20172018*(continued) 2019 CFA Institute. All rights reserved.

6、Exhibit 2Selected Financial Statement Information for Cambridge Processing ( Millions)Exhibit 1Selected Financial Statement Information for Cinnamon, Inc. ( Millions)PRACTICE PROBLEMS CFA Institute. For candidate use only. Not for distribution.Reading 13 Intercorporate Investments48 Exhibit 2(Contin

7、ued)Year ending 31 December20172018*Total assets Shareholders equity800440836462* Estimates made prior to announcement of increased stake by Cinnamon.1In 2018, if Cinnamon is deemed to have control over Cambridge, it will most likely account for its investment in Cambridge using:A BCthe equity metho

8、d.the acquisition method. proportionate consolidation.2At 31 December 2018, Cinnamons total shareholders equity on its balance sheet would most likely be:ABhighest if Cinnamon is deemed to have control of Cambridge.independent of the accounting method used for the investment in Cambridge.highest if

9、Cinnamon is deemed to have significant influence over Cambridge.C3In 2018, Cinnamons net profit margin would be highest if:A it is deemed to have control of Cambridge.B it had not increased its stake in Cambridge.Cit is deemed to have significant influence over Cambridge.At 31 December 2018, assumin

10、g control and recognition of goodwill, Cinnamons reported debt to equity ratio will most likely be highest if it accounts for its investment in Cambridge using the:A equity method.B full goodwill method.C partial goodwill method.Compared to Cinnamons operating margin in 2017, if it is deemed to have

11、 control of Cambridge, its operating margin in 2018 will most likely be:A lower.B higher.C the same.45The following information relates to Questions 610Zimt, AG is a consumer products manufacturer headquartered in Austria. It com- plies with IFRS. In 2017, Zimt held a 10 percent passive stake in Oxb

12、ow Limited. In December 2017, Zimt announced that it would be increasing its ownership to 50 percent effective 1 January 2018. CFA Institute. For candidate use only. Not for distribution.Practice Problems49Franz Gelblum, an analyst following both Zimt and Oxbow, is curious how the increased stake wi

13、ll affect Zimts consolidated financial statements. Because Gelblum is uncertain how the company will account for the increased stake, he uses his existing forecasts for both companies financial statements to compare various alternative outcomes.Gelblum gathers abbreviated financial statement data fo

14、r Zimt (Exhibit 1) and Oxbow (Exhibit 2) for this purpose.Year ending 31 December20172018*Revenue Operating income Net income1,500135661,7001537531 December20172018*Total assets Shareholders equity1,2546601,421735* Estimates made prior to announcement of increased stake in Oxbow.Year ending 31 Decem

15、ber20172018*Revenue Operating income Net income Dividends paid1,20012060201,350135682231 December20172018*Total assets Shareholders equity1,2006601,283706* Estimates made prior to announcement of increased stake by Zimt.6At 31 December 2018, Zimts total assets balance would most likely be:A BChighes

16、t if Zimt is deemed to have control of Oxbow.highest if Zimt is deemed to have significant influence over Oxbow. unaffected by the accounting method used for the investment in Oxbow.7Based on Gelblums estimates, if Zimt is deemed to have significant influence over Oxbow, its 2018 net income (in mill

17、ions) would be closest to:A75.B109.C143.Based on Gelblums estimates, if Zimt is deemed to have joint control of Oxbow, and Zimt uses the proportionate consolidation method, its 31 December 2018 total liabilities (in millions) will most likely be closest to:8Exhibit 2Selected Financial Statement Esti

18、mates for Oxbow Limited ( Millions)Exhibit 1Selected Financial Statement Estimates for Zimt AG ( Millions) CFA Institute. For candidate use only. Not for distribution.Reading 13 Intercorporate Investments50A686.B975.C1,263.Based on Gelblums estimates, if Zimt is deemed to have control over Oxbow, it

19、s 2018 consolidated sales (in millions) will be closest to:9A BC1,700.2,375.3,050.10Based on Gelblums estimates, Zimts net income in 2018 will most likely be:A highest if Zimt is deemed to have control of Oxbow.B highest if Zimt is deemed to have significant influence over Oxbow.C independent of the

20、 accounting method used for the investment in Oxbow.The following information relates to Questions 1116Burton Howard, CFA, is an equity analyst with Maplewood Securities. Howard is preparing a research report on Confabulated Materials, SA, a publicly traded com- pany based in France that complies wi

21、th IFRS 9. As part of his analysis, Howard has assembled data gathered from the financial statement footnotes of Confabulateds 2018 Annual Report and from discussions with company management. Howard is concerned about the effect of this information on Confabulateds future earnings.Information about

22、Confabulateds investment portfolio for the years ended 31 December 2017 and 2018 is presented in Exhibit 1. As part of his research, Howard is considering the possible effect on reported income of Confabulateds accounting classification for fixed income investments. Exhibit 1Confabulateds Investment

23、 Portfolio ( Thousands)CharacteristicBugle AGCathay CorpDumas SAClassification Cost*Market value, 31 December 2017Market value, 31 December 2018FVPL25,000 29,00028,000FVOCI40,000 38,00037,000Amortized cost50,000 54,00055,000* All securities were acquired at par value.In addition, Confabulateds annua

24、l report discusses a transaction under which receiv- ables were securitized through a special purpose entity (SPE) for Confabulateds benefit.11 The balance sheet carrying value of Confabulateds investment portfolio (in thousands) at 31 December 2018 is closest to:A BC112,000.115,000.118,000. CFA Ins

25、titute. For candidate use only. Not for distribution.Practice Problems5112The balance sheet carrying value of Confabulateds investment portfolio at 31 December 2018 would have been higher if which of the securities had been reclassified as FVPL security?A Bugle.B Cathay.C Dumas.Compared to Confabula

26、teds reported interest income in 2018, if Dumas had been classified as FVPL, the interest income would have been:A lower.B the same.C higher.Compared to Confabulateds reported earnings before taxes in 2018, if Dumas had been classified as a FVPL security, the earnings before taxes (in thou- sands) w

27、ould have been:A the same.B 1,000 lower.C 3,000 higher.Confabulateds reported interest income would be lower if the cost was the same but the par value (in thousands) of:ABugle was 28,000. BCathay was 37,000. CDumas was 55,000.Confabulateds special purpose entity is most likely to be:A held off-bala

28、nce sheet.B consolidated on Confabulateds financial statements.C consolidated on Confabulateds financial statements only if it is a “qualifying SPE.”13141516The following information relates to Questions 1722BetterCare Hospitals, Inc. operates a chain of hospitals throughout the United States. The c

29、ompany has been expanding by acquiring local hospitals. Its largest acquisition, that of Statewide Medical, was made in 2001 under the pooling of interests method. BetterCare complies with US GAAP.BetterCare is currently forming a 50/50 joint venture with Supreme Healthcare under which the companies

30、 will share control of several hospitals. BetterCare plans to use the equity method to account for the joint venture. Supreme Healthcare com- plies with IFRS and will use the proportionate consolidation method to account for the joint venture.Erik Ohalin is an equity analyst who covers both companie

31、s. He has estimated the joint ventures financial information for 2018 in order to prepare his estimates of each companys earnings and financial performance. This information is presented in Exhibit 1. CFA Institute. For candidate use only. Not for distribution.Reading 13 Intercorporate Investments52

32、Year ending 31 December2018Revenue Operating income1,430128Net income6231 December2018Total assets Shareholders equity1,500740Supreme Healthcare recently announced it had formed a special purpose entity through which it plans to sell up to $100 million of its accounts receivable. Supreme Healthcare

33、has no voting interest in the SPE, but it is expected to absorb any losses that it may incur. Ohalin wants to estimate the impact this will have on Supreme Healthcares consolidated financial statements.17Compared to accounting principles currently in use, the pooling method BetterCare used for its S

34、tatewide Medical acquisition has most likely caused its reported:A revenue to be higher.B total equity to be lower.C total assets to be higher.Based on Ohalins estimates, the amount of joint venture revenue (in $ millions) included on BetterCares consolidated 2018 financial statements should be clos

35、- est to:18A BC$0.$715.$1,430.19Based on Ohalins estimates, the amount of joint venture net income included on the consolidated financial statements of each venturer will most likely be:A BChigher for BetterCare.higher for Supreme Healthcare.the same for both BetterCare and Supreme Healthcare.20Base

36、d on Ohalins estimates, the amount of the joint ventures 31December 2018 total assets (in $ millions) that will be included on Supreme Healthcares consolidated financial statements will be closest to:A$0.B$750.C$1,500.Based on Ohalins estimates, the amount of joint venture shareholders equity at 31

37、December 2018 included on the consolidated financial statements of each venturer will most likely be:21A BChigher for BetterCare.higher for Supreme Healthcare.the same for both BetterCare and Supreme Healthcare.Exhibit 1Selected Financial Statement Forecasts for Joint Venture ($ Millions) CFA Instit

38、ute. For candidate use only. Not for distribution.Practice Problems5322 If Supreme Healthcare sells its receivables to the SPE, its consolidated financial results will most likely show:A a higher revenue for 2018.B the same cash balance at 31 December 2018.C the same accounts receivable balance at 3

39、1 December 2018.The following information relates to Questions 2328Percy Byron, CFA, is an equity analyst with a UK-based investment firm. One firm Byron follows is NinMount PLC, a UK-based company. On 31 December 2008, NinMount paid 320 million to purchase a 50 percent stake in Boswell Company. The

40、 excess of the purchase price over the fair value of Boswells net assets was attrib- utable to previously unrecorded licenses. These licenses were estimated to have an economic life of six years. The fair value of Boswells assets and liabilities other than licenses was equal to their recorded book v

41、alues. NinMount and Boswell both use the pound sterling as their reporting currency and prepare their financial statements in accordance with IFRS.Byron is concerned whether the investment should affect his “buy” rating on NinMount common stock. He knows NinMount could choose one of several accounti

42、ng methods to report the results of its investment, but NinMount has not announced which method it will use. Byron forecasts that both companies 2019 financial results (excluding any merger accounting adjustments) will be identical to those of 2018.NinMounts and Boswells condensed income statements

43、for the year ended 31 December 2018, and condensed balance sheets at 31 December 2018, are presented in Exhibits 1 and 2, respectively.NinMountBoswellNet salesCost of goods sold Selling expenses Administrative expensesDepreciation & amortization expense Interest expenseIncome before taxes Income tax

44、 expenseNet income950(495)(50)(136)(102) (42) 125 (50) 75510(305)(15)(49)(92) (32)17 (7) 10Exhibit 1NinMount PLC and Boswell Company Income Statements for the Year Ended 31 December 2018 ( millions) CFA Institute. For candidate use only. Not for distribution.Reading 13 Intercorporate Investments54Ni

45、nMountBoswellCash Receivablesnet InventoryTotal current assetsProperty, plant, & equipmentnet Investment in BoswellTotal assets Current liabilities Long-term debtTotal liabilities Common stock Retained earningsTotal equityTotal liabilities and equity5070 1302501,570 320 2,140110 600710850 580 1,430

46、2,1402045 75140930 1,07090 400490535 45 580 1,070Note: Balance sheets reflect the purchase price paid by NinMount, but do not yet consider the impact of the accounting method choice.23NinMounts current ratio on 31 December 2018 most likely will be highest if the results of the acquisition are report

47、ed using:A the equity method.B consolidation with full goodwill.C consolidation with partial goodwill.NinMounts long-term debt to equity ratio on 31 December 2018 most likelywill be lowest if the results of the acquisition are reported using:A the equity method.B consolidation with full goodwill.C c

48、onsolidation with partial goodwill.Based on Byrons forecast, if NinMount deems it has acquired control of Boswell, NinMounts consolidated 2019 depreciation and amortization expense (in millions) will be closest to:A102.B148.C204.Based on Byrons forecast, NinMounts net profit margin for 2019 most lik

49、elywill be highest if the results of the acquisition are reported using:A the equity method.B consolidation with full goodwill.C consolidation with partial goodwill.Based on Byrons forecast, NinMounts 2019 return on beginning equity most likely will be the same under:Aeither of the consolidations, b

50、ut different under the equity method.24252627Exhibit 2NinMount PLC and Boswell Company Balance Sheets at 31 December 2018 ( millions) CFA Institute. For candidate use only. Not for distribution.Practice Problems55Bthe equity method, consolidation with full goodwill, and consolidation with partial go

51、odwill.none of the equity method, consolidation with full goodwill, or consolida- tion with partial goodwill.C28 Based on Byrons forecast, NinMounts 2019 total asset turnover ratio on begin- ning assets under the equity method is most likely:Alower than if the results are reported using consolidatio

52、n. Bthe same as if the results are reported using consolidation. Chigher than if the results are reported using consolidation.The following information relates to questions 2936John Thronen is an analyst in the research department of an international securities firm. He is preparing a research repor

53、t on Topmaker, Inc., a publicly traded company that complies with IFRS.On 1 January 2018, Topmaker invested $11 million in Blanca Co. debt securities (with a 5.0% stated coupon on par value, and interest payable each 31 December). The par value of the securities is $10 million, and the market intere

54、st rate in effect when the bonds were purchased was 4.0%. Topmaker designates the investment as amortized cost. As of 31 December 2018, the fair value of the securities is $12 million. Blanca Co. wants to raise $40 million in capital by borrowing against its financial receivables. Blanca plans to cr

55、eate a special-purpose entity (SPE), invest $10 million in the SPE, have the SPE borrow $40 million, and then use the funds to purchase$50 million of receivables from Blanca. Blanca meets the definition of control and plans to consolidate the SPE. Blancas balance sheet is presented in Exhibit 1. Exh

56、ibit 1Blanca Co. Balance Sheet at 31 December 2018 ($ millions)CashAccounts receivable Other assetsTotal assets205030100Current liabilities Noncurrent liabilities Shareholders equityTotal liabilities and equity253045100Also on 1 January 2018, Topmaker acquired a 15% equity interest with voting power in Raine