（财会考证）ACCACAT考试F6税务主观题练习-2

1、ACCACAT考试F7财务报告主观题练习1、Section A暂缺Section B ALL THREE questions are compulsory and MUST be attempted On 1 October 2015, Zanda Co acquired 60% of Medda Cos equity shares by means of a share exchange of one new share in Zanda Co for every two acquired shares in Medda Co. In addition, Zanda Co will pay

2、a further $054 per acquired share on 30 September 2016.Zanda Co has not recorded any of the purchase consideration and its cost of capital is 8% per annum.The market value of Zanda Cos shares at 1 October 2015 was $300 each.The summarised statements of financial position of the two companies as at 3

3、1 March 2016 are:The following information is relevant:(i) At the date of acquisition, Zanda Co conducted a fair value exercise on Medda Cos net assets which were equal to their carrying amounts (including Medda Cos financial asset equity investments) with the exception of an item of plant which had

4、 a fair value of $25 million below its carrying amount. The plant had a remaining useful life of 30 months at 1 October 2015.The directors of Zanda Co are of the opinion that an unrecorded deferred tax asset of $12 million at 1 October 2015, relating to Medda Cos losses, can be relieved in the near

5、future as a result of the acquisition. At 31 March 2016, the directors opinion has not changed, nor has the value of the deferred tax asset.(ii) Zanda Cos policy is to value the non-controlling interest at fair value at the date of acquisition. For this purpose, a share price for Medda Co of $150 ea

6、ch is representative of the fair value of the shares held by the noncontrolling interest.(iii) At 31 March 2016, Medda Co held goods in inventory which had been supplied by Zanda Co at a mark-up on cost of 35%. These goods had cost Medda Co $243 million.(iv) The financial asset equity investments of

7、 Zanda Co and Medda Co are carried at their fair values at 1 April 2015. At 31 March 2016, these had fair values of $61 million and $18 million respectively, with the change in Medda Cos investments all occurring since the acquisition on 1 October 2015.(v) There is no impairment to goodwill at 31 Ma

8、rch 2016.Required:Prepare the following extracts from the consolidated statement of financial position of Zanda Co as at 31 March 2016:(i) Goodwill; (ii) Retained earnings; (iii) Non-controlling interest.The following mark allocation is provided as guidance for this question:(i) 6 marks (ii) 7 marks

9、 (iii) 2 marks2、Coaltown is a wholesaler and retailer of office furniture. Extracts from the companys financial statements are set out below:Statements of comprehensive income for the year ended:Required:(a) Prepare a statement of cash flows for Coaltown for the year ended 31 March 2009 in accordanc

10、e withIAS 7 Statement of Cash Flows by the indirect method. (15 marks)(b) The directors of Coaltown are concerned at the deterioration in its bank balance and are surprised that the amount of gross profit has not increased for the year ended 31 March 2009. At the beginning of the current accounting

11、period (i.e. on 1 April 2008), the company changed to importing its purchases from a foreign supplier because the trade prices quoted by the new supplier were consistently 10% below those of its previous supplier.However, the new supplier offered a shorter period of credit than the previous supplier

12、 (all purchases are oncredit). In order to encourage higher sales, Coaltown increased its credit period to its customers, and some of the cost savings (on trade purchases) were passed on to customers by reducing selling prices on both cash and credit sales by 5% across all products.Required:(i) Calc

13、ulate the gross profit margin that you would have expected Coaltown to achieve for the year ended31 March 2009 based on the selling and purchase price changes described by the directors;(2 marks)(ii) Comment on the directors surprise at the unchanged gross profit and suggest what other factors mayha

14、ve affected gross profit for the year ended 31 March 2009; (4 marks)(iii) Applying the trade receivables and payables credit periods for the year ended 31 March 2008 to thecredit sales and purchases of the year ended 31 March 2009, calculate the effect this would have hadon the companys bank balance

15、 at 31 March 2009 assuming sales and purchases would have remainedunchanged. (4 marks)Note: the inventory at 31 March 2008 was unchanged from that at 31 March 2007; assume 365 tradingdays.3、4、5、6、7、On 1 October 2010, Paladin secured a majority equity shareholding in Saracen on the following terms:an

16、 immediate payment of $4 per share on 1 October 2010; and a further amount deferred until 1 October 2011 of $54 million.The immediate payment has been recorded in Paladins financial statements, but the deferred payment has not been recorded. Paladins cost of capital is 8% per annum.On 1 February 201

17、1, Paladin also acquired 25% of the equity shares of Augusta paying $10 million in cash. The summarised statements of financial position of the three companies at 30 September 2011 are:The following information is relevant:(i) Paladins policy is to value the non-controlling interest at fair value at

18、 the date of acquisition. For this purpose the directors of Paladin considered a share price for Saracen of $350 per share to be appropriate.(ii) At the date of acquisition, the fair values of Saracens property, plant and equipment was equal to its carrying amount with the exception of Saracens plan

19、t which had a fair value of $4 million above its carrying amount. At that date the plant had a remaining life of four years. Saracen uses straight-line depreciation for plant assuming a nil residual value. Also at the date of acquisition, Paladin valued Saracens customer relationships as a customer

20、base intangible asset at fair value of $3 million. Saracen has not accounted for this asset. Trading relationships with Saracens customers last on average for six years.(iii) At 30 September 2011, Saracens inventory included goods bought from Paladin (at cost to Saracen) of $26 million. Paladin had

21、marked up these goods by 30% on cost. Paladins agreed current account balance owed by Saracen at 30 September 2011 was $13 million.(iv) Impairment tests were carried out on 30 September 2011 which concluded that consolidated goodwill was not impaired, but, due to disappointing earnings, the value of

22、 the investment in Augusta was impaired by $25 million.(v) Assume all profits accrue evenly through the year.Required:Prepare the consolidated statement of financial position for Paladin as at 30 September 2011.8、9、10、(a) The following figures have been calculated from the financial statements (incl

23、uding comparatives) of Barstead forthe year ended 30 September 2009:increase in profit after taxation 80%increase in (basic) earnings per share 5%increase in diluted earnings per share 2%Required:Explain why the three measures of earnings (profit) growth for the same company over the same period can

24、give apparently differing impressions. (4 marks)(b) The profit after tax for Barstead for the year ended 30 September 2009 was $15 million. At 1 October 2008 the company had in issue 36 million equity shares and a $10 million 8% convertible loan note. The loan note will mature in 2010 and will be re

25、deemed at par or converted to equity shares on the basis of 25 shares for each $100 of loan note at the loan-note holders option. On 1 January 2009 Barstead made a fully subscribed rights issue of one new share for every four shares held at a price of $280 each. The market price of the equity shares

26、 of Barstead immediately before the issue was $380. The earnings per share (EPS) reported for the year ended 30 September 2008 was 35 cents.Barsteads income tax rate is 25%.Required:Calculate the (basic) EPS figure for Barstead (including comparatives) and the diluted EPS (comparatives not required)

27、 that would be disclosed for the year ended 30 September 2009. (6 marks)11、(a) The objective of IAS 10 Events after the Reporting Period is to prescribe the treatment of events that occur after an entitys reporting period has ended.Required:Define the period to which IAS 10 relates and distinguish b

28、etween adjusting and non-adjusting events.(5 marks)(b) Waxworks current year end is 31 March 2009. Its financial statements were authorised for issue by its directors on 6 May 2009 and the AGM (annual general meeting) will be held on 3 June 2009. The following matters have been brought to your atten

29、tion:(i) On 12 April 2009 a fire completely destroyed the companys largest warehouse and the inventory itcontained. The carrying amounts of the warehouse and the inventory were $10 million and $6 millionrespectively. It appears that the company has not updated the value of its insurance cover and on

30、ly expectsto be able to recover a maximum of $9 million from its insurers. Waxworks trading operations have beenseverely disrupted since the fire and it expects large trading losses for some time to come. (4 marks)(ii) A single class of inventory held at another warehouse was valued at its cost of $

31、460,000 at 31 March2009. In April 2009 70% of this inventory was sold for $280,000 on which Waxworks sales staff earneda commission of 15% of the selling price. (3 marks)(iii) On 18 May 2009 the government announced tax changes which have the effect of increasing Waxworksdeferred tax liability by $6

32、50,000 as at 31 March 2009. (3 marks)Required:Explain the required treatment of the items (i) to (iii) by Waxwork in its financial statements for the yearended 31 March 2009.Note: assume all items are material and are independent of each other. (10 marks as indicated)12、13、(a) The methods by which A

33、ccounting Standards are developed differ considerably throughout the world. It is often argued that there are two main systems of regulation that determine the nature of Accounting Standards: a rules-based system and a principles-based system.Required:Briefly explain the difference between the two s

34、ystems and state which system you believe is most descriptive of International Financial Reporting Standards (IFRS). (4 marks)(b) Baxen is a public listed company that currently uses local Accounting Standards for its financial reporting. The board of directors of Baxen is considering the adoption o

35、f International Financial Reporting Standards (IFRS) in the near future. The company has ambitious growth plans which involve extensive trading with many foreign companies and the possibility of acquiring at least one of its trading partners as a subsidiary in the near future.Required:Identify the a

36、dvantages that Baxen could gain by adopting IFRS for its financial reporting purposes. (6 marks)14、15、16、17、 18、(a) Two of the qualitative characteristics of information contained in the IASBs Conceptual Framework for Financial Reporting are understandability and comparabilityRequired:Explain the me

37、aning and purpose of the above characteristics in the context of financial reporting and discuss the role of consistency within the characteristic of comparability in relation to changes in accounting policy. (6 marks)(b) Lobden is a construction contract company involved in building commercial prop

38、erties. Its current policy for determining the percentage of completion of its contracts is based on the proportion of cost incurred to date compared to the total expected cost of the contract.One of Lobdens contracts has an agreed price of $250 million and estimated total costs of $200 million.The

39、cumulative progress of this contract is:Based on the above, Lobden prepared and published its financial statements for the year ended 30 September 2011. Relevant extracts are:Lobden has received some adverse publicity in the financial press for taking its profit too early in the contract process, le

40、ading to disappointing profits in the later stages of contracts. Most of Lobdens competitors take profit based on the percentage of completion as determined by the work certified compared to the contract price.Required:(i) Assuming Lobden changes its method of determining the percentage of completio

41、n of contracts to that used by its competitors, and that this would represent a change in an accounting estimate, calculate equivalent extracts to the above for the year ended 30 September 2012; (7 marks)(ii) Explain why the above represents a change in accounting estimate rather than a change in ac

42、counting policy. (2 marks)19、The following trial balance relates to Sandown at 30 September 2009:The following notes are relevant:(i) Sandowns revenue includes $16 million for goods sold to Pending on 1 October 2008. The terms of the sale are that Sandown will incur ongoing service and support costs

43、 of $12 million per annum for three years after the sale. Sandown normally makes a gross profit of 40% on such servicing and support work. Ignore the time value of money.(ii) Administrative expenses include an equity dividend of 48 cents per share paid during the year.(iii) The 5% convertible loan n

44、ote was issued for proceeds of $20 million on 1 October 2007. It has an effective interest rate of 8% due to the value of its conversion option.(iv) During the year Sandown sold an available-for-sale investment for $11 million. At the date of sale it had acarrying amount of $88 million and had origi

45、nally cost $7 million. Sandown has recorded the disposal of theinvestment. The remaining available-for-sale investments (the $265 million in the trial balance) have a fair value of $29 million at 30 September 2009. The other reserve in the trial balance represents the net increase in the value of th

46、e available-for-sale investments as at 1 October 2008. Ignore deferred tax on these transactions.(v) The balance on current tax represents the under/over provision of the tax liability for the year ended 30 September 2008. The directors have estimated the provision for income tax for the year ended

47、30 September 2009 at $162 million. At 30 September 2009 the carrying amounts of Sandowns net assets were $13 million in excess of their tax base. The income tax rate of Sandown is 30%.(vi) Non-current assets:The freehold property has a land element of $13 million. The building element is being depre

48、ciated on astraight-line basis.Plant and equipment is depreciated at 40% per annum using the reducing balance method.Sandowns brand in the trial balance relates to a product line that received bad publicity during the year which led to falling sales revenues. An impairment review was conducted on 1

49、April 2009 which concluded that, based on estimated future sales, the brand had a value in use of $12 million and a remaining life of only three years.However, on the same date as the impairment review, Sandown received an offer to purchase the brand for$15 million. Prior to the impairment review, i

50、t was being depreciated using the straight-line method over a10-year life.No depreciation/amortisation has yet been charged on any non-current asset for the year ended 30 September2009. Depreciation, amortisation and impairment charges are all charged to cost of sales.Required:(a) Prepare the statem

51、ent of comprehensive income for Sandown for the year ended 30 September 2009.(13 marks)(b) Prepare the statement of financial position of Sandown as at 30 September 2009. (12 marks)Notes to the financial statements are not required.A statement of changes in equity is not required.20、 21、22、(a) Audit

52、ors have a responsibility under ISA 265 Communicating Deficiencies in Internal Control to those Charged with Governance and Management, to communicate deficiencies in internal controls. In particular SIGNIFICANT deficiencies in internal controls must be communicated in writing to those charged with

53、governance.Required: Explain examples of matters the auditor should consider in determining whether a deficiency in internal controls is significant. (5 marks)Greystone Co is a retailer of ladies clothing and accessories. It operates in many countries around the world and has expanded steadily from

54、its base in Europe. Its main market is aimed at 15 to 35 year olds and its prices are mid to low range. The companys year end was 30 September 2010.In the past the company has bulk ordered its clothing and accessories twice a year. However, if their goods failed to meet the key fashion trends then t

55、his resulted in significant inventory write downs. As a result of this the company has recently introduced a just in time ordering system. The fashion buyers make an assessment nine months in advance as to what the key trends are likely to be, these goods are sourced from their suppliers but only li

56、mited numbers are initially ordered.Greystone Co has an internal audit department but at present their only role is to perform. regular inventory counts at the stores.Ordering processEach country has a purchasing manager who decides on the initial inventory levels for each store, this is not done in

57、 conjunction with store or sales managers. These quantities are communicated to the central buying department at the head office in Europe. An ordering clerk amalgamates all country orders by specified regions of countries, such as Central Europe and North America, and passes them to the purchasing

58、director to review and authorise.As the goods are sold, it is the store managers responsibility to re-order the goods through the purchasing manager; they are prompted weekly to review inventory levels as although the goods are just in time, it can still take up to four weeks for goods to be receive

59、d in store.It is not possible to order goods from other branches of stores as all ordering must be undertaken through the purchasing manager. If a customer requests an item of clothing, which is unavailable in a particular store, then the customer is provided with other branch telephone numbers or r

60、ecommended to try the company website.Goods received and InvoicingTo speed up the ordering to receipt of goods cycle, the goods are delivered directly from the suppliers to the individual stores. On receipt of goods the quantities received are checked by a sales assistant against the suppliers deliv