CFA二级科目集训直播-财报（上）-习题

科目集训营（2019.06）

财报(上）

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Case1

JavierCasado,ananalystwhomanagesfundsforhigh-net-worthinvestors,isevaluatingBardemS.A.(Bardem)asa

possibleadditiontoalargeinvestmentportfolio.Bardem,basedinMadrid,Spain,isamanufacturingfirmthatspecializes

inpackagingmaterials.ThecompanyreportsusingIFRS,anditsreportingcurrencyistheEuro.

On2January2016,Bardempurchasedan18%stakeinthenewbondissueofPapelco,aSpanishmakerofspecialty

papersfromwhomBardembuysinventory.Thebonds,whichmatureon31December2023,payinterestannuallywitha

couponrateof4%.Bardempaid€5,000,000forthedebt,whichhadaparvalueof€4,800,000reflectingayieldto

maturityof3.4%.Bardemclassifiestheinvestmentasheld-to-maturity.Casadoistryingtodeterminetheimpactofthe

Papelcopurchase,andwondershowitwillaffectBardem’sfinancialstatements.

CasadolearnsthatBardemacquireda25%stakeinArianaShippingS.A.(Ariana)on1January2017.Ariana,whichis

basedinGreece,hasboughtpackagingsuppliesfromBardeminthepastbasedoncatalogprices.Casadobelievesthatthe

purchasewillchangetherelationshipbetweenthetwocompaniesandwillalsoaffectBardem’sfinancialreporting.He

mentionstoacoworker,AnaDomingues,thatthepricepaidbyBardemfortheArianashareswas€80million.

DominguestellsCasadothatBardem’spurchaseofAriana’sequitywilllikelyallowBardemtoinfluenceAriana’s

financialandoperatingperformance.Asaresult,shestates,Bardemwillberequiredtousetheequitymethodof

accountingforthisinvestment.CasadorepliesthattheequitymethodofaccountingisonlyrequiredunderIFRSforjoint

venturesorwhentheinvesteeholdsaseatontheassociate’sboardofdirectors.

Bardempreparesthefollowingtabletoexaminethepurchasemoreclosely.

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DominguessaysthatsheisconcernedthatBardemdidn’tsufficientlyinvestigateArianabeforethepurchase,given

economicuncertaintysurroundingGreekcompanies.SheasksCasadowhatwillhappentoBardem’sfinancialstatementsif

thevalueofArianaispermanentlyimpairedduetobusinesslossesorotherdemonstrableevents.Casadorepliesthatifthe

equitymethodisnotrequired,thentherewillbenoimpact.However,iftheequitymethodisused,hestates:

1Goodwillmustbeseparatelytestedforimpairment.

2Impairmentlossescannotbereversedeveniffairvaluelaterincreases.

3Impairmentlossesexceedingthegoodwillvalueareallocatedpro-ratatotheunit’snon-cashassets.

CasadohaslearnedfromBardem’smanagementthattheyareconsideringthepurchaseof60%ofAshevilleIndustries,Inc.

(Asheville),aUS-basedmanufacturerofcorrugatedcardboard,inastock-for-stockacquisition.BardemthinksthatAsheville

willprovideaconsistentsupplyofmaterialforitsboxproductionline.AshevillereportsunderUSGAAP.Casadonotesthat

thisacquisitionwillaffectthevaluationmodelshehascreatedforBardem,andwonderswhetherthecompanywillstillbea

goodcandidatefortheinvestmentportfolio.Hepreparesasummaryofbalancesheetdatainadvanceoftheacquisition,with

Asheville’sinformationexpressedineuros,(Exhibit2),andstudiesitcarefully.

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DominguesinformsCasadoofafinalpieceofinformationrelevanttohisevaluation.Toincrease

liquidity,Bardemisconsideringborrowing€70Magainstaccountsreceivable.Asanalternativeto

borrowing,theycouldsecuritizethereceivablesbycreatingaspecialpurposeentity(SPE)over

whichtheywouldexercisecontrol.Todoso,theywouldinvest€5MintheSPE.TheSPEwould

thenborrow€70M,andwouldbuy€75MinreceivablesfromBardem.Dominguescommentsthat

securitizationusinganSPEwouldimpactBardem’sreportedfinancialconditioninthreeways.It

would:

1reducethecostofborrowing.

2increasethelevelofcurrentassets.

3improvebalancesheetratios.

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1TheinvestmentincomethatBardemwillreportin2016fromthePapelcodebtisclosestto:

A€170,000.

B€192,000.

C€200,000.

2InthediscussionaboutusingtheequitymethodtoaccountforBardem’spurchaseofAriana,whichstatementismost

accurate?Thestatementby:

ADomingues.

BCasadoconcerningjointventures.

CCasadoconcerningboardofdirectors’positions.

3IfBardemdoesusetheequitymethodofaccountingforitspurchaseofAriana,usingExhibit1,thevalueofgoodwill,

inmillions,arisingfromthepurchaseisclosestto:

A€6.25.

B€21.25.

C€15.00.

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4WhichofCasado’sthreestatementsregardingthepotentialimpairmentoftheinvestmentinArianaismostaccurate?

Statement:

A2

B1

C3

5IfBardempurchasesAsheville,usingtheinformationinExhibit2,thevalue(inmillions)ofPP&Eontheconsolidated

balancesheetimmediatelyaftertheacquisitionwillbeclosestto:

A€162.

B€134.

C€141.

6IfBardemcreatesaspecialpurposeentityratherthanborrowingagainstitsreceivables,whichofDomingues’

commentsismostaccurate?Comment:

A1

B2

C3

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Case2

BurtonHoward,CFA,isanequityanalystwithMaplewoodSecurities.Howardispreparingaresearch

reportonConfabulatedMaterials,SA,apubliclytradedcompanybasedinFrancethatcomplieswith

IFRS.Aspartofhisanalysis,Howardhasassembleddatagatheredfromthefinancialstatement

footnotesofConfabulated’s2009AnnualReportandfromdiscussionswithcompanymanagement.

HowardisconcernedabouttheeffectofthisinformationonConfabulated’sfutureearnings.

InformationaboutConfabulated’sinvestmentportfoliofortheyearsended31December2008and

2009ispresentedinExhibit1.Aspartofhisresearch,Howardisconsideringthepossibleeffecton

reportedincomeofConfabulated’saccountingclassificationforfixedincomeinvestments.

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Inaddition,Confabulated’sannualreportdiscussesatransactionunderwhichreceivableswere

securitizedthroughaspecialpurposeentity(SPE)forConfabulated’sbenefit.

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7.ThebalancesheetcarryingvalueofConfabulated’sinvestmentportfolio(in€thousands)at31December2009isclosestto:

A.112,000.

B.115,000.

C.118,000.

8.ThebalancesheetcarryingvalueofConfabulated’sinvestmentportfolioat31December2009

wouldhavebeenhigherifwhichofthesecuritieshadbeenreclassifiedasaheldfortrading

security?

A.Bugle.

B.Cathay.

C.Dumas.

9.ComparedtoConfabulated’sreportedinterestincomein2009,ifDumashadbeenclassifiedas

available-for-sale,theinterestincomewouldhavebeen:

A.lower.

B.thesame.

C.higher.

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10.ComparedtoConfabulated’sreportedearningsbeforetaxesin2009,ifBuglehadbeenclassifiedasaheldfortrading

security,theearningsbeforetaxes(in€thousands)wouldhavebeen:

A.thesame.

B.€1,000lower.

C.€3,000higher.

11.Confabulated’sreportedinterestincomewouldbelowerifthecostwasthesamebuttheparvalue(in€thousands)

of:

A.Buglewas€28,000.

B.Cathaywas€37,000.

C.Dumaswas€55,000.

12.Confabulated’sspecialpurposeentityismostlikelytobe:

A.heldoff-balancesheet.

B.consolidatedonConfabulated’sfinancialstatements.

C.consolidatedonConfabulated’sfinancialstatementsonlyifitisa“qualifyingSPE.”

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Case3

XYZSA,ahypotheticalcompany,offersitsemployeesadefinedbenefitpensionplan.Information

onXYZ’sretirementplansispresentedinExhibit2.Italsograntsstockoptionstoexecutives.

Exhibit3containsinformationonthevolatilityassumptionsusedtovaluestockoptions.

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13.Theretirementbenefitspaidduringtheyearwereclosestto:

A.280.

B.3,000.

C.4,000.

14.The