9The consolidated statement of profit or loss and other comprehensive income

Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International) June 2011 Answers 1(a)(i)Prodigal – Consolidated statement of comprehensive income for the year ended 31 March 2011$’000 Revenue (450,000 + (240,000 x 6/12) – 40,000 intra-group sales)530,000Cost of sales (w (i))(278,800)––––––––Gross profit251,200Distribution costs (23,600 + (12,000 x 6/12))(29,600)Administrative expenses (27,000 + (23,000 x 6/12))(38,500)Finance costs (1,500 + (1,200 x 6/12))(2,100)––––––––Profit before tax181,000Income tax expense (48,000 + (27,800 x 6/12))(61,900)––––––––Profit for the year119,100––––––––Other comprehensive incomeGain on revaluation of land (2,500 + 1,000)3,500Loss on fair value of equity financial asset investments (700 + (400 x 6/12))(900)––––––––2,600––––––––T otal comprehensive income121,700––––––––Profit attributable to:Owners of the parent111,600Non-controlling interest (w (ii))7,500––––––––119,100––––––––T otal comprehensive income attributable to:Owners of the parent 114,000Non-controlling interest (w (ii))7,700––––––––121,700––––––––(ii)Prodigal – Equity section of the consolidated statement of financial position as at 31 March 2011Equity attributable to owners of the parentShare capital (250,000 + 80,000) see below330,000Share premium (100,000 + 240,000) see below340,000Revaluation reserve (land) (8,400 + 2,500 + (1,000 x 75%))11,650Other equity reserve (3,200 – 700 – (400 x 6/12 x 75%)) 2,350Retained earnings (w (iii))201,600––––––––885,600 Non-controlling interest (w (iv))107,700––––––––T otal equity993,300––––––––The share exchange would result in Prodigal issuing 80 million shares (160,000 x 75% x 2/3) at a value of $4 each(capital 80,000; premium 240,000).(b)IFRS 3 allows (as an option) a non-controlling interest to be valued at its proportionate share of the acquired subsidiary’sidentifiable net assets; this carries forward the only allowed method in the previous version of this Standard. Its effect on the statement of financial position is that the resulting carrying value of purchased goodwill only relates to the parent’s element of such goodwill and as a consequence the non-controlling interest does not reflect its share of the subsidiary’s goodwill. Some commentators feel this is an anomaly as the principle of a consolidated statement of financial position is that it should disclose the whole of the subsidiary’s assets that are under the control of the parent (not just the parent’s share). This principle is applied to all of a subsidiary’s other identifiable assets, so why not goodwill?Any impairment of goodwill under this method would only be charged against the parent’s interest, as the non-controlling interest’s share of goodwill is not included in the consolidated financial statements.The second (new) method of valuing the non-controlling interest at its fair value would (normally) increase the value of the goodwill calculated on acquisition. This increase reflects the non-controlling interest’s ownership of the subsidiary’s goodwill and has the effect of ‘grossing up’ the goodwill and the non-controlling interests in the statement of financial position (by the same amount). It is argued that this method reflects the whole of the subsidiary’s goodwill/premium on acquisition and is thus consistent with the principles of consolidation.Under this method any impairment of the subsidiary’s goodwill is charged to both the controlling (parent’s share) and non-controlling interests in proportion to their holding of shares in the subsidiary.Workings (figures in brackets in $’000)(i)Cost of sales $’000$’000Prodigal260,000Sentinel (110,000 x 6/12)55,000Intra-group purchases (40,000)Unrealised profit on sale of plant1,000Depreciation adjustment on sale of plant (1,000/2½ years x 6/12)(200)Unrealised profit in inventory (12,000 x 10,000/40,000)3,000––––––––278,800––––––––(ii)Non controlling interest in income statement profit:Sentinel’s post-acquisition profit (66,000 x 6/12)33,000Less:Unrealised profit in inventory (w (i))(3,000)–––––––30,000x 25% = 7,500 Non controlling interest in total comprehensive incomeAs above7,500Other comprehensive income (1,000 – (400 x 6/12) x 25%)200–––––––7,700–––––––(iii)Retained earningsProdigal at 1 April 201090,000Per statement of comprehensive income111,600––––––––201,600––––––––(iv)Non-controlling interest in statement of financial positionAt acquisition100,000Per statement of comprehensive income7,700––––––––107,700––––––––2(i)Highwood – Statement of comprehensive income for the year ended 31 March 2011$’000Revenue 339,650Cost of sales (w (i))(216,950)–––––––––Gross profit122,700Distribution costs (27,500)Administrative expenses (30,700 – 1,300 + 600 allowance (w (ii)))(30,000)Finance costs (w (iii))(2,848)–––––––––Profit before tax62,352Income tax expense (19,400 – 800 + 400 (w (iv)))(19,000)–––––––––Profit for the year43,352Other comprehensive income:Gain on revaluation of property (w (i))15,000Deferred tax on revaluation (w (i))(3,750)–––––––––T otal comprehensive income54,602–––––––––(ii)Highwood – Statement of changes in equity for the year ended 31 March 2011Share Equity Revaluation Retained Totalcapital option reserve earnings equity$’000$’000$’000$’000$’000 Balance at 1 April 2010 (see below)56,000nil nil7,00063,0008% loan note issue (w (iii))1,5241,524Dividend paid (w (v))(5,600)(5,600)Comprehensive income11,25043,35254,602–––––––––––––––––––––––––––––––––––Balance at 31 March 201156,0001,52411,25044,752113,526–––––––––––––––––––––––––––––––––––Note: the retained earnings of $1·4 million in the trial balance is after deducting the dividend paid of $5·6 million (w (v)), therefore the retained earnings at 1 April 2010 were $7 million.(iii)Highwood – Statement of financial position as at 31 March 2011Assets$’000$’000Non-current assetsProperty, plant and equipment (77,500 + 40,000) (w (i))117,500Current assetsInventory (36,000 – 2,700 + 6,000) (w (i))39,300T rade receivables (47,100 + 10,000 – 600 allowance) (w (ii))56,50095,800–––––––––––––––T otal assets213,300––––––––Equity and liabilitiesEquity (see answer (ii))Equity shares of 50 cents each56,000Other component of equity – equity option1,524Revaluation reserve11,250Retained earnings 44,752––––––––113,526Non-current liabilitiesDeferred tax (w (iv))6,7508% convertible loan note (28,476 + 448) (w (iii))28,92435,674–––––––Current liabilitiesT rade payables24,500Liability to Easyfinance (w (ii))8,700Bank overdraft11,500Current tax payable19,40064,100–––––––––––––––T otal equity and liabilities213,300––––––––Workings (figures in brackets in $’000)(i)Cost of sales and non-current assets$’000Cost of sales per question207,750Depreciation –building (see below)2,500–plant and equipment (see below) 10,000Adjustment/increase to closing inventory (see below)(3,300)––––––––216,950––––––––Freehold propertyThe revaluation of the property will create an initial revaluation reserve of $15 million (80,000 – (75,000 – 10,000)).$3·75 million of this (25%) will be transferred to deferred tax leaving a net revaluation reserve of $11·25 million. The building valued at $50 million will require a depreciation charge of $2·5 million (50,000/20 years remaining) for the current year. This will leave a carrying amount in the statement of financial position of $77·5 million (80,000 –2,500).Plant and equipment:Cost Accumulated depreciation$’000$’0001 April 201074,50024,500Charge for year ((74,500 – 24,500) x 20%)10,000––––––––––––––31 March 201174,50034,500––––––––––––––The carrying amount in the statement of financial position is $40 million.Inventory adjustmentGoods delivered (deduct from closing inventory)(2,700)Cost of goods sold (7,800 x 100/130) (add to closing inventory)6,000––––––Net increase in closing inventory3,300––––––(ii)Factored receivablesAs Highwood still bears the risk of the non-payment of the receivables, the substance of this transaction is a loan. Thus the receivables must remain on Highwood’s statement of financial position and the proceeds of the ‘sale’ treated as a current liability. The difference between the factored receivables (10,000) and the loan received (8,700) of $1·3 million, which has been charged to administrative expenses, should be reversed except for $600,000 which should be treated as an allowance for uncollectible receivables.(iii)8% convertible loan noteThis is a compound financial instrument having a debt (liability) and an equity component. These must be quantifiedand accounted for separately:year ended 31 March outflow10%present value$’000$’00020112,4000·912,18420122,4000·831,992201332,4000·7524,300–––––––Liability component 28,476Equity component (balance)1,524–––––––Proceeds of issue30,000–––––––The finance cost for the year will be $2,848,000 (28,476 x 10% rounded). Thus $448,000 (2,848 – 2,400 interestpaid) will be added to the carrying amount of the loan note in the statement of financial position.(iv)Deferred taxcredit balance required at 31 March 2011 (27,000 x 25%)6,750revaluation of property (w (i))(3,750)balance at 1 April 2010(2,600)––––––charge to income statement400––––––(v)The dividend paid in November 2010 was $5·6 million. This is based on 112 million shares in issue (56,000 x 2 –the shares are 50 cents each) times 5 cents.3(a)Bengal – Statement of cash flows for the year ended 31 March 2011:(Note: figures in brackets are in $’000)$’000$’000Cash flows from operating activities:Profit before tax5,250Adjustments for:depreciation of non-current assets 640finance costs650increase in inventories (3,600 – 1,800)(1,800)increase in receivables (2,400 – 1,400)(1,000)increase in payables (2,800 – 2,150)650–––––––Cash generated from operations 4,390Finance costs paid(650)Income tax paid (w (i))(1,250)–––––––Net cash from operating activities2,490Cash flows from investing activities:Purchase of property, plant and equipment (w (ii))(6,740)Purchase of intangibles (6,200)––––––Net cash used in investing activities(12,940)Cash flows from financing activities:Issue of 8% loan note7,000Equity dividends paid (w (iii))(750)––––––Net cash from financing activities6,250–––––––Net decrease in cash and cash equivalents (4,200)Cash and cash equivalents at beginning of period4,000–––––––Cash and cash equivalents at end of period(200)–––––––Workings(i)Income tax paid:$’000Provision b/f (1,200)Income statement tax charge (2,250)Provision c/f – current2,200––––––Balance – cash paid(1,250)––––––(ii)Property, plant and equipment:$’000Balance b/f5,400Depreciation(640)Balance c/f–current(9,500)–held for sale(2,000)––––––Balance – cash purchases6,740––––––(iii)Equity dividendRetained earnings b/f2,250Profit for period3,000Retained earnings c/f(4,500)––––––Balance – dividend paid750––––––(b)Note: references to 2011 and 2010 refer to the periods ending 31 March 2011 and 2010 respectively.It is understandable that the shareholder’s observations would cause concern. A large increase in sales revenue has not led to a proportionate increase in profit. T o assess why this has happened requires consideration of several factors that could potentially explain the results. Perhaps the most obvious would be that the company has increased its sales by discounting prices (cutting profit margins). Interpreting the ratios in the appendix rules out this possible explanation as the gross profit margin has in fact increased in 2011 (up from 40% to 42%). Another potential cause of the disappointing profit could be overheads (distribution costs and administrative expenses) getting out of control, perhaps due to higher advertising costs or more generous incentives to sales staff. Again, when these expenses are expressed as a percentage of sales, this does not explain the disparity in profit as the ratio has remained at approximately 19%. What is evident is that there has been a very large increase in finance costs which is illustrated by the interest cover deteriorating from 36 times to only 9 times. The other ‘culprit’ is the taxation expense: expressed as a percentage of pre-tax accounting profit, the effective rate of tax has gone from 28·6% in 2010 to 42·9% in 2011. There are a number of factors that can affect a period’s effective tax rate (including under-or over-provisions from the previous year), but judging from the figures involved, it would seem likely that either there was a material adjustment from an under-provision of tax in 2010 or there has been a considerable increase in the rate levied by the taxation authority.As an illustration of the effect, if the same effective tax rate in 2010 had applied in 2011, the after-tax profit would have been $3,749,000 (5,250 x (100% – 28·6%) rounded) and, using this figure, the percentage increase in profit would be 50% ((3,749 – 2,500)/2,500 x 100) which is slightly higher than the percentage increase in revenue. Thus an increase in the tax rate and increases in finance costs due to much higher borrowings more than account for the disappointing profit commented upon by the concerned shareholder.The other significant observation in comparing 2011 with 2010 is that the company has almost certainty acquired another business. The increased expenditure on property, plant and equipment of $6,740,000 and the newly acquired intangibles (probably goodwill) of $6·2 million are not likely to be attributable to organic or internal growth. Indeed the decrease in the bank balance of $4·2 million and the issue of $7 million loan notes closely match the increase in non-current assets. This implies that the acquisition has been financed by cash resources (which the company looks to have been building up) and issuing debt (no equity was issued). This in turn explains the dramatic increase in the gearing ratio (and the consequent fall in interest cover) and the fall in the current ratio (due to the use of cash resources for the business purchase). Although the current ratio at 1·5:1 is on the low side of acceptability, it does include $2 million of non-current assets held for sale. A better comparison with 2010 is the current ratio at 1·2:1 which excludes the non-current assets held for sale. It may be that these assets were part of the acquisition of the new business and are ‘surplus to requirements’, hence they have been made available for sale. They are likely to be valued at their ‘fair value less cost to sell’ and the prospect of their sale should be highly probable (normally within one year). That said, if the assets are not sold in the near future, it would call into question the acceptability of the company’s current ratio which may cause short-term liquidity problems.The overall performance of Bengal has deteriorated (as measured by its ROCE) from 38·9% to 31·9%. This is mainly due toa lower rate of net asset turnover (down from 1·9 to 1·4 times), however when the turnover of property, plant and equipmentis considered (down from 3·2 to 2·7 times) the asset utilisation position is not as bad as it first looks, in effect it is the presence of the acquired intangibles that is mostly responsible for the fall.Further, it may be that the new business was acquired part way through the year and thus the returns from this element may be greater next year when a full period’s profits will be reported. It may also be that the integration of the new business requires time (and expense) before it delivers its full potential.In summary, although reported performance has deteriorated, it may be that future results will benefit from the current year’s investment and show considerable improvement. Perhaps some equity should have been issued to lower the company’s gearing (and finance costs) and if the dividend of $750,000 had been suspended for a year there would be a better liquid position.AppendixCalculation of ratios (figures in $’000):20112010Gross profit margin (10,700/25,500 x 100)42·0%40·0 %Operating expenses % (4,800/25,500 x 100)18·8%19·1%Interest cover ((5,250 + 650)/650)9 times36 timesEffective rate of tax (2,250/5,250)42·9%28·6%Return on capital employed (ROCE) ((5,250 + 650)/(9,500 + 9,000) x 100)31·9%38·9%Net asset turnover (25,500/18,500)1·4 times1·9 timesProperty, plant and equipment turnover (25,500/9,500)2·7 times3·2 timesNet profit (before tax) margin (5,250/25,500 x 100)20·6%20·3%Current ratio (8,000/5,200)1·5:12·1:1(including non-current assets held for sale in 2011)Alternative current ratio (6,000/5,200)1·2:12·1:1(excluding non-current assets held for sale in 2011)Gearing (debt/equity) (9,000/9,500)94·7%27·6%The figures for the calculation of 2011’s ratios are given in brackets; the figures for 2010 are derived from the equivalent figures.4(a)T wo important and interrelated aspects of relevance are its confirmatory and predictive roles. The Framework specifically states that to have predictive value, information need not be in the form of an explicit forecast. The serious drawback of forecast information is that it does not have (strong) confirmatory value; essentially it will be an educated guess.IFRS examples of enhancing the predictive value of historical financial statements are:(i)The disclosure of continuing and discontinued operations. This allows users to focus on those areas of an entity’soperations that will generate its future results. Alternatively it could be thought of as identifying those operations whichwill not yield profits or, perhaps more importantly, losses in the future.(ii)The separate disclosure of non-current assets held for sale. This informs users that these assets do not form part of an entity’s long-term operating assets.(iii)The separate disclosure of material items of income or expense (e.g. a gain on the disposal of a property). These are often ‘one off’ items that may not be repeated in future periods. They are sometimes called ‘exceptional’ items ordescribed in the Framework as ‘unusual, abnormal and infrequent’ items.(iv)The presentation of comparative information (and the requirement for the consistency of its presentation such as retrospective application of changes in accounting policies) allows for a degree of trend analysis. Recent trends may helppredict future performance.(v)The requirement to disclose diluted EPS is often described as a ‘warning’ to shareholders of what EPS would have been if any potential (future) equity shares such as convertibles and options had already been exercised.(vi)The Framework’s definitions of assets (resources from which future economic benefits should flow) and liabilities (obligations which will result in a future outflow of economic benefits) are based on an entity’s future prospects ratherthan its past costs.Note: other examples may be acceptable.Tutorial note:The IASB revised framework ‘The Conceptual Framework for Financial Reporting’ is not listed as an examinable document in 2011. However, candidates using this knowledge will be given equal credit.(b)(i)The estimated profit after tax for Rebound for the year ending 31 March 2012 would be:$’000Existing operations (continuing only) ($2 million x 1·06) 2,120Newly acquired operations ($450,000 x 12/8 months x 1·08) 729––––––2,849––––––Note: the profit from newly acquired operations in 2011 was for only eight months; in 2012 it will be for a full year.(ii)Diluted EPS on continuing operations2011comparative 2010$2,730,000 (see workings) x 10018·7 cents–––––––––––––––––––––––14,600,000 (see workings)$2,030,000 (see workings) x 10014·5 cents–––––––––––––––––––––––14,000,000 (see workings)Workings (figures in brackets are in ’000 or $’000)The earnings are calculated as follows:2011comparative 2010$’000$’000 Continuing operations:Existing operations 2,0001,750Newly acquired operations450nilRe convertible loan stock (see below)280280––––––––––––2,7302,030––––––––––––The weighted average number of shares (in ’000) is calculated as follows:At 1 April 2009 (3,000 x 4 (i.e. shares of 25 cents each))12,00012,000Re convertible loan stock (see below)2,0002,000Re share options (see below) 600(weighted for six months)nil––––––––––––––14,60014,000––––––––––––––Convertible loan stock:On an assumed conversion there would be an increase in income of $280,000 ($5,000 x 8% x 0·7 after tax).There would be an increase in the number of shares of 2 million ($5,000/$100 x 40)These adjustments would apply fully to both years.Share options:Exercising the options would create proceeds of $2 million (2,000 x $1). At the market price of $2·50 each this wouldbuy 800,000 shares ($2,000/$2·50) thus the diluting number of shares is 1·2 million (2,000 – 800).This would be weighted for 6/12 in 2011 as the grant was half way through the year.5MoccaIncome statement year ended 31 March 2011$’000Revenue recognised ((65% (w (i)) x 12,500) – 3,500 in 2010)4,625Contract expenses recognised (balancing figure)(3,515)––––––Profit recognised ((65% (w (ii)) x 3,000) – 840 in 2010)1,110––––––Statement of financial position as at 31 March 2011Non-current assetsPlant (8,000 – 2,500 (w (iii)))5,500Current assetsReceivables (8,125 –7,725)400Amounts due from customers – Note 11,125Note 1Amounts due from customers:Contract costs incurred (w (iii))7,300Recognised profits (3,000 x 65%)1,950––––––9,250Progress billings(8,125)––––––Amounts due from customers1,125––––––Workings (in $’000)(i)Percentage complete:Agreed value of work completed at year end8,125–––––––Contract price12,500Percentage completed (8,125/12,500 x 100)65%(ii)Estimated profit:$’000 Contract price12,500 Plant depreciation (8,000 x 24/48 months)(4,000) Other costs(5,500)–––––––Profit3,000–––––––(iii)Contract costs incurred:Plant depreciation (8,000 x 15/48 months)2,500 Other costs 4,800––––––7,300––––––Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International) June 2011 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)(i)Statement of comprehensive incomerevenue2cost of sales4distribution costs and administrative expenses1finance costs1income tax expense1non-controlling interest in profit for year1½other comprehensive income2non-controlling interest in other comprehensive income1½14(ii)Consolidated equityshare capital1share premium1revaluation reserve (land)1other equity reserve1retained earnings1½non-controlling interest 1½7(b) 1 mark per valid point 4Total for question252(i)Statement of comprehensive incomerevenue½cost of sales4distribution costs½administrative expenses 1½finance costs1½income tax expense1½other comprehensive income1½11(ii)Statement of changes in equityopening balance on retained earnings1other component of equity (equity option) 1dividend paid 1comprehensive income14(iii)Statement of financial positionproperty, plant and equipment2½inventory1trade receivables 1deferred tax1issue of 8% loan note1½liability to Easyfinance1bank overdraft½trade payables½current tax payable110Total for question25Marks 3(a)Statement of cash flowsprofit before tax½depreciation of non-current assets ½finance costs added back½working capital items1½finance costs paid½income tax paid1purchase of property, plant and equipment 1½purchase of intangibles½8% loan note½equity dividends paid1cash and cash equivalents at beginning of period½cash and cash equivalents at end of period½9(b) 1 mark per valid point (including up to 5 for appropriate ratios)16Total for question25 4(a) 1 mark per valid point/example 6(b)(i)profit from continuing operations1profit from newly acquired operations23 (ii)EPS for 2010 and 2011 at 3 marks each6Total for question15 5revenue 3 profit 1½plant in statement of financial position 1½amounts due from customers 1 trade receivables 1 disclosure note2Total for question1022。

2018骞?鏈圓CCA鑰冭瘯P2鍏徃鎶ュ憡鐪熼(鎬诲垎锛?00.00锛屽仛棰樻椂闂达細195鍒嗛挓)涓€銆丼ection A(鎬婚鏁帮細2锛屽垎鏁帮細50.00)BackgroundBanana is the parent of a listed group of companies which have a year end of 30 June 20X7. Banana has made a number of acquisitions and disposals of investments during the current financial year and the directors require advice as to the correct accounting treatment of these acquisitions and disposals.The acquisition of GrapeOn 1 January 20X7, Banana acquired an 80% equity interest in Grape. The following is a summary of Grape’s equity at the acquisition date.The purchase consideration comprised 10 million of Banana’s shares which had a nominal value of $1 each and a market price of $6·80 each. Additionally, cash of $18 million was due to be paid on 1 January 20X9 if the net profit after tax of Grape grew by 5% in each of the two years following acquisition. The present value of the total contingent consideration at 1 January 20X7 was $16 million. It was felt that there was a 25% chance of the profit target being met. At acquisition, the only adjustment required to the identifiable net assets of Grape was for land which had a fair value $5 million higher than its carrying amount. This is not included within the $70 million equity of Grape at 1 January 20X7.Goodwill for the consolidated financial statements has been incorrectly calculated as follows:The financial director did not take into account the contingent cash since it was not probable that it would be paid. Additionally, he measured the non-controlling interest using the proportional method of net assets despite the group having a published policy to measure non-controlling interest at fair value. The share price of Grape at acquisition was $4·25 and should be used to value the non-controlling interest.The acquisition and subsequent disposal of StrawberryBanana had purchased a 40% equity interest in Strawberry for $18 million a number of years ago when the fair value of the identifiable net assets was $44 million. Since acquisition, Banana had the right to appoint one of the five directors on the board of Strawberry. The investment has always been equity accounted for in the consolidated financial statements of Banana. Banana disposed of 75% of its 40% investment on 1 October 20X6 for $19 million whenthe fair values of the identifiable net assets of Strawberry were $50 million. At that date, Banana lost its right to appoint one director to the board. The fair value of the remaining 10% equity interest was $4·5 million a t disposal but only $4 million at 30 June 20X7. Banana has recorded a loss in reserves of $14 million calculated as the difference between the price paid of $18 million and the fair value of $4 million at the reporting date. Banana has stated that they have no intention to sell their remaining shares in Strawberry and wish to classify the remaining 10% interest as fair value through other comprehensive income in accordance with IFRS® 9 Financial Instruments.The acquisition of MelonOn 30 June 20X7, Banana acquired all of the shares of Melon, an entity which operates in the biotechnology industry. Melon was only recently formed and its only asset consists of a licence to carry out research activities. Melon has no employees as research activities were outsourced to other companies. The activities are still at a very early stage and it is not clear that any definitive product would result from the activities. A management company provides personnel for Melon to supply supervisory activities and administrative functions. Banana believes that Melon does not constitute a business in accordance with IFRS 3 Business Combinations since it does not have employees nor carries out any of its own processes. Banana intends to employ its own staff to operate Melon rather than to continue to use the services of the management company. The directors of Banana therefore believethat Melon should be treated as an asset acquisition but are uncertain as to whether the International Accounting Standards Boa rd’s exposure draft Definition of a Business and Accounting for Previously Held Interests ED 2016/1 would revise this conclusion.The acquisition of bondsOn 1 July 20X5, Banana acquired $10 million 5% bonds at par with interest being due at 30 June each year. The bonds are repayable at a substantial premium so that the effective rate of interest was 7%. Banana intended to hold the bonds to collect the contractual cash flows arising from the bonds and measured them at amortised cost.On 1 July 20X6, Banana sold the bonds to a third party for $8 million. The fair value of the bonds was $10·5 million at that date. Banana has the right to repurchase the bonds on 1 July 20X8 for $8·8 million and it is likely that this option will be exercised. The third party is obliged to return the coupon interest to Banana and to pay additional cash to Banana should bond values rise. Banana will also compensate the third party for any devaluation of the bonds.Required:锛堝垎鏁帮細30锛?/p>(1).Draft an explanatory note to the directors of Banana, discussing the following:(i) how goodwill should have been calculated on the acquisition of Grape and show the accounting entry which is required to amend the financial director’s error;(ii) why equity accounting was the appropriate treatment for Strawberry in the consolidated financial statements up to the date of its disposal showing the carrying amount of the investment in Strawberry just prior to disposal;(iii) how the gain or loss on disposal of Strawberry should have been recorded in the consolidated financial statements and how the investment in Strawberry should be accounted for after the part disposal.Note: Any workings can either be shown in the main body of the explanatory note or in an appendix to the explanatory note.锛堝垎鏁帮細16锛?/p>__________________________________________________________________________________________ 姝ｇ‘绛旀锛?Explanatory note to: Directors of BananaSubject: Consolidation of Grape and Strawberry(i) Goodwill should be calculated by comparing the fair value of the consideration with the fair value of the identifiable net assets at acquisition. The shares have been correctly valued using the market price of Banana at acquisition. Contingent consideration should be included at its fair value which should be assessed taking into account the probability of the targets being achieved as well as being discounted to present value. It would appear reasonable to measure the consideration at a value of $4 million ($16 million x 25%). A corresponding liability should be included within the consolidated financial statements with subsequent remeasurement. This would be adjusted prospectively to profit or loss rather than adjusting the consideration and goodwill.The finance director has erroneously measured non-controlling interest using theproportional method rather than at fair value. Although either method is permitted on an acquisition by acquisition basis, the accounting policy of the Banana group is to measure non-controlling interest at fair value. The fair value of the non-controlling interest at acquisition is (20% x $20 million x $4·25) = $17 million.Net assets at acquisition were incorrectly included at their carrying amount of $70 million. This should be adjusted to fair value of $75 million with a corresponding $5 million increase to land in the consolidated statement of financial position. Goodwill should have been calculated as follows:The correcting entry required to the consolidated financial statements is:Dr Goodwill $2 millionDr Land $5 millionCr Non-controlling interest $3 millionCr Liabilities $4 million (ii) If an entity holds 20% or more of the voting power of the investee, it is presumed that the entity has significant influence unless it can be clearly demonstrated that this is not the case. The existence of significant influence by an entity is usually evidenced by representation on the board of directors or participation in key policy making processes. Banana has 40% of the equity of Strawberry and can appoint one director to the board. It would appear that Banana has significant influence but not control. Strawberry should be classified as an associate and be equity accounted for within the consolidated financial statements.The equity method is a method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets. The investor’s profit or loss includes its share of the investee’s profit or loss and the investor’s other comprehensive income includes its share of the investee’s other comprehensive income. At 1 October 20X7, Strawberry should havebeen included in the consolidated financial statements at a value of $20·4 million ($18 million + 40% x $50 million – $44 million).(iii) On disposal of 75% of the shares, Banana no longer exercises significant influence over Strawberry and a profit on disposal of $3·1 million should have been calculated.Banana is incorrect to have recorded a loss in reserves of $14 million and this should be reversed. Instead, a gain of $3·1 million should have been included within the consolidated statement of profit or loss. The investment is initially restated to fair v alue of $4·5 million. Banana does not intend to sell their remaining interest and providing that they make an irrecoverable election, they can treat the remaining interest at fair value through other comprehensive income. The investment will be restated to $4 million at the reporting date with a corresponding loss of $0·5 million reported in other comprehensive income.)瑙ｆ瀽锛?/div>(2).Discuss whether the directors are correct to treat Melon as a financial assetacquisition and whether the International Acc ounting Standards Board’s proposed amendments to the definition of a business would revise your conclusions.锛堝垎鏁帮細7锛?/p>__________________________________________________________________________________________ 姝ｇ‘绛旀锛?Melon should only be treated as an asset acquisition where the acquisition fails the definition of a business combination. In accordance with IFRS® 3 Business Combinations, an entity should determine whether a transaction is a business combination by applying the definition of a business in IFRS 3. A business is an integrated set of activities and assets which are capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants. A business will typically have inputs and processes applied to the ability to create outputs. Outputs are the result of inputs and processes and are usually present within a business but are not a necessary requirement for a set of integrated activities and assets to be defined as a business at acquisition.It is clear that Melon has both inputs and processes. The licence is an input as it is an economic resource within the control of Melon which is capable of providing outputs once one or more processes are applied to it. Additionally, the seller does not have to be operating the activities as a business for the acquisition to be classified as a business. It is not relevant therefore that Melon does not have staff and outsources its activities. The definition of a business requires just that the activities could have been operated as a business. Processes are in place through the research activities, integration with the management company and supervisory and administrative functions performed. The research activities are still at an early stage, so no output is yet obtainable but, as identified, this is not a necessary prerequisite for the acquisition to be treated as a business. It can be concluded that Melon is a business and it is incorrect to treat Melon as an asset acquisition.The International Accounting Standards Board has sought to give greater clarity to the definition of a business since the definition has proven difficult to apply in practice. Consequently, an exposure draft has been issued so that no business acquisition occurs where substantially all of the fair value of the gross assets acquired is concentrated in a singleasset or group of similar assets. This is sometimes referred to as a screening test. Thefair value of the gross assets acquired includes the fair value of any acquired input, contract, process, workforce and any other intangible asset which is not identifiable. In the case of Banana, they are not intending to use the services of the management company and are not looking to take on any of the employees. It is unclear therefore as to the extent of ‘know how’ from research activities which would be obtainable. Research activities appear to be at a very early stage and, whilst in substance are very different in nature to the licence itself and would be treated as separate assets, are likely to be of relatively low value. It is perfectly plausible that substantially all of the fair value is concentrated in the licence itself and the acquisition would not be treated as a business combination. Should it be determined that the research activities obtainable are of sufficient value so that not all the fair value is concentrated in a single asset, the acquisition would be treated as a business combination since the activities and processes are substantive.)瑙ｆ瀽锛?/div>(3).Discuss how the derecognition requirements of IFRS 9 Financial Instruments should be applied to the sale of the bond including calculations to show the impact on the consolidated financial statements for the year ended 30 June 20X7.锛堝垎鏁帮細7锛?/p>__________________________________________________________________________________________ 姝ｇ‘绛旀锛?IFRS 9 Financial Instruments requires that a financial asset only qualifies for derecognition once the entity has transferred the contractual rights to receive the cash flows from the asset or where the entity has retained the contractual rights but has an unavoidable obligation to pass on the cash flows to a third party. The substance of the disposal of the bonds needs to be assessed by a consideration of the risks and rewards of ownership.Banana has not transferred the contractual rights to receive the cash flows from the bonds. The third party is obliged to return the coupon interest to Banana and to pay additional amounts should the fair values of the bonds increase. Consequently, Banana still has the rights associated with the interest and will also benefit from any appreciation in the value of the bonds. Banana still retains the risks of ownership as it has to compensate the third party should the fair value of the bonds depreciate in value.It would be expected that, if the sale were a genuine transfer of risks and rewards of ownership, then the sales price would be approximate to the fair value of the bonds. It would only be in unusual circumstances such as a forced sale of Banana’s assets arising from severe financial difficulties that this would not be the case. The sales price of $8 million is well below the current fair value of the bonds of $10·5 million. Additionally, Banana is likely to exercise their option to repurchase the bonds.It can be concluded that no transfer of rights has taken place and therefore the asset should not be derecognised. To measure the asset at amortised cost, the entity must have a business model where they intend to collect the contractual cash flows over the life of the asset. Banana maintains these rights and therefore the sale does not contradict their business model. The bonds should continue to be measured at amortised cost in the consolidated financial statements of Banana. The value of the bonds at 30 June 20X6 would have been $10·2 million ($10 million + 7% x $10 million – 5% x $10 million). Amortisedcost prohibits a restatement to fair value. The value of the bonds at 30 June 20X7 should be $10·414 million ($10·2 million + 7% x $10·2 million – 5% x $10 million). The proceeds of $8 million should be treated as a financial liability and would also be measured at amortised cost. An interest charge of $0·8 million wo uld accrue between 1 July 20X6 and 1 July 20X8, being the difference between the sale and repurchase price of the bonds.)瑙ｆ瀽锛?/div>BackgroundFarham manufactures white goods such as washing machines, tumble dryers and dishwashers. The industry is highly competitive with a large number of products on the market. Brand loyalty is consequently an important feature in the industry. Farham operates a profit related bonus scheme for its managers based upon the consolidated financial statements but recent results have been poor and bonus targets have rarely been achieved. As a consequence, the company is looking to restructure and sell its 80% owned subsidiary Newall which has been making substantial losses. The current year end is 30 June 20X8.Factory subsidenceFarham has a production facility which started to show signs of subsidence since January20X8. It is probable that Farham will have to undertake a major repair sometime during 20X9 to correct the problem. Farham does have an insurance policy but it is unlikely to cover subsidence. The chief operating officer (COO) refuses to disclose the issue at 30 June 20X8 since no repair costs have yet been undertaken although she is aware that this is contrary to international accounting standards. The COO does not think that the subsidence is an indicator of impairment. She argues that no provision for the repair to the factory should be made because there is no legal or constructive obligation to repair the factory.Farham has a revaluation policy for property, plant and equipment and there is a balance on the revaluation surplus of $10 million in the financial statements for the year ended 30 June 20X8. None of this balance relates to the production facility but the COO is of the opinion that this surplus can be used for any future loss arising from the subsidence of the production facility. (5 marks)Sale of NewallAt 30 June 20X8 Farham had a plan to sell its 80% subsidiary Newall. This plan has been approved by the board and reported in the media. It is expected that Oldcastle, an entity which currently owns the other 20% of Newall, will acquire the 80% equity interest. The sale is expected to be complete by December 20X8. Newall is expected to have substantial trading losses in the period up to the sale. The accountant of Farham wishes to show Newall as held for sale in the consolidated financial statements and to create a restructuring provision to include the expected costs of disposal and future trading losses. The COO does not wish Newall to be disclosed as held for sale nor to provide for the expected losses. The COO is concerned as to how this may affect the sales price and would almost certainly mean bonus targets would not be met. The COO has argued that they have a duty to secure a high sales price to maximise the return for shareholders of Farham. She has also implied that theaccountant may lose his job if he were to put such a provision in the financial statements. The expected costs from the sale are as follows:Future tradinglosses $30 millionVarious legal costs of sale $2 millionRedundancy costs for Newall employees $5 millionImpairment losses on owned assets $8 millionIncluded within the future trading losses is an early payment penalty of $6 million for a leased asset which is deemed surplus to requirements.(6 marks)Required:锛堝垎鏁帮細20锛?/p>(1).Discuss the accounting treatment which Farham should adopt to address each of the issues above for the consolidated financial statements.Note: The mark allocation is shown against each of the two issues above.锛堝垎鏁帮細11锛?/p>__________________________________________________________________________________________ 姝ｇ‘绛旀锛?Factory subsidenceThe subsidence is an indication of impairment in relation to the production facility. Consideration would be required to choose a suitable cash generating unit as presumably the factory would not independently generate cash flows for Farham as a standalone asset. The facility is likely to consist of both the factory and various items of plant and machinery and so it would not be possible to independently measure the cash flows from each of the assets. The recoverable amount of the unit would need to be assessed as the higher of fair value less costs to sell and value in use. Reference to IFRS 13 Fair Value Measurement would be required in estimating the fair value of the facility. For example, by considering whether similar facilities have been on the market or recently sold. Value in use would be calculated by estimating the present value of the cash flows generated from the production facility discounted at a suitable rate of interest to reflect the risks to the business. Where the carrying amount exceeds the recoverable amount, an impairment has occurred. Any impairment loss is allocated to reduce the carrying amount of the assets of the unit. This will be expensed in profit or loss and cannot be netted off the revaluation surplus as the surplus does not specifically relate to the facility impaired. No provision for the repair to the factory should be made because there is no legal or constructive obligation to repair the factory.Sale of NewallThe disposal of Newall appears to meet the held for sale criteria. Management has shown commitment to the sale by approving the plan and reporting it to the media. A probable acquirer has been found in Oldcastle, the sale is highly probable and expected to becompleted six months after the year end, well within the 12-month criteria. Newall would be treated as a disposal group since a single equity transaction is the most likely form of disposal. Should Newall be deemed to be a separate major component of business or geographical area of the group, the losses of the group should be presented separately as a discontinued operation within the consolidated financial statements of Farham.Assets held for sale are valued at the lower of carrying amount and fair value less costs to sell. The carrying amount consists of the net assets and goodwill relating to Newall less the non-controlling interest’s share. Assets within the disposal group which are not within the scope of IFRS 5 Assets Held for Sale and Discontinued Operations are adjusted for in accordance with the relevant standard first. This includes leased assets and it is highly likely that the leased asset deemed surplus to requirements should be written off with a corresponding expense to profit or loss. Any further impairment loss recognised to reduce Newall to fair value less costs to sell would be allocated first to goodwill and then on a pro rata basis across the other non-current assets of the group.The chief operating officer is wrong to exclude any form of restructuring provision from the consolidated financial statements. The disposal has been communicated to the media and a constructive obligation exists. However, only directly attributable costs of the restructuring should be included and not ongoing costs of the business. Future operating losses should be excluded as no obligating event has arisen and no provision is required for the impairments of the owned assets as they would have been accounted for on remeasurementto fair value less costs to sell. The legal fees and redundancy costs should be provided for. The early payment fee should also be provided for despite being a future operating loss. This is because the contract is onerous and the losses are consequently unavoidable. A provision is required for $13 million ($2 million + $5 million + $6 million). The $6 million will be offset against the corresponding lease liability with only a net figure being recorded in profit or loss.)瑙ｆ瀽锛?/div>(2).Discuss the ethical issues arising from the scenario, including any actions which Farham and the accountant should undertake.Professional marks will be awarded in question 2 for the quality of the discussion.锛堝垎鏁帮細9锛?/p>__________________________________________________________________________________________ 姝ｇ‘绛旀锛?EthicsAccountants have a duty to ensure that the financial statements are fair, transparent and comply with accounting standards. The accountant appears to have made a couple of mistakes which would be unexpected from a professionally qualified accountant. In particular, the accountant appears unaware of which costs should be included within a restructuring provision and has failed to recognise that there is no obligating event in relation tofuture operating losses. Accountants must carry out their work with due care and attention for the financial statements to have credibility. They must therefore ensure that their knowledge is kept up to date and that they do carry out their work in accordance with the relevant ethical and professional standards. Failure to do so would be a breach ofprofessional competence. The accountant must make sure that they address this issue through, for example, attending regular training and professional development courses.There are a number of instances which suggest that the chief operating officer is happy to manipulate the financial statements for their own benefit. She is not willing to account for an impairment loss for the subsidence despite knowing that this is contrary to International Accounting Standards. She is also unwilling to reduce the profits of the group by properly applying the assets held for sale criteria in relation to Newall nor to create a restructuring provision. All of the adjustments required to ensure the financial statements comply with International Accounting Standards will reduce profitability. It is true that the directors do have a responsibility to run the group on behalf of their shareholders and to try to maximise their return. This must not be to the detriment, though, of producing financial statements which are objective and faithfully represent the performance of the group. It is likely that the chief operating officer is motivated by bonus targets and is therefore unfairly trying to misrepresent the results of the group. The chief operating officer must make sure that she is not unduly influenced by this self-interest threat.The chief operating officer is also acting unethically by threatening to dismiss the accountant should they try to correct the financial statements. It is not clear whether the chief operating officer is a qualified accountant but the ethical principles should extend to all employees and not just qualified accountants. Threatening and intimidating behaviour is unacceptable and against all ethical principles. The accountant faces an ethical dilemma. They have a duty to produce financial statements which are objective and fair but to do so could mean that they lose their job. The accountant should approach the chief operating officer and remind them of the basic ethical principles and try to persuade them of the need to put the adjustments through the consolidated accounts so that they are fair and objective. Should the chief operating officer remain unmoved, the accountant may wish to contact the ACCA ethical helpline and take legal advice before undertaking any further action.)瑙ｆ瀽锛?/div>浜屻€丼ection B (鎬婚鏁帮細2锛屽垎鏁帮細50.00)1.(a) Skizer is a pharmaceutical company which develops new products with other pharmaceutical companies that have the appropriate production facilities.Stakes in development projectsWhen Skizer acquires a stake in a development project, it makes an initial payment to the other pharmaceutical company. It then makes a series of further stage payments until the product development is complete and it has been approved by the authorities. In thefinancial statements for the year ended 31 August 20X7, Skizer has treated the different stakes in the development projects as separate intangible assets because of the anticipated future economic benefits related to Skizer’s ownership of the product rights. However, in the year to 31 August 20X8, the directors of Skizer decided that all such intangible assets were to be expensed as research and development costs as they were unsure as to whether the payments should have been initially recognised as intangible assets. This write off was to be treated as a change in an accounting estimate.Sale of development project。

ACCA F3财务会计模拟试题为帮助大家更好复习ACCA F3财务会计，为同学们分享F3财务模拟考试题及答案如下：Question：Which, if any, of the following statements about aounting concepts and the characteristics offinancial information are correct?1.The concept of substance over form means that the legal form of a transaction must be reflected in financial statements, regardless of the economic substance.rmation is not material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.3.It may sometimes be necessary to exclude information that is relevant and reliable from financial statements because it is too difficult for some users to understand.A.1 and 2 onlyB.2 and 3 onlyC.1 and 3 onlyD.None of these statements is correctAnswer：DQuestion：Which of the following statements relating to parent panies and subsidiaries are correct?A. A parent pany could consolidate a pany in which it holds less than 50% of the ordinary share capital incertain circumstances.B. Goodwill on consolidation will appear as an item in the parent pany's inpidual statement of financial position.C. Consolidated financial statements ignore the legal form of the relationship between parents and subsidiaries and present the results and position of the group as if it was a single entity.The correct answers are:A parent pany could consolidate a pany in which itholds less than 50% of the ordinary share capital incertain circumstances.Consolidated financial statements ignore the legal form of the relationship between parents and subsidiaries and present the results and position of the group as if it wasa single entity.A parent may hold less than 50% of the share capitalbut more than 50% of the voting rights. Goodwill only appears in the consolidated statement of financial position. It is not amortised. Consolidated financial statements present the substance of the relationship between parentand subsidiaries, rather than the legal form.Question：In preparing a pany's statement of cash flows plying with IAS 7, which, if any, of the following items could form part of the calculation of cash flow from financing activities?Proceeds of sale of premisesDividends receivedBonus issue of sharesA. 1 onlyB. 2 onlyC. 3 onlyD. None of themThe corrrect answer is: None of them.1 - Proceeds from sale of premises appears under investing activities2 - Dividends received appears under operating or investing activities3 - A bonus issue of shares is not a cash flow.。

公司年报术语中英对照english chineseAnnual Report 年報CONTENTS 目錄Corporate Information 公司資料Financial Highlights 財務摘要Chairman’s Statement主席報告書Directors and Senior Management Profile 董事及高級管理人員簡介Corporate Governance Report 企業管治報告Directors’ Report董事會報告Independent Auditor’s Report獨立核數師報告Consolidated Income Statement 綜合收益表Consolidated Statement of Comprehensive Income 綜合全面收益表Consolidated Statement of Financial Position 綜合財務狀況表Statement of Financial Position 財務狀況表Consolidated Statement of Changes in Equity 綜合權益變動表Consolidated Statement of Cash Flows 綜合現金流量表Notes to the Financial Statements 財務報表附註Financial Summary 財務概要DIRECTORS 董事Executive Directors 執行董事Deputy Chairman 副主席Chairman 主席Independent Non-executive Directors 獨立非執行董事AUDIT COMMITTEE 審核委員會REMUNERATION COMMITTEE 薪酬委員會COMPANY SECRETARY 公司秘書REGISTERED OFFICE 註冊辦事處HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS 總辦事處及主要營業地點PLACE OF BUSINESS 营业地点LEGAL ADVISERS 法律顾问PRINCIPAL BANKERS 主要往来银行Bank of China Limited 中國銀行股份有限公司Industrial & Commercial Bank of China Limited 中國工商銀行股份有限公司China Construction Bank Corporation 中國建設銀行股份有限公司China Merchants Bank Company Limited 招商銀行股份有限公司Standard Chartered Bank (Hong Kong) Limited 渣打銀行（香港）有限公司BNP Paribas 法國巴黎銀行CITIC Bank International Limited 中信銀行國際有限公司Bank of China (Hong Kong) Limited 中國銀行（香港）有限公司Nanyang Commercial Bank, Limited 南洋商業銀行有限公司PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE 主要股份過戶登記處INTERNET WEBSITE 互聯網址STOCK CODE ON THE STOCK EXCHANGE OF HONG KONG LIMITED 香港聯合交易所有限公司股份代號PUBLIC RELATIONS CONSULTANT 公關顧問Strategic Financial Relations Limited 縱橫財經公關顧問有限公司TURNOVER 营业额For the year ended 31 December 截至十二月三十一日止年度NET PROFIT/(LOSS) ATTRIBUTABLE TO OWNERS OF THE COMPANY 本公司擁有人應佔溢利╱（虧損）淨HK$’M百萬港元The PRC 中国On behalf of 本人谨代表Board of Directors 董事会the “Company”本公司subsidiaries 附属公司together the “Group”合称“本集团”financial tsunami 金融海啸gradually subsided 慢慢减退the Chinese Government 中国政府launched new policies 推出新政策sales volume 销售配额upstream business 上游业务acquisition 收购specialising in 从事income stream 收入来源market demand 市场需求upstream products 上游产品refractory materials 耐火材料economic stimulus measures 刺激经济的措施integrate its operation 整合营运enhance cost effectiveness 优化成本效益gross profit margin 毛利率PROSPECTS 展望PLACING OF SHARES 股份配售fund raising 资金筹集REMUNERATION 薪酬APPRECIATION 致谢(Continued) （续）Note: 附注HK$’000千港元Turnover 营业额Cost of sales 销售成本Gross profit 毛利Profit/(loss) before taxation Income tax 除税前溢利（亏损）所得税Profit/(loss) for the year 本年度溢利（亏损）Attributable to: 应占Owners of the company 本公司拥有人Non-controlling interests 非控股权益Current assets 流动资产Non-current assets 非流动资产Total assets 资产总值Current liabilities 流动负债Non-current liabilities 非流动负债Total liabilities 总负债值Net assets 资产净值Share capital 股本Reserves 储蓄Non-controlling interests 非控股权益Total equity 权益总值FINANCIAL SUMMARY 财务概要NOTES TO THE FINANCIAL STATEMENTS 财务报表附注GENERAL 一般资料immediate parent 直接母公司ultimate controlling party 最终控股人士is incorporated in 于注册成立subsidiaries 附属公司SIGNIFICANT ACCOUNTING POLICIES 主要会计政策Statement of compliance 遵守声明Basis of preparation of the financial statements 财务报表编制基准historical cost basis 历史成本法the year under review 回顾年Profit after taxation 除税后净溢利LIQUIDITY 流动资金FINANCIAL RESOURCES 财务资源prudent capital arrangements 审慎财务安排unsecured bank loans 无抵押银行贷款short term bank loans 短期银行贷款cash and bank deposits 现金及银行存款pledged deposits 抵押存款trade receivable 应收账款trade facilities 贸易融资balance of net current assets 流动资产净额total liabilities to total assets ratio 总负债对应资产的比率material contingent liability 重大或然负债financial derivative products 金融衍生工具产品interest rate differential 息差stated bank loans 银行存款material risk from interest rate fluctuations 重大息率风险are denominated in Renminbi 以人民币结算appreciation of the Renminbi 人民币升值university graduates 大学毕业生staff remuneration and welfare system 薪酬及福利制度share option scheme 股权计划staff costs 雇员成本directors’ emoluments董事酬金business partners 业务伙伴senior economist 高级经济师marketing 市场推广Chinese Career Manager 中国职业经理人SENIOR MANAGEMENT 高级管理层CORPORATE GOVERNANCE REPORT 企业管治报告CORPORATE GOVERNANCE PRACTICES 企业管制常规DIRECTORS’ SECURITIES TRANSACTIONS 董事进行证券交易businesses, strategic decision and performance 业务、决策及表现TRAINING FOR DIRECTORS 董事培训PRACTICES AND CONDUCT OF MEETINGS 董事常规及操守Board papers 董事会文件appropriate, complete and reliable information 合适、完整及可靠之资料Board meeting 董事会会议committee meeting 委员会会议financial position 财务状况make informed decisions 做出知情决定PRACTICES AND CONDUCT OF MEETINGS 会议常规及操守conflict of interests for a substantial shareholder 设计主要股东利益冲突CHAIRMAN AND CHIEF EXECUTIVE OFFICER 主席及行政总裁ROTATION OF DIRECTORS 董事轮值退任forthcoming annual general meeting 应届股东周年大会interim review 中期查阅non-audit service 非审核服务DIRECTORS’ RESPONSIBILITIES ON THE FINANCIAL STATEMENTS董事对财务报表所负之责任a going concern basis 持续经营基准INTERNAL CONTROLS 内部控制system of internal controls 内部控制系统external advisor 外聘顾问SHAREHOLDER RIGHTS AND INVESTOR RELATIONS 股东福利及投资者关系voting procedures 投票程序by poll 以点票形式independent scrutineer 独立监票员DIRECTORS’ REPORT董事会报告PRINCIPAL ACTIVITIES 主要业务SEGMENTAL INFORMATION 分类资料RESULTS AND APPROPRIATIONS 业绩及分派DISTRIBUTABLE RESERVES OF THE COMPANY 本公司可供分派之储蓄FINANCIAL SUMMARY 财务概要PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION-IN-PROGRESS 物业、房产、设施及在建工程SHARE CAPITAL 股本BORROWINGS 借贷RETIREMENT SCHEMES 退休金计划Nature of interest 權益性質Capacity 身份Number of Shares 股份数目% to the issued share capital of the Company 占本公司已发行股本的百分比Founder of a trust 信托之成立人Interest of spouse 配偶之权益Interests in shares, underlying shares or equity与相关公司股份、相关股份或股本权 interests in associated corporationsBeneficial owner 权益拥有人non-voting deferred shares 无投票权过延股份Interest of controlled corporation 受控公司之权益1 ordinary share 普通股份1股SHARE OPTION SCHEME 购股权计划nominal value of a share 股份面值SHORT POSITIONS 淡仓DIRECTORS’ INTERESTS IN CONTRACTS董事于合约的权益MANAGEMENT CONTRACTS 管理合约PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED购买、出售或购回本公司的上市证券SECURITIESMAJOR CUSTOMERS AND SUPPLIERS 主要客户及供应商PRE-EMPTIVE RIGHTS 有限购股权SUFFICIENCY OF PUBLIC FLOAT 足够公众持股量statements of financial position 财务状况表consolidated income statement 综合收益表consolidated statement of comprehensive income 综合全面收益表consolidated statement of changes in equity 综合权益变动表consolidated statement of cash flows 综合现金流量表summary of significant accounting policies 主要会计政策概要DIRECTORS’ RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL董事就财务报表须承担的责任STATEMENTSdisclosure requirements 披露规定material misstatement 重大错误陈述due to fraud or error 由于欺诈或错误In our opinion 我们认为a true and fair 公平、真实Profit for the year 本年度溢利Earnings per share 每股盈利Basic 基本Diluted 摊薄form part of 构成其中一部分Other comprehensive income for the year (net of tax) 本年度其他全面收益（扣除税项）Exchange differences on translation of financial statements换算海外业务财务报表之汇兑差额of foreign operationsSurplus on revaluation of buildings held for own use 持作自用之楼宇重估盈余Deferred tax on revaluation of buildings held for own use 持作自用之楼宇延期税项Deferred tax arising on change in tax rate 税率变动之延期税项Fair value loss on available-for-sale equity securities 可供出售权益证券公平值亏损Total comprehensive income for the year 本年度全面收益总值Non-current assets 非流动资产Goodwill 商誉Property, plant and equipment 物业、房产及设备Prepaid lease payments on land under operating leases 经营租约下预付土地租金Intangible assets 无形资产Available-for-sale equity securities 可供出售权益证券Pledged bank deposits 已抵押银行存款Restricted bank balance 受限制银行结余Deferred tax assets 延期税项资产Current assets 流动资产Inventories 存货Trade and other receivables 应收账款及其他应收款Prepayments and deposits 预付款项及按金Tax recoverable 可收回税项Cash and cash equivalents 现金及现金等值项目Current liabilities 流动负债Trade payables 应付账款Accruals and other payables 预提费用及其他应付款Amounts due to directors 应付董事款项Bank borrowings due within one year 于一年内到期的银行贷款Tax payable 应付税项Net current assets 流动资产净值Total assets less current liabilities 资产总值减流动负债Deferred tax liabilities 延期税项负债NET ASSETS 资产净值CAPITAL AND RESERVES 资本及储蓄TOTAL EQUITY 权益总值Investments in subsidiaries 与附属公司之投资Amounts due from subsidiaries 应收附属公司款项Operating activities 经营活动Adjustments for 调整项目Depreciation 拆旧Amortisation of prepaid lease payments on land under经营租约下预付土地租金之摊销operating leasesAmortisation of intangible assets 无形资产摊销Impairment loss 减值亏损Write back of impairment loss 减值亏损拨回Net gains on disposal of property, plant and equipment 出售物业、厂房、设备之收益净值Reversal of write down of inventories 存货撇除拨回Bad debt written off 坏账撇销Operating cash flows before changes in working capital 营运资金变动前的经营现金流量(Increase)/decrease in inventories 存货（增加）/减少Decrease/(increase) in trade and other receivables 应收账款及其他应收款（增加）/减少(Increase)/decrease in prepayments and deposits 预存款项及按金（增加）/减少Increase/(decrease) in trade payables 应付账款（增加）/减少Decrease in accruals and other payables 预提费用及其他应付款减少(Decrease)/increase in amounts due to directors 应付董事款项（减少）/增加Cash (used in)/generated from operations 经营（使用）/所得的现金PRC Enterprise Income Tax paid 已付中国企业所得税Tax paid 已付税款Net cash (used in)/generated from operating activities 经营活动（使用）/所得的现金净值Investing activities 投资活动Purchase of property, plant and equipment 购置物业、房产及设备Proceeds from disposal of property,plant and equipment 出售物业、厂房、设备所得款项Payment for purchase of availablefor-sale equity securities 购买可供出售权益证券付款Interest received 已收利息Deferred consideration paid for acquisition of subsidiaries 已付收购公司之递延代价Financing activities 融资活动Net proceeds from placement of new shares 配售新股份之所得款项净值Repayment of bank borrowings 偿还银行贷款Proceeds from new bank borrowings 新造银行贷款所得款项Interest paid on bank borrowings 已付银行贷款利息Proceeds from shares issued under share option scheme 根据购股权计划发行股份是所得款项Net cash from financing activities 融资活动所得现金净值Net increase in cash and cash equivalents 现金及现金等值项目增加净值Cash and cash equivalents at beginning of the year 年初现金及现金等值项目Effect of changes in exchange rate 外币汇率变动之影响Cash and cash equivalents at end of the year 年末现金及现金等值项目principal place of business 主要营业地点Subsidiaries and non-controlling interests 附属公司及非控股权益contractual obligations 合约责任Jointly controlled entity 共同控制实体Other investments in equity securities 其他权益证券投资transaction price 交易价格Office equipment and fixtures 办公室设备及装置Motor vehicles 汽车Lease assets 租赁资产Classification of assets leased to the Group 出租于本集团之资产分类Operating lease charges 经营租赁费用Recognition of impairment losses 减值亏损确认Termination benefits 终止福利Provisions and contingent liabilities 拨备及或然负债Revenue recognition 收入确认prepared 编制Hong Kong Financial Reporting Standards 香港财务报表准则Hong Kong Institute of Certified Public Accountants 香港会计师公会Companies Ordinance 公司条例certain amendments 修订本interpretations 诠释are or have become effective 现时及已经生效accounting period 会计期间historical experience 过往经验Actual results may differ from these estimates. 实际数字或会有别于估计数字accounting estimates 会计估计Intra-group balances and transactions 集团内公司间之结余及交易unrealised profits 未变现溢利previously known as 前称minority interests 少数股东权益represent 指held for sale 持作出售。