ACCA F7往年题型汇总

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。

ACCA考试F7知识点辅导I. The accounting problemBefore IAS37 provisions were recognized on the basis of prudence，little guidance was given on when a provision should be recognized and how it should be measured. This gave rise to inconsistencies，and also allowed profits to be manipulated.Some problems are noted below：(a) Provisions could be recognized on the basis of management intentions，rather than on any obligation to be entity;(b) Several items could be combined into one large provision. There were known as ‘big bath’ provisions;(c) A provision could be created for one purpose and then used for another;(d) Poor disclosure made it difficult to assess the effect of provisions on reported profits. In particular，provisions could be created when profits were high and released when profits were low in order to smooth profits.(1) DefinitionsIAS 37 views a provision as a liability.A provision is a liability of uncertainty timing or amount;A liability is an obligation of an enterprise to transfer economic benefits as a result of past transactions or events.Provision must be based on obligations，not management intentions.(2) Under IAS37， a provision should be recognized：a. When an enterprise has a present obligation;b. It is probable that a transfer of economic benefits will be required to settle it;c. A reliable estimate can be made of its amount; if a reasonable estimate cannot be made，then the nature of the provision and the uncertainties relating to the amount and timing of the cash flows should be disclosed.A provision is made for something which will probably happen. It should be recognizedwhen it is probable that a transfer of economic events will take place and when its amount can be estimated reliably.(3) Contingent liabilitiesDefinitionThe Standard defines a contingent liability as：(a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise; or(b) A present obligation that arises from past events but is not recognized because：(i) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or(ii) The amount of the obligation cannot be measured with sufficient reliability.As a rule of thumb，probable means more than 50% likely. If an obligation is probable，it is not a contingent liability – instead，a provision is needed.Treatment of contingent liabilitiesContingent liabilities should not be recognized in financial statements but they should be disclosed. The required disclosures are：(a) A brief description of the nature of the contingent liability;(b) An estimate of its financial effect;(c) An indication of the uncertainties that exist;(d) The possibility of any reimbursement;(4) Contingent assetsDefinitionA possible asset that arises from the past events whose existence will be confirmed by the occurrence of one or more uncertain future events not wholly within the enterprise’s control.A contingent asset must not be recognized. Only when the realization of the relatedeconomic benefits is virtually certain should recognition take place. At that point，the asset is no longer a contingent asset.Disclosure：contingent assetsContingent assets must only be disclosed in the notes if they are probable. In that case a brief description of the contingent asset should be provided along with an estimate of its likely financial effect.II. Specific application1. Future operating lossesIn the past，provisions were recognized for future operating losses on the grounds of prudence. However these should not be provided for the following reasons.①They relate to future events;②There is no obligation to a third party. The loss-making business could be closed and the losses avoided.2. Onerous contractsAn onerous contract is a contract in which the unavoidable costs of meeting the contract exceed the economic benefits expected to be received under it.A common example of an onerous contract is a lease on a surplus factory. The leaseholder is legally obliged to carry on paying the rent on the factory，but they will not get any benefit from using the factory.The least net cost of an onerous contract should be recognized as a provision. The least net cost is the lower of the cost of fulfilling the contract or of terminating it and suffering any penalty payments.Some assets may have been bought specifically for the onerous contract. These should be reviewed for impairment before any separate provision is made for the contract itself.1DemoDroopers has recently bought all of the trade，assets and liabilities of Dolittle，an unincorporatd business. As part of the take-over all of the combined business’s activities have been relocated at Droopers main site. As a result Dolittle’s premises are now empty and surplus to requirements.However，just before the acquisition Dolittle had signed a three year lease for their premises at $6000 per calendar month. At 31 December 2003 this lease ad 32 months left to run and the landlord had refused to terminate the lease. A sub-tenant had taken over part of the premises for the rest of the lease at a rent of $2500 per calendar month.Required(a) Should Droopers recognized a provision for an onerous contract in respect of this lease?(b) Show how this information will be presented in the financial statements for 2003 and 2004. Ignore the time value of money.Solution：Droopers has a legal obligation to pay a further $192000 to the landlord，as a result of a lease signed before the year end. Therefore an onerous contract exists and must be provided for.There is also an amount recoverable form the sub-tenant of $80000(32×2500). This will be shown separately in the balance sheet as an asset.The $192000 payable and the $80000 recoverable can be netted off in the income statement.income statements20032004$$provision for onerous lease contract(net)112000 Dr.net rental payable on lease (72-30)-42000 Drrelease of provision42000 Cr112000 Dr.balance sheetsreceivalbesamounts recoverable from sub-tenants80000 Dr.50000 Drliabilitiesamounts payable on onerous contracts192000 Cr120000 Cr3. RestructuringA restructuring is a programme that is planned and controlled by management and has a material effect on：①The scope of a business undertaken by the reporting entity in terms of the products or services it provides; or②The manner in which a business undertaken by the reporting entity is conducted;Restructuring includes terminating a line of business，closure of business locations，changes in management structure，and refocusing a business’s operations.Restructuring provisions have always been quite common，and have often been misused. IAS37 restricts the recognition of restructuring provisions to situations where an entity has a constructive obligation to restructure.A constructive obligation will only arise if：①There is a detailed formal plan for restructuring. This must identify the businesses，locations and employees affected; and②Those affected have a valid expectation that the restructuring will be carried out. This can be by starting to implement the plan or by announcing it to those affected.The constructive obligation must exist at the year-end.(Any obligation arising after the year end may require disclosure under IAS10)A board decision alone will not create a constructive obligation unless：①The plan is already being implemented. For example，assets are being sold，redundancy negotiations have begun; or②The plan has been announced to those affected by it. The plan must have a strict timeframe without unreasonable delays; or③The Board itself contains representatives of employees or other groups affected by the decision.(This is common in mainland Europe.)An announcement to sell an operation will not create a constructive obligation. An obligation will only arise when a purchaser is found and there is a binding sale agreement.A restructuring provision should only include the direct costs of restructuring. These must be both：(a) Necessarily entailed by the restructuring; and(b) Not associated with the ongoing activities of the entity;The following costs must not be provided for because they relate to future events：(a) Retaining or relocating staff;(b) Marketing;(c) Investment in new systems and distribution networks;(d) Future operating losses (unless arising from an onerous contract)(e) Profits on disposal of assets.cca f7真题对于acca f7的考试的重要性我相信各位acca考生都心知肚明了，首先我们先看一下acca f7科目的考试内容ACCA F7科目介绍：F7《财务报告》是F3《财务会计》的后续课程或说是升级课程。

Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International)December 2011 Answers 1Consolidated statement of financial position of Paladin as at 30 September 2011$’000$’000 AssetsNon-current assets:Property, plant and equipment (40,000 + 31,000 + 4,000 –1,000)74,000Intangible assets (w (i))–goodwill15,000–other intangibles (7,500 + 3,000 –500)10,000Investment in associate (w (ii))7,700––––––––106,700 Current assetsInventory (11,200 + 8,400 –600 URP (w (iii)))19,000T rade receivables (7,400 + 5,300 –1,300 intra-group (w (iii)))11,400Bank3,40033,800–––––––––––––––T otal assets140,500––––––––Equity and liabilitiesEquity attributable to owners of the parentEquity shares of $1 each 50,000Retained earnings (w (iv))35,200––––––––85,200 Non-controlling interest (w (vi))7,900––––––––T otal equity93,100Non-current liabilitiesDeferred tax (15,000 + 8,000)23,000Current liabilitiesBank overdraft2,500Deferred consideration 5,400T rade payables (11,600 + 6,200 –1,300 intra-group (w (iii))) 16,50024,400–––––––––––––––T otal equity and liabilities140,500––––––––Workings (figures in brackets are in $’000)(i)Goodwill in Saracen$’000$’000 Controlling interest (see below)Immediate cash32,000Deferred consideration (5,400 x 100/108)5,000Non-controlling interest (10,000 x 20% (see below) x $3·50)7,000–––––––44,000 Equity shares10,000Pre-acquisition reserves:At 1 October 2010 12,000Fair value adjustments– plant4,000–intangible3,000(29,000)––––––––––––––Goodwill arising on acquisition15,000–––––––The cost of the majority shareholding in Saracen was $32 million. Paladin acquired eight million shares and Saracen has10 million $1 shares, this gives a controlling interest of 80% and a non-controlling interest of 20%.The customer relationship asset is recognised as an intangible asset in the consolidated financial statements under IFRS 3 Business combinations.(ii)Carrying amount of Augusta at 30 September 2011$’000 Cash consideration10,000Share of post-acquisition profits (1,200 x 8/12 x 25%)200Impairment loss (2,500)––––––7,700––––––(iii)Unrealised profit (URP) in inventory/intra-group current accountsThe URP in Saracen’s inventory (supplied by Paladin) of $2·6 million is $600,000 (2,600 x 30/130). The current account balances of Paladin and Saracen should be eliminated from trade receivables and payables at the agreed amount of $1·3 million.(iv)Consolidated retained earnings:$’000 Paladin’s retained earnings (25,700 + 9,200)34,900Saracen’s post-acquisition profits (4,500 (w (v)) x 80%) 3,600Augusta’s post-acquisition profits (w (ii))200Augusta’s impairment loss(2,500)URP in inventory (w (iii))(600)Finance cost of deferred consideration (5,000 x 8%)(400)–––––––35,200–––––––(v)Post-acquisition adjusted profit of Saracen is:$’000 Profit as reported6,000Additional depreciation of plant (4,000/4 years)(1,000)Additional amortisation of customer relationship asset (3,000/6 years)(500)––––––4,500––––––(vi)Non-controlling interest$’000 Fair value on acquisition (w (i))7,000Post-acquisition profits (4,500 (w (v)) x 20%)900––––––7,900––––––2(a)Keystone – Statement of comprehensive income for the year ended 30 September 2011$’000$’000 Revenue (380,000 – 2,400 (w (i)))377,600Cost of sales (w (ii))(258,100)––––––––Gross profit119,500Distribution costs (14,200)Administrative expenses (46,400 – 24,000 dividend (50,000 x 5 x 2·40 x 4%))(22,400)Investment income800Loss on fair value of investments (18,000 – 17,400)(600)Finance costs (350)––––––––Profit before tax82,750Income tax expense (24,300 + 1,800 (w (v)))(26,100)––––––––Profit for the year56,650Other comprehensive incomeRevaluation of leased property8,000T ransfer to deferred tax (w (v))(2,400)5,600––––––––––––––T otal comprehensive income for the year 62,250––––––––(b)Keystone – Statement of financial position as at 30 September 2011$’000$’000 AssetsNon-current assetsProperty, plant and equipment (w (iv))78,000Financial asset: equity investments17,400––––––––95,400 Current assetsInventory (w (iii))56,600T rade receivables (33,550 – 2,400 (w (i))) 31,15087,750–––––––––––––––T otal assets183,150––––––––Equity and liabilitiesEquityEquity shares of 20 cents each50,000Revaluation reserve (w (iv))5,600Retained earnings (33,600 + 56,650 – 24,000 dividend paid) 66,25071,850–––––––––––––––121,850 Non-current liabilitiesDeferred tax (w (v))6,900Current liabilitiesT rade payables27,800Bank overdraft2,300Current tax payable24,30054,400–––––––––––––––T otal equity and liabilities183,150––––––––Workings (figures in brackets in $’000)(i)Where there is uncertainty over goods sold on a sale or return basis they should not be recognised as revenue until theyhave been formally accepted by the buyer. Thus $2·4 million should be removed from revenue and receivables. The goods should be added to the inventory at 30 September 2011 at their cost of $1·8 million (2·4 million x 75%).(ii)Cost of sales$’000 opening inventory46,700materials (64,000 – 3,000)61,000production labour (124,000 – 4,000)120,000factory overheads (80,000 – (4,000 x 75%))77,000Amortisation of leased property (w (iv))3,000Depreciation of plant (1,000 + 6,000 (w (iv)))7,000Closing inventory (w (iii))(56,600)––––––––258,100––––––––The cost of the self-constructed plant is $10 million (3,000 + 4,000 + 3,000 for materials, labour and overheads respectively that have also been deducted from the above items in cost of sales). It is not permissible to add a profit margin to self-constructed assets.(iii)Inventory at 30 September 2011:$’000 per count54,800goods on sale or return (w (i))1,800–––––––56,600–––––––(iv)Non-current assets:The leased property has been amortised at $2·5 million per annum (50,000/20 years). The accumulated amortisation of $10 million therefore represents four years, thus its remaining life at the date of revaluation is 16 years.$’000 carrying amount at date of revaluation (50,000 – 10,000)40,000revalued amount48,000–––––––gross gain on revaluation 8,000transfer to deferred tax (at 30%)(2,400)–––––––net gain to revaluation reserve5,600–––––––The revalued amount of $48 million will be amortised over its remaining life of 16 years at $3 million per annum.The self-constructed plant will be depreciated for six months by $1 million (10,000 x 20% x 6/12) and have a carryingamount at 30 September 2011 of $9 million. The plant in the trial balance will be depreciated by $6 million ((44,500– 14,500) x 20%) for the year and have a carrying amount at 30 September 2011 of $24 million.In summary:$’000 Leased property (48,000 – 3,000)45,000Plant (9,000 + 24,000)33,000–––––––Property, plant and equipment78,000–––––––(v)Deferred taxProvision required at 30 September 2011 ((15,000 + 8,000) x 30%)6,900Provision at 1 October 2010 (2,700)–––––––Increase required4,200Transferred from revaluation reserve (w (iv))(2,400)–––––––Balance: charge to income statement1,800–––––––3(a)Mocha – Statement of cash flows for the year ended 30 September 2011:(Note: figures in brackets are in $’000)Cash flows from operating activities:$’000$’000Profit before tax3,900Adjustments fordepreciation of non-current assets 2,500profit on the disposal of property, plant and equipment (8,100 – 4,000)(4,100)investment income(1,100)interest expense500increase in inventory (10,200 – 7,200)(3,000)decrease in receivables (3,700 – 3,500)200decrease in payables (4,600 – 3,200)(1,400)decrease in warranty provision (4,000 – 1,600)(2,400)–––––––Cash generated from operations (4,900)Interest paid(500)Income tax paid (w (i))(800)–––––––Net cash deficit from operating activities(6,200)Cash flows from investing activities:Purchase of property, plant and equipment(8,300)Disposal of property, plant and equipment8,100Disposal of investment3,400Dividends received200–––––––Net cash from investing activities3,400Cash flows from financing activities:Shares issued (w (ii))2,400Payment of finance lease obligations (w (iii))(3,900)–––––––Net cash from financing activities(1,500)–––––––Net decrease in cash and cash equivalents (4,300)Cash and cash equivalents at beginning of the year1,400–––––––Cash and cash equivalents at end of the year(2,900)–––––––Workings(i)Income tax paid:$’000Provision b/f–current(1,200)–deferred(900)Income statement tax charge (1,000)Provision c/f–current1,000–deferred1,300––––––Difference – cash paid(800)––––––(ii)Share issues$’000Increase in share capital (14,000 – 8,000)6,000Bonus issue–share premium(2,000)–revaluation reserve (3,600 – 2,000)(1,600)––––––Shares issued for cash at par2,400––––––(iii)Finance leaseBalance b/f–current(2,100)–non-current(6,900)New leases in year(6,700)Balance c/f–current4,800–non-current7,000––––––Principal repaid(3,900)––––––Tutorial note:Reconciliation of investments/investment income$’000InvestmentsBalance b/f7,000Carrying amount sold(3,000)Balance c/f(4,500)––––––Difference: increase in fair value500––––––Carrying amount sold3,000Proceeds(3,400)––––––Profit on sale in income statement400––––––Tutorial note:as the retained earnings at 30 September 2010 (10,100) plus the profit for the period (2,900) equalthe retained earnings at 30 September 2011 (13,000) there was no equity dividend paid.(b)(i)Mocha has reported an operating profit of $3·3 million (12,000 – 8,700) for the year ended 30 September 2011, whichis likely to give a favourable impression to shareholders. However, its cash generated from operations is a deficit of$4·9 million. The reconciling items of these two figures appear in the statement of cash flows and it can be seen thatoperating profit has been boosted by the profit on the sale of a property and a large decrease in the product warrantyprovision. Some commentators argue that a profit on the sale of non-current assets is not really an ‘operating’ profit andit is misleading to be classed as such. Also, many items included in operating profit are subjective (for example theproduct warranty provision), and as such can be subject to manipulation. Cash flows are unaffected by such subjectiveestimates and from this perspective they are considered less susceptible to manipulation and therefore more reliable.(ii)From the statement of financial position it can be seen that net investment in property, plant and equipment (after depreciation) has increased by $8·5 million (32,600 –24,100). This may give the impression that the company isinvesting heavily in property, plant and equipment, and in one sense it is. However, the statement of cash flows showsthat net cash investment in property, plant and equipment is only $200,000 (purchases of 8,300 less disposals of8,100). Most of the difference is due to a (non-cash) acquisition of plant under finance leases (meaning furtherborrowing) and disposal proceeds of plant and equipment in excess of its carrying amounts. The cash flow informationgives a somewhat different (and possibly more realistic) view of the company’s investment in property, plant andequipment during the year.4(a)IAS 37 Provisions, contingent liabilities and contingent assets defines provisions as liabilities of uncertain timing or amount that should be recognised where there is a present obligation (as a result of past events), it is probable (assumed to be more than a 50% chance) that there will be an outflow of economic benefits (to settle the obligation) and the amounts can be estimated reliably. The obligation may be legal or constructive.A contingent liability has more uncertainty in that it is a possible obligation (assumed to be less than a 50% chance) whoseexistence will be confirmed only by one or more future uncertain events that are not wholly within the control of the entity.An existing obligation where the amount cannot be reliably measured is also treated as a contingent liability.The Standard seeks to improve consistency in the reporting of provisions. In the past some entities created ‘general’ (rather than specific) provisions for liabilities that did not really exist (known as ‘big bath’ provisions); equally many entities did not recognise provisions where there was a present obligation. T he latter often related to deferred liabilities such as future environmental costs. T he effect of such inconsistencies was that comparability was weakened and profit was frequently manipulated.(b)(i)Although the information in the question says the environmental provision is not a legal obligation, it implies that it is aconstructive obligation (Borough has created an expectation that it will pay the environmental costs) and therefore thesecosts should be provided for. The obligation for the fixed element of the cost arose as soon as the extraction commenced,whereas the variable element accrues in line with the extraction of oil. The present value of the environmental cost isshown as a non-current liability (credit) with the debit added to the cost of the licence and (effectively) charged to incomeas part of the annual amortisation charge.The relevant extracts from Borough’s statement of financial position as at 30 September 2011 are:$’000Non-current assetLicence for oil extraction (50,000 + 20,000)70,000Amortisation (10 years)(7,000)–––––––Carrying amount63,000–––––––Non-current liabilityEnvironmental provision ((20,000 + (150,000 x 0·02 cents)) x 1·08 finance cost)24,840–––––––(ii)From Borough’s perspective, as a separate entity, the guarantee for Hamlet’s loan is a contingent liability of $10 million.As Hamlet is a separate entity, Borough has no liability for the secured amount of $15 million, not even for the potentialshortfall for the security of $3 million. The $10 million contingent liability would normally be described and disclosedin the notes to Borough’s entity financial statements.In Borough’s consolidated financial statements, the full liability of $25 million would be included in the statement offinancial position as part of the group’s consolidated non-current liabilities – there would be no contingent liabilitydisclosed.The concerns over the potential survival of Hamlet due to the effects of the recession may change the disclosure inBorough’s entity financial statements. If Borough deems it probable that Hamlet is not a going concern the $10 millionloan, which was previously a contingent liability, would become an actual liability and should be provided for onBorough’s entity statement of financial position and disclosed as a current (not a non-current) liability.5(a)(i)The interest rate (5%) for the convertible loan notes is lower because of the potential value of the conversion option.The cost of equivalent loan notes without the option is 8%, the difference is mainly due to the market expectation of thehigher worth of Bertrand’s equity shares (compared to the cash alternative) when the loan notes are due for redemption.From the entity’s viewpoint, the conversion option means lower payments of interest (to help cash flow), but it willeventually cause a dilution of earnings.(ii)If the directors’ treatment were acceptable, the use of the conversion option (compared to issuing non-convertible loans) would improve profit and earnings per share because of lower interest rates (and hence interest charges) and thecompany’s gearing would be lower as the loan notes would not be shown as debt. However, this proposed treatment isnot acceptable. A convertible loan note is a complex (hybrid) financial instrument and IFRS requires that the proceedsof the issue should be allocated between equity (the value of the option) and debt and the finance charge should bebased on that of an equivalent non-convertible loan (8% in this case).(b)Extracts from the financial statements of BertrandIncome statement for the year ended 30 September 2011$’000 Finance costs (9,190 x 8%)735rounded Statement of financial position as at 30 September 2011EquityEquity option810Non-current liabilities8% convertible loan notes ((9,190 x 1·08) – 500)9,425rounded WorkingYear ended Cash flow Discount rate Discounted cash flows30 September $’000at 8%$’00020115000·9346520125000·86430201310,5000·798,295–––––––value of debt component9,190value of equity option component (= balance)810–––––––total proceeds 10,000–––––––Fundamentals Level – Skills Module, Paper F7 (INT)Financial Reporting (International)December 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.Marks1property, plant and equipment2½goodwill5other intangibles2½investment in associate2inventory1receivables1bank½equity shares½retained earnings 5non-controlling interest 2deferred tax½bank overdraft½deferred consideration1trade payables1Total for question252(a)Income statementrevenue1cost of sales7distribution costs½administrative expenses 1½investment income1loss on fair value of investment1finance costs½income tax expense1½other comprehensive income 115(b)Statement of financial positionproperty, plant and equipment2equity investments½inventory ½trade receivables1equity shares ½revaluation reserve1½retained earnings1½deferred tax1trade payables½bank overdraft½current tax payable½10Total for question25Marks 3(a)profit before tax½depreciation1profit on disposal of property (deducted) 1investment income adjustment (deducted)½interest expense adjustment (added back)½working capital items1½decrease in warranty provisions1½interest paid (cash flow)1income tax paid2purchase of property, plant and equipment 1disposal of property, plant and equipment 1disposal of investment1investment income (dividends received)1share issue2½payment of finance lease obligations2cash b/f½cash c/f½19(b)(i)and (ii)3 marks each 6Total for question254(a)definition of provisions2 definition of contingent liabilities2how the Standard improves comparability26(b)(i)it is a constructive obligation1explanation of treatment1non-current asset (including amortisation) 1½environmental provision (including unwinding of discount)1½(ii)entity financial statements contingent liability of $10 million1 no obligation for secured $15 million 1consolidated statements show full $25 million as a liability1if not a going concern, guarantee would be shown as an actual (current)liability in entity financial statements 19Total for question155(a)(i) 1 mark per valid point 2 (ii) 1 mark per valid point3(b)finance cost2value of equity option1value of debt at 30 September 201125Total for question10。

ACCA考试F7考试历年真题精选及详细解析1109-541. Consolidated financial statements are presented on the basis that the companies within the group are treated as if they are a single (economic) entity.Which of the following are requirements of preparing group accounts?(i) All subsidiaries must adopt the accounting policies of the parent(ii) Subsidiaries with activities which are substantially different to the activities of other members of the group should not be consolidated(iii) All entity financial statements within a group should (normally) be prepared to the same accounting year end prior to consolidation(iv) Unrealised profits within the group must be eliminated from the consolidated financial statementsA All fourB (i) and (ii) onlyC (i), (iii) and (iv)D (iii) and (iv)答案：C2. Dempsey’s year end is 30 September 2014. Dempsey commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 2014. Expenditure of $40,000 per month was incurred until the project was completed on 30 June 2014 when the drug went into immediate production. The directors became confident of the project’s success on 1 March 2014. The drug has an estimated life span of five years; time apportionment is used by Dempsey where applicable. What amount will Dempsey charge to profitor loss for development costs, including any amortisation, for the year ended 30 September 2014?A $12,000B $98,667C $48,000D $88,000答案：C3. On 1 October 2013, Fresco acquired an item of plant under a five-year finance lease agreement. The plant had a cash purchase cost of $25 million. The agreement had an implicit finance cost of 10% per annum and required an immediate deposit of $2 million and annual rentals of $6 million paid on 30 September each year for five years. What would be the current liability for the leased plant in Fresco’s statement of financial position as at 30 September 2014?A $19,300,000B $4,070,000C $5,000,000D $3,850,000答案：C4. The following information has been taken or calculated from Fowler’s financial statements for the year ended 30 September 2014.Fowler’s cash cycle at 30 September 2014 is 70 days.Its inventory turnover is six times. Year-end trade payables are $230,000. Purchases on credit for the year were $2 million. Cost of sales for the year was $1·8 million. What is Fowler’s trade receivables collection period as at 30 September 2014?All calculations should be made to the nearest full day. The trading year is 365 days.A 106 daysB 89 daysC 56 daysD 51 days答案：B5. Which of the following items should be capitalised within the initial carrying amount of an item of plant?(i) Cost of transporting the plant to the factory(ii) Cost of installing a new power supply required to operate the plant(iii) A deduction to reflect the estimated realisable value(iv) Cost of a three-year maintenance agreement(v) Cost of a three-week training course for staff to operate theplantA (i) and (ii) onlyB (i), (ii) and (iii)C (ii), (iii) and (iv)D (i), (iv) and (v)答案：A。