F7（国际）-2015年12月问题.pdf

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1、Fundamentals Level Skills ModuleTime allowed Reading and planning:15 minutes Writing:3 hoursThis question paper is divided into two sections:Section A ALL 20 questions are compulsory and MUST be attemptedSection B ALL THREE questions are compulsory and MUST be attemptedDo NOT open this question pape

2、r until instructed by the supervisor.During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor.Do NOT record any of your answers on the question paper.This question paper must not be removed from the examin

3、ation hall.Paper F7Financial ReportingSeptember/December 2015The Association of Chartered Certified AccountantsSection B ALL THREE questions are compulsory and MUST be attemptedPlease write your answers to all parts of these questions on the lined pages within the Candidate Answer Booklet.1The follo

4、wing trial balance extracts (i.e. it is not a complete trial balance) relate to Moston as at 30 June 2015:$000$000 Revenue (note (i)113,500 Cost of sales 88,500 Research and development costs (note (ii)7,800 Distribution costs3,600 Administrative expenses (note (iv)6,800 Loan note interest and divid

5、ends paid (notes (iv) and (vii)5,000 Investment income300 Equity shares of $1 each (note (vii)30,000 5% loan note (note (iv)20,000 Retained earnings as at 1 July 20146,200 Revaluation surplus as at 1 July 20143,000 Other components of equity9,300 Property at valuation 1 July 2014 (note (iii)28,500 P

6、lant and equipment at cost (note (iii)27,100 Accumulated depreciation plant and equipment 1 July 20149,100 Financial asset equity investments at fair value 1 July 2014 (note (v)8,800The following notes are relevant:(i)Revenue includes a $3 million sale made on 1 January 2015 of maturing goods which

7、are not biological assets. The carrying amount of these goods at the date of sale was $2 million. Moston is still in possession of the goods (but they have not been included in the inventory count) and has an unexercised option to repurchase them at any time in the next three years. In three years t

8、ime the goods are expected to be worth $5 million. The repurchase price will be the original selling price plus interest at 10% per annum from the date of sale to the date of repurchase.(ii)Moston commenced a research and development project on 1 January 2015. It spent $1 million per month on resear

9、ch until 31 March 2015, at which date the project passed into the development stage. From this date it spent $16 million per month until the year end (30 June 2015), at which date development was completed. However, it was not until 1 May 2015 that the directors of Moston were confident that the new

10、 product would be a commercial success.Expensed research and development costs should be charged to cost of sales.(iii) Non-current assets:Mostons property is carried at fair value which at 30 June 2015 was $29 million. The remaining life of the property at the beginning of the year (1 July 2014) wa

11、s 15 years. Moston does not make an annual transfer to retained earnings in respect of the revaluation surplus. Ignore deferred tax on the revaluation.Plant and equipment is depreciated at 15% per annum using the reducing balance method.No depreciation has yet been charged on any non-current asset f

12、or the year ended 30 June 2015. All depreciation is charged to cost of sales.(iv) The 5% loan note was issued on 1 July 2014 at its nominal value of $20 million incurring direct issue costs of $500,000 which have been charged to administrative expenses. The loan note will be redeemed after three yea

13、rs at a premium which gives the loan note an effective finance cost of 8% per annum. Annual interest was paid on 30 June 2015.(v)At 30 June 2015, the financial asset equity investments had a fair value of $96 million. There were no acquisitions or disposals of these investments during the year.(vi)

14、A provision for current tax for the year ended 30 June 2015 of $12 million is required, together with an increase to the deferred tax provision to be charged to profit or loss of $800,000.2(vii) Moston paid a dividend of 20 cents per share on 30 March 2015, which was followed the day after by an iss

15、ue of 10 million equity shares at their full market value of $170. The share premium on the issue was recorded in other components of equity.Required:(a)Prepare the statement of profit or loss and other comprehensive income for Moston for the year ended 30 June 2015.(11 marks)(b) Prepare the stateme

16、nt of changes in equity for Moston for the year ended 30 June 2015.(4 marks)Note: The statement of financial position and notes to the financial statements are NOT required.(15 marks)3P.T.O.2Xpand is a public company which has grown in recent years by acquiring established businesses. The following

17、financial statements for two potential target companies are shown below. They operate in the same industry sector and Xpand believes their shareholders would be receptive to a takeover. An indicative price for 100% acquisition of the companies is $12 million each.Statements of profit or loss for the

18、 year ended 30 September 2015KandidKovert $000 $000 Revenue25,00040,000 Cost of sales(19,000)(32,800) Gross profit6,0007,200 Distribution and administrative expenses(1,250)(2,300) Finance costs(250)(900) Profit before tax4,5004,000 Income tax expense(900)(1,000) Profit for the year3,6003,000Statemen

19、ts of financial position as at 30 September 2015Non-current assets Propertynil3,000 Owned plant 4,8002,000 Leased plantnil5,300 4,80010,300 Current assets Inventory1,6003,400 Trade receivables2,1005,100 Bank1,100200 4,8008,700 Total assets9,60019,000Equity and liabilities Equity Equity shares of $1

20、each1,0002,000 Property revaluation surplus nil900 Retained earnings1,6002,700 2,6005,600 Non-current liabilities Finance lease obligationnil4,200 5% loan notes (31 December 2016)5,000nil 10% loan notes (31 December 2016)nil5,000 5,0009,200 Current liabilities Trade payables1,2502,100 Finance lease

21、obligationnil1,000 Taxation7501,100 2,0004,200 Total equity and liabilities9,60019,0004Notes(i)Carrying value of plant:KandidKovert $000$000 Owned plant cost8,00010,000 Less government grant(2,000) 6,000 Accumulated depreciation(1,200)(8,000) 4,8002,000Leased plant original fair valuenil8,000(ii)The

22、 following ratios have been calculated:KandidKovert Return on year-end capital employed (ROCE)625%310% (finance lease obligations are treated as debt) Net asset (taken as same figure as capital employed) turnover 33 times25 times Gross profit margin 240%180% Profit margin (before interest and tax)19

23、0%123% Current ratio 24:121:1 Closing inventory holding period 31 days38 days Trade receivables collection period 31 days47 days Trade payables payment period (using cost of sales) 24 days23 days Gearing (debt/(debt + equity) 658%646%Required:(a)Using the above information, assess the relative perfo

24、rmance and financial position of Kandid and Kovert for the year ended 30 September 2015 in order to assist the directors of Xpand to make an acquisition decision. (11 marks)(b) Describe what further information may be useful to Xpand when making an acquisition decision. (4 marks)(15 marks)5P.T.O.3(a

25、)On 1 January 2015, Palistar acquired 75% of Stretchers equity shares by means of an immediate share exchange of two shares in Palistar for five shares in Stretcher. The fair value of Palistar and Stretchers shares on 1 January 2015 were $400 and $300 respectively. In addition to the share exchange,

26、 Palistar will make a cash payment of $132 per acquired share, deferred until 1 January 2016. Palistar has not recorded any of the consideration for Stretcher in its financial statements. Palistars cost of capital is 10% per annum.The summarised statements of financial position of the two companies

27、as at 30 June 2015 are:PalistarStretcher $000 $000 Assets Non-current assets (note (ii) Property, plant and equipment55,00028,600 Financial asset equity investments (note (v)11,5006,000 66,50034,600 Current assets Inventory (note (iv)17,00015,400 Trade receivables (note (iv)14,30010,500 Bank2,2001,6

28、00 33,50027,500 Total assets100,00062,100Equity and liabilities Equity Equity shares of $1 each20,00020,000 Other component of equity4,000nil Retained earnings at 1 July 201426,20014,000 for year ended 30 June 201524,00010,000 74,20044,000 Current liabilities (note (iv)25,80018,100 Total equity and

29、liabilities100,00062,100The following information is relevant:(i)Stretchers business is seasonal and 60% of its annual profit is made in the period 1 January to 30 June each year.(ii)At the date of acquisition, the fair value of Stretchers net assets was equal to their carrying amounts with the foll

30、owing exceptions:An item of plant had a fair value of $2 million below its carrying value. At the date of acquisition it had a remaining life of two years.The fair value of Stretchers investments was $7 million (see also note (v).Stretcher owned the rights to a popular mobile (cell) phone game. At t

31、he date of acquisition, a specialist valuer estimated that the rights were worth $12 million and had an estimated remaining life of five years.(iii) Following an impairment review, consolidated goodwill is to be written down by $3 million as at 30 June 2015.(iv) Palistar sells goods to Stretcher at

32、cost plus 30%. Stretcher had $18 million of goods in its inventory at 30 June 2015 which had been supplied by Palistar. In addition, on 28 June 2015, Palistar processed the sale of $800,000 of goods to Stretcher, which Stretcher did not account for until their receipt on 2 July 2015. The in-transit

33、reconciliation should be achieved by assuming the transaction had been recorded in the books of Stretcher before the year end. At 30 June 2015, Palistar had a trade receivable balance of $24 million due from Stretcher which differed to the equivalent balance in Stretchers books due to the sale made

34、on 28 June 2015.6(v)At 30 June 2015, the fair values of the financial asset equity investments of Palistar and Stretcher were $132 million and $79 million respectively.(vi) Palistars policy is to value the non-controlling interest at fair value at the date of acquisition. For this purpose Stretchers

35、 share price at that date is representative of the fair value of the shares held by the non-controlling interest.Required:Prepare the consolidated statement of financial position for Palistar as at 30 June 2015.(25 marks)(b) For many years, Dilemma has owned 35% of the voting shares and held a seat

36、on the board of Myno which has given Dilemma significant influence over Myno. The other shares (65%) in Myno were held by many other shareholders who all owned less than 10% of the share capital. On this basis, Dilemma considered Myno to be an associate and has used equity accounting to account for

37、its investment.In March 2015, Agresso made an offer to buy all of the shares of Myno. The offer was supported by the majority of Mynos directors. Dilemma did not accept the offer and held on to its shares in Myno.On 1 April 2015, Agresso announced that it had acquired the other 65% of the share capi

38、tal of Myno and immediately convened a board meeting at which three of the previous directors of Myno were replaced, including the seat held by Dilemma.Required:Explain how the investment in Myno should be treated in the consolidated statement of profit or loss of Dilemma for the year ended 30 June 2015 and the consolidated statement of financial position at 30 June 2015.(5 marks)(30 marks)End of Question Paper7