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程序代写案例-NATIONS 2020
时间：2021-07-28
JANUARY EXAMINATIONS 2020
Financial Reporting I
TIME ALLOWED: Three Hours
!
INSTRUCTIONS TO CANDIDATES
1. ANSWER ALL QUESTIONS
2. Ensure the required details are written on front of your answer booklet.
3. Answers to each question must begin on a new page and must be clearly numbered.
Use both side of the paper in your answer booklet
4. The examiner will take account of the way in which answers are presented.
5. Show all relevant workings
The use of pre-programmable calculators is not permitted during this exam.
Paper Code: ACFI201 Page of 1
13
Question 1
Elmwood plc has prepared the following trial balance at 31 December 2019 before taking
account of the additional information below
Additional information
1. Inventories as at 31 December 2019 had a cost of £55,000
Within this figure there are some items currently included at their cost of £15,000 can
only be sold for £13,500 after incurring rectification costs of £1,750.
2. On 30 June 2019 Elmwood made a 1-for-10 bonus issue, using the share premium
account. This has yet to be accounted for.
Debit Credit
£ £
Revenue 643,720
Purchases 434,439
Administrative expenses 111,586
Distribution costs 48,589
Inventory at 1 January 2019 64,800
Retained Earnings at 1 January 2019 165,911
Ordinary Share Capital £1 shares 100,000
Share Premium 200,000
Land – Cost 260,000
Buildings – Cost 340,000
Buildings – Accumulated Depreciation at 1 January 2019 68,000
Plant and Equipment – Cost 180,000
Plant and Equipment – Accumulated Depreciation at 1
January 2019
45,000
Research and Development 73,200
Cash and Cash equivalents 3,857
6% loan notes 300,000
Trade and other receivables 80,465
Trade and other payables 74,305
1,596,936 1,596,936
Paper Code: ACFI201 Page of 2
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3. A dividend of 50p per ordinary share was paid on 20 December 2019 on the correct
number of shares in issue at that date. This was incorrectly debited to purchases.
4. Elmwood plc charges depreciation as follows:
• Buildings – straight line over 50 years charged to administrative expenses
• Plant and equipment – 25% per annum reducing balance charged to cost of
sales
5. On 1 January 2019 the board of directors made a decision to revalue the company’s
land to £400,000. This is yet to be accounted for.
6. The Research and Development in the trial balance represents a new product for
which research and development commenced on 1 January 2019. It wasn’t until 1
April the project’s new products was considered viable and funding for completion
approved by the board. Commercial production began on 1 July 2019 (at which point
research and development expenditure was no longer incurred) and is expected to
continue for the next 5 years.
Research and amortisation are to be recognised as a cost of sale, all costs relating to
this are assumed to accrue evenly between 1 January 2019 and 30 June 2019.
7. Interest has not been accrued for the loan note issued on a number of years ago
which is repayable on 31 December 2022
8. Included in payables is a purchase of $25,000 made on 1 November 2019. This was
correctly translated at the exchange rate of $1.25/£1 at 1 November 2019. The
exchange rate on 31 December 2019 is $1.20/£1, no entries have been made to
reflect this. Exchange differences go to admin expenses
9. The income tax charge for the year has been estimated as £13,350.
Requirement
Prepare a statement of profit or loss and other comprehensive income, and a
statement of changes in equity for Elmwood for the year ended 31 December 2019
and a statement of financial position as at 31 December 2019 in a form suitable for
publication.
Notes to the financial statements are not required, expenses should be presented
analysed by function and ignore effects on tax of any adjustments.
(26 marks)
Paper Code: ACFI201 Page of 3
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Paper Code: ACFI201 Page of 4
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Question 2
Franklyn Ltd has prepared the following financial statements and additional information as at
30 September 2019.
Statement of profit or loss and other comprehensive in income for year ended 30
September 2019.
£,000
Revenue 116,520
Cost of sales (68,760)
Gross Profit 47,760
Administrative expenses (10,320)
Distribution costs (4,680)
Operating profit 32,760
Interest expense (1,620)
Profit before tax 31,140
Tax (15,570)
Profit for year 15,570
Other comprehensive income
Land revaluation in year 2,700
Total income recognised in year 18,270
Paper Code: ACFI201 Page of 5
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Statement of Financial Position at 30 September 2019
2019 2018
£,000 £,000
Non-Current Assets
Land and buildings 91,536 69,450
Plant and equipment 42,000 33,600
Intangible assets 4,500 5,250
138,036 108,300
Current Assets
Inventories 12,360 10,200
Trade and other receivables 12,960 12,180
Cash and cash equivalents 0 6,300
Total Current Assets 25,320 28,680
Total Assets 163,356 136,980
Equity and Liabilities
Equity
Share Capital £1 Shares 33,600 30,000
Share Premium 54,300 39,000
Retained Earnings 30,720 28,740
Revaluation Surplus 3,900 1,200
Total Equity 122,520 98,940
Non-Current Liabilities
Debenture repayable 31 March 2023 24,000 21,600
Current Liabilities
Trade and other payables 3,600 9,930
Overdraft 3,168 0
Finance cost accrual 288 150
Legal Provision 3,300 1,800
Taxation 6,480 4,560
Paper Code: ACFI201 Page of 6
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Additional information
1. The depreciation charge in the year was £2,400,000 for buildings and £4,880,000
for plant and equipment.
2. Included within operating profit, there is a loss on disposal of £1,200,000 that
relates to an item of plant and equipment with a carrying amount of £7,200,000.
There were no disposals of land and buildings in the year.
3. In June 2019 there was an ordinary share issue.
4. £600,000 of development expenditure was correctly capitalised during the year.
5. Franklyn paid an ordinary dividend in March 2019
Requirement
a) Explain how production of a statement of cash flows helps fulfil the fundamental
characteristic of Relevance as per the conceptual framework.
(3 marks)
b) Prepare a statement of cash flows for Franklyn Ltd in accordance with IAS 7
Statement of cash flows for the year ended 30 September 2019. The indirect method
should be used starting with profit before tax.
(23 marks)
(Total: 26 marks)
Total Current Liabilities 16,836 16,440
Total Equity and Liabilities 163,356 136,980
Paper Code: ACFI201 Page of 7
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Question 3
Norwood plc operate as a multinational in the hi-tech industry. You are assistant to the
financial controller who has asked you to prepare and advise on certain items of information
for the financial statements for the year ended 31 December 2019.
The following information is relevant:
Machinery purchased with government grant
On 1 January 2019 Norwood acquired an item of machinery with the help of a government
grant.
The total cost of the machinery which is expected to be used for the next 5 years with zero
residual value was £500,000.
The government grant towards funding this was £300,000.
Directors want to consider both alternative ways of accounting for this grant.
Poorly performing business unit
A business unit has suffered a massive drop in income due to the failure of its technology on
1 January 2019. Prior to this drop the following carrying amounts were recorded in the
books:
The recoverable value of the unit is estimated at £224,000.
The technology is worthless due to its complete failure.
Other net assets include inventory, receivables and payables. Their carrying amount is equal
to their expected net realisable value.
Machinery no longer in use
On 1 July 2019 Norwood stopped using a piece of machinery, and immediately advertised it
for sale.
The machine had originally cost £2.8 million on 30 June 2015 and had a useful life of seven
years. The fair value of the equipment was estimated at £550,000 on 1 July 2019 and costs
to sell were estimated at £25,000. Norwood has advertised the machine at a price of
£550,000.
£,000
Goodwill 400
Technology 10
Brands 20
Buildings 60
Land 100
Other net assets 80
670
Paper Code: ACFI201 Page of 8
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The machine is included in property, plant and equipment and a full years’ depreciation has
been charged in the year ended 31 December 2019, it remains unsold at year end.
Directors are committed to a plan to sell and are confident a sale will be made in early 2020.
Paper Code: ACFI201 Page of 9
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Requirement
a) Advise the directors of Norwood how the above issues should be dealt with for in the
financial statements for the year ended 31 December 2019.
(25 Marks)
b) Explain how the accounting treatment for the machinery no longer in use would be
different under UKGAAP
(2 Marks)
(27 Marks)
Paper Code: ACFI201 Page of 10
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Question 4
Part a
You are a financial controller at Marranto Ltd (a cosmetics company). The directors have
asked for your advice on the following issues whilst preparing the financial statements for
the year ended 31 December 2019.
Perfume Inventories
Marranto’s year end inventory was made of 3 lines listed below
In December 2019 it was discovered there was production fault with Aroma and Italic and
they contained a toxic chemical harmful to skin. In order to make these perfumes safe for
sale a chemical is added at a cost of £8 per bottle for aroma and £11 per bottle for Italic.
New head office built
On 1 January 2019, Marranto commenced construction of a new head office. The head
office was completed and available to use on 31 October 2019. The cost of construction was
£51 million and was funded from Marranto’s general borrowings, which comprise of two
bank loans as follows:
£30 million of bank loan finance at an interest rate of 6.5%
£60 million of bank loan finance at an interest rate of 5.5%
As of yet on £51 million direct construction costs have been capitalised.
The land element is £20,000,000 and the head office is expected to have a useful life of 50
years.
Insolvency of large customer
In January 2020 it came to Marranto’s attention a large supermarket chain ASCO who were
a large customer of Marranto had gone into liquidation.
The year end trade receivable balance from ASCO was £350,000
The early indications from Liquidators is it’s unlikely any of this receivable will be
recoverable.
Requirement
Advise the directors how each of the above issues should be dealt with in the financial
statements for the year ended 31 December 2019.
(17 Marks)
Aroma Italic Trinca
Cost of production £30 £40 £70
Usual selling price £45 £55 £98
Selling costs £10 £12 £12
Volume of inventory at 31
December 2019
75,000 120,000 100,000
Paper Code: ACFI201 Page of 11
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Paper Code: ACFI201 Page of 12
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Part b
The finance director has approached you stating there is a potential merger taking place of
our company with an existing competitor. He’s stated you will receive a bonus, but only if this
merger takes place.
In order for the merger to take place Marranto needs to achieve a particular profit figure.
He’s asked you to process an adjustment the sole reason being to boost profit to the
required figure.
Requirement
Explain the ethical issues arising from this and possible courses of action that you should
take
(4 Marks)
(21 Marks)
Paper Code: ACFI201 Page of 13
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学霸联盟
Financial Reporting I
TIME ALLOWED: Three Hours
!
INSTRUCTIONS TO CANDIDATES
1. ANSWER ALL QUESTIONS
2. Ensure the required details are written on front of your answer booklet.
3. Answers to each question must begin on a new page and must be clearly numbered.
Use both side of the paper in your answer booklet
4. The examiner will take account of the way in which answers are presented.
5. Show all relevant workings
The use of pre-programmable calculators is not permitted during this exam.
Paper Code: ACFI201 Page of 1
13
Question 1
Elmwood plc has prepared the following trial balance at 31 December 2019 before taking
account of the additional information below
Additional information
1. Inventories as at 31 December 2019 had a cost of £55,000
Within this figure there are some items currently included at their cost of £15,000 can
only be sold for £13,500 after incurring rectification costs of £1,750.
2. On 30 June 2019 Elmwood made a 1-for-10 bonus issue, using the share premium
account. This has yet to be accounted for.
Debit Credit
£ £
Revenue 643,720
Purchases 434,439
Administrative expenses 111,586
Distribution costs 48,589
Inventory at 1 January 2019 64,800
Retained Earnings at 1 January 2019 165,911
Ordinary Share Capital £1 shares 100,000
Share Premium 200,000
Land – Cost 260,000
Buildings – Cost 340,000
Buildings – Accumulated Depreciation at 1 January 2019 68,000
Plant and Equipment – Cost 180,000
Plant and Equipment – Accumulated Depreciation at 1
January 2019
45,000
Research and Development 73,200
Cash and Cash equivalents 3,857
6% loan notes 300,000
Trade and other receivables 80,465
Trade and other payables 74,305
1,596,936 1,596,936
Paper Code: ACFI201 Page of 2
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3. A dividend of 50p per ordinary share was paid on 20 December 2019 on the correct
number of shares in issue at that date. This was incorrectly debited to purchases.
4. Elmwood plc charges depreciation as follows:
• Buildings – straight line over 50 years charged to administrative expenses
• Plant and equipment – 25% per annum reducing balance charged to cost of
sales
5. On 1 January 2019 the board of directors made a decision to revalue the company’s
land to £400,000. This is yet to be accounted for.
6. The Research and Development in the trial balance represents a new product for
which research and development commenced on 1 January 2019. It wasn’t until 1
April the project’s new products was considered viable and funding for completion
approved by the board. Commercial production began on 1 July 2019 (at which point
research and development expenditure was no longer incurred) and is expected to
continue for the next 5 years.
Research and amortisation are to be recognised as a cost of sale, all costs relating to
this are assumed to accrue evenly between 1 January 2019 and 30 June 2019.
7. Interest has not been accrued for the loan note issued on a number of years ago
which is repayable on 31 December 2022
8. Included in payables is a purchase of $25,000 made on 1 November 2019. This was
correctly translated at the exchange rate of $1.25/£1 at 1 November 2019. The
exchange rate on 31 December 2019 is $1.20/£1, no entries have been made to
reflect this. Exchange differences go to admin expenses
9. The income tax charge for the year has been estimated as £13,350.
Requirement
Prepare a statement of profit or loss and other comprehensive income, and a
statement of changes in equity for Elmwood for the year ended 31 December 2019
and a statement of financial position as at 31 December 2019 in a form suitable for
publication.
Notes to the financial statements are not required, expenses should be presented
analysed by function and ignore effects on tax of any adjustments.
(26 marks)
Paper Code: ACFI201 Page of 3
13
Paper Code: ACFI201 Page of 4
13
Question 2
Franklyn Ltd has prepared the following financial statements and additional information as at
30 September 2019.
Statement of profit or loss and other comprehensive in income for year ended 30
September 2019.
£,000
Revenue 116,520
Cost of sales (68,760)
Gross Profit 47,760
Administrative expenses (10,320)
Distribution costs (4,680)
Operating profit 32,760
Interest expense (1,620)
Profit before tax 31,140
Tax (15,570)
Profit for year 15,570
Other comprehensive income
Land revaluation in year 2,700
Total income recognised in year 18,270
Paper Code: ACFI201 Page of 5
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Statement of Financial Position at 30 September 2019
2019 2018
£,000 £,000
Non-Current Assets
Land and buildings 91,536 69,450
Plant and equipment 42,000 33,600
Intangible assets 4,500 5,250
138,036 108,300
Current Assets
Inventories 12,360 10,200
Trade and other receivables 12,960 12,180
Cash and cash equivalents 0 6,300
Total Current Assets 25,320 28,680
Total Assets 163,356 136,980
Equity and Liabilities
Equity
Share Capital £1 Shares 33,600 30,000
Share Premium 54,300 39,000
Retained Earnings 30,720 28,740
Revaluation Surplus 3,900 1,200
Total Equity 122,520 98,940
Non-Current Liabilities
Debenture repayable 31 March 2023 24,000 21,600
Current Liabilities
Trade and other payables 3,600 9,930
Overdraft 3,168 0
Finance cost accrual 288 150
Legal Provision 3,300 1,800
Taxation 6,480 4,560
Paper Code: ACFI201 Page of 6
13
Additional information
1. The depreciation charge in the year was £2,400,000 for buildings and £4,880,000
for plant and equipment.
2. Included within operating profit, there is a loss on disposal of £1,200,000 that
relates to an item of plant and equipment with a carrying amount of £7,200,000.
There were no disposals of land and buildings in the year.
3. In June 2019 there was an ordinary share issue.
4. £600,000 of development expenditure was correctly capitalised during the year.
5. Franklyn paid an ordinary dividend in March 2019
Requirement
a) Explain how production of a statement of cash flows helps fulfil the fundamental
characteristic of Relevance as per the conceptual framework.
(3 marks)
b) Prepare a statement of cash flows for Franklyn Ltd in accordance with IAS 7
Statement of cash flows for the year ended 30 September 2019. The indirect method
should be used starting with profit before tax.
(23 marks)
(Total: 26 marks)
Total Current Liabilities 16,836 16,440
Total Equity and Liabilities 163,356 136,980
Paper Code: ACFI201 Page of 7
13
Question 3
Norwood plc operate as a multinational in the hi-tech industry. You are assistant to the
financial controller who has asked you to prepare and advise on certain items of information
for the financial statements for the year ended 31 December 2019.
The following information is relevant:
Machinery purchased with government grant
On 1 January 2019 Norwood acquired an item of machinery with the help of a government
grant.
The total cost of the machinery which is expected to be used for the next 5 years with zero
residual value was £500,000.
The government grant towards funding this was £300,000.
Directors want to consider both alternative ways of accounting for this grant.
Poorly performing business unit
A business unit has suffered a massive drop in income due to the failure of its technology on
1 January 2019. Prior to this drop the following carrying amounts were recorded in the
books:
The recoverable value of the unit is estimated at £224,000.
The technology is worthless due to its complete failure.
Other net assets include inventory, receivables and payables. Their carrying amount is equal
to their expected net realisable value.
Machinery no longer in use
On 1 July 2019 Norwood stopped using a piece of machinery, and immediately advertised it
for sale.
The machine had originally cost £2.8 million on 30 June 2015 and had a useful life of seven
years. The fair value of the equipment was estimated at £550,000 on 1 July 2019 and costs
to sell were estimated at £25,000. Norwood has advertised the machine at a price of
£550,000.
£,000
Goodwill 400
Technology 10
Brands 20
Buildings 60
Land 100
Other net assets 80
670
Paper Code: ACFI201 Page of 8
13
The machine is included in property, plant and equipment and a full years’ depreciation has
been charged in the year ended 31 December 2019, it remains unsold at year end.
Directors are committed to a plan to sell and are confident a sale will be made in early 2020.
Paper Code: ACFI201 Page of 9
13
Requirement
a) Advise the directors of Norwood how the above issues should be dealt with for in the
financial statements for the year ended 31 December 2019.
(25 Marks)
b) Explain how the accounting treatment for the machinery no longer in use would be
different under UKGAAP
(2 Marks)
(27 Marks)
Paper Code: ACFI201 Page of 10
13
Question 4
Part a
You are a financial controller at Marranto Ltd (a cosmetics company). The directors have
asked for your advice on the following issues whilst preparing the financial statements for
the year ended 31 December 2019.
Perfume Inventories
Marranto’s year end inventory was made of 3 lines listed below
In December 2019 it was discovered there was production fault with Aroma and Italic and
they contained a toxic chemical harmful to skin. In order to make these perfumes safe for
sale a chemical is added at a cost of £8 per bottle for aroma and £11 per bottle for Italic.
New head office built
On 1 January 2019, Marranto commenced construction of a new head office. The head
office was completed and available to use on 31 October 2019. The cost of construction was
£51 million and was funded from Marranto’s general borrowings, which comprise of two
bank loans as follows:
£30 million of bank loan finance at an interest rate of 6.5%
£60 million of bank loan finance at an interest rate of 5.5%
As of yet on £51 million direct construction costs have been capitalised.
The land element is £20,000,000 and the head office is expected to have a useful life of 50
years.
Insolvency of large customer
In January 2020 it came to Marranto’s attention a large supermarket chain ASCO who were
a large customer of Marranto had gone into liquidation.
The year end trade receivable balance from ASCO was £350,000
The early indications from Liquidators is it’s unlikely any of this receivable will be
recoverable.
Requirement
Advise the directors how each of the above issues should be dealt with in the financial
statements for the year ended 31 December 2019.
(17 Marks)
Aroma Italic Trinca
Cost of production £30 £40 £70
Usual selling price £45 £55 £98
Selling costs £10 £12 £12
Volume of inventory at 31
December 2019
75,000 120,000 100,000
Paper Code: ACFI201 Page of 11
13
Paper Code: ACFI201 Page of 12
13
Part b
The finance director has approached you stating there is a potential merger taking place of
our company with an existing competitor. He’s stated you will receive a bonus, but only if this
merger takes place.
In order for the merger to take place Marranto needs to achieve a particular profit figure.
He’s asked you to process an adjustment the sole reason being to boost profit to the
required figure.
Requirement
Explain the ethical issues arising from this and possible courses of action that you should
take
(4 Marks)
(21 Marks)
Paper Code: ACFI201 Page of 13
13
学霸联盟
