The document provides information about an upcoming Certificate in Accounting and Finance Stage Examination. It includes two questions regarding non-current assets held by Meesna Limited, including a warehouse, vehicle, and office building. It also includes questions about investment property definitions, impairment indicators, and calculating impairment losses. The final question provides information to calculate the carrying value of a manufacturing plant as of December 31, 2021 and 2022 based on impairment testing.
This document contains information about various accounting transactions and financial statements that require analysis and journal entries. It includes details about the acquisition of a factory by Dada Sporting Ltd, research and development costs incurred by Robin Tool Company, the sale and reclassification of a building by DFR Ltd, and equity investments that Alom Ltd has in Shajol Ltd and Kajol Ltd. The document poses multiple requirements to determine appropriate accounting treatments and pass necessary journal entries.
The document is a 4 page exam for a Financial Accounting course. It includes 4 questions assessing understanding of concepts like provisions, contingencies, property plant and equipment, consolidated financial statements, and cash flow statements. Question 1 has multiple parts asking about inventory write downs, provisions, and contingencies. Question 2 covers measurement bases, property exchanges, and consolidated financial statements. Question 3 requires preparation of a cash flow statement and reconciliation. Question 4 requires preparation of a consolidated balance sheet from provided company balance sheets.
The document is a 4 page exam for a financial accounting course. It includes 5 questions testing various accounting concepts. Question 1 involves accounting for various financial instruments and investments. Question 2 covers accounting for dividends, authorization of financial statements, and accounting issues that arose after year-end. Question 3 provides a trial balance and asks students to prepare key financial statements. Question 4 discusses segment reporting required for listed companies. Question 5 is a consolidation question involving the acquisition of subsidiaries.
This document provides information about the financial statements of Rupali Ltd for the year ended 31 December 2013. It discusses Rupali Ltd's acquisition of assets from Newsmedia, including newspaper and magazine titles. It also discusses Rupali Ltd's investments in new printing machinery, a patent, and brand name for greeting cards. The summary is required to prepare the table of movements and accounting policy notes for intangible assets, and comment on the treatment of intangible assets in light of accounting standards.
The document provides three examples of accounting for fixed assets using straight line depreciation. The first example is for a machine bought in 2000 and depreciated over 5 years. The second example is for a machine bought in 2001, depreciated at 20% per year, and sold in 2002. The third example involves two vehicles bought by a business owner in 2002, one sold in 2003, and a new one bought that year. Journal entries and annual accounts are to be prepared for depreciation, disposals, and new purchases for each example.
This document contains instructions for a 2-hour financial accounting exam consisting of 4 questions worth a total of 100 marks. Question 1 asks students to comment on accounting ethics and explain triple bottom line accounting. It also asks students to prepare extracts from financial statements showing the accounting treatment for a machinery lease. Question 2 asks students to evaluate accounting treatments suggested by a bank's finance manager and calculate the ceiling on an asset recognized in an employee benefit plan. Question 3 provides balances and additional information and asks students to prepare financial statements for a company. Question 4 provides financial information for two companies, Dragan Ltd. and Sowdagar Ltd., and asks students to prepare consolidated financial statements showing Dragan Ltd.'s acquisition of 80% of Sow
The document is an exam paper for a financial accounting exam consisting of 4 questions. Question 1 involves explaining concepts from IAS 38 and BAS 17, preparing extracts from financial statements for a software development contract, and calculating earnings per share. Question 2 involves preparing provisions and a contingency note for various legal claims and restructuring costs. Question 3 involves further calculations of earnings per share. Question 4 identifies errors in a draft statement of cash flows and requests corrections and additions based on additional information provided about property, plant and equipment transactions, accruals, and share issues during the year.
This document contains information about various accounting transactions and financial statements that require analysis and journal entries. It includes details about the acquisition of a factory by Dada Sporting Ltd, research and development costs incurred by Robin Tool Company, the sale and reclassification of a building by DFR Ltd, and equity investments that Alom Ltd has in Shajol Ltd and Kajol Ltd. The document poses multiple requirements to determine appropriate accounting treatments and pass necessary journal entries.
The document is a 4 page exam for a Financial Accounting course. It includes 4 questions assessing understanding of concepts like provisions, contingencies, property plant and equipment, consolidated financial statements, and cash flow statements. Question 1 has multiple parts asking about inventory write downs, provisions, and contingencies. Question 2 covers measurement bases, property exchanges, and consolidated financial statements. Question 3 requires preparation of a cash flow statement and reconciliation. Question 4 requires preparation of a consolidated balance sheet from provided company balance sheets.
The document is a 4 page exam for a financial accounting course. It includes 5 questions testing various accounting concepts. Question 1 involves accounting for various financial instruments and investments. Question 2 covers accounting for dividends, authorization of financial statements, and accounting issues that arose after year-end. Question 3 provides a trial balance and asks students to prepare key financial statements. Question 4 discusses segment reporting required for listed companies. Question 5 is a consolidation question involving the acquisition of subsidiaries.
This document provides information about the financial statements of Rupali Ltd for the year ended 31 December 2013. It discusses Rupali Ltd's acquisition of assets from Newsmedia, including newspaper and magazine titles. It also discusses Rupali Ltd's investments in new printing machinery, a patent, and brand name for greeting cards. The summary is required to prepare the table of movements and accounting policy notes for intangible assets, and comment on the treatment of intangible assets in light of accounting standards.
The document provides three examples of accounting for fixed assets using straight line depreciation. The first example is for a machine bought in 2000 and depreciated over 5 years. The second example is for a machine bought in 2001, depreciated at 20% per year, and sold in 2002. The third example involves two vehicles bought by a business owner in 2002, one sold in 2003, and a new one bought that year. Journal entries and annual accounts are to be prepared for depreciation, disposals, and new purchases for each example.
This document contains instructions for a 2-hour financial accounting exam consisting of 4 questions worth a total of 100 marks. Question 1 asks students to comment on accounting ethics and explain triple bottom line accounting. It also asks students to prepare extracts from financial statements showing the accounting treatment for a machinery lease. Question 2 asks students to evaluate accounting treatments suggested by a bank's finance manager and calculate the ceiling on an asset recognized in an employee benefit plan. Question 3 provides balances and additional information and asks students to prepare financial statements for a company. Question 4 provides financial information for two companies, Dragan Ltd. and Sowdagar Ltd., and asks students to prepare consolidated financial statements showing Dragan Ltd.'s acquisition of 80% of Sow
The document is an exam paper for a financial accounting exam consisting of 4 questions. Question 1 involves explaining concepts from IAS 38 and BAS 17, preparing extracts from financial statements for a software development contract, and calculating earnings per share. Question 2 involves preparing provisions and a contingency note for various legal claims and restructuring costs. Question 3 involves further calculations of earnings per share. Question 4 identifies errors in a draft statement of cash flows and requests corrections and additions based on additional information provided about property, plant and equipment transactions, accruals, and share issues during the year.
The document is a past exam paper for a financial accounting exam. It contains 4 questions regarding concepts like substance over form, inventory accounting, research and development costs, non-current assets, leases, provisions, contingencies, share-based payments, and business combinations. The questions require calculations, journal entries, notes disclosures and consolidation of financial statements for various companies.
Questiong The following items are considered in the preparation of fin.docxlmarie40
Questiong The following items are considered in the preparation of financial statements for Forde ine. for the year ended December 31,2020 . 1. The company is currently investignting whether a foreign drvision paid bribes to goverumental officials in the Bahamas in order to obtain a sales contract with the govemment. The company is working with the SEC to resolve the matter. 2. A loan to a 5% shareholder was made on June 30,2020 , for $10 , 000 . Interest is due annually beginning one year from the origination of the loan. 3. Short-term investments are valued at Level 1 in the fair value hierarchy for $40 , 550 . The total net unrealized gain (affecting net income) related to the investments is $1 , 500 . 4. Depreciation is determined on a straight-line basis for buildings and leasehold improvements over 2 to 40 years. 5. On February 1, 2021, the company declared a quarterly cash dividend of $0.40 per share, payable on March 15, 2021, for shareholders of record on March 10, 2021. 6. Equipment is measured at the fair value of $27 , 000 on a nonrecurring basis using significant unobservable inputs (Level 3). The total related impairment loss is $3 , 000 . 7. Land was sold to the company president at a price significantly under its appraised value. 8. All highly liquid investments with an original maturity of 90 days or less are considered to be cash equivalents. Requirements: a. For each of the items listed above, complete the following table. For the note disclosure category, choose from the following items: (1) summary of significant accounting policies, (2) fair value measurement, (3) related party transactions, (4) subsequent events, (5) errors, fraud, and illegal acts. For each item, indicate whether we would expect to potentially see an item affected on the face of the balance sheet and/or on the face of the income statement. b. For the note disclosure category, what treatment is required to present financial statements in accordance with the applicable financial reporting framework?
.
This document contains an exam for the subject of financial accounting. It includes 5 questions covering topics such as creative accounting, lease accounting, accounting for property, plant and equipment, appropriate accounting treatments for different situations, and preparing financial statements for a company. The exam is 3 hours long and worth a total of 100 marks.
The document provides information needed to prepare consolidated financial statements for the Roby Group as of May 31, 2012. It includes details on Roby's acquisitions of investments in Hai and Zinc, including percentages acquired and consideration paid. It also provides information on a joint operation, impairment of property, plant and equipment, factoring of receivables, sale and repurchase of land, and intercompany transactions that need to be eliminated. The required task is to prepare a consolidated statement of financial position for the Roby Group based on the information given.
Keppel delivered its highest net profit on record in 1H23. Recurring income grew 62% YoY due to the strategy shift away from lumpy development profits. Asset management fees also increased with FUM of $65.6B. Keppel aims to grow FUM to $100B by 2026 and $200B by 2030 through organic and inorganic opportunities. Operations & maintenance contracts provide long-term recurring income from premier infrastructure assets. Keppel is advancing as a global alternative asset manager focused on infrastructure, real estate and connectivity through its fund management, investment and operating platforms.
The Finance Director of RACO Ltd wants to discuss non-compliance with IFRS standards to achieve a "true and fair view" of financial statements. You must prepare notes explaining:
1) The difference between "fair presentation" and "true and fair view"
2) How "substance over form" relates to fair presentation
3) When non-compliance with IFRS details is justified
You must also identify any ethical issues, such as pressure to misapply standards, that could arise from the discussion.
A businessman purchased goods for Rs. 25,00,000 and sold 70% of the goods. The remaining goods were valued at Rs. 5,00,000 in the financial statements, though their market value was Rs. 7,50,000, due to the accounting principle of conservatism.
Several multiple choice questions were asked related to accounting concepts like provisions, treatment of plant and machinery sold, joint venture accounting, bill discounting, partnership profit sharing ratios, and debenture types.
The document contained a mock test paper with 45 multiple choice questions to assess understanding of basic accounting concepts like inventory valuation, bank reconciliation, accounting for leases, recording of transactions, and preparation of financial statements.
The document is a past exam paper for a financial accounting exam. It contains 4 questions regarding concepts like substance over form, inventory accounting, research and development costs, non-current assets, leases, provisions, contingencies, share-based payments, and business combinations. The questions require calculations, journal entries, notes disclosures and consolidation of financial statements for various companies.
Questiong The following items are considered in the preparation of fin.docxlmarie40
Questiong The following items are considered in the preparation of financial statements for Forde ine. for the year ended December 31,2020 . 1. The company is currently investignting whether a foreign drvision paid bribes to goverumental officials in the Bahamas in order to obtain a sales contract with the govemment. The company is working with the SEC to resolve the matter. 2. A loan to a 5% shareholder was made on June 30,2020 , for $10 , 000 . Interest is due annually beginning one year from the origination of the loan. 3. Short-term investments are valued at Level 1 in the fair value hierarchy for $40 , 550 . The total net unrealized gain (affecting net income) related to the investments is $1 , 500 . 4. Depreciation is determined on a straight-line basis for buildings and leasehold improvements over 2 to 40 years. 5. On February 1, 2021, the company declared a quarterly cash dividend of $0.40 per share, payable on March 15, 2021, for shareholders of record on March 10, 2021. 6. Equipment is measured at the fair value of $27 , 000 on a nonrecurring basis using significant unobservable inputs (Level 3). The total related impairment loss is $3 , 000 . 7. Land was sold to the company president at a price significantly under its appraised value. 8. All highly liquid investments with an original maturity of 90 days or less are considered to be cash equivalents. Requirements: a. For each of the items listed above, complete the following table. For the note disclosure category, choose from the following items: (1) summary of significant accounting policies, (2) fair value measurement, (3) related party transactions, (4) subsequent events, (5) errors, fraud, and illegal acts. For each item, indicate whether we would expect to potentially see an item affected on the face of the balance sheet and/or on the face of the income statement. b. For the note disclosure category, what treatment is required to present financial statements in accordance with the applicable financial reporting framework?
.
This document contains an exam for the subject of financial accounting. It includes 5 questions covering topics such as creative accounting, lease accounting, accounting for property, plant and equipment, appropriate accounting treatments for different situations, and preparing financial statements for a company. The exam is 3 hours long and worth a total of 100 marks.
The document provides information needed to prepare consolidated financial statements for the Roby Group as of May 31, 2012. It includes details on Roby's acquisitions of investments in Hai and Zinc, including percentages acquired and consideration paid. It also provides information on a joint operation, impairment of property, plant and equipment, factoring of receivables, sale and repurchase of land, and intercompany transactions that need to be eliminated. The required task is to prepare a consolidated statement of financial position for the Roby Group based on the information given.
Keppel delivered its highest net profit on record in 1H23. Recurring income grew 62% YoY due to the strategy shift away from lumpy development profits. Asset management fees also increased with FUM of $65.6B. Keppel aims to grow FUM to $100B by 2026 and $200B by 2030 through organic and inorganic opportunities. Operations & maintenance contracts provide long-term recurring income from premier infrastructure assets. Keppel is advancing as a global alternative asset manager focused on infrastructure, real estate and connectivity through its fund management, investment and operating platforms.
The Finance Director of RACO Ltd wants to discuss non-compliance with IFRS standards to achieve a "true and fair view" of financial statements. You must prepare notes explaining:
1) The difference between "fair presentation" and "true and fair view"
2) How "substance over form" relates to fair presentation
3) When non-compliance with IFRS details is justified
You must also identify any ethical issues, such as pressure to misapply standards, that could arise from the discussion.
A businessman purchased goods for Rs. 25,00,000 and sold 70% of the goods. The remaining goods were valued at Rs. 5,00,000 in the financial statements, though their market value was Rs. 7,50,000, due to the accounting principle of conservatism.
Several multiple choice questions were asked related to accounting concepts like provisions, treatment of plant and machinery sold, joint venture accounting, bill discounting, partnership profit sharing ratios, and debenture types.
The document contained a mock test paper with 45 multiple choice questions to assess understanding of basic accounting concepts like inventory valuation, bank reconciliation, accounting for leases, recording of transactions, and preparation of financial statements.
1. Certificate in Accounting and Finance Stage Examinations
(Assessment) May 23, 2023
55 minutes – 30 marks
Additional reading time – 5 minutes
1 (FAR-I Assessment: 11 November 2022)
Financial Accounting and Reporting 1
Q.1 Following information pertains to non-current assets of Meesna Limited (ML):
(i) On 1 July 2019, ML acquired a warehouse at a cost of Rs. 300 million and was
immediately given on rent to a third party. On 1 January 2022, ML commenced the
development work on its warehouse with a view to put it in own use. The development
work was completed on 31 March 2022 at a cost of Rs. 50 million. ML started usingthe
warehouse for its inventory on 1 May 2022. Fair value of the warehouse on variousdates
are as follows:
31 Dec 2020 31 Dec 2021 31 Dec 2022 31 Dec 2023
Rs. in million 316 344 352 366
Depreciation is charged on warehouse at a rate of 10% per annum using the reducing
balance method.
(ii) On 1 January 2020, ML purchased a heavy-duty vehicle for Rs. 360 million. On
purchase date, the vehicle had an estimated useful life and residual value of 5 yearsand
Rs. 72 million respectively.
(iii) On 1 June 2021, ML started construction of an office building. The building was
available for use on 1 October 2022 and was immediately put into use. Details of the
construction costs incurred are as under:
Payment date Rs. in million Sources (see below)
1 May 2021 140 A
1 January 2022 *100 A & B
1 April 2022 70 C
1 August 2022 160 D
470
*The bill from the contractor was received on 1 December 2021.
These payments were financed through the following sources:
(A) A short-term loan of Rs. 200 million obtained on 1 April 2021 from Bank A at therate
of 16% per annum. The surplus funds available from the loan were invested in a
saving account at 10% per annum. On 1 March 2022, ML repaid the loan using
the proceeds received from a right issue of shares.
(B) Excess cash available with ML in current bank accounts.
(C) Withdrawals from its short-term investments earning a profit of 12% per annum.
(D) Withdrawals from a running finance facility from Bank B carrying interest at14%
per annum. The facility is also used for working capital needs.
Depreciation is charged on office building using straight line method over the
estimated useful life of 20 years.
Additional information:
▪ The cost model is used for subsequent measurement of all property, plant and
equipment.
▪ The fair value model is used for subsequent measurement of all investment properties.
Required:
Prepare relevant extracts (including comparative figures) from ML’s statement of profit or
loss for the year ended 31 December 2022 and statement of financial position as on that date. (18)
2. 2 (FAR-I Assessment: 11 November 2022)
Q.2 (a) Which of the following falls under the definition of investment property?
(a) Owner occupied property awaiting disposal
(b) Property occupied by an employee
(c) Land held for undetermined use
(d) Property held for future development and subsequent use as owner-occupied
property (01)
(b) Which of the following is NOT an indicator of impairment?
(a) Advances in the technological environment in which an asset is employed have an
adverse impact on its future use.
(b) An increase in interest rates which increases the discount rate an entity uses.
(c) The carrying amount of an entity’s net assets is higher than the entity’s number of
shares in issue multiplied by its share price.
(d) The estimated net realisable value of inventory has been reduced due to fire
damage although this value is greater than its carrying amount. (01)
(c) A plant has a carrying amount of Rs. 3.3 million as at 31 December 2021. Its fair value is
Rs. 2.4 million and costs of disposal are estimated at Rs. 0.1 million. Cash flows from the
plant for the next 4 years are estimated at Rs. 0.7 million per annum. It will be disposed of
at the end of the 4th year for Rs. 0.6 million. Applicable discount rate is 10% per annum.
What is the approximate impairment loss on the plant to be recognized in the financial
statements for the year ended 31 December 2021?
(a) Rs. 1 million (b) Rs. 2.6 million
(c) Rs. 0.7 million (d) Rs. 1.1 million (02)
Q.4 On 1 July 2019, Samundri Limited (SL) purchased a manufacturing plant for Rs. 570 million.The
plant is being depreciated at a rate of 15% per annum using the reducing balance method.On 31
December 2021, the remaining life of the plant was estimated at 4 years resulting in anincrease of
5% in depreciation rate.
SL carried out impairment testing of the plant on 31 December 2021 and also on31
December 2022 using the following estimates:
31 Dec 2021 31 Dec 2022
----- Rs. in million ----
-
Annual inflows from the sale of product 245 263
Annual outflows for operations 167 174
Annual interest on loan obtained for plant acquisition 14 14
Net sales proceeds at the end of useful life in current condition 142 140
Additional sale proceeds at the end of useful life if plant is
modified at cost of Rs. 50 million
125 125
Current fair value less cost to sell 300 280
Applicable discount rate 12% 10%
Required:
Calculate the carrying value of the manufacturing plant as at 31 December 2021 and 2022. (08)
(Good Luck)