(ii) The property of the former administrative centre of Tyr..

第1题

Which of the following is／are adjustment(s) to the basis of property after the initial

Which of the following is／are adjustment（s) to the basis of property after the initial

Which of the following is/are adjustment(s) to the basis of property after the initial basis is determined？()I. Add the costs of protecting ownership of the property.II. Add the expenditures for painting the company name on the property.III. Subtract the capital recovery resulting from collections for easements.IV. Subtract the capital recovery resulting from depreciation deductions.

A、Only statement IV is correct

B、Only statements I and III are correct

C、Only statements III and IV are correct

D、Only Statements II, and IV are correct

E、Statements I, II, III, and IV are correct

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第2题

Which of the following qualifies as a like－kind exchange of property？（)I. Registered trademark for a copyright.II. A 2009 Chevy, business－use automobile for a 2010 Ford, business－use automobile.

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

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第3题

In a review of its provisions for the year ended 31 March 2015, Cumla’s assistant accounta

nt has suggested the following accounting treatments:

(i) Making a provision for a constructive obligation of $400,000; this being the sales value of goods expected to be returned by retail customers after the year end under the company’s advertised 30-day returns policy

(ii) Based on past experience, a $200,000 provision for unforeseen liabilities arising after the year end

(iii) The partial reversal (as a credit to the statement of profit or loss) of the accumulated depreciation provision on an item of plant because the estimate of its remaining useful life has been increased by three years

(iv) Providing $1 million for deferred tax at 25% relating to a $4 million revaluation of property during March 2015 even though Cumla has no intention of selling the property in the near future

Which of the above suggested treatments of provisions is/are permitted by IFRS？

A.(i) only

B.(i) and (ii)

C.(ii) and (iii)

D.(iv)

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第4题

（a) A director of Enca, a public listed company, has expressed concerns about the accounti

(a) A director of Enca, a public listed company, has expressed concerns about the accounting treatment of some of the company’s items of property, plant and equipment which have increased in value. His main concern is that the statement of financial position does not show the true value of assets which have increased in value and that this ‘undervaluation’ is compounded by having to charge depreciation on these assets, which also reduces reported profit. He argues that this does not make economic sense.

Required:

Respond to the director’s concerns by summarising the principal requirements of IAS 16 Property, Plant and Equipment in relation to the revaluation of property, plant and equipment, including its subsequent treatment.

(b) The following details relate to two items of property, plant and equipment (A and B) owned by Delta which are depreciated on a straight-line basis with no estimated residual value:

（a) A director of Enca, a public listed company, h

At 31 March 2014 item A was still in use, but item B was sold (on that date) for $70 million.

Note: Delta makes an annual transfer from its revaluation surplus to retained earnings in respect of excess depreciation.

Required:

Prepare extracts from:

(i) Delta’s statements of profit or loss for the years ended 31 March 2013 and 2014 in respect of charges (expenses) related to property, plant and equipment;

(ii) Delta’s statements of financial position as at 31 March 2013 and 2014 for the carrying amount of property, plant and equipment and the revaluation surplus.

The following mark allocation is provided as guidance for this requirement:

(i) 5 marks

(ii) 5 marks (10 marks)

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第5题

（a) The following information relates to the draft financial statements of Mocha. Summaris

(a) The following information relates to the draft financial statements of Mocha.

Summarised statements of financial position as at 30 September:

（a) The following information relates to the draft

Summarised income statements for the years ended 30 September:

（a) The following information relates to the draft

The following additional information is available:

(i) Property, plant and equipment:

（a) The following information relates to the draft

The property disposed of was sold for $8·1 million.

(ii) Investments/investment income:

During the year an investment that had a carrying amount of $3 million was sold for $3·4 million. No investments were purchased during the year.

Investment income consists of:

（a) The following information relates to the draft

(iii) On 1 April 2011 there was a bonus issue of shares that was funded from the share premium and some of the revaluation reserve. This was followed on 30 April 2011 by an issue of shares for cash at par.

(iv) The movement in the product warranty provision has been included in cost of sales.

Required:

Prepare a statement of cash flows for Mocha for the year ended 30 September 2011, in accordance with IAS 7 Statement of cash flows, using the indirect method. (19 marks)

(b) Shareholders can often be confused when trying to evaluate the information provided to them by a company’s financial statements, particularly when comparing accruals-based information in the income statement and the statement of financial position with that in the statement of cash flows.

Required: In the two areas stated below, illustrate, by reference to the information in the question and your answer to (a), how information in a statement of cash flows may give a different perspective of events than that given by accruals-based financial statements:

(i) operating performance; and

(ii) investment in property, plant and equipment.

The following mark allocation is provided as guidance for this requirement:

(i) 3 marks

(ii) 3 marks

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第6题

In relation to the Enterprise Bankruptcy Law of China:（a) state and explain the legal effe

In relation to the Enterprise Bankruptcy Law of China:

(a) state and explain the legal effect of the settlement of debts by the debtor against individual creditors after a people’s court has accepted the application for bankruptcy; (3 marks)

(b) In relation to the debtors of the debtor against whom the application for bankruptcy is brought, or the property holders of such debtor:

(i) state their obligations once the people’s court accepts the application; (4 marks)

(ii) state the legal consequences for breaching their obligation. (3 marks)

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第7题

（a) IAS 37 Provisions, contingent liabilities and contingent assets prescribes the account

(a) IAS 37 Provisions, contingent liabilities and contingent assets prescribes the accounting and disclosure for those items named in its title.

Required:

Define provisions and contingent liabilities and briefly explain how IAS 37 improves consistency in financial reporting.

(b) The following items have arisen during the preparation of Borough’s draft financial statements for the year ended 30 September 2011:

(i) On 1 October 2010, Borough commenced the extraction of crude oil from a new well on the seabed. The cost of a 10-year licence to extract the oil was $50 million. At the end of the extraction, although not legally bound to do so, Borough intends to make good the damage the extraction has caused to the seabed environment. This intention has been communicated to parties external to Borough. The cost of this will be in two parts: a fixed amount of $20 million and a variable amount of 2 cents per barrel extracted. Both of these amounts are based on their present values as at 1 October 2010 (discounted at 8%) of the estimated costs in 10 years’ time. In the year to 30 September 2011 Borough extracted 150 million barrels of oil.

(ii) Borough owns the whole of the equity share capital of its subsidiary Hamlet. Hamlet’s statement of financial position includes a loan of $25 million that is repayable in five years’ time. $15 million of this loan is secured on Hamlet’s property and the remaining $10 million is guaranteed by Borough in the event of a default by Hamlet. The economy in which Hamlet operates is currently experiencing a deep recession, the effects of which are that the current value of its property is estimated at $12 million and there are concerns over whether Hamlet can survive the recession and therefore repay the loan.

Required:

Describe, and quantify where possible, how items (i) and (ii) above should be treated in Borough’s statement of financial position for the year ended 30 September 2011.

In the case of item (ii) only, distinguish between Borough’s entity and consolidated financial statements and refer to any disclosure notes. Your answer should only refer to the treatment of the loan and should not consider any impairment of Hamlet’s property or Borough’s investment in Hamlet.

Note: the treatment in the income statement is NOT required for any of the items.

The following mark allocation is provided as guidance for this requirement:

(i) 5 marks

(ii) 4 marks

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第8题

The following trial balance relates to Fresco at 31 March 2012:The following notes are rel

The following trial balance relates to Fresco at 31 March 2012:

The following trial balance relates to Fresco at 3

The following notes are relevant:

(i) The suspense account represents the corresponding credit for cash received for a fully subscribed rights issue of equity shares made on 1 January 2012. The terms of the share issue were one new share for every five held at a price of 75 cents each. The price of the company’s equity shares immediately before the issue was $1·20 each.

(ii) Non-current assets:

To reflect a marked increase in property prices, Fresco decided to revalue its leased property on 1 April 2011. The Directors accepted the report of an independent surveyor who valued the leased property at $36 million on that date. Fresco has not yet recorded the revaluation. The remaining life of the leased property is eight years at the date of the revaluation. Fresco makes an annual transfer to retained profits to reflect the realisation of the revaluation reserve. In Fresco’s tax jurisdiction the revaluation does not give rise to a deferred tax liability.

On 1 April 2011, Fresco acquired an item of plant under a finance lease agreement that had an implicit finance cost of 10% per annum. The lease payments in the trial balance represent an initial deposit of $2 million paid on 1 April 2011 and the first annual rental of $6 million paid on 31 March 2012. The lease agreement requires further annual payments of $6 million on 31 March each year for the next four years. Had the plant not been leased it would have cost $25 million to purchase for cash.

Plant and equipment (other than the leased plant) is depreciated at 20% per annum using the reducing balance method.

No depreciation/amortisation has yet been charged on any non-current asset for the year ended 31 March 2012. Depreciation and amortisation are charged to cost of sales.

(iii) In March 2012, Fresco’s internal audit department discovered a fraud committed by the company’s credit controller who did not return from a foreign business trip. The outcome of the fraud is that $4 million of the company’s trade receivables have been stolen by the credit controller and are not recoverable. Of this amount, $1 million relates to the year ended 31 March 2011 and the remainder to the current year. Fresco is not insured against this fraud.

(iv) Fresco’s income tax calculation for the year ended 31 March 2012 shows a tax refund of $2·4 million. The balance on current tax in the trial balance represents the under/over provision of the tax liability for the year ended 31 March 2011. At 31 March 2012, Fresco had taxable temporary differences of $12 million (requiring a deferred tax liability). The income tax rate of Fresco is 25%.

Required:

(a) (i) Prepare the statement of comprehensive income for Fresco for the year ended 31 March 2012.

(ii) Prepare the statement of changes in equity for Fresco for the year ended 31 March 2012.

(iii) Prepare the statement of financial position of Fresco as at 31 March 2012.

The following mark allocation is provided as guidance for this requirement:

(i) 9 marks

(ii) 5 marks

(iii) 8 marks (22 marks)

(b) Calculate the basic earnings per share for Fresco for the year ended 31 March 2012. (3 marks)

Notes to the financial statements are not required.

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第9题

（c) In October 2004, Volcan commenced the development of a site in a valley of ‘outstandin

(c) In October 2004, Volcan commenced the development of a site in a valley of ‘outstanding natural beauty’ on

which to build a retail ‘megastore’ and warehouse in late 2005. Local government planning permission for the

development, which was received in April 2005, requires that three 100-year-old trees within the valley be

preserved and the surrounding valley be restored in 2006. Additions to property, plant and equipment during

the year include $4·4 million for the estimated cost of site restoration. This estimate includes a provision of

$0·4 million for the relocation of the 100-year-old trees.

In March 2005 the trees were chopped down to make way for a car park. A fine of $20,000 per tree was paid

to the local government in May 2005. (7 marks)

Required:

For each of the above issues:

(i) comment on the matters that you should consider; and

(ii) state the audit evidence that you should expect to find,

in undertaking your review of the audit working papers and financial statements of Volcan for the year ended

31 March 2005.

NOTE: The mark allocation is shown against each of the three issues.

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第10题

Kyanite Pizzas Co （Kyanite) operates a large chain of fast food restaurants. You are an au

Kyanite Pizzas Co (Kyanite) operates a large chain of fast food restaurants. You are an audit supervisor of Jasper & Co and are currently preparing the audit programmes for the audit of Kyanite’s financial statements for the year ended 31 March 2016. You are reviewing the notes of last week’s meeting between the audit manager and finance director where two material issues were discussed.

(i) Property, plant and equipment

In the past Kyanite has received negative press reports over the condition of its fast food restaurants, with comments suggesting they are old fashioned and tired looking. Therefore during the year the company undertook a full review of all its assets and carried out extensive refurbishments to the majority of its restaurants. This review resulted in a significant amount of ageing fixtures and fittings being disposed of and a significant amount of capital expenditure was invested in all remaining restaurants. (6 marks)

(ii) Equity The refurbishment was financed via a share issue in April 2015 at a premium of $1·6 million. (4 marks)

Required:

Describe substantive procedures you should perform. to obtain sufficient and appropriate audit evidence in relation to the above two matters.

Note: The mark allocation is shown against each of the two matters above.

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（ii) The property of the former administrative centre of Tyre is owned by the company. Tyr