Market value added is the same as economic value added.

A、Economic value added （经济增加值）

B、Book value （账面价值）

C、Market value （市场价值）

D、Historical market value （历史市场价值）

A.Distribution capacity

B.Logistics system

C.Market share

D.Exclusive distribution

fied balance sheet for it is as following(in millions)： current assets $800 current liabilities $600 long-term assets $8000 long-term debt $4000 —— equity $4200 —— $8800 $8800 Then the company’s market value added is $________________.（仅填写数字）

(b) Explain the corporation tax and value added tax (VAT) implications of the following aspects of the proposed

restructuring of the Rapier Ltd group.

(i) The immediate tax implications of the restructuring. (6 marks)

1 The Health and Fitness Group (HFG), which is privately owned, operates three centres in the country of Mayland.

Each centre offers dietary plans and fitness programmes to clients under the supervision of dieticians and fitness

trainers. Residential accommodation is also available at each centre. The centres are located in the towns of Ayetown,

Beetown and Ceetown.

The following information is available:

(1) Summary financial data for HFG in respect of the year ended 31 May 2008.

(2) HFG defines Residual Income (RI) for each centre as operating profit minus a required rate of return of 12% of

the total assets of each centre.

(3) At present HFG does not allocate the long-term borrowings of the group to the three separate centres.

(4) Each centre faces similar risks.

(5) Tax is payable at a rate of 30%.

(6) The market value of the equity capital of HFG is $9 million. The cost of equity of HFG is 15%.

2

(7) The market value of the long-term borrowings of HFG is equal to the book value.

(8) The directors are concerned about the return on investment (ROI) generated by the Beetown centre and they are

considering using sensitivity analysis in order to show how a target ROI of 20% might be achieved.

(9) The marketing director stated at a recent board meeting that ‘The Group’s success depends on the quality of

service provided to our clients. In my opinion, we need only to concern ourselves with the number of complaints

received from clients during each period as this is the most important performance measure for our business.

The number of complaints received from clients is a perfect performance measure. As long as the number of

complaints received from clients is not increasing from period to period, then we can be confident about our

future prospects’.

Required:

(a) The directors of HFG have asked you, as management accountant, to prepare a report providing them with

explanations as to the following:

(i) Which of the three centres is the most ‘successful’？ Your report should include a commentary on return

on investment (ROI), residual income (RI), and economic value added (EVA) as measures of financial

performance. Detailed calculations regarding each of these three measures must be included as part of

your report;

Note: a maximum of seven marks is available for detailed calculations. (14 marks)

ria. Maria wants advice on the tax consequences of selling some of her shares back to Granada Ltd. Granada Ltd wants advice on the corporation tax and value added tax (VAT) implications of the recent acquisition of an unincorporated business.

Maria:

– Is resident and domiciled in the UK.

– Is a higher rate taxpayer and will remain so in the future.

– Has already realised chargeable gains of ￡15,000 in the tax year 2015/16.

Shares in Granada Ltd:

– Maria subscribed for 10,000 ￡1 ordinary shares in Granada Ltd at par in June 2006.

– Maria is one of four equal shareholders and directors of Granada Ltd.

– Maria intends to sell either 2,700 or 3,200 shares back to the company on 31 March 2016 at their current market value of ￡12·80 per share.

– All of the conditions for capital treatment are satisfied, except for, potentially, the condition relating to the reduction in the level of shareholding.

Granada Ltd:

– Is a UK resident trading company which manufactures knitwear.

– Prepares accounts to 31 December each year.

– Is registered for VAT.

– Acquired the trade and assets of an unincorporated business, Starling Partners, on 1 January 2016.

Starling Partners:

– Had been trading as a partnership for many years as a wholesaler of handbags within the UK.

– Starling Partners’ main assets comprise a freehold commercial building and its ‘Starling’ brand, which were valued on acquisition by Granada Ltd at ￡105,000 and ￡40,000 respectively.

– Is registered for VAT.

– The transfer of its trade and assets to Granada Ltd qualified as a transfer of a going concern (TOGC) for VAT purposes.

– The business is forecast to make a trading loss of ￡130,000 in the year ended 31 December 2016.

Granada Ltd – results and proposed expansion:

– The knitwear business is expected to continue making a taxable trading profit of around ￡100,000 each year.

– Granada Ltd has no non-trading income but realised a chargeable gain of ￡10,000 on 1 March 2016.

– Granada Ltd is considering expanding the wholesale handbag trade acquired from Starling Partners into the export market from 1 January 2017.

– Granada Ltd anticipates that this expansion will result in the wholesale handbag trade returning a profit of ￡15,000 in the year ended 31 December 2017.

Required:

(a) (i) Explain, with the aid of calculations, why the capital treatment WILL NOT apply if Maria sells 2,700 of her shares back to Granada Ltd, but WILL apply if, alternatively, she sells back 3,200 shares. (4 marks)

(ii) Calculate Maria’s after-tax proceeds per share if she sells:

(1) 2,700 shares back to Granada Ltd; and alternatively

(2) 3,200 shares back to Granada Ltd. (4 marks)

(b) (i) Describe the corporation tax treatment of the acquisition of the ‘Starling’ brand by Granada Ltd, if no charge for amortisation was required in its statement of profit or loss. (3 marks)

(ii) Discuss how Granada Ltd could obtain relief for the trading loss expected to be incurred by the trade acquired from Starling Partners, if it does not wish to carry any of the loss back. (5 marks)

(c) Explain the value added tax (VAT) implications for Granada Ltd in respect of the acquisition of the business of Starling Partners, and the additional information needed in relation to the building to fully clarify the VAT position. (4 marks)

【单选题】(I) To sell an old bond when interest rates have risen, the holder will have to discount the bond until the yield to the buyer is the same as the market rate. (II) The risk that the value of a bond will fall when market interest rates rise is called interest-rate risk.

A、(I) is true, (II) false.

B、(I) is false, (II) true.

C、Both are true.

D、Both are false.

A、(I) is true, (II) false.

B、(I) is false, (II) true.

C、Both are true.

D、Both are false.

d high-level technical design skills to generate growth in【C1】______industries with the potential to support the UK's【C2】______health.

A Higher Ambitions report states: "Britain must rebuild its economic growth and【C3】______in the skills and competitive strengths that will underwrite a(n)【C4】______recovery and balanced future economy."

【C5】______, it specifically calls for "enhanced support for the Stem subjects--【C6】______in the sciences, technology, engineering and mathematics--and other skills that underwrite this country's competitive【C7】______". The exclusion of design subjects from Stem【C8】______the common nature of these subjects,【C9】______science in the employment market and the strategic significance of design as a(n)【C10】______to the economy.

The government's Digital Britain report demonstrates that the creative industries sector is in a good position to【C11】______Britain out of recession. Lord Drayson, minister for science and innovation, has said: "The next few years will【C12】______the UK's innovation capability,and while the recession may【C13】______challenges, it will also provide【C14】______."

Britain's creative practitioners are【C15】______high demand globally. The National Endowment for Science, Technology and the Arts【C16】______that the creative industries sector will grow by an average of 4%, more than double the rest of the economy.

The Design Council's added value research showed that companies that used design to add value to their products or services had a higher【C17】______than competitors on profitability, turnover and market share. De sign is【C18】______allied to innovation and is widely【C19】______as a crucial ingredient in maintaining competitiveness in【C20】______challenging markets.

【C1】

A．key

B．inferior

C．minor

D．central