(iii) Tyre has entered into two new long lease pro...

第1题

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

(ii) The property of the former administrative centre of Tyre is owned by the company. Tyre had decided in the year

that the property was surplus to requirements and demolished the building on 10 June 2006. After demolition,

the company will have to carry out remedial environmental work, which is a legal requirement resulting from the

demolition. It was intended that the land would be sold after the remedial work had been carried out. However,

land prices are currently increasing in value and, therefore, the company has decided that it will not sell the land

immediately. Tyres uses the ‘cost model’ in IAS16 ‘Property, plant and equipment’ and has owned the property

for many years. (7 marks)

Required:

Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended

31 May 2006.

(The mark allocation is shown against each of the above items)

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第2题

2 Tyre, a public limited company, operates in the vehicle retailing sector. The company is

currently preparing its financial

statements for the year ended 31 May 2006 and has asked for advice on how to deal with the following items:

(i) Tyre requires customers to pay a deposit of 20% of the purchase price when placing an order for a vehicle. If the

customer cancels the order, the deposit is not refundable and Tyre retains it. If the order cannot be fulfilled by

Tyre, the company repays the full amount of the deposit to the customer. The balance of the purchase price

becomes payable on the delivery of the vehicle when the title to the goods passes. Tyre proposes to recognise

the revenue from the deposits immediately and the balance of the purchase price when the goods are delivered

to the customer. The cost of sales for the vehicle is recognised when the balance of the purchase price is paid.

Additionally, Tyre had sold a fleet of cars to Hub and gave Hub a discount of 30% of the retail price on the

transaction. The discount given is normal for this type of transaction. Tyre has given Hub a buyback option which

entitles Hub to require Tyre to repurchase the vehicles after three years for 40% of the purchase price. The normal

economic life of the vehicles is five years and the buyback option is expected to be exercised. (8 marks)

Required:

Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended

31 May 2006.

(The mark allocation is shown against each of the above items)

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第3题

（iv) Tyre recently undertook a sales campaign whereby customers can obtain free car access

(iv) Tyre recently undertook a sales campaign whereby customers can obtain free car accessories, by presenting a

coupon, which has been included in an advertisement in a national newspaper, on the purchase of a vehicle.

The offer is valid for a limited time period from 1 January 2006 until 31 July 2006. The management are unsure

as to how to treat this offer in the financial statements for the year ended 31 May 2006.

(5 marks)

Required:

Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended

31 May 2006.

(The mark allocation is shown against each of the above items)

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第4题

Which of the following is a long-established practice in the opening ceremony？A.Runners en

Which of the following is a long-established practice in the opening ceremony？

A.Runners enter the stadium with torches．

B.Each team has to put on a wonderful display．

C.The Greek team marches in first．

D.Men and women wear magnificent clothes．

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第5题

Required:（iii) A firm of consultants has offered to undertake a study on behalf of Envico

Required:

(iii) A firm of consultants has offered to undertake a study on behalf of Envico Ltd which will provide perfect

information regarding seminar attendance during the forthcoming year.

Advise the management of Envico Ltd with regard to the maximum amount that they should pay to

consultants for perfect information regarding seminar attendance and comment briefly on the use of

perfect information in such decisions. (5 marks)

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第6题

Germane has a number of relationships with other companies.In which of the following relat

Germane has a number of relationships with other companies.

In which of the following relationships is Germane necessarily the parent company？

(i) Foll has 50,000 non-voting and 100,000 voting equity shares in issue with each share receiving the same dividend. Germane owns all of Foll’s non-voting shares and 40,000 of its voting shares

(ii) Kipp has 1 million equity shares in issue of which Germane owns 40%. Germane also owns $800,000 out of $1 million 8% convertible loan notes issued by Kipp. These loan notes may be converted on the basis of 40 equity shares for each $100 of loan note, or they may be redeemed in cash at the option of the holder

(iii) Germane owns 49% of the equity shares in Polly and 52% of its non-redeemable preference shares. As a result of these investments, Germane receives variable returns from Polly and has the ability to affect these returns through its power over Polly

A.(i) only

B.(i) and (ii) only

C.(ii) and (iii) only

D.All three

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第7题

Teacher: Don’t tell me you’re got a flat tyre again. I wasn’t born yesterday. Student: ___

Teacher: Don’t tell me you’re got a flat tyre again. I wasn’t born yesterday.

Student: _________

A．Alright, I won’t say it.

B．Sorry, I won’t be late next time.

C．You’re right. I’m just joking.

D．Ok, you’ve made your point.

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第8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9题

2 Helen Bradshaw, a recent graduate with a degree in catering management, has spotted a ma

rket opportunity during

her first job with a large supermarket chain. She knows there is a growing market for distinctive, quality cakes in the

bakery sections of the supermarket chains, as well as in supplying independent individual premium cake shops, and

also for catering wholesalers supplying restaurants and hotels.

Helen is very determined to set up her own business under the brand name of ‘Helen’s cakes’, and has bought some

equipment – industrial food mixers, ovens, cake moulds – and also rented a small industrial unit to make the cakes.

Helen has created three sets of recipes – one for the premium cake shop market, one for the supermarkets and one

for the catering wholesalers but is uncertain which market to enter first. Each channel of distribution offers a different

set of challenges. The premium cake shop market consists of a large number of independent cake shops spread

through the region, each looking for daily deliveries, a wide product range and low volumes. The supermarkets are

demanding good quality, competitive prices and early development of a product range under their own brand name.

The catering wholesalers require large volumes, medium quality and low prices.

Helen has learnt that you are a consultant specialising in start-up enterprises and is looking to you for advice.

Required:

(a) Acting as a consultant, prepare a short report for Helen advising her on the advantages and disadvantages

each channel offers and the implications for a successful start-up. (12 marks)

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第10题

5 The directors of Blaina Packaging Co （BPC), a well-established manufacturer of cardboard

5 The directors of Blaina Packaging Co (BPC), a well-established manufacturer of cardboard boxes, are currently

considering whether to enter the cardboard tube market. Cardboard tubes are purchased by customers whose

products are wound around tubes of various sizes ranging from large tubes on which carpets are wound, to small

tubes around which films and paper products are wound. The cardboard tubes are usually purchased in very large

quantities by customers. On average, the cardboard tubes comprise between 1% and 2% of the total cost of the

customers’ finished product.

The directors have gathered the following information:

(1) The cardboard tubes are manufactured on machines which vary in size and speed. The lowest cost machine is

priced at $30,000 and requires only one operative for its operation. A one-day training course is required in order

that an unskilled person can then operate such a machine in an efficient and effective manner.

(2) The cardboard tubes are made from specially formulated paper which, at times during recent years, has been in

short supply.

(3) At present, four major manufacturers of cardboard tubes have an aggregate market share of 80%. The current

market leader has a 26% market share. The market shares of the other three major manufacturers, one of which

is JOL Co, are equal in size. The product ranges offered by the four major manufacturers are similar in terms of

size and quality. The market has grown by 2% per annum during recent years.

(4) A recent report on the activities of a foreign-based multinational company revealed that consideration was being

given to expanding operations in their packaging division overseas. The division possesses large-scale automated

machinery for the manufacture of cardboard tubes of any size.

(5) Another company, Plastic Tubes Co (PTC) produces a narrow, but increasing, range of plastic tubes which are

capable of housing small products such as film and paper-based products. At present, these tubes are on average

30% more expensive than the equivalent sized cardboard tubes sold in the marketplace.

Required:

(a) Using Porter’s five forces model, assess the attractiveness of the option to enter the market for cardboard

tubes as a performance improvement strategy for BPC. (10 marks)

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（iii) Tyre has entered into two new long lease property agreements for two major retail ou