ACCA F7 小冊子 passcard

1、ACCA Paper F7 Financial reporting (International)Course slidesFor exams in December 2008Slide Slide 2 2SyllabusAA conceptual framework for financial reportingBA regulatory framework for financial reportingCFinancial statementsDBusiness combinationsEAnalysing and interpreting financial statementsSlid

2、e Slide 3 3Examiner & Format of the ExamExaminer: Steve Scott Format of the ExamMarksQuestion 1Preparation of group FS25Question 2Preparation/restatement of non group FS25Question 3Appraisal of performance and may include statements of cash flow25Question 4Will test the remainder of the syllabus

3、15Question 5Will test the remainder of the syllabus10Total100Slide Slide 4 4The June 2008 examTopics examined in the June 2008 examQuestion 1Consolidated income statement including associateQuestion 2Redraft single company financial statementsQuestion 3Statement of cash flowsQuestion 4Qualitative ch

4、aracteristics from Framework application to inventoryQuestion 5Accounting for convertible loan noteSlide Slide 5 5The December 2007 examTopics examined in the December 2007 examQuestion 1Consolidated statement of financial position including associateQuestion 2Single company financial statements inc

5、luding EPS Question 3Performance report including ratiosQuestion 4Operating and finance leasesQuestion 5Treatment of development expenditureSlide Slide 6 6The BPP Learning Media classroom slidesWhat do these slides cover?A selection of key areas of the syllabusUsing the slides Use the slides as a po

6、int of referenceAdd detail by talking around the slides (eg using material from the corresponding Study Text chapter)Consider adding slides yourself to suit your courseRecommend students attempt appropriate questions from the Practice & Revision KitChapter 1 The conceptual frameworkStudy Text Ch

7、apter 1Slide Slide 8 8The elements of financial statementsASSETSLIABILITIESEQUITYINCOMEFinancial positionEXPENSESFinancial performanceExamined Pilot paper, 6/08Slide Slide 9 9ASSETA resource controlled by an entity as a result of past events and from which future economic benefits are expected to fl

8、ow to the entityLIABILITYA present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefitsINCOMEIncreases in economic benefits during the period other than contributions from equity participantsEQUITYThe

9、residual interest in the assets of an entity after deducting its liabilitiesEXPENSE Decreases in economic benefits during the period other than distributions to equity participantsThe elementsSlide Slide 1010Question practice end of Chapter 1Q1You should now be able to attempt the following key ques

10、tions from the BPP Learning Media Practice and Revision Kit.Q2Q3Chapter 2 The regulatory frameworkStudy Text Chapter 2Slide Slide 1212The regulatory framework Home study chapter Examined occasionally for, say, 10 marksSlide Slide 1313Question practice end of Chapter 2Q4You should now be able to atte

11、mpt the following key question from the BPP Learning Media Practice and Revision Kit.Chapter 3 Presentations of published financial statementsStudy Text Chapter 3Slide Slide 1515$000RevenueXCost of sales(X)Gross profitXOther incomeXDistribution costs(X)Administrative expenses(X)Other expenses(X)Fina

12、nce costs(X)Profit before taxXIncome tax expense (X)Profit for the yearXDisclose nature & amount of material itemsProforma FS Statement of comprehensive incomeSlide Slide 1616 Other comprehensive income: $000$000 Available-for-sale financial assetsXGains on property revaluationXIncome tax relati

13、ng to components of other comprehensive income for the year (X)Other comprehensive income for the yearnet of taxXTotal comprehensive income for the yearXStatement of comprehensive income continuedSlide Slide 1717 $000 ASSETSNon-current assetsProperty, plant and equipmentXGoodwillXOther intangible as

14、setsXAvailable-for-sale investmentsXXCurrent assetsInventoriesXTrade receivablesXOther current assetsXCash and cash equivalentsXXTotal assetsXStatement of financial positionExamined Pilot paper, 12/07, 6/08Slide Slide 1818 $000 EQUITY AND LIABILITIESEquityShare capitalXOther reservesXRetained earnin

15、gsXTotal equityXNon-current liabilitiesLong-term borrowingsXDeferred taxXLong-term provisionsXTotal non-current liabilities XProforma FS Statement of financial positionSlide Slide 1919 $000 Current liabilitiesTrade and other payablesXShort-term borrowingsXCurrent portions of long-term borrowings XCu

16、rrent tax payableXShort-term provisionsXTotal current liabilities XTotal liabilitiesXTotal equity and liabilitiesXProforma FS Statement of financial positionSlide Slide 2020Statement of changes in equityBalance at 1 January 20X6 XXX X X XChanges in accountingpolicy (X) (X)Restated balance XXX XX XCh

17、anges in equity for 20X6Dividends (X) (X) Total comprehensive income for the year XXX XBalance at 31 December 20X6 XXXXX XChanges in equity for 20X7Issue of share capital X X Dividends (X) (X) Total comprehensive income _ _ X_ XBalance at December 20X7 X X XX X X ShareShareRetdAvailable-RevnTotalcap

18、italpremiumearningsfor-salesurplusfinancialassetsSlide Slide 21211. Read requirements & scan question 2. Set up proformas & page for workings3. Read additional information & make a mark by relevant caption that is going to change4. Transfer figures into proformas or workings5. Work throu

19、gh adjustments (both sides of double entry), balance off & transfer figuresApproach to questionsSlide Slide 2222AZ Co is a quoted manufacturing company. Its finished products are stored in a nearby warehouse until ordered by customers. AZ Co has performed very well in the past, but has been in f

20、inancial difficulties in recent months and has been reorganising the business to improve performance.The trial balance for AZ Co at 31 March 20X3 was as follows:Lecture example Slide Slide 2323TRIAL BALANCE AT 31 MARCH 20X3 $000 $000Sales124,900Cost of goods manufactured in the year to 31 March 20X3

21、 (excluding depreciation)94,000Distribution costs9,060Administrative expenses16,020Restructuring costs121Interest received1,200Debenture interest paid639Plant and equipment30,315Vehicles 3,720 Accumulated depreciation at 31 March 20X2: Plant and equipment6,060 Vehicles1,670Investment properties (at

22、market value)24,000Inventories at 31 March 20X24,852Trade receivables9,330Bank and cash1,190Ordinary shares of $1 each, fully paid20,0006% redeemable preference shares of $1 each1,000Share premium430Revaluation surplus3,125Retained earnings at 31 March 20X29,552Ordinary dividends paid1,000Preference

23、 dividends paid607% debentures 20X718,250Trade payables 8,120194,307194,307TRIAL BALANCE AT 31 MARCH 20X3 $000 $000Sales124,900Cost of goods manufactured in the year to 31 March 20X3 (excluding depreciation)94,000Distribution costs9,060Administrative expenses16,020Restructuring costs121Interest rece

24、ived1,200Debenture interest paid639Plant and equipment30,315Vehicles 3,720 Accumulated depreciation at 31 March 20X2: Plant and equipment6,060 Vehicles1,670Investment properties (at market value)24,000Inventories at 31 March 20X24,852Trade receivables9,330Bank and cash1,190Ordinary shares of $1 each

25、, fully paid20,0006% redeemable preference shares of $1 each1,000Share premium430Revaluation surplus3,125Retained earnings at 31 March 20X29,552Ordinary dividends paid1,000Preference dividends paid607% debentures 20X718,250Trade payables 8,120194,307194,307TRIAL BALANCE AT 31 MARCH 20X3 $000 $000Sal

26、es124,900Cost of goods manufactured in the year to 31 March 20X3 (excluding depreciation)94,000Distribution costs9,060Administrative expenses16,020Restructuring costs121Interest received1,200Debenture interest paid639Plant and equipment (20% straight line)30,315Vehicles (25% reducing balance) 3,720

27、Accumulated depreciation at 31 March 20X2: Plant and equipment6,060 Vehicles1,670Investment properties (at market value)24,000Inventories at 31 March 20X24,852Trade receivables9,330Bank and cash1,190Ordinary shares of $1 each, fully paid20,0006% redeemable preference shares of $1 each1,000Share prem

28、ium430Revaluation surplus3,125Retained earnings at 31 March 20X29,552Ordinary dividends paid1,000Preference dividends paid607% debentures 20X718,250Trade payables 8,120194,307194,307ComprehensiveincomeFinancialpositionSlide Slide 2424(i)The property, plant and equipment are being depreciated as foll

29、ows:Plant and equipment 20% per annum straight lineVehicles 25% per annum reducing balanceDepreciation of plant and equipment is considered to be part of cost of sales while vehicle depreciation should be included under distribution costs.(ii)Income tax for the year to 31 March 20X3 is estimated at

30、$161,000.(iii)The closing inventories at 31 March 20X3 were $5,180,000. An inspection of finished goods found that a production machine had been set up incorrectly and that several production batches, which had cost $50,000 to manufacture, had the wrong packaging. The goods cannot be sold in this co

31、ndition but could be repacked at an additional cost of $20,000. They could then be sold for $55,000. The wrongly packaged goods were included in closing inventories at their cost of $50,000.Additional information providedSlide Slide 2525(iv)The preference shares will be redeemed at their par value (

32、$1,000,000) in 20X9. Preference dividends are paid on 31 March each year.(v)The 7% debentures are 10-year loans due for repayment by 31 March 20X7. Interest on these debentures needs to be accrued for the six months to 31 March 20X3.(vi)The restructuring costs in the trial balance represent the cost

33、 of a major restructuring of the company to improve competitiveness and future profitability.(vii) No fair value adjustments were necessary to the investment properties during the period.Required:Prepare the income statement section of the statement of comprehensive income for AZ Co for the year to

34、31 March 20X3 and a statement of financial position at that date.Additional information providedSlide Slide 2626AZ COINCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X3$000Revenue Cost of sales Gross profitDistribution costsAdministrative expensesOther expensesFinance incomeFinance costs Profit before

35、 taxIncome tax expense Profit for the year Lecture example 124,900Slide Slide 27271Expenses Cost of salesDistributionAdminOther$000$000$000$000Per question 16,020Lecture example 1 - Workings94,0009,060121Slide Slide 2828AZ COINCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X3$000Revenue Cost of sales

36、Gross profitDistribution costsAdministrative expensesOther expensesFinance incomeFinance costs Profit before taxIncome tax expense Profit for the year (639Lecture example 1 124,9001,200Slide Slide 2929Lecture example 1 - Workings2Property, plant and equipment Plant &VehiclesTotal equipment$000$0

37、00$000CostAccumulated depreciation b/d NBV b/dCharge for year NBV c/d 30,315(6,060) (1,670)3,720Slide Slide 3030Non-current assetsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluatio

38、n surplusRetained earnings Non-current liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable Lecture example 124,000Slide Slide 31311Expenses Cost of salesDistributionAdminOther$000$000$000$000Per question 16,020Lecture example

39、1 - Workings94,0009,060121Opening inventories4,852Slide Slide 3232 1,000430Non-current assetsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluation surplusRetained earnings Non-curren

40、t liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable 1,000Lecture example 124,0001,1909,33020,000 (9,5523,125Slide Slide 3333AZ COINCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X3$000Revenue Cost of sales Gross profitDistribu

41、tion costsAdministrative expensesOther expensesFinance incomeFinance costs Profit before taxIncome tax expense Profit for the year + 60 (639Lecture example 1 124,9001,200Slide Slide 3434 1,000430Non-current assetsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade recei

42、vablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluation surplusRetained earnings Non-current liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable 1,00018,250Lecture example 124,0001,1908,1209,33020,

43、000 (9,5523,125Slide Slide 3535Lecture example 1 - Workings2Property, plant and equipment Plant &VehiclesTotal equipment$000$000$000CostAccumulated depreciation b/d NBV b/dCharge for year NBV c/d 30,315(6,060) (1,670)3,72034,035(7,730)24,2552,05026,305 30,315 x 20%(6,063)(6,063) 2,050 x 25%(513)

44、(513) 18,1921,53719,729Slide Slide 3636430Non-current assetsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluation surplusRetained earnings Non-current liabilities7% debentures 20X7Re

45、deemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable Lecture example 124,0001,1908,1209,33020,000 (9,552 1,0003,125 (W2)19,7291,00018,250Slide Slide 37371Expenses Cost of salesDistributionAdminOther$000$000$000$000Per question Lecture example 1 - Workings94,

46、0009,06016,020121Opening inventories4,852Depreciation - P&E (W2)6,063- vehicles (W2)513Slide Slide 3838AZ COINCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X3$000Revenue Cost of sales Gross profitDistribution costsAdministrative expensesOther expensesFinance incomeFinance costs Profit before taxI

47、ncome tax expense Profit for the period 1,200 124,900 (639 + 60 (161)Lecture example 1Slide Slide 3939430Non-current assetsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluation surpl

48、usRetained earnings Non-current liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable Lecture example 124,0001,1908,1209,33020,000 (9,552 1,0003,125 (W2)19,7291611,00018,250Slide Slide 4040Lecture example 1 - Workings3Inventorie

49、s$000$000Defective batchSelling price 55Costs to complete - repackaging(20) NRV35Cost(50) Write-off required(15)Slide Slide 4141430Non-current assetsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShar

50、e premiumRevaluation surplusRetained earnings Non-current liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable Lecture example 124,0001,1908,1209,33020,000 (9,552 1,0003,125 (W2)19,729161 (5,180 (W3) 15)5,1651,00018,250Slide Sl

51、ide 4242Lecture example 1 - Workings1Expenses Cost of salesDistributionAdminOther$000$000$000$000Per question 94,0009,06016,020121Opening inventories4,852Depreciation - P&E (W2)6,063- vehicles (W2)513Closing inventories(5,180 (W3) 15)(5,165)Slide Slide 4343AZ COINCOME STATEMENT FOR THE YEAR ENDE

52、D 31 MARCH 20X3$000Revenue Cost of sales Gross profitDistribution costsAdministrative expensesOther expensesFinance incomeFinance costs Profit before taxIncome tax expense Profit for the year + (18,250 x 7%) 639) (1,338)1,200 124,900 (639 + 60 (161)Lecture example 1Slide Slide 4444430Non-current ass

53、etsProperty, plant and equipmentInvestment properties Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluation surplusRetained earnings Non-current liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payab

54、lesIncome tax payableInterest payable Lecture example 124,0001,1908,1209,33020,000 (9,552 1,0003,125 (W2)19,729161 (5,180 (W3) 15)5,165 (1,278 639)6391,00018,250Slide Slide 4545Lecture example 1 - Workings1Expenses Cost of salesDistributionAdminOther$000$000$000$000Per question 94,0009,06016,020121O

55、pening inventories4,852Depreciation - P&E (W2)6,063- vehicles (W2)51399,7509,57316,020121Closing inventories(5,180 15 (W3)(5,165)Slide Slide 4646AZ COINCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X3$000Revenue Cost of sales (W1) Gross profitDistribution costs (W1)Administrative expenses (W1)Oth

56、er expensesFinance incomeFinance costs Profit before taxIncome tax expense Profit for the year 25,150(702)(863) + (18,250 x 7%) 639) (1,338)1,200 124,900 (639 + 60 (161) (99,750)(9,573)(16,020)(121)Lecture example 1Slide Slide 4747Non-current assetsProperty, plant and equipmentInvestment properties

57、Current assetsInventoriesTrade receivablesCash and cash equivalents EquityOrdinary share capitalShare premiumRevaluation surplusRetained earnings Non-current liabilities7% debentures 20X7Redeemable preference shares Current liabilitiesTrade payablesIncome tax payableInterest payable Lecture example

58、143,72915,68559,41431,24419,2508,92059,414 863)7,68920,0001,00018,25024,0001,1908,1209,330 (9,552 1,0003,125430 (W2)19,729161 (5,180 (W3) 15)5,165 (1,278 639)639Slide Slide 4848Question practice end of Chapter 3Q7You should now be able to attempt the following key questions from the BPP Learning Med

59、ia Practice and Revision Kit.Q8Q9Q10Q11Chapter 4 Non-current assetsStudy Text Chapter 4Slide Slide 5050Subsequent costse.g. airframe, depreciate over 20 yearse.g. seating depreciate over 8 yearse.g. engines depreciate over 6 yearsSlide Slide 5151Fair valueFair value Land and buildingsmarket value (p

60、rof valuers) Plant and equipmentmarket value (appraisal) Specialisedincome/ depreciated replacement costIAS 16ScopeScope All assets of same classFrequencyFrequency So that no material diff to fair value at end of reporting period.DepreciationDepreciation Cost/Revn Revised value over useful life (UL) Components depreciated separately Review UL