After a 300 million yuan renovation project, Lidai Diwang Miao, or the Imperial Temple of
(b) One of the hotels owned by Norman is a hotel complex which includes a theme park, a casino and a golf course,
as well as a hotel. The theme park, casino, and hotel were sold in the year ended 31 May 2008 to Conquest, a
public limited company, for $200 million but the sale agreement stated that Norman would continue to operate
and manage the three businesses for their remaining useful life of 15 years. The residual interest in the business
reverts back to Norman after the 15 year period. Norman would receive 75% of the net profit of the businesses
as operator fees and Conquest would receive the remaining 25%. Norman has guaranteed to Conquest that the
net minimum profit paid to Conquest would not be less than $15 million. (4 marks)
Norman has recently started issuing vouchers to customers when they stay in its hotels. The vouchers entitle the
customers to a $30 discount on a subsequent room booking within three months of their stay. Historical
experience has shown that only one in five vouchers are redeemed by the customer. At the company’s year end
of 31 May 2008, it is estimated that there are vouchers worth $20 million which are eligible for discount. The
income from room sales for the year is $300 million and Norman is unsure how to report the income from room
sales in the financial statements. (4 marks)
Norman has obtained a significant amount of grant income for the development of hotels in Europe. The grants
have been received from government bodies and relate to the size of the hotel which has been built by the grant
assistance. The intention of the grant income was to create jobs in areas where there was significant
unemployment. The grants received of $70 million will have to be repaid if the cost of building the hotels is less
than $500 million. (4 marks)
Appropriateness and quality of discussion (2 marks)
Required:
Discuss how the above income would be treated in the financial statements of Norman for the year ended
31 May 2008.
(c) On 1 May 2007 Sirus acquired another company, Marne plc. The directors of Marne, who were the only
shareholders, were offered an increased profit share in the enlarged business for a period of two years after the
date of acquisition as an incentive to accept the purchase offer. After this period, normal remuneration levels will
be resumed. Sirus estimated that this would cost them $5 million at 30 April 2008, and a further $6 million at
30 April 2009. These amounts will be paid in cash shortly after the respective year ends. (5 marks)
Required:
Draft a report to the directors of Sirus which discusses the principles and nature of the accounting treatment of
the above elements under International Financial Reporting Standards in the financial statements for the year
ended 30 April 2008.
What is the expected ROI of the division for the year, based on average capital employed?
A.27·59%
B.26·37%
C.18·39%
D.31·58%
A.he has no party to attend
B.he has a million things to do each day
C.he.has to stay up]ate at night
D.he has to go to all sort8 0f parties
(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)
About half of the infant and maternal deaths in developing countries could
be avoided if women had used family planning methods to prevent high risk ____1____pregnancies, according to a report publishing recently by the Johns Hopking ____2____University.
The report indicates that 5.6 million infant deaths and 2,000,000 maternal
Deaths could be prevented this year if women chose to have theirs children ____3____within the safest years with adequate intervals among births and limited their ____4____families to moderate size.
This amounts to about half of the 9.8 million infant and 370.000 maternal
deaths in developing countries, excluded China, estimated for this year by ____5____the United Nation’s Children’s Fund and the US Centers for Disease Control respectably. China was excluded because very few births occur in the high ____6____risk categories.
The report says that evidences from around the world shows the risk of ____7____maternal or infant ill and death is the highest in four specific types of ____8_____pregnancy; pregnancies before the mother is 18 year old; those after the ____9____mother is 35 years old; pregnancies after four births; and those lesser than ____10____two years apart.
(a) The objective of IAS 10 Events after the Reporting Period is to prescribe the treatment of events that occur after an entity’s reporting period has ended.
Required:
Define the period to which IAS 10 relates and distinguish between adjusting and non-adjusting events.
(5 marks)
(b) Waxwork’s current year end is 31 March 2009. Its financial statements were authorised for issue by its directors on 6 May 2009 and the AGM (annual general meeting) will be held on 3 June 2009. The following matters have been brought to your attention:
(i) On 12 April 2009 a fire completely destroyed the company’s largest warehouse and the inventory it
contained. The carrying amounts of the warehouse and the inventory were $10 million and $6 million
respectively. It appears that the company has not updated the value of its insurance cover and only expects
to be able to recover a maximum of $9 million from its insurers. Waxwork’s trading operations have been
severely disrupted since the fire and it expects large trading losses for some time to come. (4 marks)
(ii) A single class of inventory held at another warehouse was valued at its cost of $460,000 at 31 March
2009. In April 2009 70% of this inventory was sold for $280,000 on which Waxworks’ sales staff earned
a commission of 15% of the selling price. (3 marks)
(iii) On 18 May 2009 the government announced tax changes which have the effect of increasing Waxwork’s
deferred tax liability by $650,000 as at 31 March 2009. (3 marks)
Required:
Explain the required treatment of the items (i) to (iii) by Waxwork in its financial statements for the year
ended 31 March 2009.
Note: assume all items are material and are independent of each other. (10 marks as indicated)
Johnson paid $1·2 million for a 30% investment in Treem’s equity shares on 1 August 2014.
Treem’s profit after tax for the year ended 31 March 2015 was $750,000. On 31 March 2015, Treem had $300,000 goods in its inventory which it had bought from Johnson in March 2015. These had been sold by Johnson at a mark-up on cost of 20%. Treem has not paid any dividends.
On the assumption that Treem is an associate of Johnson, what would be the carrying amount of the investment in Treem in the consolidated statement of financial position of Johnson as at 31 March 2015?
A.$1,335,000
B.$1,332,000
C.$1,300,000
D.$1,410,000
Population tends to grow at an exponential(指数的)rate. This means that they progressively double. As an example of this type of growth rate, take one penny and double every day for one month. After the first week, you would have only 64 cents, but after the fourth week you would have over a million dollars.
This helps explain why the population has come on "all of a sudden". It took from the beginning of human life to the year 1830 for the population of the earth to reach one billion. That repents(缓慢进行)a time span of at least two million years. Then it took from 1830 to 1930 for world population to reach 2 billion. The next billion was added by 1960, only thirty years, and in 1975 world population reached 4 billion, which is another billion people in only fifteen years.
World population is increasing at a rate of 9000 per hour, 220000 per day, and 80 million per year. This is not only due to higher birth rate, but to lower death rate as well. The number of births has not declined at the same rate as the number of deaths.
Some countries, such as Columbia, Thailand, Morocco, Costa Rica, and the Philippines, are doubling their population about every twenty-one years, with a growth rate of 3.3% a year or more. The United States is doubling its population about very eighty-seven years, with a rate of 0.8% per year. Every time a population doubles, the country involved needs twice as much of everything, including hospitals, schools, resources, food and medicines to care for its people. It is easy to see that this is very difficult to achieve for the more rapidly growing countries.
This passage chiefly discusses______.
A.the growth of world population
B.one type of the exponential rate
C.the population problem of more rapidly growing countries
D.the possible ways of dealing with the rapid population growth