When aluminum was first produced about a hundred and fifty years ago, it was so difficult to separate from the ores(矿石) in which it was found that its price was higher than that of gold. The price rem

第1题

（a) Apex is a publicly listed supermarket chain. During the current year it started the bu

(a) Apex is a publicly listed supermarket chain. During the current year it started the building of a new store. The directors are aware that in accordance with IAS 23 Borrowing costs certain borrowing costs have to be capitalised.

Required:

Explain the circumstances when, and the amount at which, borrowing costs should be capitalised in accordance with IAS 23. (5 marks)

(b) Details relating to construction of Apex’s new store:

Apex issued a $10 million unsecured loan with a coupon (nominal) interest rate of 6% on 1 April 2009. The loan is redeemable at a premium which means the loan has an effective fi nance cost of 7？5% per annum. The loan was specifi cally issued to fi nance the building of the new store which meets the defi nition of a qualifying asset in IAS 23. Construction of the store commenced on 1 May 2009 and it was completed and ready for use on 28 February 2010, but did not open for trading until 1 April 2010. During the year trading at Apex’s other stores was below expectations so Apex suspended the construction of the new store for a two-month period during July and August 2009. The proceeds of the loan were temporarily invested for the month of April 2009 and earned interest of $40,000.

Required:

Calculate the net borrowing cost that should be capitalised as part of the cost of the new store and the fi nance cost that should be reported in the income statement for the year ended 31 March 2010. (5 marks)

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第2题

Section B – TWO questions ONLY to be attemptedFive years ago, George Woof was appointed ch

Section B – TWO questions ONLY to be attempted

Five years ago, George Woof was appointed chief executive offi cer (CEO) of Tomato Bank, one of the largest global banks. Mr Woof had a successful track record in senior management in America and his appointment was considered very fortunate for the company. Analysts rated him as one of the world’s best bankers and the other directors of Tomato Bank looked forward to his appointment and a signifi cant strengthening of the business.

One of the factors needed to secure Mr Woof’s services was his reward package. Prior to his acceptance of the position, Tomato Bank’s remuneration committee (comprised entirely of non-executives) received a letter from Mr Woof saying that because his track record was so strong, they could be assured of many years of sustained growth under his leadership. In discussions concerning his pension, however, he asked for a generous non-performance related pension settlement to be written into his contract so that it would be payable whenever he decided to leave the company (subject to a minimum term of two years) and regardless of his performance as CEO. Such was the euphoria about his appointment that his request was approved. Furthermore in the hasty manner in which Mr Woof’s reward package was agreed, the split of his package between basic and performance-related components was not carefully scrutinised. Everybody on the remuneration committee was so certain that he would bring success to Tomato Bank that the individual details of his reward package were not considered important.

In addition, the remuneration committee received several letters from Tomato Bank’s fi nance director, John Temba, saying, in direct terms, that they should offer Mr Woof ‘whatever he wants’ to ensure that he joins the company and that the balance of benefi ts was not important as long as he joined. Two of the non-executive directors on the remuneration committee were former colleagues of Mr Woof and told the fi nance director they would take his advice and make sure they put a package together that would ensure Mr Woof joined the company.

Once in post, Mr Woof led an excessively aggressive strategy that involved high growth in the loan and mortgage books fi nanced from a range of sources, some of which proved unreliable. In the fi fth year of his appointment, the failure of some of the sources of funds upon which the growth of the bank was based led to severe fi nancing diffi culties at Tomato Bank. Shareholders voted to replace George Woof as CEO. They said he had been reckless in exposing the company to so much risk in growing the loan book without adequately covering it with reliable sources of funds.

When he left, the press reported that despite his failure in the job, he would be leaving with what the newspapers referred to as an ‘obscenely large’ pension. Some shareholders were angry and said that Mr Woof was being ‘rewarded for failure’. When Mr Woof was asked if he might voluntarily forego some of his pension in recognition of his failure in the job, he refused, saying that he was contractually entitled to it and so would be keeping it all.

Required:

(a) Criticise the performance of Tomato Bank’s remuneration committee in agreeing Mr Woof’s reward package. (10 marks)

(b) Describe the components of an appropriately designed executive reward package and explain why a more balanced package of benefi ts should have been used to reward Mr Woof. (10 marks)

(c) Construct an ethical case for Mr Woof to voluntarily accept a reduction in his pension value in recognition of his failure as chief executive of Tomato Bank. (5 marks)

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第3题

Aluminum is found on earth mostly in the form. of______.A．pure metalB．bauxiteC．goldD．liqui

Aluminum is found on earth mostly in the form. of______.

A．pure metal

B．bauxite

C．gold

D．liquid

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第4题

Introduction and client backgroundYou are an audit senior in Staple and Co and you are com

Introduction and client background

You are an audit senior in Staple and Co and you are commencing the planning of the audit of Smoothbrush Paints Co for the year ending 31 August 2010.

Smoothbrush Paints Co is a paint manufacturer and has been trading for over 50 years, it operates from one central site, which includes the production facility, warehouse and administration ffices.

Smoothbrush sells all of its goods to large home improvement stores, with 60% being to one large chain store Homewares. The company has a one year contract to be the sole supplier of paint to Homewares. It secured the contract through signifi cantly reducing prices and offering a four-month credit period, the company’s normal credit period is one month.

Goods in/purchases

In recent years, Smoothbrush has reduced the level of goods directly manufactured and instead started to import paint from South Asia. Approximately 60% is imported and 40% manufactured. Within the production facility is a large amount of old plant and equipment that is now redundant and has minimal scrap value. Purchase orders for overseas paint are made six months in advance and goods can be in transit for up to two months. Smoothbrush accounts for the inventory when it receives the goods.

To avoid the disruption of a year end inventory count, Smoothbrush has this year introduced a continuous/perpetual inventory counting system. The warehouse has been divided into 12 areas and these are each to be counted once over the year. The counting team includes a member of the internal audit department and a warehouse staff member. The following procedures have been adopted;

1. The team prints the inventory quantities and descriptions from the system and these records are then compared to the inventory physically present.

2. Any discrepancies in relation to quantities are noted on the inventory sheets, including any items not listed on the sheets but present in the warehouse area.

3. Any damaged or old items are noted and they are removed from the inventory sheets.

4. The sheets are then passed to the fi nance department for adjustments to be made to the records when the count has fi nished.

5. During the counts there will continue to be inventory movements with goods arriving and leaving the warehouse.

At the year end it is proposed that the inventory will be based on the underlying records. Traditionally Smoothbrush has maintained an inventory provision based on 1% of the inventory value, but management feels that as inventory is being reviewed more regularly it no longer needs this provision.

Finance Director

In May 2010 Smoothbrush had a dispute with its fi nance director (FD) and he immediately left the company. The company has temporarily asked the fi nancial controller to take over the role while they recruit a permanent replacement. The old FD has notifi ed Smoothbrush that he intends to sue for unfair dismissal. The company is not proposing to make any provision or disclosures for this, as they are confi dent the claim has no merit.

Required:

(a) Identify and explain the audit risks identifi ed at the planning stage of the audit of Smoothbrush Paints Co. (10 marks)

(b) Discuss the importance of assessing risks at the planning stage of an audit. (4 marks)

(c) List and explain suitable controls that should operate over the continuous/perpetual inventory counting system, to ensure the completeness and accuracy of the existing inventory records at Smoothbrush Paints Co. (10 marks)

(d) Describe THREE substantive procedures the auditor of Smoothbrush Paints Co should perform. at the year end in confi rming each of the following:

(i) The valuation of inventory; (3 marks)

(ii) The completeness of provisions or contingent liabilities. (3 marks)

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第5题

（The metal) aluminum （has been) （first) isolated （early) in the nineteenth century.A．The m

(The metal) aluminum (has been) (first) isolated (early) in the nineteenth century.

A．The metal

B．has been

C．first

D．early

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第6题

When Neil Armstrong and Buzz Aldrin returned from the moon, their cargo included nearly fi

fty pounds of rock and soil, which were packed in an aluminum box with seals designed to maintain the lunar surfaces low-pressure environment. But back at Johnson Space Center, in Houston, scientists discovered that the seals had been【C1】______—by moon dust. Lunar dust is fine, like a powder,【C2】______it cuts like glass. Its formed when shooting stars【C3】______on the moons surface, heating its rocks and dirt and reducing them to fine particles. Since theres no wind or water to smooth【C4】______edges, the tiny grains are sharp and uneven, and【C5】______nearly everything. "The intruding【C6】______of lunar dust represents a more challenging engineering design issue, as well as a【C7】______issue for settlers, than does radiation," wrote Harrison Schmitt, an Apollo 17 astronaut, in his 2006 book, "Return to the Moon." The dust damaged space-suits and ate away layers of moon boots. Over the【C8】______of six Apollo missions, not one rock box【C9】______its vacuum seal. Dust followed the astronauts back into their ships, too. According to Schmitt, it smelled like gunpowder and made breathing【C10】______. No one knows precisely what the extremely small particles do to human lungs. The dust not only【C11】______the moons surface, but floats up to sixty miles【C12】______it—as an outer part of its atmosphere, where particles【C13】______the moon by gravity, but are so thin that they【C14】______collide. In the nineteen-sixties, Surveyor probes filmed a glowing cloud floating just above the lunar surface during sunrise. Later, Apollo 17 astronaut Gene Cernan, while orbiting the moon, recorded a【C15】______phenomenon at the sharp line where lunar day meets night. Cernan【C16】______a series of pictures illustrating the changing【C17】______; streams of particles popped【C18】______the ground and hovered, and the resulting cloud came into sharper focus as the astronauts orbiter approached daylight. Since theres no wind to form. and【C19】______the clouds, their origin is something of a mystery. Its【C20】______that theyre made of dust, but no one fully understands how or why they do their thing.

【C1】

A．destroyed

B．stained

C．changed

D．consolidated

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第7题

Aluminum is______.A．lightweight, rustproof but not easily shaped into different formsB．hea

Aluminum is______.

A．lightweight, rustproof but not easily shaped into different forms

B．heavyweight, rustproof and easily shaped into different forms

C．lightweight, rustproof and easily shaped into different forms

D．lightweight and easily shaped into different forms but it is easy to become rusty

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第8题

What is the passage talking about？A．The features of aluminum and its functions.B．The proce

What is the passage talking about？

A．The features of aluminum and its functions.

B．The process of aluminum.

C．The discovery of aluminum.

D．The promising future of aluminum.

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第9题

Now elsewhere in the world, Iceland may be spoken of, somewhat breathlessly, as western Eu

rope's last pristine wildness. But the environmental awareness that is sweeping the world had bypassed the majority of Icelanders. Certainly they were connected to their land, the way one is complicatedly connected to, or encumbered by, family one can't do anything about. But the truth is, once you're off the beaten paths of the low-lying coastal areas where everyone lives, the roads are few, and they're all bad, so Iceland's natural wonders have been out of reach and unknown even to its own inhabitants. For them the land has always just been there, something that had to be dealt with and, if possible, exploited—the mind-set being one of land as commodity rather than land as, well, priceless art on the scale of the " Mona Lisa".

When the opportunity arose in 2003 for the national power company to enter into a 40-year contract with the American aluminum company Alcoa to supply hydroelectric power for a new smelter （冶炼厂）, those who had been dreaming of something like this for decades jumped at it and never looked back. Iceland may at the moment be one of the world's richest countries, with a 99 percent literacy rate and long life expectancy. But the project's advocates, some of them getting on in years, were more emotionally attuned to be the country's century upon century of want, hardship, and colonial servitude to Denmark, which officially ended only in 1944 and whose psychological imprint remained relatively fresh. For the longest time, life here had meant little more than a hut, dark all winter, cold, no hope, children dying left and right, earthquakes, plagues, starvation, volcanoes erupting and destroying all vegetation and livestock, all spirit— a world revolving almost entirely around the welfare of one's sheep and, later, on how good the cod catch was. In the outlying regions, it still largely does.

Ostensibly, the Alcoa project was intended to save one of these dying regions— the remote and sparsely populated east— where the way of life had steadily declined to a point of desperation and gloom. After fishing quotas were imposed in the early 1980s to protect fish stocks, many individual boat owners sold their allotments or gave them away, fishing rights ended up mostly in the hands of a few companies and small fishermen were virtually wiped out. Technological advances drained away even more jobs previously done by human hands, and the people were seeing everything they had worked for all their lives turn up worthless and their children move away. With the old way of life doomed, aluminum projects like this one had come to be perceived, wisely or not, as a last chance. "Smelter or death."

The contract with Alcoa would infuse the region with foreign capital, an estimated 400 jobs, and spin-off service industries. It also was a way for Iceland to develop expertise that potentially could be sold to the rest of the world; diversify an economy historically dependent on fish; and, in an appealing display of Icelandic can-do verse, perhaps even protect all of Iceland, once and for all, from the unpredictability of life itself.

" We have to live," Halldor Asgrimsson said. Halldor, a former prime minister and longtime member of parliament from the region, was a driving force behind the project. "We have a right to live. "

According to the passage, most Icelanders view land as something of______.

A．environmental value

B．commercial value

C．potential value for tourism

D．great value for livelihood

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第10题

Judy Sodhi is in her fi rst teaching year at the National College, a private college offer

ing short courses in accounting, auditing and management. In her fi rst year Judy has primarily taught the Certifi cate in Managerial Finance. This is a three-day short course which ends in an externally set examination, marked and invigilated by staff employed by the Institute of Managerial Finance (IMF). The IMF also defi nes the syllabus, the length of the course and accredits colleges to run the course. There are no pre-conditions for candidates who wish to attend the course. Last year Judy ran the course 20 times with an average of nine students on each running of the course. At the end of each course every student has to complete a post-course evaluation questionnaire. Judy does not see these questionnaires and has received no feedback about her performance.

As the college is a virtual organisation using serviced training rooms, Judy rarely sees her manager Blake Jones. However, he contacted her recently to suggest that they should conduct her fi rst appraisal and a date and time was agreed. Blake explained that ‘it would be just a general chat looking at how the year had gone. We need to do one to satisfy the college and the IMF’. The time of the appraisal was set for 3.00 pm, fi nishing at 5.00 pm.

The appraisal did start with a general discussion. Blake outlined the plans of the organisation and his own promotion hopes. Judy was surprised to see that Blake was not following any standard list of questions or noting down any of the answers she made. She told him that one of her main problems was the numeracy level of some of the candidates. She recognised that the course had no pre-conditions, ‘but it does require some basic mathematical skills that some of our candidates just do not have’.

After listening to Judy for a while Blake produced a statistical summary of the feedback questionnaires from the courses she had run in the last year. He said that the organisation expected its lecturers to attain an acceptable result in all 10 questions given in the post-course questionnaire. An acceptable result ‘is that 90% of all candidates said that they were ‘satisfi ed or very satisfi ed’ with key aspects of the course’. Judy had achieved this on seven of the questions but specifi cally failed on the following performance measures;

– Percentage of candidates who felt that the course was relevant to their current job – only 65% of your candidates felt that the course was relevant to their current job.

– Percentage of candidates who passed the examination – only 88？88% of your candidates passed the examination.

– Percentage of candidates who felt that the course pace was satisfactory – only 75% of your candidates felt that the pace of the course was satisfactory.

After expressing her surprise that she had not been given this information before, she immediately returned to the problem of numeracy skills. ‘As I told you’ she said ‘some of these students lack the mathematical skills to pass. That’s not my fault, it is yours – you should not have let them on the course in the fi rst place. You are just fi lling the places to make money’.

After a heated discussion, Blake then turned to the ‘last thing on my agenda’. He explained that it was only college policy to give pay increases to lecturers who had achieved 90% in all 10 questions, so there would be no increase for Judy next year. However, he also needed to discuss her workload for next year. He produced a spreadsheet and had just begun to discuss course planning and locations in great detail when his mobile phone rang. ‘I am sorry, Judy, I have to collect the children from school – I must go. I will write down your planned course assignments and e-mail them to you. I think that was a very useful discussion. Overall we are very happy with you. See you at the end-of-year party, and of course at next year’s appraisal.’ He left at 4.30 pm.

Required:

(a) Based on Judy’s appraisal, evaluate the appropriateness of the appraisal process and performance measures at the National College, from both an employee and an organisational perspective. (15 marks)

(b) Explain the concept and purpose of competency frameworks for organisations, assessing their potential use at the National College and the Institute of Managerial Finance. (10 marks)

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