At 1 April 2014, Tilly owned a property with a car...

第1题

Hindberg is a car retailer. On 1 April 2014, Hindberg sold a car to Latterly on the follow

ing terms:

The selling price of the car was $25,300. Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 March 2016 (two years after the sale). Hindberg’s cost of capital is 10% per annum.

What is the total amount which Hindberg should credit to profit or loss in respect of this transaction in the year ended 31 March 2015？

A.$23,105

B.$23,000

C.$20,909

D.$24,150

点击查看答案

第2题

As at 30 September 2013 Dune’s property in its statement of financial position was().

As at 30 September 2013 Dune’s property in its statement of financial position was（).

Property at cost (useful life 15 years) $45 million

Accumulated depreciation $6 million

On 1 April 2014, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42 million, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1 million. Recent market transactions suggest that actual selling prices achieved for this type of property in the current market conditions are 10% less than the price at which they are marketed.At 30 September 2014 the property has not been sold.

At what amount should the property be reported in Dune’s statement of financial position as at 30 September 2014？

A、$36 million

B、$37·5 million

C、$36·8 million

D、$42 million

点击查看答案

第3题

Wilmslow acquired 80% of the equity shares of Zeta on 1 April 2014 when Zeta’s retained ea

rnings were $200,000. During the year ended 31 March 2015, Zeta purchased goods from Wilmslow totalling $320,000. At 31 March 2015, one quarter of these goods were still in the inventory of Zeta. Wilmslow applies a mark-up on cost of 25% to all of its sales.

At 31 March 2015, the retained earnings of Wilmslow and Zeta were $450,000 and $340,000 respectively.

What would be the amount of retained earnings in Wilmslow’s consolidated statement of financial position as at 31 March 2015？

A.$706,000

B.$542,000

C.$498,000

D.$546,000

点击查看答案

第4题

Max is employed by Star Ltd. On 6 April 2014, Star Ltd provided Max with a camera for his

personal use. The camera had a market value of ￡2,000 on 6 April 2014.

On 6 April 2015, Star Ltd gave the camera to Max for free. The camera had a market value of ￡1,400 on 6 April 2015.

What is Max’s taxable benefit in respect of the camera for the tax year 2015–16？

A.￡1,000

B.￡1,400

C.￡2,000

D.￡1,600

点击查看答案

第5题

IAS 1 Presentation of Financial Statements defines profit or loss and other comprehensive

income. The purpose of the statement of profit or loss and other comprehensive income is to show an entity’s financial performance in a way which is useful to a wide range of users so that they may attempt to assess the future net cash inflows of an entity. The statement should be classified and aggregated in a manner which makes it understandable and comparable. However, the International Integrated Reporting Council (IIRC) is calling for a shift in thinking more to the long term, to think beyond what can be measured in quantitative terms and to think about how the entity creates value for its owners. Historical financial statements are essential in corporate reporting, particularly for compliance purposes, but it can be argued that they do not provide meaningful information. Preparers of financial statements seem to be unclear about the interaction between profit or loss and other comprehensive income (OCI) especially regarding the notion of reclassification, but are equally uncertain about whether the IIRC’s Framework constitutes suitable criteria for report preparation. A Discussion Paper on the Conceptual Framework published by the International Accounting Standards Board (IASB) has tried to clarify what distinguishes recognised items of income and expense which are presented in profit or loss from items of income and expense presented in OCI.

Required:

(a) (i) Describe the current presentation requirements relating to the statement of profit or loss and other comprehensive income. (4 marks)

(ii) Discuss, with examples, the nature of a reclassification adjustment and the arguments for and against allowing reclassification of items to profit or loss. Note: A brief reference should be made in your answer to the IASB’s Discussion Paper on the Conceptual Framework. (5 marks)

(iii) Discuss the principles and key components of the IIRC’s Framework, and any concerns which could question the Framework’s suitability for assessing the prospects of an entity. (8 marks)

(b) Cloud, a public limited company, regularly purchases steel from a foreign supplier and designates a future purchase of steel as a hedged item in a cash flow hedge. The steel was purchased on 1 May 2014 and at that date, a cumulative gain on the hedging instrument of $3 million had been credited to other comprehensive income. At the year end of 30 April 2015, the carrying amount of the steel was $8 million and its net realisable value was $6 million. The steel was finally sold on 3 June 2015 for $6·2 million.

On a separate issue, Cloud purchased an item of property, plant and equipment for $10 million on 1 May 2013. The asset is depreciated over five years on the straight line basis with no residual value. At 30 April 2014, the asset was revalued to $12 million. At 30 April 2015, the asset’s value has fallen to $4 million. The entity makes a transfer from revaluation surplus to retained earnings for excess depreciation, as the asset is used.

Required:

Show how the above transactions would be dealt with in the financial statements of Cloud from the date of the purchase of the assets.

Note: Candidates should ignore any deferred taxation effects. (6 marks)

Professional marks will be awarded in question 4 for clarity and quality of presentation. (2 marks)

点击查看答案

第6题

Each of the following events occurred after the reporting date of 31 March 2015, but befor

e the financial statements were authorised for issue.

Which would be treated as a NON-adjusting event under IAS 10 Events After the Reporting Period？

A.A public announcement in April 2015 of a formal plan to discontinue an operation which had been approved by the board in February 2015

B.The settlement of an insurance claim for a loss sustained in December 2014

C.Evidence that $20,000 of goods which were listed as part of the inventory in the statement of financial position as at 31 March 2015 had been stolen

D.A sale of goods in April 2015 which had been held in inventory at 31 March 2015. The sale was made at a price below its carrying amount at 31 March 2015

点击查看答案

第7题

Section B – TWO questions ONLY to be attemptedYour client, Eric, requires advice on the ca

Section B – TWO questions ONLY to be attempted

Your client, Eric, requires advice on the capital gains tax implications arising from the receipt of insurance proceeds and the disposal of some shares, and the inheritance tax reliefs available in respect of assets in his estate at death. His son Zak requires advice regarding the application of the personal service company (IR35) legislation.

Eric:

– Is UK resident and domiciled.

– Is a higher rate taxpayer.

– Is in ill health and is expected to die within the next few months.

Capital transactions in the tax year 2014/15:

– Eric made no disposals for capital gains tax purposes in the tax year 2014/15 other than those detailed below.

– Eric received insurance proceeds of ￡10,000 following damage to a valuable painting.

– Eric sold half of his shareholding in Malaga plc for ￡11·50 per share.

Damaged painting:

– Eric purchased the painting for ￡46,000 in July 2012.

– The painting was damaged in October 2014 such that immediately afterwards its value fell to ￡38,000.

– The insurance proceeds of ￡10,000 were received by Eric on 1 December 2014.

– Eric has not had the painting repaired.

Malaga plc shares:

– Malaga plc is a quoted trading company with 200,000 issued shares.

– 80% of Malaga plc’s chargeable assets have always been chargeable business assets.

– Eric was given 12,000 shares in Malaga plc by his sister on 1 April 2010, when they were valued at ￡126,000.

– Eric’s sister had purchased the shares for ￡96,000 on 1 March 2009.

– Gift relief was claimed in respect of the gift of the shares to Eric on 1 April 2010.

– Eric paid the inheritance tax arising in respect of this gift following his sister’s death on 1 September 2011.

– Eric has never worked for Malaga plc.

– Eric sold 6,000 shares in Malaga plc on 1 March 2015.

Assets owned by Eric and a previous lifetime gift:

– Eric owns farmland in the UK, which has been leased to a tenant farmer for the last ten years.

– The farmland has a market value of ￡420,000 and an agricultural value of ￡340,000.

– Eric’s other assets, excluding the remaining Malaga plc shares, are valued at ￡408,000.

– Eric has made only one previous lifetime gift, of ￡60,000 cash to his son Zak on 1 July 2009.

Zak:

– Is the sole shareholder, director and employee of Yoyo Ltd, a company which provides consultancy services.

– In the year ended 31 March 2016, Yoyo Ltd’s gross fee income from relevant engagements performed by Zak will be ￡110,000.

– In the tax year 2015/16, Zak will draw a salary of ￡24,000 and dividends of ￡50,000 from Yoyo Ltd.

– Neither Yoyo Ltd nor Zak has any other source of income.

Required:

(a) Calculate Eric’s total after-tax proceeds in respect of the two capital gains tax disposals in the tax year 2014/15. (6 marks)

(b) (i) On the assumption that Eric dies on 31 March 2016, advise on the availability and effect (if any), of agricultural property relief, business property relief and quick succession relief in respect of the farmland and the retained shares in Malaga plc.

Note: You are not required to prepare calculations for this part of the question. (6 marks)

(ii) Explain, with the aid of calculations, the impact on the inheritance tax liability arising on Eric’s death if Eric does not die until 1 August 2016. (3 marks)

(c) Calculate Zak’s taxable income for the tax year 2015/16 if the personal service company (IR35) legislation were to apply to the fee income received by Yoyo Ltd. (5 marks)

点击查看答案

第8题

The Australian Day falls on （).

A.April 25

B.Jan. 1

C.Jan. 26

点击查看答案

第9题

An 8% $30 million convertible loan note was issued on 1 April 20X5 at par. Interest is

A.$5,976,000

B.$1,524,000

C.$324,000

D.$9,000,000

点击查看答案

第10题

ABC purchased display shelves on March 1 for $12,000. If this asset has an estimated u

seful life of five years, what is the depreciation expense for the month of April？ ()

A、100

B、11600

C、11800

D、200

点击查看答案

At 1 April 2014, Tilly owned a property with a carrying amount of $800,000 which had a rem