Financial Reporting, Exams of Financial Management

Download Financial Reporting and more Exams Financial Management in PDF only on Docsity! Financial Reporting Sample Questions – March / July 2020 Get to know your exam These graphical representations are intended to give an indication of past exam requirements and associated question content. Please note that you will not be able to complete answers within these documents and in isolation they will not sufficiently prepare you for your exam. We encourage you to visit the ACCA Practice Platform in order to attempt up to date practice exams within the computer- based exam environment. Introduction screen Financial Reporting (FR) Sample Questions - March/June 2020 P\efe7- Think Ahead Introduction These sample questions show (he likely style and range of constructed response questions (nat could be asked in the live exam. ‘You should use these questions to bacome familiar with the quastion types and the features and functionality contained within the live exam. The practice exam is reflective of the constructed response section of the live exam but has some differences: + The live exam will be timed, however there is no time limit in this exam. Once you have started this exam you are able to leave at any time by closing the browser windaw. When you raturn, anytning you have anterad into the response options will b¢ saved and you can continua siting the exam. + In the live exam your answars to the constructed respanse quastions will be expert-marked, At the end of this exam you should use the solution material provided to assess your performanca in the construsted response questions. You will be able to access solution material at the end of this exam when using the Self-Marking resources which include a Marking Guida and/or Sample Answer for sach question. If you wish to access these without completing the questions, click on [End Exam on the tam Review Scraen and navigate to the Marking tab on tha Dashboard to Self-Mark. Next> Instruction screens (continued) Financial Reporting (FR Sample Uestions March!June 2020 Instructions (3 of 4) Copy and Paste = You can copy and paste from the Scratch Pad o” question scenario into your answers in the consv'ucted response section of the exam by using the Cal-C (Copy) and CtrV (Paste) shortcuts. Note: When gasting into @ spreadsheet inthe live exam you must double-click the cell or paste directly into the forrivia bar. n this exam you can a's0 paste inte the spreadsheet by selecting the cell symbol + ‘You can ade a selection of currency symbols to your answers in the constructec response section cf the exam hy selecting § Symbn! on the top toolbar. Navigator Screen + Th Nav{gator sorsen can be acces sd at any 1me during the exam by selecting + This screen allows you to jump ‘9 any quest on rumber in the exem + Ttelso allows you 0 see the status of questions and whethe they he: axigaton en viewed ere comalete or incomplete, or neve deen flagged fer raviaw Close All + You can close eacr Indow (eg. Calculotor cr Scratch Pad) individually or you can clase multple windows by selecting cq cieseaN_ on the top toolbar. Reviewing the Exam + You ca review your sear once you leave alkaryplod ny of all, of Bie questions. + todo tis, © Nevigate to fhe last question in the exam k Ma + This takes, yo to the lam Review scraen €Previons Next > Instruction screens (continued) Financial Report (FR) Sample Gusstions March/Junw 2bat Instructions (4 of 4) tam Review Screen + This semen gives you aii ooporlunly lo see the fag aud completion slalus ofall quest ors before you exile 2x + You ean sulocLndrsdual questons you wt lo ysl, oF quwkly actus goups cl queslione om the fle Revie + During the ein review period Nuvigalor is wo: evailuble however you carr navigule (o quzslions by selecting Ne=> , <Bueviuus oF Review Seaen f Whan reviewing cuastions 1 can changa your answve* ard click |W) Review Serven 10 view any updated status cn tne Item Review screen Ending the Exam + Orca yom have camplcded your fem review andl wis to tly end the ceca ec BEd am + Orca you aad tha axam, you cannct ravisit avy quastions, Soact Next fo moves the Fram Summary secon €Provlous Next > Exam summary screen laandal Repaing (FR) Sample Quesrians -Marehiline 020 Exam Summary ‘Time allowed: This samole exarnis rottimed + You wil bis presunted wiht twa constructed response questions, cit onlin scxea wi bal fosor mci requemets) The wepincmicn sy bees aver walle quaeslian seas + Each corsirustes respense question is worth 20 marks in total, = 40 marks in tera + Ail quesens sre com uleory. Important: I you bv exam ye mast +. Cater your answer ‘or sgch cueston n the response area provided for that question. Any ansivers entered inte a response arsa provided for a cfarent question wil not ke marked 2. Show allrotesivorcngs that you vent the mstker to see vin the response area previded forthe cuesuon. Kernember, sny rotesiworaangs made on the Gsratich Had or on your worengs pager will not be marked This exam makes ei nce te trade merks ithich are ovired oy the IRS Tcundation, end used by ACCA under licence, The RS Founcation hes trace marks registered around tne word including: WASCY, "ASBO’ “TRISD, ITRSAY, ne ITRSA logo, IFRS fer SWIZs@ IRS for 'SIIE8S logo, the ‘Hexagon Sevice, International Accounting Standards’, Intematicnal Financial Reporting Standarcs®’,‘NIIFE” anc OB. Furhe celal of the IFRS Founeaticn’s trace marks are availabe from the IFRS Fourdation on request Previous New >  10 Note: See page 12 for example view of full CBE constructed response workspace Scenario 2 11 Note: See page 12 for example view of full CBE constructed response workspace Requirements for Scenario 2 Example view of full CBE constructed response workspace -lnanclal Reporting (FR) Sample Questlons -MarchiJuns 2720 $ Symoel [7 ¥ Hlighight 7 Stikethrough [E] Calculster 7 Scratch Had This scenario relates to two requirements. Plank Cu has ovmed 35% of Arch Cu sire 1 June 20X7 anid it acquired 85% uf Suip Co on 1 Apsil 20X8. The stalenents of Profit ar loss and other enmprehensive inenms for the year envied $1 Rese 0X8. arr Plank Co Strip Co $7000 000 Revenue 705,000 218,000 Cost of sales (320,000) (1.000; Grns poet 386,000 437,000 Distiivution custs (58,000) (16,000; ‘Administrative expe: (92,000) (,0c0; Investment income 6,000 2,00 bnarce costs (72,000) (14,0c0) Pratt before 17% 269,000 at,000 Income lax exper se (67,500) (18,0¢0) Profit for the yesr 217,500 66,000 ther comarmhensive ineeame Gain on revaluation of lanc 2.800 uu ‘Tetel comprehensive income for he year 220,300 69,000, Tie fol owing infor atin is relevant @ laren 9% April 0X5 rnnchided that the earying amounts af Strin (Ce's net assets were equal to their fair values withthe exception ef en iter: af machinery \wbich Had & fa value of $61 exvess ofits carrying ammounl AL 1 April 20X8, the macainary nad a remaining fe of three years. Neprciation is charged to cast nf sales (W_ Since acquis tien, Plank Co has sold goods to Sip Co totaling $3%m. Stnp Co rad one guatler of lisse guuds 1 inventory 8. 31 Devermber 20X8. During the yet, Plat Co also sole abods 12 Arch Go for S26m, all of wich Arch Go ne ir inventery et 31 December 20X8. All ofthese guuds led 4 mark-up on cust of 30% Dito (83.200) 172,800 (18,500) (2,000) (11.000) 114,000 (21,430) 92,870 92,870 202 Gl Closet F) Ha tor Review (a) Prepare the consolidated statement of profit or loss and other comprehensive income of Plank Co for the year ended 31 December 20x. (18 mares) (2) Calculate the carrying smount of the investment in Arc Co in the conselidated statement of finsncial position of Plank Co ss at 31 December 20x8. @ marie) (20 marks) 15 16 Ww TT cc 12