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INSTRUCTIONS
Page 1 of 6
C39CA 16/17 Sample
Part A
Question 1
The trial balance for Forensic Ltd as at 31 March 2016 is shown below.
18,548 18,548
(i) Land is not depreciated. The valuation shown in the trial balance
needs to be updated to reflect the current value of 3.8 million
(ii) Buildings are depreciated at 5% straight line. No depreciation
charge has yet been included for the current year. This
depreciation should be included in Administrative Expenses
(iii) Equipment and vehicles are depreciated at 25% on a reducing
balance basis. Again, no charge has yet been included in the
current years accounts. This depreciation should be included in
Distribution costs
(iv) At 31 March 2016, Forensic ltd had closing inventory which had
originally cost 660,000. Included in this figure was an amount
of 50,000 relating to items which, due to flood damage before
the year end, can only be sold for 20,000
(v) The balance on the current tax account represents the over /
under provision for taxation for y/e 31 March 2015. The income
tax liability for y/e 31 March 2016 is estimated to be 935,000.
(vi) As at 31 March 2016, the tax written down value of Forensics net
assets was 550,000 less than their net reported values in the
Page 2 of 6
C39CA 16/17 Sample
Prepare the following statements for Forensic for the year ended 31 March
2016:
a) Total Comprehensive Income
(15 marks)
b) Changes in Equity (5
marks)
c) Financial Position
(15 marks)
You are not required to prepare notes to the financial statements but you
should show all your workings.
Total 35 marks
Question 2
Requirements
Draft notes for your manager on how the following recent IFRSs may
impact on the entitys financial statements. Your answer should include
discussion on how accounting treatment may change (comparing current
accounting treatment with that which will be required under the new IFRS)
and also outline what the impact may be on key financial ratios.
Total 15 marks
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C39CA 16/17 Sample
Page 4 of 6
C39CA 16/17 Sample
Part B
(a) Describe the two different ways in which an entity may carry on
foreign activities
(3 marks)
(c) A UK company sold goods on credit for 100,000 Utopian dollars (U$)
on 31 December 2015. U$75,000 was repaid on 31 March 2016. At
31 December 2016, U$25,000 was still outstanding (and was
subsequently paid on 28 February 2017).
Exchange rates (U$ to ) were as follows:
31 December 2015 U$1.78
31 March 2016 U$1.82
31 December 2016 U$1.65
28 February 2017 U$1.69
Use this information to answer the following questions:
i. At what value should the sale be shown in the accounts for the
year ended 31 December 2015? ( sterling)
ii. At what value should the accounts receivable be shown as at 31
December 2016?
iii. What is the gain or loss on translation for this transaction, and
when will this be shown?
(6 marks)
Total 20 marks
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C39CA 16/17 Sample
Part C
Question 1
Total 16 marks
Question 2
(c) Explain what is meant by a prior period error and how it should be
accounted for.
(5 marks)
Total 14 marks
End of Paper
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