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Jocatt - Answering Scheme

The document provides guidance on techniques for answering exam questions and worked examples for completing a statement of cash flows. Key points include: - Read requirements first and set up cash flow statement headings before reading full question - Complete cash flow from operating activities first before other sections - Worked example is provided to demonstrate the process of completing a statement of cash flows, including adjustments to reconcile profit to cash flows from operating activities and items in the investing and financing sections.

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Ivan Kolesnikov
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302 views

Jocatt - Answering Scheme

The document provides guidance on techniques for answering exam questions and worked examples for completing a statement of cash flows. Key points include: - Read requirements first and set up cash flow statement headings before reading full question - Complete cash flow from operating activities first before other sections - Worked example is provided to demonstrate the process of completing a statement of cash flows, including adjustments to reconcile profit to cash flows from operating activities and items in the investing and financing sections.

Uploaded by

Ivan Kolesnikov
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ACCA

Paper P2 Corporate Reporting Past Paper December 2010

Question 1
Exam techniques: Read the requirements first Start cash flow statement i.e. heading up and profit before tax For cash flow statement start workings before reading requirements i.e. opening and closing balances Read notes entirely and comment

Comments on the requirements: (i) - (ix) (a) JOCATT GROUP STATEMENT OF CASH FLOW AS AT 30 NOVEMBER 2010 Profit before tax Adjustment to operating activity: Share of profit of associates Finance costs paid Profit on AFS investment ($5m - $4m) Amortization Retirement benefit expense Gain on investment property Depreciation on PPE Impairment of goodwill Profit on sale of land (15+4-10) Loss on replacement of disposal Cash paid in to retirement benefit Decrease in inventory Decrease in Trade receivables Increase in payables Cash generated from operations Interest paid (finance cost) Income tax paid Cash Flow from operating activities To be completed in revision session

59 (6) 6 (1) 17 4 (1.50) 27 31.50 (9) 0.50 (7) 23 56 89

Davisdadons Revision Group Sessions for Exams in June 2011

288.50 (6) (16.50) 266

ACCA Paper P2 Corporate Reporting Past Paper December 2010 Cash Flow from investing activities: Purchase PPE Additions to investment property Purchase of associate Purchase AFS investment Intangible assets Proceeds from sale of land Purchase of Subsidiary ($15m - $7m) Cash Flow from investing activities Cash Flow from financing activities: Non-Controlling interest dividends paid Dividends paid Repayment of long-term borrowings Rights issue increase in cash and cash equivalent Net Cash and cash equivalent at beginning of period Cash and cash equivalent at end of period
PPE Beginning balance Ending balance Loss on property revaluation Tigret Plant Depreciation Sale of land CF Goodwill Beginning balance Ending balance Tigret Impairment 254 (327) (7) 15 4 (27) (10) (98)

(98) (1) (48) (5) (12) 15 (8)

(157)

(13) (5) (4) 2


Beginning balance Ending balance Share of profit of assoc CF Inventories Beginning balance Ending balance CF Long-term borrowings Beginning balance Ending balance CF Long-term provisions pension Beginning balance

(20) 89 143 232


0 (54) 6 (48)

128 (105) 23

68 (48) 11.50 31.50

71 (67) 4

22

Investment in associates

Davisdadons Revision Group Sessions for Exams in June 2011

ACCA Paper P2 Corporate Reporting Past Paper December 2010


Ending balance Losses on benefit plan Current service cost Vested current cost Expected return Paid into contribution Investment property Beginning balance Ending balance Disposal Gain CF Intangible assets Beginning balance Ending balance Tigret Amortization CF Available for sale Beginning balance Ending balance Gain on AFS (25) 6 10 2 (8) 7 Derecognize AFS Tax CF Trade receivables Beginning balance Ending balance Tigret CF Tax Beg. DT Ending DT Beg. CT Ending CT Income tax expense AFS Add DT CF Trade payables Beginning balance Ending balance CF (4) 1 (5)

6 (8) (0.50) 1.50 (1)

113 (62) 5 56

72 (85) 18 (17) (12)

41 (35) 30 (33) 11 1 1.50 16.50

90 (94) 2

55 (144) (89)

Fair value of consideration Fair value of NCI Fair value of the business Fair value of the net assets Deferred tax (45-40) x 30% Goodwill

60% 40% 100%

35 20 55 (45) 1.50 11.50

Notes for future reference: Workings are not needed for items under the statement of changes in equity Davisdadons Revision Group Sessions for Exams in June 2011

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