2014年12月ACCA F7考试真题答案.docx

AnswersFundamentals Level – Skills Module, Paper F7Financial ReportingDecember 2014 AnswersSection A1AA change of classification in presentation in financial statements is a change of accounting policy (CAP) under IAS 8.23CBHistorical cost annual depreciation = $90,000 ((500,000 x 90%)/5 years).After two years carrying amount would be $320,000 (500,000 – (2 x 90,000)).Current cost annual depreciation = $108,000 ((600,000 x 90%)/5 years).After two years carrying amount would be $384,000 (600,000 – (2 x 108,000)).4CAlthough the invoiced amount is $180,000, $30,000 of this has not yet been earned and must be deferred until the servicingwork has been completed.56C(i) is an onerous contract and (iii) the provision is still required if there is no intention to sellBThe total profit on the contract is expected to be $1 million (5,000 – (1,600 + 2,400)).At 30 September 2014 the profit recognised would be $360,000 (1,000 x 1,800/5,000).Therefore the amount due from the customer would be:$’000Cost to dateProfit recognisedProgress billings1,600360(1,800)––––––Amount due from the customer160––––––78DAs the receivable is ‘sold’ with recourse it must remain as an asset on the statement of financial position; it is not derecognised.DThe normal selling price of damaged inventory is $300,000 (210/70%).This will now sell for $240,000 (300,000 x 80%), and have a NRV of $180,000 (240 – (240 x 25%)). The expected loss onthe inventory is $30,000 (210 cost – 180 NRV) and therefore the inventory should be valued at $970,000 (1,000 – 30).9ACash flow is (in $ million):23·4 – 14·4 b/f + 2·5 dep + 3 disposal – 2 revaluation – 4 non-cash acquisition = 8·510DThe investment no longer meets the definition of a subsidiary (ability to control) and therefore would not be consolidated.1711AYear ended30 SeptemberCash flowDiscount rateDiscountedcash flows$’000465430$’000500500at 8%0·930·860·7920142015201610,5008,295–––––––Value of debt component9,190Difference – value of equi