His having made
He having made
He had made
He has made
第1题:
(b) When a director retires, amounts become payable to the director as a form. of retirement benefit as an annuity.
These amounts are not based on salaries paid to the director under an employment contract. Sirus has
contractual or constructive obligations to make payments to former directors as at 30 April 2008 as follows:
(i) certain former directors are paid a fixed annual amount for a fixed term beginning on the first anniversary of
the director’s retirement. If the director dies, an amount representing the present value of the future payment
is paid to the director’s estate.
(ii) in the case of other former directors, they are paid a fixed annual amount which ceases on death.
The rights to the annuities are determined by the length of service of the former directors and are set out in the
former directors’ service contracts. (6 marks)
Required:
Draft a report to the directors of Sirus which discusses the principles and nature of the accounting treatment of
the above elements under International Financial Reporting Standards in the financial statements for the year
ended 30 April 2008.
第2题:
(b) You are an audit manager with specific responsibility for reviewing other information in documents containing
audited financial statements before your firm’s auditor’s report is signed. The financial statements of Hegas, a
privately-owned civil engineering company, show total assets of $120 million, revenue of $261 million, and profit
before tax of $9·2 million for the year ended 31 March 2005. Your review of the Annual Report has revealed
the following:
(i) The statement of changes in equity includes $4·5 million under a separate heading of ‘miscellaneous item’
which is described as ‘other difference not recognized in income’. There is no further reference to this
amount or ‘other difference’ elsewhere in the financial statements. However, the Management Report, which
is required by statute, is not audited. It discloses that ‘changes in shareholders’ equity not recognized in
income includes $4·5 million arising on the revaluation of investment properties’.
The notes to the financial statements state that the company has implemented IAS 40 ‘Investment Property’
for the first time in the year to 31 March 2005 and also that ‘the adoption of this standard did not have a
significant impact on Hegas’s financial position or its results of operations during 2005’.
(ii) The chairman’s statement asserts ‘Hegas has now achieved a position as one of the world’s largest
generators of hydro-electricity, with a dedicated commitment to accountable ethical professionalism’. Audit
working papers show that 14% of revenue was derived from hydro-electricity (2004: 12%). Publicly
available information shows that there are seven international suppliers of hydro-electricity in Africa alone,
which are all at least three times the size of Hegas in terms of both annual turnover and population supplied.
Required:
Identify and comment on the implications of the above matters for the auditor’s report on the financial
statements of Hegas for the year ended 31 March 2005. (10 marks)
第3题:
Boss:Come in,please.Oh,Mary,come over 56 .Your annual report is well done.
第4题:
The investor should be aware of the limitations of the financial statement analysis()the annual report.
A. based on
B. basing on
C. base on
第5题:
Boss: Come in, please. Oh, Mary, come over (56) Your annual report is well done.
Mary: (57)
Boss: I know you're a capable person.
Mary: Thank you for saying that. (58) the wrong figures I gave you last time.
Boss: (59) Everyone makes mistakes.
Mary: Thank you so much for your forgiveness. (60)
56.
A. I'm leaving
B. Thank you
C. I'll do my best
D. and sit here
E. Please sit down
F. But I worry about
G. Take it easy
H. Don't forget
第6题:
(b) The Sarbanes-Oxley Act contains provisions for the attestation (verification) and reporting to shareholders of
internal controls over financial reporting.
Required:
Describe the typical contents of an external report on internal controls. (8 marks)
第7题:
5 You are the audit manager for three clients of Bertie & Co, a firm of Chartered Certified Accountants. The financial
year end for each client is 30 September 2007.
You are reviewing the audit senior’s proposed audit reports for two clients, Alpha Co and Deema Co.
Alpha Co, a listed company, permanently closed several factories in May 2007, with all costs of closure finalised and
paid in August 2007. The factories all produced the same item, which contributed 10% of Alpha Co’s total revenue
for the year ended 30 September 2007 (2006 – 23%). The closure has been discussed accurately and fully in the
chairman’s statement and Directors’ Report. However, the closure is not mentioned in the notes to the financial
statements, nor separately disclosed on the financial statements.
The audit senior has proposed an unmodified audit opinion for Alpha Co as the matter has been fully addressed in
the chairman’s statement and Directors’ Report.
In October 2007 a legal claim was filed against Deema Co, a retailer of toys. The claim is from a customer who slipped
on a greasy step outside one of the retail outlets. The matter has been fully disclosed as a material contingent liability
in the notes to the financial statements, and audit working papers provide sufficient evidence that no provision is
necessary as Deema Co’s lawyers have stated in writing that the likelihood of the claim succeeding is only possible.
The amount of the claim is fixed and is adequately covered by cash resources.
The audit senior proposes that the audit opinion for Deema Co should not be qualified, but that an emphasis of matter
paragraph should be included after the audit opinion to highlight the situation.
Hugh Co was incorporated in October 2006, using a bank loan for finance. Revenue for the first year of trading is
$750,000, and there are hopes of rapid growth in the next few years. The business retails luxury hand made wooden
toys, currently in a single retail outlet. The two directors (who also own all of the shares in Hugh Co) are aware that
due to the small size of the company, the financial statements do not have to be subject to annual external audit, but
they are unsure whether there would be any benefit in a voluntary audit of the first year financial statements. The
directors are also aware that a review of the financial statements could be performed as an alternative to a full audit.
Hugh Co currently employs a part-time, part-qualified accountant, Monty Parkes, who has prepared a year end
balance sheet and income statement, and who produces summary management accounts every three months.
Required:
(a) Evaluate whether the audit senior’s proposed audit report is appropriate, and where you disagree with the
proposed report, recommend the amendment necessary to the audit report of:
(i) Alpha Co; (6 marks)
第8题:
5 Ambush, a public limited company, is assessing the impact of implementing the revised IAS39 ‘Financial Instruments:
Recognition and Measurement’. The directors realise that significant changes may occur in their accounting treatment
of financial instruments and they understand that on initial recognition any financial asset or liability can be
designated as one to be measured at fair value through profit or loss (the fair value option). However, there are certain
issues that they wish to have explained and these are set out below.
Required:
(a) Outline in a report to the directors of Ambush the following information:
(i) how financial assets and liabilities are measured and classified, briefly setting out the accounting
method used for each category. (Hedging relationships can be ignored.) (10 marks)
5 Report to the Directors of Ambush, a public limited company
(a) The following report sets out the principal aspects of IAS 39 in the designated areas.
(i) Classification of financial instruments and their measurement
Financial assets and liabilities are initially measured at fair value which will normally be the fair value of the
consideration given or received. Transaction costs are included in the initial carrying value of the instrument unless it
is carried at ‘fair value through profit or loss’ when these costs are recognised in the income statement.
Financial assets should be classified into four categories:
(i) financial assets at fair value through profit or loss
(ii) loans and receivables
(iii) held-to-maturity investments (HTM)
(iv) available-for-sale financial assets (AFS).
The first category above has two sub categories which are ‘held for trading’ and those designated to this category at
inception/initial recognition. This latter designation is irrevocable.
Financial liabilities have two categories: those at fair value through profit or loss, and ‘other’ liabilities. As with financial
assets those liabilities designated as at fair value through profit or loss have two sub categories which are the same as
those for financial assets.
Reclassifications between categories are uncommon and restricted under IAS 39 and are prohibited into and out of the
fair value through profit or loss category. Reclassifications between AFS and HTM are possible but it is not possible from
loans and receivables to AFS. The held to maturity category is limited in its application as if the company sells or
reclassifies more than an immaterial amount of the portfolio, it is barred from using the category for at least two years.
Also all remaining HTM investments would be reclassified to AFS.
Subsequent measurement of financial assets and liabilities depends on the classification. The following tablesummarises the position:
Amortised cost is the cost of an asset or liability adjusted to achieve a constant effective interest rate over the life of the
asset or liability.
It is not possible to compute amortised cost for instruments that do not have fixed or determinable payments, such as
for equity instruments, and such instruments therefore cannot be classified into these categories.
A company must apply the effective interest rate method in the measurement of amortised cost. The effective interest
rate method determines how much interest income or interest expense should be reported in profit and loss.
For financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss, all
changes in fair value are recognised in profit or loss when they occur. This includes unrealised holding gains and losses.
For available-for-sale financial assets, unrealised holding gains and losses are deferred in reserves until they are realised
or impairment occurs. Only interest income and dividend income, impairment losses, and certain foreign currency gains
and losses are recognised in profit or loss.
Investments in unquoted equity instruments that cannot be reliably measured at fair value are subsequently measureat cost. Unrealised holding gains/losses are not normally recognised in profit/loss.
第9题:
We have to()our annual work report to the manager next week.
A. hand in
B. hand out
C. hands up
第10题:
请根据短文内容判断给出的语句是否正确,正确的写“T”,错误的写“F”。
An annual report of a company provides information about its business performance for certain people. These people include the investors, potential investors and other stakeholders. From the report, people can understand the company's business scope, recent situation and future development. The main parts of an annual report usually include chairman's letter, operation analysis and financial statements.
·Chairman's Letter
Usually, an annual report should contain a letter from the chairman. The letter should provide details about the successes and the challenges of the past year. It should also include the future outlook for the company.
·Operation Analysis
The operation analysis is an overview of the business in the past year. It usually includes new hires and new product introductions. At the same time, it will introduce business acquisitions and other important issues.
·Financial Statements
The financial statements are very important for an annual report. People can know the company's performance in the past from the statements. It usually three aspects. The first one is the profit and loss statement. The second one is the balance sheet. And the third one is the cash flow statement.
( ) 26. An annual report of a company provides some information about its business performance for certain people.
( ) 27. People can know everything of the company from the annual report.
( ) 28. An annual report usually includes chairman's letter, financial statements and operation analysis.
( ) 29. A chairman's letter should include the strategic direction moving forward.
( ) 30. This passage is mainly about the main parts of an annual report.
参考答案:26-30:T F T F T