Acca Exam Paper Jun 2008
Fundamentals Level – Skills Module
Financial Reporting (Malaysia)
Tuesday 10 June 2008
Time allowed Reading and planning: Writing:
15 minutes 3 hours
ALL FIVE questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper F7 (MYS)
ALL FIVE questions are compulsory and MUST be attempted 1 On 1 August 2007 Patronic purchased 18 million of a total of 24 million equity shares in Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. Both companies have shares with a par value of RM1 each. The market price of Patronic’s shares at 1 August 2007 was RM5·75 per share. Patronic will also pay in cash on 31 July 2009 (two years after acquisition) RM2·42 per acquired share of Sardonic. Patronic’s cost of capital is 10% per annum. The reserves of Sardonic on 1 April 2007 were RM69 million. Patronic has held an investment of 30% of the equity shares in Acerbic for many years. The summarised income statements for the three companies for the year ended 31 March 2008 are: Patronic RM’000 150,000 (94,000) –––––––– 56,000 (7,400) (12,500) (2,000) –––––––– 34,100 (10,400) –––––––– 23,700 –––––––– Sardonic RM’000 78,000 (51,000) ––––––– 27,000 (3,000) (6,000) (900) ––––––– 17,100 (3,600) ––––––– 13,500 ––––––– Acerbic RM’000 80,000 (60,000) ––––––– 20,000 (3,500) (6,500) nil ––––––– 10,000 (4,000) ––––––– 6,000 –––––––
Revenue Cost of sales Gross profit Distribution costs Administrative expenses Finance costs (note (ii)) Profit before tax Income tax expense Profit for the period The following information is relevant: (i)
The fair values of the net assets of Sardonic at the date
Financial Reporting (Malaysia)
Tuesday 10 June 2008
Time allowed Reading and planning: Writing:
15 minutes 3 hours
ALL FIVE questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper F7 (MYS)
ALL FIVE questions are compulsory and MUST be attempted 1 On 1 August 2007 Patronic purchased 18 million of a total of 24 million equity shares in Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. Both companies have shares with a par value of RM1 each. The market price of Patronic’s shares at 1 August 2007 was RM5·75 per share. Patronic will also pay in cash on 31 July 2009 (two years after acquisition) RM2·42 per acquired share of Sardonic. Patronic’s cost of capital is 10% per annum. The reserves of Sardonic on 1 April 2007 were RM69 million. Patronic has held an investment of 30% of the equity shares in Acerbic for many years. The summarised income statements for the three companies for the year ended 31 March 2008 are: Patronic RM’000 150,000 (94,000) –––––––– 56,000 (7,400) (12,500) (2,000) –––––––– 34,100 (10,400) –––––––– 23,700 –––––––– Sardonic RM’000 78,000 (51,000) ––––––– 27,000 (3,000) (6,000) (900) ––––––– 17,100 (3,600) ––––––– 13,500 ––––––– Acerbic RM’000 80,000 (60,000) ––––––– 20,000 (3,500) (6,500) nil ––––––– 10,000 (4,000) ––––––– 6,000 –––––––
Revenue Cost of sales Gross profit Distribution costs Administrative expenses Finance costs (note (ii)) Profit before tax Income tax expense Profit for the period The following information is relevant: (i)
The fair values of the net assets of Sardonic at the date