Acca F7 Answers
Fundamentals Pilot Paper – Skills module
Financial Reporting (International)
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
FOR FREE ACCA RESOURCES VISIT: http://kaka-pakistani.blogspot.com
Paper F7 (INT)
ALL FIVE questions are compulsory and MUST be attempted
1
On 1 October 2005 Pumice acquired the following non-current investments: – 80% of the equity share capital of Silverton at a cost of $13.6 million – 50% of Silverton’s 10% loan notes at par – 1.6 million equity shares in Amok at a cost of $6.25 each. The summarised draft balance sheets of the three companies at 31 March 2006 are:
Non-current assets Property, plant and equipment Investments Current assets Total assets Equity and liabilities Equity Equity shares of $1 each Retained earnings Non-current liabilities 8% loan note 10% loan note Current liabilities Total equity and liabilities The following information is relevant: (i)
Pumice ilverton Amok S $’000 $’000 $’000 20,000 26,000 46,000 15,000 61,000 8,500 nil 8,500 8,000 16,500 16,500 1,500 18,000 11,000 29,000
10,000 37,000 47,000 4,000 nil 10,000 61,000
3,000 8,000 11,000 nil 2,000 3,500 16,500
4,000 20,000 24,000 nil nil 5,000 29,000
(ii)
(iii) (iv) (v)
The fair values of Silverton’s assets were equal to their carrying amounts with the exception of land and plant. Silverton’s land had a fair value of $400,000 in excess of its carrying amount and plant had a fair value of $1.6 million in excess of its carrying amount. The plant had a remaining life
Financial Reporting (International)
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
FOR FREE ACCA RESOURCES VISIT: http://kaka-pakistani.blogspot.com
Paper F7 (INT)
ALL FIVE questions are compulsory and MUST be attempted
1
On 1 October 2005 Pumice acquired the following non-current investments: – 80% of the equity share capital of Silverton at a cost of $13.6 million – 50% of Silverton’s 10% loan notes at par – 1.6 million equity shares in Amok at a cost of $6.25 each. The summarised draft balance sheets of the three companies at 31 March 2006 are:
Non-current assets Property, plant and equipment Investments Current assets Total assets Equity and liabilities Equity Equity shares of $1 each Retained earnings Non-current liabilities 8% loan note 10% loan note Current liabilities Total equity and liabilities The following information is relevant: (i)
Pumice ilverton Amok S $’000 $’000 $’000 20,000 26,000 46,000 15,000 61,000 8,500 nil 8,500 8,000 16,500 16,500 1,500 18,000 11,000 29,000
10,000 37,000 47,000 4,000 nil 10,000 61,000
3,000 8,000 11,000 nil 2,000 3,500 16,500
4,000 20,000 24,000 nil nil 5,000 29,000
(ii)
(iii) (iv) (v)
The fair values of Silverton’s assets were equal to their carrying amounts with the exception of land and plant. Silverton’s land had a fair value of $400,000 in excess of its carrying amount and plant had a fair value of $1.6 million in excess of its carrying amount. The plant had a remaining life