THE INSTITUTE OF CHARTERED ACCOUNTANTS ... - Resourcedat

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PATHFINDER Extract from the Statement of Comprehensive Income for the year ended. 2011 2010 N’000 N’000 Gross Interest earnings 10,000,000 4,000,000 Interest expenses 4,000,000 2,000,000 Net interest earnings 6,000,000 2,000,000 Administrative cost (3,600,000) (1,600,00) Finance cost: Interest payable (75,000) (75,000) Profit before tax 2,325,000 325,000 Taxation 25,000 25,000 Dividend 700,000 100,000 Transfer to reserve 1,600,000 200,000 1. Notes to the financial statements: NON-CURRENT ASSETS N’000 N’000 Property, plant and equipment (PPE) 200,000 200,000 Directors Aircraft 1,800,000 - Total Value 2,000,000 200,000 2. INVESTMENT Quoted Investment: Cost/Share Market Value/Share Historical Cost Year 2011 N‘000 XYZ Plc N40 N10 100,000 ABC Plc N25 N2 200,000 GOJE Plc N30 N1.50 250,000 550,000 3. SUMMARIES OF LOANS PORTFOLIO OF CLEAN BILL PLC AS PERCENTAGE OF TOTAL LOAN: 2011 (%) 2010 (%) PROFESSIONAL EXAMINATION I - MAY 2012 15
PATHFINDER Chief Mrs. Mallam Kuburat 25 21 Mr. Mallam Malik 20 18 Mrs. Fatimah Collins 15 12 Mr. Alaye Johnson 15 14 Corporate Customers 15 20 Individual Customers 10 15 100 100 4. ANALYSIS OF TOTAL PERFORMACES OF LOAN PORTFOLIO OF CLEAN BILL BANK PLC. IN RELATION TO TOTAL LOAN AND ADVANCES IN STATEMENT OF FINANCIAL POSITION 2011 2010 400 days 60% 40% 200 days 25% 30% 190 days 10% 20% 100 days 5% 10% 5. Total loan provisions included in the administrative expenses were N200 million and N100 million for 2011 and 2010 respectively. 6. The ordinary share capital consists of 40% paid up capital of 50k each and the bank auditor was appointed in 1990. 7. Authorised share capital is N500 billion of 50k each. Required: (a) Based on the information available in this case, identify TWO corporate governance issues in Clean Bill Bank Plc. (2 Marks) In the bank’s Income Statement, certain items were wrongly accrued for and not incompliance with IAS. State these items and pass the necessary journal entries to correct the illegal accrual. (1 Mark) (b) (i) Determine the bank’s exposure to the capital market risk (3 Marks) (ii) Give the journal entries to correct Clean Bill Bank Plc. exposure to PROFESSIONAL EXAMINATION I - MAY 2012 16
Page 1 and 2: THE INSTITUTE OF CHARTERED ACCOUNTA
Page 3 and 4: PATHFINDER TABLE OF CONTENTS SUBJEC
Page 5 and 6: PATHFINDER Use the following inform
Page 7 and 8: PATHFINDER B. Management accounts C
Page 9 and 10: PATHFINDER A. N24,000 B. N19,200 C.
Page 11 and 12: PATHFINDER PART II: SHORT-ANSWER QU
Page 13 and 14: PATHFINDER interest in Bonny Limite
Page 15: PATHFINDER After the CBN’s Govern
Page 19 and 20: PATHFINDER follows: N Farm’s irri
Page 21 and 22: PATHFINDER Called-up share capital
Page 23 and 24: PATHFINDER 6,500 Total equity and l
Page 25 and 26: PATHFINDER N’000 N’000 Land and
Page 27 and 28: PATHFINDER QUESTION 6 Alpha Plc., i
Page 29 and 30: PATHFINDER (b) Assets utilization r
Page 31 and 32: PATHFINDER Retained 75,150 N 10. Ba
Page 33 and 34: PATHFINDER 120 15. N160,000 + (N160
Page 35 and 36: PATHFINDER In the case of dividend,
Page 37 and 38: PATHFINDER The question tests candi
Page 39 and 40: PATHFINDER EXAMINERS’REPORT This
Page 41 and 42: PATHFINDER Wk 1 Non-Currents Assets
Page 43 and 44: PATHFINDER Other Equity:- Fair Valu
Page 45 and 46: PATHFINDER QUESTION 5 (a) CANBY PLC
Page 47 and 48: PATHFINDER (d) (i) In accordance wi
Page 49 and 50: PATHFINDER The gearing of the two c
Page 51 and 52: PATHFINDER Shareholders funds 1,110
Page 53 and 54: PATHFINDER C. Project development D
Page 55 and 56: PATHFINDER 16. “System Developmen
Page 57 and 58: PATHFINDER B SPECIAL PURPOSEE SYSTE
Page 59 and 60: PATHFINDER The paramount thing is t
Page 61 and 62: PATHFINDER (a) Explain briefly the
Page 63 and 64: PATHFINDER PART II - SHORT-ANSWER Q
Page 65 and 66: PATHFINDER (i) (ii) (iii) (iv) (v)
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PATHFINDER The question was well un
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PATHFINDER (a) (i) COBIT is an info
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PATHFINDER The advantages of circui
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PATHFINDER • Cost to acquire or d
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PATHFINDER THE INSTITUTE OF CHARTER
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PATHFINDER D. Relationships between
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PATHFINDER B. It allows for exchang
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PATHFINDER C. Engagement of experie
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PATHFINDER 11. The descriptive phas
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PATHFINDER You have been appointed
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PATHFINDER QUESTION 6 As the lead a
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PATHFINDER 7. Unsecured 8. Fraud 9.
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PATHFINDER (iii) In the overall rev
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PATHFINDER Candidates are advised t
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PATHFINDER Internal control measure
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PATHFINDER (vii) Controls - Demands
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PATHFINDER ii. National regulators
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PATHFINDER (vii) (viii) Review the
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PATHFINDER C. 17,500 hours D. 17,51
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PATHFINDER D. 43,375 units E. 43,22
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PATHFINDER B. There is constant var
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PATHFINDER What is the Re-order lev
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PATHFINDER The Board of Directors i
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PATHFINDER (ii) (iii) (iv) Delivery
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PATHFINDER What effect would this a
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PATHFINDER SOLUTIONS TO SECTION A M
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PATHFINDER Actual Time = 24,000 hrs
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PATHFINDER Q4 1 ST Batch 2,000 unit
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PATHFINDER 1 723,000 0.8333 602,476
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PATHFINDER Year DETAILS COSTS FACTO
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PATHFINDER (vi) (vii) (viii) (ix) O
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PATHFINDER This means that the actu
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PATHFINDER The candidates showed a
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PATHFINDER EXAMINERS’ REPORT The
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