THE INSTITUTE OF CHARTERED ACCOUNTANTS ... - Resourcedat

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PATHFINDER - File the returns to Corporate Affairs Commission ii. The Investment & Securities Acts (ISA) 1999 requires every security dealer to keep adequate records and account of its transactions from time to time. (c) Computation of Hire Purchase Interest i. N’000 Cost of the generating set 7,000 Initial Deposit (20 % x N7m) 1,400 Add: Instalments 6,750 (5 x 1.35) Hire Purchase Price 8,150 Less: Cash Price (7,000) Hire purchase Interest 1,150 Straight line method HP interest written off each year is = 1,150 5 = 230 That is N230,000 ii. Sum of digit method HP interest attributed to each year Yr Digital Workings = HP Int. allocates N’000 1 5 5/15 x 1150 = 383.33 2 4 4/15 x 1150 = 306.67 3 3 3/15 x 1150 = 230.00 4 2 2/15 x 1150 = 153.00 5 1 1/15 x 1150 = 77.00 15 1,150 iii. The main demerit of sum of digit method is that the allocation of the hire purchase interest over the hire purchase periods may not reflect the systematic allocation of the hire purchase interest. In order to overcome this short coming, the actuarial method should be used. PR<strong>OF</strong>ESSIONAL EXAMINATION I - MAY 2012 45
PATHFINDER (d) (i) In accordance with IAS 7, the cash flow statement can be classified into: - Cash flow from operating activities - Cash flow from investing activities - Cash flow from financing activities iii. FOUR uses of cash flow statement may include: (a) (b) (c) (d) (e) Cash flow statement together with the income statement give an indication of the relationship between earnings and cash flows. It is used to determine liquidity position of an entity. It can be used to determined the ability of an entity to generate cash and cash equivalent. It eliminates the leads and gaps created by the allocation associated with accrued accounting. It can be used to determine the amount of external fund that will be required to finance a profitable project. EXAMINER’S REPORT The question tests candidates’ knowledge of provisions of CAMA and Security & Exchange Commission (SEC), computation of the hire purchase interest, and cash flow statements. Most candidates attempted the question and performance was below average. Majority of the candidates could not calculate correctly the hire purchase interest using the sum of the digit method, while others could not give appropriate advice as regards increase in paid up share capital of the company, applying the provisions of the company law and SEC regulations. Candidates are advised to cover all sections of the syllabus in order to enhance their performance in future. PR<strong>OF</strong>ESSIONAL EXAMINATION I - MAY 2012 46
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 and 16: PATHFINDER After the CBN’s Govern
Page 17 and 18: PATHFINDER Chief Mrs. Mallam Kubura
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: PATHFINDER QUESTION 5 (a) CANBY PLC
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)
Page 67 and 68: PATHFINDER The question was well un
Page 69 and 70: PATHFINDER (a) (i) COBIT is an info
Page 71 and 72: PATHFINDER The advantages of circui
Page 73 and 74: PATHFINDER • Cost to acquire or d
Page 75 and 76: PATHFINDER THE INSTITUTE OF CHARTER
Page 77 and 78: PATHFINDER D. Relationships between
Page 79 and 80: PATHFINDER B. It allows for exchang
Page 81 and 82: PATHFINDER C. Engagement of experie
Page 83 and 84: PATHFINDER 11. The descriptive phas
Page 85 and 86: PATHFINDER You have been appointed
Page 87 and 88: PATHFINDER QUESTION 6 As the lead a
Page 89 and 90: PATHFINDER 7. Unsecured 8. Fraud 9.
Page 91 and 92: PATHFINDER (iii) In the overall rev
Page 93 and 94: PATHFINDER Candidates are advised t
Page 95 and 96: PATHFINDER Internal control measure
Page 97 and 98:
PATHFINDER (vii) Controls - Demands
Page 99 and 100:
PATHFINDER ii. National regulators
Page 101 and 102:
PATHFINDER (vii) (viii) Review the
Page 103 and 104:
PATHFINDER C. 17,500 hours D. 17,51
Page 105 and 106:
PATHFINDER D. 43,375 units E. 43,22
Page 107 and 108:
PATHFINDER B. There is constant var
Page 109 and 110:
PATHFINDER What is the Re-order lev
Page 111 and 112:
PATHFINDER The Board of Directors i
Page 113 and 114:
PATHFINDER (ii) (iii) (iv) Delivery
Page 115 and 116:
PATHFINDER What effect would this a
Page 117 and 118:
PATHFINDER SOLUTIONS TO SECTION A M
Page 119 and 120:
PATHFINDER Actual Time = 24,000 hrs
Page 121 and 122:
PATHFINDER Q4 1 ST Batch 2,000 unit
Page 123 and 124:
PATHFINDER 1 723,000 0.8333 602,476
Page 125 and 126:
PATHFINDER Year DETAILS COSTS FACTO
Page 127 and 128:
PATHFINDER (vi) (vii) (viii) (ix) O
Page 129 and 130:
PATHFINDER This means that the actu
Page 131 and 132:
PATHFINDER The candidates showed a
Page 133:
PATHFINDER EXAMINERS’ REPORT The
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