pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDERQUESTION 5(a) (i) Formatting is an act of applying commands to text, numbers andgraphics in order to transform them to a more visually attractive state.(ii) Formatting characteristics are:• Font types• Font sizes• Font colour• Bolding• Italicizing• Underlining• Adding border• Shading• Alignment(b)XYZ BANK PLCMoratorium Interest Rate Agric Loan Interest Interest ExemptedNNi) 24 months 15% 7,500,000 7,500,000ii) 18 months 18% 2,400,000 2,400,000iii) 18 months 14% 2,100,000 2,100,000iv) 18 months 35% 3,000,000 NILTotal interest exemptedN12,000,000Note: The loan Interest of N3,000,000 is disallowed because the interest ratehas exceeded the base rate of 18%.EXAMINERS‟ REPORTPart (a) of the question tests candidates‟ understanding of the use of Worksheet andcharacteristics of formatting, while part (b) tests the candidates understanding of thetaxation of agricultural loan interest.Most of the candidates attempted the question and performance was poor in part (a)but fair in part (b).Candidates‟ commonest pitfall was their inadequate understanding of the two areascovered by the question.INTERMEDIATE EXAMINATION - NOVEMBER 201077