TEST A.

- 2

1.

On December 1st, N, “Heisenberg Sarl” (hereafter refers as the “Company”) has been incorporated
with a Share Capital of EUR 12,000 and a Share Premium of EUR 12,000,000, both received on the
bank account of the Company.

On December 5th, N, the Company received an invoice from the notary of EUR 1,000 + VAT 17% for his
work on the incorporation.

On December 6th N, the Company pay the invoice by bank transfer.

On July 1st N+1, “Walter White Sarl” (hereafter refers as the “Sole Shareholder”) granted to the
Company an Interest bearing loan of EUR 50,000,000. Main conditions: annual interest rate of 10%,
basis 365 Days, unpaid interest capitalised every year on January 1st.

On August 15th N+1, the company contracted with “Mesa Credit Union Bank” a Senior loan of EUR
150,000,000. The loan was provided net of Arrangement Fees equal to 1% of the loan balance. Main
conditions: 5 years Maturity, Annual interest rate of 3%, Interest payment period: February 15th, May
15th, August 15th and November 15th.

On September 1st N+1, the Company acquire an office building in Albuquerque (hereafter refers as the
“Property”) for a final purchase price of EUR 190,000,000, paid to the seller on that date. The Property
has an expected useful life of 40 years.

On September 15th N+1, the company receive an invoice from the Lawyer “Saul Goodman” for his
work on the Senior loan financing of EUR 250,000. On the same date, the Company receive another
invoice from the “Juárez Cartel” for their work on the acquisition of the building for EUR 1,400,000.

On November 1st N+1, the Property is rented to “Los Pollos Hermanos Sarl”. On December 1st N+1, the
quarterly rent of EUR 4,500,000 for the period November 1st N+1 to January 31st N+2 has been paid
on the bank account of the Company.

On December 15th N+1, the company pays back EUR 2,000,000 to the sole shareholder relating to the
Interest Bearing Loan granted earlier this year.

Please record all the operations from incorporation to December 31st N+1 in the GL provided in the
excel file.

Following all those bookings please provide us with the Balance Sheet and Profit and Loss of the
Company as of December 31st, N+1. Please note that the first accounting year of the Company is
extended and cover the period from incorporation to December 31st, N+1 and that the Company is
VAT registered.

Bonus question: Based on the BS/P&L that you have created, could you please let us know if the entity
is required by law to be audited? On what do you base your decision?
 TEST A. - 2

2.

You are finalizing the preparation of the Financial Statement of “A1A Car Wash Sarl” (hereafter refers
as the “Company”) as of December 31st, N. The Company was incorporated in N-1 (without an
extended year) and you need to correctly disclose the equity movement.

As of December 31st, N-1, the Company disclosed the following balances:

- Share Capital EUR 12,000.

- Share premium EUR 600,000
- Profit of the year was EUR 100,000

As of December 31st, N, the Company shows a loss of EUR 13,000.

Please fill in the roll equity table GL provided in the excel file.