ADVANCED ACCOUNTING AND FINANCIAL REPORTING

Summary of Marking Key

Certified Finance and Accounting Professional Examination – Winter 2020

Note regarding marking scheme:

The marking scheme is given as a guide. However, markers also award marks for alternative
approaches to a question and relevant/well-reasoned comments/explanations. Moreover, the
available marks in answer may exceed the total marks of a question.

Mark(s)
A.1 (a)
Discussion on modification of contract 4.0

Computation and adjustment 3.0

(b)
Effect on statement of financial position 4.0

Effect on statement of profit or loss 3.0

(c)
Discussion on discontinuance of equity method and its implications 3.0

Computation and adjustment 2.0

(d)
Identification as ‘other long term employee benefits’ 2.0

Discussion on accounting under IAS 19 2.0

A.2 Entries on:

Initial recognition 3.5

31 December 2016 3.5

31 December 2017 4.5

31 December 2018 4.5

2 January 2019 4.0

A.3
Right of use asset 3.5

Non-current lease liability 3.5

Current portion of lease liability including interest 2.0

Other current liabilities 3.0

Depreciation expense 2.5

Interest expense 1.0

Gain on rights transferred 1.0

Other expenses 3.5

A.4
Property, plant and equipment 3.0

Intangible assets 4.0

Investment property 1.0

Current assets 2.0

Group reserves (other than exchange reserve) 6.0

Exchange reserves/Translation reserve 4.0

Non-controlling interest 2.0

Liabilities 3.0

A.5
Net assets at beginning and end of the year 1.5

Issuance of units 2.5

Redemption of units 3.0

Total comprehensive income and distribution 2.0

Undistributed income 3.0

(THE END)

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