Professional Documents
Culture Documents
BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the
Social Sciences, the Diplomas in Economics and Social Sciences and Access Route
Financial Reporting
Candidates should answer FOUR of the following SEVEN questions. All questions carry
equal marks.
Workings should be submitted for all questions requiring calculations. Any necessary
assumptions introduced in answering a question are to be stated.
Extracts from compound interest tables are given after the final question on this paper.
8-column accounting paper is provided at the end of this question paper. If used, it must be
detached and fastened securely inside the answer book.
A calculator may be used when answering questions on this paper and it must comply in all
respects with the specification given with your Admission Notice. The make and type of
machine must be clearly stated on the front cover of the answer book.
UL12/0007
D01 Page 2 of 11
Notes
J Plc acquired 80% of L Ltd on 1 January 2003 for £1,200,000 when the share capital and reserves of
L Ltd were £900,000. At the date of acquisition, the fair value of L Ltd’s non-current assets was
£2,700,000. L Ltd has not accounted for this revaluation.
J Plc acquired 40% of R Ltd on 1 January 2005 for £600,000 when the share capital and reserves of R
Ltd were £500,000.
Goodwill for all acquisitions is capitalised. Impairment of 50% is to be recognised against the
goodwill of L Ltd in 2011 and impairment of £200,000 is to be recognised against R Ltd in 2011.
J Plc charges both L Ltd and R Ltd a management fee of 1% of turnover. None of the companies has
accounted for this management fee and the management fee remains unpaid at the year end.
J plc sells inventory which cost £50,000 to L Ltd for £100,000. 20% of the inventory remains with L
Ltd at the year end.
No changes to share capital and non-current assets have been made since acquisition.
Required
Prepare the consolidated income statement for the year ended 31 December 2011 and the consolidated
statement of financial position as at 31 December 2011 for J Plc. (25 marks)
UL12/0007
D01 Page 3 of 11
2. On 1 January 2011, Fast Ltd acquired 80% of the ordinary shares of a subsidiary, Slow Org, which
operates in the currency ‘potts’, when Slow Org was incorporated with share capital of 1,840,000
‘potts’. No shares have been issued by Slow Org since acquisition.
The summary statements of financial position and income statements of Fast Ltd and Slow Org are as
follows:
UL12/0007
D01 Page 4 of 11
The following information is also available:
i. opening inventory and non-current assets were acquired on 1 January 2011 and closing
inventory was acquired on 1 December 2011.
Required
(a) Compare and contrast the closing rate and temporal methods for translating the financial
statements of foreign subsidiaries and outline the situations in which these methods should be
used. (9 marks)
(b) Translate the income statement and the statement of financial position for the year ended 31
December 2011 for Slow Org using the closing rate method. (7 marks)
(c) Show how the foreign exchange difference in part (b) arises. (5 marks)
(d) Calculate the foreign exchange reserve and the non-controlling interest that would be seen in the
consolidated financial statements of Fast Ltd as at 31 December 2011. (4 marks)
UL12/0007
D01 Page 5 of 11
3. Construction Plc has entered into a construction contract, contract X and Build Plc has entered into a
construction contract, contract Y. Contracts X and Y started on 1 January 2011. The position on each
contract at 31 December 2011 was as follows:
X Y
£ £
Construction Plc uses the cost method for assessing percentage completion and Build Plc uses the
value of work certified method for assessing percentage completion.
Required
(a) What are construction contracts? Discuss the application of the accounting concepts of
relevance and reliability in determining how construction contracts are accounted for and the
difference this makes to financial statements. (13 marks)
(b) Show how Contracts X and Y will be reflected in the income statement and statement of
financial position of Construction Plc and Build Plc at 31 December 2011. (12 marks)
UL12/0007
D01 Page 6 of 11
4. Foam Ltd started trading on 1 January 2011. The income statement and the statement of financial
position for the first year of trading are given as follows:
Sales 950,000
Cost of sales:
Opening inventory 150,000
Purchases 600,000
Closing inventory (120,000)
(630,000)
Gross profit 320,000
Depreciation (40,000)
Other expenses (180,000)
Net profit 100,000
UL12/0007
D01 Page 7 of 11
The price change indices for the year were identified as follows:
All non-current assets and opening inventory were acquired on the first day of trading.
Required
(a) Discuss the advantages and limitations of historical cost accounting. (5 marks)
(b) Define replacement cost and discuss its advantages and limitations. (5 marks)
(c) What are realized and unrealized holding gains on non-current assets within current value
(replacement cost) financial statements? (3 marks)
(d) Prepare the current value (replacement cost) income statement for the year ended 31 December
2011 and the current value (replacement cost) statement of financial position as at 31 December
2011 for Foam Ltd, using the physical/operating capital maintenance basis. (12 marks)
UL12/0007
D01 Page 8 of 11
5. (a) On 1 July 2011, Help Ltd issued an additional 1 million ordinary shares with nominal value of
50p for £12.50 per share. The costs of this share issue totalled 1% of the total money raised in
the share issue. After this share issue, Help Ltd issued bonus shares, in respect of all its shares,
on a 1 for 5 basis. Before the share issue and the bonus issue Help Ltd’s share capital and
reserves were as follows:
£
Ordinary share capital 1,250,000
Ordinary share premium 3,750,000
Preference share capital 1,000,000
Profit and loss account reserve 40,000,000
Required
Show how the share capital and reserves would be affected by the share issues outlined above.
(5 marks)
(b) In 2011 Metal Ltd mined 100,000 ounces of copper at a direct cost of £70 per ounce.
Depreciation of the mine, on a unit of depletion basis, amounted to £1,260,000. Depreciation of
the mining equipment on a straight line basis was £140,000. Administrative overheads
amounted to £156,000. 40,000 ounces were sold for £9,880,000 and delivery costs of £84,000
were paid.
Required
Show the profit/loss, the cost of sales and the closing inventory value at the year end according
to IAS 2 for the above transactions. (5 marks)
(c) Discuss the impact of increasing long term debt on earnings per share, gearing ratio and return
on equity. (5 marks)
(d) Discuss the treatment of events after the statement of financial position date and why this
treatment is necessary for users of financial statements. (5 marks)
(e) Pen Plc bought a new machine on 1 June 2011 from International Org for 100,000 ‘reds’, the
currency in which International Org trades, on credit. This is still outstanding at the year end, 31
December 2011. The exchange rate at date of purchase of the machine was 10 ‘reds’ to £1 and
the exchange rate at year end is 12 ‘reds’ to £1.
Required
Show how the purchase of the machine and any subsequent exchange gain or loss would be
accounted for at 1 June 2011 and at 31 December 2011. (5 marks)
UL12/0007
D01 Page 9 of 11
6. Either
Discuss the reasons for initiating standard setting in the UK in the 1970s and critically assess the
development in accounting standards the UK since then.
Or
Discuss and critically assess Hicks’ measures of income and the implications of these measures of
income for financial reporting.
7. Either
Define goodwill and discuss the accounting concepts used to determine the accounting treatment of
goodwill. Compare and contrast SSAP 22 on goodwill with IAS 38 on intangibles as it relates to
goodwill and critically assess these standards.
Or
Discuss the concept of substance over form, illustrating your answer with reference to finance and
operating leases. Compare and contrast the accounting for finance and operating leases and discuss
the different impact that accounting for finance and operating leases has on financial statements.
UL12/0007
D01 Page 10 of 11
Present Value Tables
time / 1 2 3 4 5 6 7 8 9 10
Periods
(n)
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290
14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239
time / 11 12 13 14 15 16 17 18 19 20
periods
(n)
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402
6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335
7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279
8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233
9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194
10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162
11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135
12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112
13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093
14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078
15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065
END OF PAPER
UL12/0007
D01 Page 11 of 11
This paper is not to be removed from the Examination Halls
BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the
Social Sciences, the Diplomas in Economics and Social Sciences and Access Route
Financial Reporting
Candidates should answer FOUR of the following SEVEN questions. All questions carry
equal marks.
Workings should be submitted for all questions requiring calculations. Any necessary
assumptions introduced in answering a question are to be stated.
Extracts from compound interest tables are given after the final question on this paper.
8-column accounting paper is provided at the end of this question paper. If used, it must be
detached and fastened securely inside the answer book.
A calculator may be used when answering questions on this paper and it must comply in all
respects with the specification given with your Admission Notice. The make and type of
machine must be clearly stated on the front cover of the answer book.
Investments 9,900 - -
Other non-current assets 1,800 7,200 600
Inventory 900 1,800 900
Cash 2,385 810 90
Inter-company receivable from Read Ltd 90 - -
Inter-company receivable from Buy Ltd 55 - -
Total assets 15,130 9,810 1,590
UL12/0008
D01 Page 2 of 11
Notes
Book Plc acquired 80% of Read Ltd on 1 January 2003 for £3,600,000 when the equity of Read Ltd
was £2,700,000. At the date of acquisition, the fair value of Read Ltd’s non-current assets was
£8,100,000. Read Ltd has not accounted for this revaluation.
Book Plc acquired 40% of Buy Ltd on 1 January 2005 for £1,800,000 when the share capital and
reserves of Buy Ltd were £1,500,000.
Goodwill for all acquisitions is capitalised. Impairment of 50% is to be recognised against the
goodwill of Read Ltd in 2011 and impairment of £600,000 is to be recognised seen against Buy Ltd in
2011.
Book Plc charges both Read Ltd and Buy Ltd a management fee of 1% of turnover. None of the
companies has accounted for this management fee and the management fee remains unpaid at the end
of 2011.
In 2011 Book plc sells inventory which cost £150,000 to Read Ltd for £300,000. 20% of the inventory
remains with Read Ltd at the end of 2011.
No changes to share capital and non-current assets have taken place since acquisition.
Required
Prepare the consolidated income statement for the year ended 31 December 2011 and the consolidated
statement of financial position as at 31 December 2011 for Book Plc. (25 marks)
UL12/0008
D01 Page 3 of 11
2. On 1 January 2001, Pear Ltd acquired 80% of the ordinary shares of a subsidiary, Kiwi Org. Kiwi Org
trades in the currency ‘potts’. On 1 January 2001 the balance on the accumulated profits of Kiwi Org
was 40,000 ‘potts’ and the share capital of Kiwi Org was 300,000 ‘potts’.
The summary income statements and statements of financial position of Pear Ltd and Kiwi Org are
given as follows:
UL12/0008
D01 Page 4 of 11
The following information is also available:
ii. Opening inventories were acquired on 12 November 2010 and closing inventories were acquired
on 15 December 2011.
iv. The translated profit and loss account reserve brought forward for Kiwi Org is £20,000.
Required
(a) Translate the income statement and statement of financial position of Kiwi Org using the
temporal method. (8 marks)
(b) Prepare the consolidated income statement for Pear Ltd for the year ended 31 December 2011
using the temporal method. (5 marks)
(c) Calculate the goodwill that would appear in the consolidated statement of financial position
under the temporal method for Pear Ltd as at 31 December 2011. (3 marks)
(d) Discuss how the closing rate method differs from the temporal method and identify the factors
that need to be considered when determining the functional currency of an overseas subsidiary.
(9 marks)
UL12/0008
D01 Page 5 of 11
3. Boat Plc has the following projected information:
The tax rate for Boat Plc is 35%. There is no deferred tax balance brought forward as at 1 January
2012.
Required
(a) Discuss the method for calculating tax in the UK and how tax is accounted for in financial
statements. (5 marks)
(c) What are permanent and temporary differences within deferred tax and how are they treated for
deferred tax purposes? (5 marks)
(d) Show the tax and deferred tax in the income statements and the deferred tax in the statements of
financial position for Boat Plc for the years 2012 to 2015 under the flow through and full
provision methods. (10 marks)
UL12/0008
D01 Page 6 of 11
4. Hat Ltd started trading on 1 January 2011. The income statement and the statement of financial
position for the first year of trading are given as follows:
Sales 1,900,000
Cost of sales
Opening inventory 300,000
Purchases 1,200,000
Closing inventory (240,000)
(1,260,000)
Gross profit 640,000
Depreciation (80,000)
Other expenses (260,000)
Profit before tax 300,000
Tax (100,000)
Profit after tax 200,000
Current assets
Inventory 240,000
Cash 600,000
UL12/0008
D01 Page 7 of 11
The price change indices for the year were identified as follows:
All non-current assets and opening inventory were acquired on the first day of trading.
Required
(a) What are current purchasing power financial statements and what are their advantages? Explain
the need for net monetary working capital adjustments within these types of financial statements.
(8 marks)
(b) Define financial capital maintenance and discuss the implications of this concept for current
purchasing power financial statements. (5 marks)
(c) Prepare the current purchasing power income statement for the year ended 31 December 2011
and the current purchasing power statement of financial position as at 31 December 2011 for Hat
Ltd. (12 marks)
UL12/0008
D01 Page 8 of 11
5. (a) Discuss the accounting treatment of internally and externally generated intangible assets.
(5 marks)
(b) On 1 January 2011 Marmalade Ltd revalued to £500,000 a building which had cost £200,000
when acquired on 1 January 2008. The building was depreciated using straight line depreciation
at a rate of 10% per annum. The useful economic life of the building remains unchanged.
Required
Show how the building will be accounted for in the financial statements of Marmalade Ltd from
2008 to 2011. (5 marks)
(c) Tape Ltd buys a new machine on 1 June 2011 from Overseas International for 20,000 ‘blues’,
the currency in which Overseas International trades, on credit. This is still outstanding at the
year end, 31 December 2011. The exchange rate at date of purchase of the machine was 10
blues to £1 and the exchange rate at year end is 8 blues to £1.
Required
Show how the purchase of the machine and any subsequent exchange gain or loss would be
accounted for on 1 June 2011 and on 31 December 2011. (5 marks)
(d) In 2011 Underground Ltd mined 200,000 ounces of copper at a direct cost of £140 per ounce.
Depreciation of the mine, on a unit of depletion basis, amounted to £2,520,000. Depreciation of
the mining equipment on a straight line basis was £280,000. Administrative overheads
amounted to £312,000. 80,000 ounces were sold for £19,760,000 and delivery costs of £168,000
were paid.
Required
Show the profit/loss, the cost of sales and the closing inventory value at the year end according
to IAS 2 for the above transactions. (5 marks)
(e) Discuss the concept of ‘true and fair’ for accounting purposes. (5 marks)
UL12/0008
D01 Page 9 of 11
6. Either
Discuss the traditional and economic arguments for and against accounting regulation.
Or
Discuss the need for conceptual frameworks within financial reporting. Is it possible for financial
statements to comply with all qualitative characteristics discussed within the conceptual framework?
7. Either
Define research and development and discuss the accounting concepts used to determine the
accounting treatment of research and development. Compare and contrast SSAP 13 on research and
development with IAS 38 on intangibles as it relates to research and development and critically assess
these standards.
Or
Discuss the concept of substance over form, illustrating your answer with reference to finance and
operating leases. Compare and contrast the accounting for finance and operating leases and discuss
the impact that accounting for finance and operating leases differently has on financial statements.
UL12/0008
D01 Page 10 of 11
Present Value Tables
time / 1 2 3 4 5 6 7 8 9 10
Periods
(n)
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290
14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239
time / 11 12 13 14 15 16 17 18 19 20
periods
(n)
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402
6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335
7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279
8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233
9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194
10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162
11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135
12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112
13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093
14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078
15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065
END OF PAPER
UL12/0008
D01 Page 11 of 11
Examiners’ commentaries 2012
Important note
This commentary reflects the examination and assessment arrangements
for this course in the academic year 2011–2012.
From 2012–2013 the format of the examination paper will change. The
paper will be divided into two sections, Section A and Section B. Section
A will contain four questions, which will combine numerical and written
components, and Section B, which will contain two essay questions.
Candidates will be required to answer four questions with at least one
question from each section. All questions will carry equal marks. The
style of questions will remain unchanged.
General remarks
Learning outcomes
At the end of this course, and having completed the Essential reading and
activities, you should be able to:
• explain and apply a number of theoretical approaches to financial
accounting
• record and analyse data
• prepare financial statements under alternative accounting conventions
• describe a number of regulatory issues relating to financial accounting
• critically evaluate theories and practices of, and other matters relating
to, financial accounting.
1
AC3091 Financial reporting
Question spotting
Many candidates are disappointed to find that their examination
performance is poorer than they expected. This can be due to a number
of different reasons and the Examiners’ commentaries suggest ways
of addressing common problems and improving your performance.
We want to draw your attention to one particular failing – ‘question
spotting’, that is, confining your examination preparation to a few
question topics which have come up in past papers for the course. This
can have very serious consequences.
We recognise that candidates may not cover all topics in the syllabus in
the same depth, but you need to be aware that Examiners are free to
set questions on any aspect of the syllabus. This means that you need
to study enough of the syllabus to enable you to answer the required
number of examination questions.
The syllabus can be found in the Course information sheet in the section
of the VLE dedicated to this course. You should read the syllabus very
carefully and ensure that you cover sufficient material in preparation
for the examination.
Examiners will vary the topics and questions from year to year and may
well set questions that have not appeared in past papers – every topic on
the syllabus is a legitimate examination target. So although past papers
can be helpful in revision, you cannot assume that topics or specific
questions that have come up in past examinations will occur again.
If you rely on a question spotting strategy, it is likely you
will find yourself in difficulties when you sit the examination
paper. We strongly advise you not to adopt this strategy.
2
Examiners’ commentaries 2012
Important note
This commentary reflects the examination and assessment arrangements
for this course in the academic year 2011–2012.
From 2012–2013 the format of the examination paper will change. The
paper will be divided into two sections, Section A and Section B. Section
A will contain four questions, which will combine numerical and written
components, and Section B, which will contain two essay questions.
Candidates will be required to answer four questions with at least one
question from each section. All questions will carry equal marks. The
style of questions will remain unchanged.
Question 1
The income statements for the year ended 31 December 2011 and the
statements of financial position as at 31 December 2011 for J Plc, L Ltd and R Ltd
are given as follows:
Income statements for the year ended 31 December 2011
J Plc L Ltd R Ltd
£’000 £’000 £’000
Turnover 2,900 2,100 1,200
Cost of sales (600) (900) (800)
Gross profit 2,300 1,200 400
Operating expenses (650) (480) (90)
Dividend receivable 180
Profit before tax 1,830 720 310
Tax (720) (210) (250)
Profit after tax 1,110 510 60
Dividends payable (150) (120) (10)
Net profit for the year 960 390 50
Retained profit brought forward 1,500 900 200
Retained profit carried forward 2,460 1,290 250
3
AC3091 Financial reporting
Income statement
Revenue 4,900,000 Working 9
Cost of sales (1,410,000) Working 10
Gross profit 3,490,000
Investment income/ Div rec 80,000 Working 11
Operating expenses (1,130,000) H+S
Mgt fee from R 12,000
Share in R 119,200 Working 12
impairment (320,000)
Profit before tax 2,251,200
Tax (1,030,000) Working 13
Profit after tax 1,221,200
NCI (97,800) Working 14
Profit after tax and mint 1,123,400
Dividends (150,000) H only
Profit for the year 973,400
Retained profit bfwd 1,620,000 Working 15
Retained profit cfwd 2,593,400
4
Examiners’ commentaries 2012
Income statement
Working 9 – sales
H + S – intercompany sales = 2,900 + 2,100 – 100
Working 10 – cost of sales
H+S-intercompany sales + unrealised profit on inventory between H and
S = 600 + 900 – 100 + 10
5
AC3091 Financial reporting
Question 2
On 1 January 2011, Fast Ltd acquired 80% of the ordinary shares of a subsidiary,
Slow Org, which operates in the currency ‘potts’, when Slow Org was
incorporated with share capital of 1,840,000 ‘potts’. No shares have been issued
by Slow Org since acquisition.
The summary statements of financial position and income statements of Fast Ltd
and Slow Org are as follows:
[For the full question please refer to the Examination paper]
Reading for this question
Subject guide, Chapter 6.
Britton and Jorissen (2011) Chapter 29.
Approaching the question
In part (a) you are required to describe the different foreign exchange
methods and to compare these methods. Both methods should be outlined
and clear comparisons between the two methods identified. These
comparisons should include which rates to use, where FX is included and
the treatment of goodwill.
The calculations for parts (b), (c) and (d) on translating the foreign
exchange subsidiary using the closing rate method and calculating foreign
exchange on net assets and goodwill and the consolidated foreign reserve
and non-controlling interest are given as follows:
Part (b)
SFP Rate Trans slow
Nca 2,380,000 5 476,000
Invest
Interco rec
Other net assets 400,000 5 80,000
Inteco pay (240,000) 5 (48,000)
Net assets 2,540,000 508,000
6
Examiners’ commentaries 2012
Income statement
Rate
Sales 4,000,000 4 1,000,000
FX loss (552,000)
Profit / income
Pat at average rate 700,000/4 175,000
FX loss (35,000)
Total FX loss = (587,000)
Part (d)
FX reserve = 80% * (587,000) = 469,600
NCI = 20% * 2,540,000 = 508,000 Potts = 508,000/5 = £101,600
7
AC3091 Financial reporting
Question 3
Construction Plc has entered into a construction contract, contract X and Build
Plc has entered into a construction contract, contract Y. Contracts X and Y started
on 1 January 2011. The position on each contract at 31 December 2011 was as
follows:
X Y
£ £
Construction Plc uses the cost method for assessing percentage completion
and Build Plc uses the value of work certified method for assessing percentage
completion.
[For the full question please refer to the Examination paper]
Reading for this question
Subject guide, Chapter 9.
Britton and Jorissen (2011) Chapter 15.
Approaching the question
Part (a)
You are required to give a clear definition of construction contracts.
The concepts of relevance and reliability need to be defined and the
accounting treatment following from each of these concepts needs to be
identified. The impact of the application of the different treatments needs
to be discussed.
Part (b)
Workings for how contract x and contract y should be accounted for are
given below:
Contract X
In the income statement
Profit on contract = 48,000 – 30,420 – 8,580 =9,000
% completion = 30,420/39,000 =
Sales = 0.78 * 48,000 = 37,440
Cost of sales = 30,420
Attributable cumulative profit = 7,020
In the statement of financial position
Construction contract balance = costs to date + attributable profit –
payments on account = 30,420 + 7,020 – 37,200 = 240
Contract Y
In the income statement
Loss on contract = 9,000 – 3,600 – 13,200 = (7,800)
Foreseeable loss = (7,800)
Sales = 50% * 9,000 = 4,500
8
Examiners’ commentaries 2012
Question 4
Foam Ltd started trading on 1 January 2011. The income statement and the
statement of financial position for the first year of trading are given as follows:
Income statement for 2011 £ £
Sales 950,000
Cost of sales:
Opening inventory 150,000
Purchases 600,000
Closing inventory (120,000)
(630,000)
Gross profit 320,000
Depreciation (40,000)
Other expenses (180,000)
Net profit 100,000
Income statement
£ Cv kiwi
Sales 950,000 950,000
Op invnt 150,000 190/180 158,333
Purch 600,000 600,000
Cl invnet (120,000) 190/215 (106,047)
(630,000) (652,286)
G profit 320,000 297,714
Exp (180,000) (180,000)
Depn (40,000) 230/200 (46,000)
10
Examiners’ commentaries 2012
Question 5
(a) On 1 July 2011, Help Ltd issued an additional 1 million ordinary shares with
nominal value of 50p for £12.50 per share. The costs of this share issue
totalled 1% of the total money raised in the share issue. After this share
issue, Help Ltd issued bonus shares, in respect of all its shares, on a 1 for 5
basis. Before the share issue and the bonus issue Help Ltd’s share capital and
reserves were as follows:
£
Ordinary share capital 1,250,000
Ordinary share premium 3,750,000
Preference share capital 1,000,000
Profit and loss account reserve 40,000,000
Sales 9,880,000
Cost of sales
Mined copper 100,000 * £84 = £8,400,000
Closing inventory = 60,000 * £84 = (£5,040,000)
Cost of sales (3,360,000)
6,520,000
Admin (156,000)
Delivery (84,000)
Net profit 6,280,000
11
AC3091 Financial reporting
(d) A definition of post balance sheet events needs to be provided and the
treatment of post balance sheet events needs to be clearly explained.
Answers should also address why the area is important to users.
(e) June 2011
Machine £10,000
payable £10,000
December 2011
Machine £10,000
payable £8,333
P+L £1,667 gain
Question 6
Either
Discuss the reasons for initiating standard setting in the UK in the 1970s and
critically assess the development in accounting standards in the UK since then.
Or
Discuss and critically assess Hicks’ measures of income and the implications of
these measures of income for financial reporting.
Reading for the ‘Either’ part of this question
Subject guide, Chapter 1.
Britton and Jorissen (2011) Chapter 1.
Approaching the ‘Either’ part of this question
You need to discuss the process of standard setting in the UK,
incorporating the definition of an accounting standard. You need to
discuss the key reasons for standard setting in the 1970s and any changes
since then, for example, changes in response to the Dearing review and
introduction of International Financial Reporting Standards (IFRS). It is
particularly important to provide a critical assessment of standard setting
and the key changes. Please read as widely as possible, including the
Further readings for this topic in the subject guide.
Reading for the ‘or’ part of this question
Subject guide, Chapter 3.
Britton and Jorissen (2011) Chapter 4.
Approaching the ‘or’ part of this question
You need to discuss the key definitions of Hicks measures of income
and give explanations as well as equations. You might find it helpful to
illustrate this discussion with appropriate examples. It is important that
you also discuss the advantages and limitations of the different measures
in detail and focus particular attention on the implications for financial
reporting and how appropriate the measures are for financial reporting.
Please read as widely as possible, including the Further readings for this
topic in the subject guide.
12
Examiners’ commentaries 2012
Question 7
Either
Define goodwill and discuss the accounting concepts used to determine the
accounting treatment of goodwill. Compare and contrast SSAP 22 on goodwill
with IAS 38 on intangibles as it relates to goodwill and critically assess these
standards.
Or
Discuss the concept of substance over form, illustrating your answer with
reference to finance and operating leases. Compare and contrast the accounting
for finance and operating leases and discuss the different impact that
accounting for finance and operating leases has on financial statements.
Reading for the ‘Either’ part of this question
Subject guide, Chapter 8.
Britton and Jorissen (2011) Chapter 13.
Approaching the ‘Either’ part of this question
You are required to define goodwill and give examples of goodwill.
You also need to define and discuss the key concepts of matching and
prudence in determining the accounting treatment of goodwill. The
discussion should include how these concepts have changed over time and
why. You need to provide outlines (brief summaries) of SSAP 22 and
IAS 38 and compare these two standards. Particularly important is the
critical assessment of advantages and limitations of each of the standards,
which should be clearly discussed. Please read as widely as possible,
including the Further readings for this topic in the subject guide.
Reading for the ‘or’ part of this question
Subject guide, Chapter 10.
Britton and Jorissen (2011) Chapters 16 and 18.
Approaching the ‘or’ part of this question
You need to define and discuss and give examples of the concept of
substance over form, for example, leases, quasi subsidiaries, consignment
stock, sale and repurchase agreements, and debt factoring. You should
explain both types of leases and identify how they are accounted for. You
need to discuss the impact of the different accounting treatments on the
financial statements and illustrate this with appropriate examples. You
also need to discuss the impact of the different treatments on financial
statements, perhaps with reference to economic consequences and
accounting ratios. Please read as widely as possible, including the Further
readings for this topic in the subject guide.
13
AC3091 Financial reporting
time / 1 2 3 4 5 6 7 8 9 10
Periods
(n)
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290
14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239
time / 11 12 13 14 15 16 17 18 19 20
periods
(n)
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402
6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335
7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279
8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233
9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194
10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162
11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135
12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112
13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093
14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078
15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065
14
Examiners’ commentaries 2012
Important note
This commentary reflects the examination and assessment arrangements
for this course in the academic year 2011–2012.
From 2012–2013 the format of the examination paper will change. The
paper will be divided into two sections, Section A and Section B. Section
A will contain four questions, which will combine numerical and written
components, and Section B, which will contain two essay questions.
Candidates will be required to answer four questions with at least one
question from each section. All questions will carry equal marks. The
style of questions will remain unchanged.
Question 1
The income statements for the year ended 31 December 2011 and the
statements of financial position as at 31 December 2011 for Book Plc, Read Ltd
and Buy Ltd are given as follows:
Income statements for the year ended 31 December 2011
Book Plc Read Ltd Buy Ltd
£’000 £’000 £’000
Turnover 8,700 6,300 3,600
Cost of sales (1,800) (2,700) (2,400)
Gross profit 6,900 3,600 1,200
Operating expenses (2,950) (1,440) (270)
Dividend receivable 540 – –
Profit before tax 4,490 2,160 930
Tax (1,160) (630) (750)
Profit after tax 3,330 1,530 180
Dividends payable (450) (360) (30)
Net profit for the year 2,880 1,170 150
Retained profit brought forward 4,500 2,700 600
Retained profit carried forward 7,380 3,870 750
15
AC3091 Financial reporting
21,751,600
Income statement
Revenue 14,700,000 Working 9
Cost of sales (4,230,000) Working 10
Gross profit 10,470,000
Investment income/ Div rec 240,000
Operating expenses (4,390,000) Working 11
Mgt fee from Buy 36,000
Share in Buy 357,600 Working 12
Impairment (960,000)
Profit before tax 5,753,600
Tax (2,090,000) Working 13
Profit after tax 3,663,600
NCI/Minority interest (293,400) Working 14
Profit after tax and mint 3,370,200
Dividends (450,000)
Profit for the year 2,920,200
Retained profit bfwd 4,860,000 Working 15
Retained profit cfwd 7,780,200
16
Examiners’ commentaries 2012
Income statement
Working 9 ‒ sales = H +S – intercompany sales = 8,700 + 6,300 – 300
Working 10 ‒ cost of sales = H + S-intercompany sales +unrealised profit
on inventory between H and S = 1,800 + 2,700 ‒ 300 + 30
Working 11 ‒ investment income = Total investment income – dividends
receivable from S – dividends receivable from A = 540 ‒ (0.80 * 360) ‒
(0.4 * 30)
Working 12 ‒ share in r
H’s share of A’s profit before tax – unrealised profit on inventory between H
and A = 40% * (930 ‒ 36)
17
AC3091 Financial reporting
Working 13 ‒ tax
H + S + H’s share of A = 1,160 + 630 +0.4 * 750
Working 14 ‒ Non controlling interest
NCI % of S’s profit after tax less unrealised profit on inventory = 20% *
(1,530 ‒ 63)
Working 15 ‒ retained profit brought forward
= H + H’s share of S post acquisition + H’s share of A post acquisition –
impairment
Question 2
On 1 January 2001, Pear Ltd acquired 80% of the ordinary shares of a subsidiary,
Kiwi Org. Kiwi Org trades in the currency ‘potts’. On 1 January 2001 the balance
on the accumulated profits of Kiwi Org was 40,000 ‘potts’ and the share capital
of Kiwi Org was 300,000 ‘potts’.
The summary income statements and statements of financial position of Pear Ltd
and Kiwi Org are given as follows:
Statement of financial position as at 31 December 2011
Kiwi Pear
‘potts’ £
Non-current assets – land 461,000 185,000
Investment in Kiwi – 30,000
18
Examiners’ commentaries 2012
Income statement
Rate
Sales 380,000 4 95,000
Op invnt 50,000 4.5 11,111
Purch 200,000 4 50,000
Cl invnet (75,000) 3 (25,000)
(175,000) (36,111)
205,000 58,889
Exp (25,000) 4 (6,250)
FX (18,289)
19
AC3091 Financial reporting
Part (c)
Goodwill = cost in investment in currency – H’s share of net assets of S in
currency at fair value at acquisition date = 30,000 * 10 – 80% (340,000)
= 28,000
Goodwill in sfp in £ = 28,000/10 = 2,800
Part (d)
You are required to outline both methods and identify clear comparisons
between the two methods. These comparisons should include which
rates to use, where FX is included and the treatment of goodwill. The
functional currency needs to be defined and the factors which determine
the functional currency need to be discussed.
Question 3
Boat Plc has the following projected information:
Year ended 31 December Profit before depreciation Capital allowances Depreciation
2012 60,000 19,200 3,840
2013 57,600 3,840 15,360
2014 52,800 3,840 11,520
2015 48,000 26,880 7,680
The tax rate for Boat Plc is 35%. There is no deferred tax balance brought
forward as at 1 January 2012.
Required
(a) Discuss the method for calculating tax in the UK and how tax is accounted for
in financial statements. (5 marks)
(b) What is deferred tax and why is it needed? (5 marks)
(c) What are permanent and temporary differences within deferred tax and how
are they treated for deferred tax purposes? (5 marks)
(d) Show the tax and deferred tax in the income statements and the deferred tax
in the statements of financial position for Boat Plc for the years 2012 to 2015
under the flow through and full provision methods. (10 marks)
[For the full question please refer to the Examination paper.]
Reading for this question
Subject guide, Chapter 11.
Britton and Jorissen (2011) Chapter 19.
Approaching the question
Part (a)
You are required to give an outline of the UK tax system and outline how
tax is accounted for in income statements and statements of financial
position. This part did not need any explanation of deferred tax.
Part ( b)
You need to define deferred tax and clearly discuss the different reasons
why deferred tax is needed.
Part (c)
You need to define both permanent and temporary differences, giving
appropriate examples. You also need to explain how these are treated
within deferred tax.
20
Examiners’ commentaries 2012
Part (d)
The calculations for deferred tax in the years 2012 to 2015 are indicated
below:
Flow through 2012 2013 2014 2015
Full provision
Tax 14,280 18,816 17,136 7,392
D tax P+L * 5,376 (4,032) (2,688) 6,720
D tax – B/s 5,376 1,344 (1,344) 5,376
Question 4
Hat Ltd started trading on 1 January 2011. The income statement and the
statement of financial position for the first year of trading are given as follows:
Income statement for 2011 £ £
Sales 1,900,000
Cost of sales
Opening inventory 300,000
Purchases 1,200,000
Closing inventory (240,000)
(1,260,000)
Gross profit 640,000
Depreciation (80,000)
Other expenses (260,000)
Profit before tax 300,000
Tax (100,000)
Profit after tax 200,000
[For the full question please refer to the Examination paper.]
Reading for this question
Subject guide, Chapter 4.
Britton and Jorissen (2011) Chapters 5, 6 and 7.
Approaching the question
Part (a)
You are required to give a clear definition of current purchasing power
financial statements, including definitions of all key terms. You also need to
explain and discuss the need and advantages of current purchasing power
financial statements. In addition, you need to define the net monetary
capital adjustment and discuss why this adjustment is required.
21
AC3091 Financial reporting
Part (b)
You need to clearly explain the concept of financial capital maintenance
and how this is associated with CPP.
Part (c)
The CPP financial statements are presented below.
SFP £ Rate CPP
1,560,000 1,780,235
Income statement
£ Cpp hat
Sales 1,900,000 190/160 2,256,250
Op invnt 300,000 190/150 380,000
Purch 1,200,000 190/160 1,425,000
Cl invnet (240,000) 190/170 (268,235)
(1,260,000) (1,536,765)
G profit 640,000 719,485
Exp (260,000) 190/160 (308,750)
Depn (80,000) 190/150 (101,333)
Loss on nmwc (90,417)
PBT 300,000 218,985
Tax (100,000) 190/160 (118,750)
PAT 200,000 100,235
Question 5
(a) Discuss the accounting treatment of internally and externally generated
intangible assets. (5 marks)
(b) On 1 January 2011 Marmalade Ltd revalued to £500,000 a building which
had cost £200,000 when acquired on 1 January 2008. The building was
depreciated using straight line depreciation at a rate of 10% per annum. The
useful economic life of the building remains unchanged.
22
Examiners’ commentaries 2012
Required
Show how the building will be accounted for in the financial statements of
Marmalade Ltd from 2008 to 2011. (5 marks)
[For the full question please refer to the Examination paper.]
Reading for this question
Subject guide, Chapters 1, 6, 7, 8 and 9.
Britton and Jorissen (2011) Chapters 1, 12, 13, 15 and 29.
Approaching the question
You are required to answer all parts of the questions. Indicative solutions and
workings are given as follows:
(a) General definitions of internally and externally generated intangibles,
illustrated with appropriate examples need to be presented. The
accounting treatment for both types of assets needs to be clearly
explained.
(b) Cost £200,000
Accumulated depreciation (£60,000)
Net book value at revaluation £140,000
Revaluation reserve £360, 000
Revalued asset depreciated over 5 years remaining useful economic life
Depreciation = 500,000/7 = £71,429
2008 depn = 20,000 nbv = 180,000
2009 depn = 20,000, nbv = 160,000
2010 depn = 20,000, nbv = 140,000
2011 revaln res = 360,000
depn = 71,429
nbv = 428,571
(c) Machine £2,000
payable £2,000
December 2011
Machine £2,000
Payable £2,500
P+L £500 loss
23
AC3091 Financial reporting
Question 6
Either
Discuss the traditional and economic arguments for and against accounting
regulation.
Or
Discuss the need for conceptual frameworks within financial reporting. Is it
possible for financial statements to comply with all qualitative characteristics
discussed within the conceptual framework?
Reading for the ‘either’ part of this question
Subject guide Chapter 1.
Britton and Jorissen (2011) Chapter 1.
Beaver, W.H. Financial Reporting: An Accounting Revolution. (Harlow: Prentice-Hall,
1981) [ISBN 9780133161335] Chapter 7.
Approaching the ‘either’ part of this question
You need to define accounting regulation in relation to financial reporting
in the UK. You need to discuss and critically assess both traditional and
economic arguments (for example, as outlined by Beaver, 1981) for and
against regulation. Please read as widely as possible, including the Further
readings for this topic in the subject guide.
Reading for the ‘or’ part of this question
Subject guide Chapter 2.
Britton and Jorissen (2011) Chapter 8.
Approaching the ‘or’ part of this question
You need to define conceptual frameworks and briefly outline the content
of a typical conceptual framework. You need to define and describe the
qualitative characteristics of financial reporting and give examples of
these. Particularly important is a discussion of issues in fulfilling all these
(e.g. relevance and reliability, prudence and matching, prudence and
faithful representation, timeliness and reliability, understandability and
substance over form). Please read as widely as possible, including the
Further readings for this topic in the subject guide.
Question 7
Either
Define research and development and discuss the accounting concepts used to
determine the accounting treatment of research and development. Compare and
contrast SSAP 13 on research and development with IAS 38 on intangibles as it
relates to research and development and critically assess these standards.
Or
Discuss the concept of substance over form, illustrating your answer with
reference to finance and operating leases. Compare and contrast the accounting
for finance and operating leases and discuss the impact that accounting for
finance and operating leases differently has on financial statements.
24
Examiners’ commentaries 2012
25
AC3091 Financial reporting
time / 1 2 3 4 5 6 7 8 9 10
Periods
(n)
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290
14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239
time / 11 12 13 14 15 16 17 18 19 20
periods
(n)
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402
6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335
7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279
8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233
9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194
10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162
11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135
12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112
13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093
14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078
15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065
26