CTA PART TIME LEVEL 2 AND FULL TIME JANUARY INTEGARTED PAPER 3 - 2022 TEST 2:

REQUIRED
Required Marks
Sub Total
total
A. Prepare an extract group statement of cash flows for Lavazza for the 31 32
year ended 30 May 2022 in terms of IAS 7 (Only the cash from operating
activities section using the indirect method).
Communication: Presentation 1
B. Discuss the classification of the investment in Ground Bean Tech in the 6 7
accounting records of Lavazza for the year ended 30 May 2022.
Communication: Logical flow 1
C. Review the IFRS 9 impairment journals processed for the investment in 5 6
Ground Bean Tech and prepare correcting journal entry(ies) if
necessary.
• assume the entity applies the irrevocable election to measure
shares at Fair Value through Other Comprehensive Income. 1
Communication: Logical argument
D. Discuss accounting treatment of coffee promotion in accordance with 24 25
IFRS 15 “Revenue from contracts with customers. Ignore step 1.
Communication: Clarity of expression 1
E. Describe the substantive procedures Lavazza should perform to gather 19 20
sufficient and appropriate audit evidence with regard to the cash from
operating activities presented in Required A above.
Communication: Clarity of expression 1
F. Discuss any statutory concerns you may have with regards to the 5 5
conduct of GTB’s CEO’s, Geromini.
G. Discuss GBT’s CEO’s conduct in line the Code of Professional Conduct. 5 5
TOTAL 100

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