SBR Specemin 2

07/12/2023, 10:17
(a) Using exhibit 1, explain, with suitable calculations, how the investment in Doyle Co should be
dealt with in the consolidated financial statements for the year ended 30 September 20X6.
(7 marks)
(b) Using the pre-populated spreadsheet response option and exhibits 1 and 2, update the draft
extracts of the consolidated statement of cash flows to adjust for the disposal of Doyle Co shares and
to amend for any errors/omissions made by the directors.
(13 marks)
(c) Using exhibit 3, evaluate the proposed treatment of Hill Co's deferred tax asset.
(4 marks)
(d) Using exhibit 4, discuss, with suitable calculations, how the convertible bond should be dealt
with in the consolidated financial statements for the year ended 30 September 20X7.
(6 marks)
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SBR-INT Specimen 25. Draft from

– valid consolidated SOCF
September 2023 onwards
1 of 4
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50%
12
Exhibits Requirements (30 marks)
Hill Co is the parent company of a group. All entities in the group have a financial
1. DisposalC33
of Doyle Co year 1,
(a) Using exhibit
4219.2 end of 30 September
explain, 20X6.
with suitable calculations, how the investment in Doyle Co should b
dealt with in the consolidated financial statements for the year ended 30 September 20X6.
2. Further information The following exhibits, available on the left-hand side of the screen, provide
information that is relevant to the question:
3. Deferred tax asset 4. Convertible bond issue
(b) Using the1.pre-populated

Disposal of Doyle Co – provides
spreadsheet information
response optiononandtheexhibits
acquisition of 60%
1 and of Doyle
2, update the draft
4. Convertible bond issue Co on 1 October 20X4 and the subsequent partial disposal of Doyle Co shares
extracts of the consolidated statement of cash flows to adjust for the disposal of Doyle Co share on
to amend for1anyAprilerrors/omissions
20X6. made by the directors.
5. Draft consolidated SOCF 2. Further information – provides further information about the draft consolidated
statement of cash flow (included in pre-formatted response option and exhibit 5).
Requirements 3. Deferred tax asset – describes circumstances relating to deferred tax assets
(c) Using exhibit 3, evaluate the proposed treatment of Hill Co's deferred tax asset.
Requirements (30 marks) proposed by Hill Co at 30 September 20X6.
4. Convertible bond issue – provides information about a convertible bond issued
Response Options on 1 October 20X6.
(d) Using exhibit 4, discuss,
5. Draft withSOCF
consolidated suitable calculations,
– provides how
extracts thedraft
of the convertible bond should be deal
consolidated
Word Processor
in the consolidated financial statements for the year ended 30 September
statement of cash flows (SOCF) for the year ended 30 September 20X6. 20X7.
Spreadsheet
This information should be used to answer the question requirements within your
chosen response option(s).
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07/12/2023, 10:23
Discuss the ethical and accounting implications of the above scenarios from the
perspective of the accountant.
(18 marks)
Professional marks will be awarded in question 2 for the application of ethical principles.
(2 marks)
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07/12/2023, 10:25
(a) The accountant requires advice about whether the accounting treatment of the sale of
the development project is correct.
(6 marks)
(b) The accountant requires advice as to the correct accounting treatment of the aircraft
contract.
(9 marks)
(c) With reference to the concept of materiality, discuss the acceptability of the
accountant’s recommendations.
Note: Your answer should refer to the IFRS Practice Statement 2: Making Materiality
Judgements
(10 marks)
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07/12/2023, 10:27
(a) The directors require advice about how revenue from the following sources should be
accounted for in the financial statements for the year ended 31 December 20X7:
(i) gift cards
(6 marks)
(ii) royalty
(6 marks)
(b) Discuss the potential impact that the property accounting policy may have on
investors’ analysis of Kiki Co’s financial statements for the year ended 31 December
20X7. Your answer should refer to key financial performance ratios.
(11 marks)
Professional marks will be awarded in part (b) for clarity and quality of discussion.
(2 marks)
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07/12/2023, 10:17

SBR-INT Specimen 25. Draft from

(b) Using the1.pre-populated

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(i) gift cards

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