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| Section | Weight | Objectives |
|---|---|---|
| Financial Statements | 45% | - Interpretation and analysis of financial statements - Application of IFRS standards
- Preparation of single entity financial statements
|
| The Regulatory Environment of Financial Reporting | 10% | - IFRS Foundation and IASB structure - Conceptual framework and regulatory bodies - Ethics in financial reporting - Principles vs rules-based regulation |
| Managing Cash and Working Capital | 25% | - Working capital cycle and objectives - Cash management and forecasting - Short-term financing options - Management of receivables, inventory and payables |
| Principles of Taxation | 20% | - Deferred tax concepts - Tax system and types of taxes - Indirect taxes overview - Current tax calculation |
ABC has the following working capital ratios at 31 December 20X2:
During the year ended 31 December 20X4 credit purchases were $1,700,000 and at 31 December 20X4 the outstanding trade payables balance was $340,000
Calculate the working capital cycle for ABC.
Give your answer to the nearest whole number of days and assume there are 365 days in a year.
Correct Answer:
Pending
In accordance with IAS 16 Property, Plant and Equipment, in which of the following situations would subsequent expenditure on a non-current asset be capitalised?
Correct Answer: A 🗳️
The following information is extracted from the statement of financial position for ZZ at 31 March 20X3:
Included within cost of sales in the statement of profit or loss for the year ended 31 March 20X3 is $20 million relating to the loss on the sale of plant and equipment which had cost $100 million in June 20X1.
Depreciation is charged on all plant and equipment at 25% on a straight line basis with a full year's depreciation charged in the year of acquisition and none in the year of sale.
The revaluation reserve relates to the revaluation of ZZ's property.
The total depreciation charge for property, plant and equipment in ZZ's statement of profit of loss for the year ended 31 March 20X3 is $80 million.
The corporate income tax expense in ZZ's statement of profit or loss for year ended 31 March 20X3 is $28 million.
ZZ is preparing its statement of cash flows for the year ended 31 March 20X3.
What figure should be included for corporate income tax paid in order to arrive at the net cash flow from operating activities?
Give your answer to the nearest $ million.
Correct Answer:
$21 million
Which TWO of the following are features of a bank overdraft?
Correct Answer: B,D 🗳️
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