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Hi, what did you say about improvement of internal controls in Question 1- what needed to be improved?
In Question 2 – what principles did the staff not follow when accepting bonuses for wrongly sold insurance premiums?
In question 2 also- what did you say about how the bonus package needed to changed and about the consequences of external auditor failure to report?
In question 3- Strategic and operational risks of company trying to expand to Geeland and management techniques?Thanks,
No, my question 4 was a disaster, ran out of time.
But still would like to know the likely points deduction as per my question above..Thank you for the suggested answers.
I did a silly mistake- In the hedging question I did all the calculations correctly but in the conclusion stated that a wrong method should be chosen 🙂 – how many marks if any will I get for this?
Also In the Receivables question I based the 80% increase in financing fee on total credit sales not on receivables – how many marks will I lose?In the question where we had the Dividend growth model, could we not have calculated the growth rate from g= ROE * Retained earnings?
ROE was given I believe at 12.5% and Retained earning could be taken as 1 – % Div payout ratio?Can someone explain to me why answer to Q20 is D? Could it not be C – disclosing discontinued operations gives a true and fair picture of entity’s position but it does not help with comparability unless you also restate the prior year’s statements ( question does not say that), whereas when applying current treatment to new transactions would help with comparability when going forward.?
I think the value of construction contract was 5M, costs to date + to finish was 4 M, so Estimated profi 1M. Because the company was using contract billing amount to determine to completion %. I’m probably wrong but I calculated the work completed as 1.8/5 = 36%?
I forgot to add Non-Controlling interest in Q3.
How did you account for increase in fair value of Subsidiary’s assets- did you include them in goodwill calculation and Calculation of PPE on balance sheet?In Question 1 we had to increase Cost of sales/ Inventory for purchased subsidiary, then increase the operating costs by 2.5 million ( remuneration) and increase finance cost by 10% of newly acquired loan. After that I think we needed to recalculate the Ratios – ROE, GPM, net asset turnover and net profit margin and then comment on differences/changes?
In question 2 – , the amendements required were loan at effective rate ( giving a N/C liability on balance sheet and finance charge on P&L). Tax charge needed to be calculated for P&L ( deferred tax increased to 12800 from 12000). Also depreciation and imapirment charge was required. , after that you had to asseble a balance sheet from that data/ or am I wrong?