CAF-7 Financial Accounting and Reporting II- Question Bank

250 Pages·2015·3.08 MB·English

by  Judith Clinch

2015
FINANCIAL ACCOUNTING
AND REPORTING II
QUESTION BANK
CAF-07

Question P
P
A
Bank C

I

Financial accounting
and reporting II
Second edition published by
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© Emile Woolf International ii The Institute of Chartered Accountants of Pakistan
Certificate in Accounting and Finance

Financial accounting and reporting II
C

Contents

Page
Question and Answers Index v
Questions
Section A Questions 1
Answers
Section B Answers 93

© Emile Woolf International iii The Institute of Chartered Accountants of Pakistan
Financial accounting and reporting II

© Emile Woolf International iv The Institute of Chartered Accountants of Pakistan
Certificate in Accounting and Finance

Financial accounting and reporting II
I

Index to questions and answers

Question Answer

page page
CHAPTER 2 – IAS 1: PRESENTATION OF FINANCIAL STATEMENTS
2.1 LARRY 2 94
2.2 MINGORA IMPORTS LIMITED 3 95
2.3 BARRY 4 97
2.4 OSCAR INC 6 99
2.5 CLIFTON PHARMA LIMITED 7 101
2.6 SARHAD SUGAR LIMITED 8 103
2.7 BSZ LIMITED 10 105
2.8 YASIR INDUSTRIES LIMITED 12 108
2.9 SHAHEEN LIMITED 14 112
2.10 MOONLIGHT PAKISTAN LIMITED 15 114
2.11 FIGS PAKISTAN LIMITED 17 115
CHAPTER 3 – IAS 7: STATEMENTS OF CASH FLOWS
3.1 KLEA 19 119
3.2 STANDARD INC 21 121
3.3 FALLEN 22 124
3.4 BIN QASIM MOTORS LIMITED 24 126
3.5 ITTEHAD MANUFACTURING LTD 27 129
3.6 WASEEM INDUSTRIES LIMITED 29 131
3.7 JALIB INDUSTRIES LIMITED 31 134
© Emile Woolf International v The Institute of Chartered Accountants of Pakistan
Financial accounting and reporting II
Question Answer

page page
3.8 APOLLO INDUSTRY LIMITED 32 136
3.9 MARVEL ENGINEERING LIMITED 34 137
CHAPTER 4 – CONSOLIDATED ACCOUNTS: STATEMENTS OF
FINANCIAL POSITION – BASIC APPROACH
4.1 HALL 36 139
4.2 HASSLE 37 140
4.3 HYMN 37 141
4.4 HANG 38 143
4.5 HASH 38 144
CHAPTER 5 – CONSOLIDATED ACCOUNTS: STATEMENTS OF
FINANCIAL POSITION - COMPLICATIONS
5.1 HAIL 39 146
5.2 HAIRY 40 148
5.3 HARD 41 150
5.4 HALE 42 152
5.5 HELLO 42 153
5.6 HASAN LIMITED 43 155
CHAPTER 6 – CONSOLIDATED ACCOUNTS: STATEMENTS OF
COMPREHENSIVE INCOME
6.1 HARRY 45 159
6.2 HORNY 46 161
6.3 HERON 47 163
6.4 HANKS 48 164
CHAPTER 7 – PROPERTY, PLANT AND EQUIPMENT
7.1 ROONEY 50 168
7.2 EHTISHAM 51 170
7.3 CARLY 51 172
7.4 ADJUSTMENTS LIMITED 52 173
7.5 FAM 53 175
7.6 IMRAN LIMITED 54 177
7.7 HUMAYUN CHEMICALS LIMITED 55 179
7.8 FARADAY PHARMACEUTICAL LIMITED 55 180
© Emile Woolf International vi The Institute of Chartered Accountants of Pakistan
Index to questions and answers
Question Answer

page page
7.9 SPIN INDUSTRIES LIMITED 56 182
7.10 SCIENTIFIC PHARMA LIMITED 56 183
7.11 QURESHI STEEL LIMITED 57 184
7.12 GRANITE CORPORATION 58 185
CHAPTER 8 – IAS 38: INTANGIBLE ASSETS
8.1 FAZAL 59 186
8.2 HENRY 59 186
8.3 TOBY 60 187
8.4 BROOKLYN 60 188
8.5 ZOUQ INC 61 189
8.6 STAR-BRIGHT PHARMACEUTICAL
62 190
LIMITED
8.7 RAISIN INTERNATIONAL 62 191
CHAPTER 9 – IAS 17: LEASES
9.1 DAWOOD 64 192
9.2 FINLEY 64 192
9.3 FABIAN 64 193
9.4 XYZ INC 65 194
9.5 SNOW INC 65 197
9.6 MIRACLE TEXTILE LIMITED 66 199
9.7 SHOAIB LEASING LIMITED 66 200
9.8 NEPTUNE LIMITED 67 202
9.9 QUARTZ AUTO LIMITED 67 204
9.10 LODHI TEXTILE MILLS LIMITED 68 205
9.11 NOMAN ENGINEERING LIMITED 68 206
CHAPTER 10 – IAS 37: PROVISIONS CONTINGENT LIABILITIES AND
CONTINGENT ASSETS AND IAS 10: EVENTS OCCURRING AFTER THE
REPORTING DATE
10.1 BADAR 69 207
10.2 GEORGINA 69 207
10.3 EARLEY INC 70 209
10.4 ACCOUNTING TREATMENT 70 210
© Emile Woolf International vii The Institute of Chartered Accountants of Pakistan
Financial accounting and reporting II
Question Answer

page page
10.5 J-MART LIMITED 71 211
10.6 AKBER CHEMICALS LIMITED 72 212
10.7 QALLAT INDUSTRIES LIMITED 72 213
10.8 SKYLINE LIMITED 73 213
10.9 WALNUT LIMITED 74 214
10.10 ATTOCK TECHNOLOGIES LIMITED 75 215
CHAPTER 11 – IAS 8: ACCOUNTING POLICIES, CHANGES IN
ACCOUNTING ESTIMATES AND ERRORS
11.1 WONDER LIMITED 76 216
11.2 DUNCAN 77 217
11.3 MOHANI MANUFACTURING LIMITED 78 218
CHAPTER 12 – IAS 12: INCOME TAXES
12.1 FRANCESCA 79 219
12.2 SHEP (I) 79 220
12.3 SHEP (II) 80 221
12.4 SHEP (III) 81 222
12.5 SHEP (IV) 82 224
12.6 WAQAR LIMITED 82 225
12.7 SHAKIR INDUSTRIES 83 227
12.8 MARS LIMITED 84 228
12.9 BILAL ENGINEERING LIMITED 85 230
12.10 GALAXY INTERNATIONAL 85 231
12.11 APRICOT LIMITED 86 232
CHAPTER 13 – RATIO ANALYSIS
13.1 WASIM 87 233
13.2 AMIR AND MO 88 233
CHAPTER 14 – ETHICAL ISSUES IN FINANCIAL REPORTING
14.1 ETHICAL ISSUES 90 235
14.2 SINDH INDUSTRIES LTD 90 236

© Emile Woolf International viii The Institute of Chartered Accountants of Pakistan