SEAT NUMBER: ……….… ROOM:..………….
FAMILY NAME: ……..…….…………………….
This question paper must be returned.
Candidates are not permitted to remove any part of it from the examination room.
OTHER NAMES:……..…….……………………
STUDENT NUMBER:…..…….………..……….
SAMPLE EXAM
EXAMINATION DETAILS:
ACCG926
Unit Code:
Unit Name:
Duration of Exam
(including reading time if applicable):
Corporate Accounting
3 hours plus 10 Minutes Reading Time
Total No. of Questions:
Total No. of Pages
(including this cover sheet):
GENERAL INSTRUCTIONS TO CANDIDATES:
Candidates are required to obey all instructions provided by the Final Examination Supervisor and must refrain from communicating in any way with another student once they have entered the final examination venue.
Candidates may not write or mark the exam materials in any way during reading time.
Candidates may only access authorised materials during this examination. A list of authorised material is available on this cover sheet.
If it is alleged you have breached these rules at any time during the examination, the matter may be reported to the University Discipline
Committee for determination.
EXAMINATION INSTRUCTIONS:
1. All questions are compulsory. Answer all parts of all questions.
2. Ensure your name and student number are filled in at the top of this exam paper.
3. All questions should be answered in the space provided in this exam paper.
4. Writing must be legible and answers clearly set out.
Disclaimer
The objective of the sample examination and the revision materials therein is to assist students in their preparation for the final examination. The sample examination is therefore similar in format to the final examination. However, questions and topics in the final examination may be different, so students should also revise all other learning materials, such as, lecture notes and tutorial exercises, and importantly review the learning outcomes that are stated in the unit guide. MATERIALS PERMITTED/NOT PERMITTED:
Dictionaries: No dictionaries permitted.
Calculators: Non-programmable calculators (no text retrieval) permitted.
Other:
Practical questions:
Question 1
On 1 Jan 2009, Arteta Ltd acquired 70% of the share capital of Rosicky Ltd for
$160,000. At this date, the equity of Rosicky Ltd consisted of:
Share capital
General reserve
Retained earnings
120 000
20 000
40 000
At the date of acquisition all assets and liabilities of Rosicky Ltd were carried in their accounting records at fair values with the exception of the following assets:
Machinery (cost $100 000)
Land
Carrying amount
70 000
90 000
Fair value
80 000
120 000
The Machinery had a further 5-year useful life as at the date of acquisition. The land was sold on 30 June 2011.
Additional information:
a) Included in the opening inventory of Rosicky Ltd as at 1 January 2011 were items purchased from Arteta Ltd prior to 31 December 2010 for $12,000. The original cost of these items was $9,000. All inventory was sold by Rosicky to external parties by 31 December 2011.
b) During the current year, Rosicky Ltd sold inventory to Arteta Ltd for $20,000.
The inventory had cost Rosicky Ltd $15,000. Half of this inventory was still held by Arteta Ltd by the year end.
c) On 30 June 2010, Rosicky Ltd sold machinery to Arteta for $80,000. The machinery had cost Rosicky Ltd $100,000 and had a carrying amount of
$60,000 at the date of transfer. The remaining useful life of the machinery at
30 June 2010 was 5 years.
d) Arteta Ltd uses the full goodwill method. The fair value of the non-controlling interest at the acquisition date was $66,000.
e) The tax rate is 30%.
f) The annual reporting date of Arteta group is 31 December.
2
The financial statements of the two companies at 31 December 2011 are as follows:
Revenues
Expenses
Net profit before tax
Income tax expense
Net profit after tax
Retained earnings 1 January 2011
Interim dividend paid
Final dividend declared
Retained earnings 31 December 2011
Share capital
General reserve
