你知道2020年7月ACCA报考时间调整了吗？

正确答案：

(b) The estimates are based upon unrealistic assumptions and are subject to a considerable margin of error. Possible limitations
include:
(i) Sales, operating costs, replacement investments, and dividends are unlikely to increase by the same amount.
(ii) Forecasts of future growth rates may not be accurate. Paxis is unlikely to have access to enough internal information
about the activities of Wragger to make accurate projections.
(iii) The expected reduction in operating costs might not be achieved.
(iv) The estimates are based upon present values to infinity of expected free cash flows. A shorter time horizon might be
more realistic.
(v) The cost of capital for the combined company could differ from that estimated, depending how the market evaluates the
risk of the combined entity.
(vi) The analysis is based upon the assumption that the initial offer price is accepted.
(vii) There is no information about the fees and other costs associated with the proposed acquisition. In many cases these
are substantial, and must be included in the analysis.
(viii) The post acquisition integration of organisations often involves unforeseen costs which would reduce the benefit of any
potential synergy.

正确答案：
(d) Implications for Gerard of the changes to Fizz plc’s bonus scheme
Value received
Under the existing scheme Gerard receives approximately ￡4,500 each year. This is subject to income tax at 40% and
national insurance contributions at 1% such that Gerard receives ￡2,655 (￡4,500 x 59%) after all taxes.
Under the proposed share incentive plan (SIP), Gerard expects to receive free shares worth ￡3,500 (￡2,100 + ￡1,400).
Provided the shares remain in the plan for at least five years there will be no income tax or national insurance contributions
in respect of the value received. Gerard’s base cost in the shares for the purposes of capital gains tax will be their value at
the time they are withdrawn from the scheme.
In addition, the amount he spends on partnership shares will be allowable for both income tax and national insurance such
that he will obtain shares with a value of ￡700 for a cost of only ￡413 (￡700 x 59%).
Accordingly, Gerard will receive greater value under the SIP than he does under the existing bonus scheme. However, as noted
below, he will not be able to sell the free or matching shares until they have been in the scheme for at least three years by
which time they may have fallen in value.
Timing of receipt of benefit
Under the existing scheme Gerard receives a cash bonus each year.
The value of free and matching shares awarded under a SIP cannot be realised until the shares are withdrawn from the
scheme and sold. This withdrawal cannot take place until at least three years after the shares are awarded to Gerard.
Accordingly, Gerard will not have access to the value of the bonuses he receives under the SIP until the scheme has been in
operation for at least three years. In addition, if the shares are withdrawn within five years of being awarded, income tax and
national insurance contributions will become payable on the lower of their value at the time of the award and their value at
the time of withdrawal thus reducing the value of Gerard’s bonus.

正确答案：
3 Poppy Co
(a) Balances held at fair value are frequently recognised as material items in the statement of financial position. Sometimes it is
required by the financial reporting framework that the measurement of an asset or liability is at fair value, e.g. certain
categories of financial instruments, whereas it is sometimes the entity’s choice to measure an item using a fair value model
rather than a cost model, e.g. properties. It is certainly the case that many of these balances will be material, meaning that
the auditor must obtain sufficient appropriate evidence that the fair value measurement is in accordance with the
requirements of financial reporting standards. ISA 540 (Revised and Redrafted) Auditing Accounting Estimates Including Fair
Value Accounting Estimates and Related Disclosures and ISA 545 Auditing Fair Value Measurements and Disclosures
contain guidance in this area.
As part of the understanding of the entity and its environment, the auditor should gain an insight into balances that are stated
at fair value, and then assess the impact of this on the audit strategy. This will include an evaluation of the risk associated
with the balance(s) recognised at fair value.
Audit risk comprises three elements; each is discussed below in the context of whether material balances shown at fair value
will lead to increased risk for the auditor.
Inherent risk
Many measurements based on estimates, including fair value measurements, are inherently imprecise and subjective in
nature. The fair value assessment is likely to involve significant judgments, e.g. regarding market conditions, the timing of
cash flows, or the future intentions of the entity. In addition, there may be a deliberate attempt by management to manipulate
the fair value to achieve a desired aim within the financial statements, in other words to attempt some kind of window
dressing.
Many fair value estimation models are complicated, e.g. discounted cash flow techniques, or the actuarial calculations used
to determine the value of a pension fund. Any complicated calculations are relatively high risk, as difficult valuation techniques
are simply more likely to contain errors than simple valuation techniques. However, there will be some items shown at fair
value which have a low inherent risk, because the measurement of fair value may be relatively straightforward, e.g. assets
that are regularly bought and sold on open markets that provide readily available and reliable information on the market prices
at which actual exchanges occur.
In addition to the complexities discussed above, some fair value measurement techniques will contain significant
assumptions, e.g. the most appropriate discount factor to use, or judgments over the future use of an asset. Management
may not always have sufficient experience and knowledge in making these judgments.
Thus the auditor should approach some balances recognised at fair value as having a relatively high inherent risk, as their
subjective and complex nature means that the balance is prone to contain an error. However, the auditor should not just
assume that all fair value items contain high inherent risk – each balance recognised at fair value should be assessed for its
individual level of risk.
Control risk
The risk that the entity’s internal monitoring system fails to prevent and detect valuation errors needs to be assessed as part
of overall audit risk assessment. One problem is that the fair value assessment is likely to be performed once a year, outside
the normal accounting and management systems, especially where the valuation is performed by an external specialist.
Therefore, as a non-routine event, the assessment of fair value is likely not to have the same level of monitoring or controls
as a day-to-day business transaction.
However, due to the material impact of fair values on the statement of financial position, and in some circumstances on profit,
management may have made great effort to ensure that the assessment is highly monitored and controlled. It therefore could
be the case that there is extremely low control risk associated with the recognition of fair values.
Detection risk
The auditor should minimise detection risk via thorough planning and execution of audit procedures. The audit team may
lack experience in dealing with the fair value in question, and so would be unlikely to detect errors in the valuation techniques
used. Over-reliance on an external specialist could also lead to errors not being found.
Conclusion
It is true that the increasing recognition of items measured at fair value will in many cases cause the auditor to assess the
audit risk associated with the balance as high. However, it should not be assumed that every fair value item will be likely to
contain a material misstatement. The auditor must be careful to identify and respond to the level of risk for fair value items
on an individual basis to ensure that sufficient and appropriate evidence is gathered, thus reducing the audit risk to an
acceptable level.

正确答案：

 

■ The discontinuation of the product line after the balance sheet date provides additional evidence that, as at the
balance sheet date, it was of poor quality. Therefore, as at the balance sheet date:
– an allowance (‘provision’) may be required for credit notes for returns of products after the year end that were
sold before the year end;
– goods returned to inventory should be written down to net realisable value (may be nil);
– any plant and equipment used exclusively in the production of the petcare range of products should be tested
for impairment;
– any material contingent liabilities arising from legal claims should be disclosed.
(ii) Audit evidence
■ A copy of Seymour’s announcement (external ‘press release’ and any internal memorandum).
■ Credit notes raised/refunds paid after the year end for faulty products returned.
■ Condition of products returned as inspected during physical attendance of inventory count.
■ Correspondence from customers claiming reimbursement/compensation for poor quality.
■ Direct confirmation from legal adviser (solicitor) regarding any claims for customers including estimates of possible
payouts.