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(d) (i) Discuss why it may not be possible to provide a high level of assurance over the stated key performance
indicators; and (4 marks)
答案
更多“（d) （i) Discuss why it may not be possible to provide a high level of assurance over the s”相关的问题
第1题
I wonder why he______to discuss the problem at the meeting.
A．declined
B．rejected
C．refused
D．A／C
第2题
The chief executive officer (CEO) of Faoilean Co has just returned from a discussion at a leading university on the ‘application of options to investment decisions and corporate value’. She wants to understand how some of the ideas which were discussed can be applied to decisions made at Faoilean Co. She is still a little unclear about some of the discussion on options and their application, and wants further clarification on the following:
(i) Faoilean Co is involved in the exploration and extraction of oil and gas. Recently there have been indications that there could be significant deposits of oil and gas just off the shores of Ireland. The government of Ireland has invited companies to submit bids for the rights to commence the initial exploration of the area to assess the likelihood and amount of oil and gas deposits, with further extraction rights to follow. Faoilean Co is considering putting in a bid for the rights. The speaker leading the discussion suggested that using options as an investment assessment tool would be particularly useful to Faoilean Co in this respect.
(ii) The speaker further suggested that options were useful in determining the value of equity and default risk, and suggested that this was why companies facing severe financial distress could still have a positive equity value.
(iii) Towards the end of the discussion, the speaker suggested that changes in the values of options can be measured in terms of a number of risk factors known as the ‘greeks’, such as the ‘vega’. The CEO is unclear why option values are affected by so many different risk factors.
Required:
(a) With regard to (i) above, discuss how Faoilean Co may use the idea of options to help with the investment decision in bidding for the exploration rights, and explain the assumptions made when using the idea of options in making investment decisions. (11 marks)
(b) With regard to (ii) above, discuss how options could be useful in determining the value of equity and default risk, and why companies facing severe financial distress still have positive equity values. (9 marks)
(c) With regard to (iii) above, explain why changes in option values are determined by numerous different risk factors and what ‘vega’ determines. (5 marks)
第3题
(c) Discuss the reasons why the net present value investment appraisal method is preferred to other investment
appraisal methods such as payback, return on capital employed and internal rate of return. (9 marks)
第4题
(c) Briefly discuss why the directors of HFL might choose contract D irrespective of whether or not contract D
would have been selected using expected values as per part (a). (2 marks)
第5题
3 (a) Discuss why the identification of related parties, and material related party transactions, can be difficult for
auditors. (5 marks)
第6题
Required:
(a) (i) Discuss the main weaknesses in the current standard on revenue recognition; (11 marks)
(ii) Discuss the reasons why it might be relevant to take into account credit risk and the time value of money in assessing revenue recognition. (5 marks)
Professional marks will be awarded in part (a) for clarity and expression of your discussion. (2 marks)
(b) (i) Venue enters into a contract with a customer to provide computers at a value of $1 million. The terms are that payment is due one month after the sale of the goods. On the basis of experience with other contractors with similar characteristics, Venue considers that there is a 5% risk that the customer will not pay the amount due after the goods have been delivered and the property transferred. Venue subsequently felt that the financial condition of the customer has deteriorated and that the trade receivable is further impaired by $100,000.
(ii) Venue has also sold a computer hardware system to a customer and, because of the current difficulties in the market, Venue has agreed to defer receipt of the selling price of $2 million until two years after the hardware has been transferred to the customer.
Venue has also been offering discounts to customers if products were sold with terms whereby payment was due now but the transfer of the product was made in one year. A sale had been made under these terms and payment of $3 million had been received. A discount rate of 4% should be used in any calculations.
Required: Discuss how both of the above transactions would be treated in subsequent financial statements under IAS 18 and also whether there would be difference in treatment if the collectability of the debt and the time value of money were taken into account. (7 marks)
第7题
4 The International Accounting Standards Board (IASB) has begun a joint project to revisit its conceptual framework for
financial accounting and reporting. The goals of the project are to build on the existing frameworks and converge them
into a common framework.
Required:
(a) Discuss why there is a need to develop an agreed international conceptual framework and the extent to which
an agreed international conceptual framework can be used to resolve practical accounting issues.
(13 marks)
第8题
(b) (i) Discuss the relationship between the concepts of ‘business risk’ and ‘financial statement risk’; and
(4 marks)
第9题
(b) Discuss the nature of the following issues in developing IFRSs for SMEs.
(i) The purpose of the standards and the type of entity to whom they should apply. (7 marks)
第10题
(b) (i) Discuss the main factors that should be taken into account when determining how to treat gains and
losses arising on tangible non-current assets in a single statement of financial performance. (8 marks)
