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F3 and FFA Extra MTQs Exam Answer PDF

The document provides sample exam questions and answers related to consolidated financial statements and goodwill. The first multi-task question (MTQ 1) includes a sample statement of cash flows and requires calculating cash flow amounts. The second multi-task question (MTQ 2) addresses the acquisition of a subsidiary, including calculating goodwill and non-controlling interests. The tasks require calculations of acquisition values, definitions of consolidation and goodwill processes, and setting up sample consolidated financial statement balances.

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570 views2 pages

F3 and FFA Extra MTQs Exam Answer PDF

The document provides sample exam questions and answers related to consolidated financial statements and goodwill. The first multi-task question (MTQ 1) includes a sample statement of cash flows and requires calculating cash flow amounts. The second multi-task question (MTQ 2) addresses the acquisition of a subsidiary, including calculating goodwill and non-controlling interests. The tasks require calculations of acquisition values, definitions of consolidation and goodwill processes, and setting up sample consolidated financial statement balances.

Uploaded by

NasTik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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F3 and FFA Extra MTQs Exam Answers

MTQ 1
Task 1 (15 marks)
Statement of cashflows for the year ended
31 October 20X7
Cash Flows from Operating Activities
Profit before tax
Adjustments
Depreciation
Profit on disposal of non-current
assets
Inventory
Receivables
Payables
Tax paid
Net cash from operating activities

$000

15000
4658
720

Add
Subtract

6075
1863
3198
4090

Add
Subtract
Add
Subtract

Cash flows from investing activities


Payments to acquire non-current assets
Proceeds from sale of non-current assets
Net cash from investing activities

24340
2694

Subtract
Add

Cash flows from financing activities


Proceeds from issue of share capital
Repayment of loans
Net cash from financing activities

1869
2300

Add
Subtract

181

Inflow

Net movement in cash and cash


equivalents
Cash and cash equivalents at beginning of
period
Cash and cash equivalents at end of
period

634
815

MTQ 2
Task 1 (4.5 marks)
Value of investment at acquisition
Investment in Erica Co held by Gasta Co
NCI as at acquisition
Total value of investment at acquisition (A)

$000
1380
450
1830

Fair value of Erica Cos net assets at acquisition


Equity share capital
Retained earnings

1000
480

08/10/13

Total fair value of Erica Cos net assets at acquisition (B)


Goodwill at acquisition expressed as a formula
Task 2 (3 marks)
The process of consolidation results in a single legal entity
Goodwill is recalculated using the most recent fair values at
each reporting period end
NCI will always feature within the consolidated financial
statements

1480
A-100% of B

No
No
No

Task 3 (1.5 marks)


Fair value of NCI at acquisition + 25% of post-acquisition profits
Task 4 (6 marks)
Investment
Other assets
Share capital
Retained earnings
Liabilities

08/10/13

$000
0
6900
2000
2175
2580

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