f7int_2011_dec_q.

Jul 8th, 2015
Studypool Tutor
Alabama State University
Price: $30 USD

Tutor description

On 1 October 2010, Paladin secured a majority equity shareholding in Saracen on the following terms: an immediate payment of $4 per share on 1 October 2010; and a further amount deferred until 1 October 2011 of $5·4 million. The immediate payment has been recorded in Paladin’s financial statements, but the deferred payment has not been recorded. Paladin’s cost of capital is 8% per annum.

Word Count: 2098
Showing Page: 1/9
Financial Reporting(International)Wednesday 7 December 2011Time allowedReading and planning:Writing:15 minutes3 hoursALL FIVE questions are compulsory and MUST be attempted.Do NOT open this paper until instructed by the supervisor.During reading and planning time only the question paper maybe annotated. You must NOT write in your answer booklet untilinstructed by the supervisor.This question paper must not be removed from the examination hall.The Association of Chartered Certified AccountantsPaper F7 (INT)Fundamentals Level Skills ModuleALL FIVE questions are compulsory and MUST be attempted1On 1 October 2010, Paladin secured a majority equity shareholding in Saracen on the following terms:an immediate payment of $4 per share on 1 October 2010; anda further amount deferred until 1 October 2011 of $54 million.The immediate payment has been recorded in Paladins financial statements, but the deferred payment has not beenrecorded. Paladins cost of capital is 8% per annum.On 1 February 2011, Paladin also acquired 25% of the equity shares of Augusta paying $10 million in cash.The summarised statements of financial position of the three companies at 30 September 2011 are:AssetsNon-current assetsProperty, plant and equipmentIntangible assetsInvestments Saracen (8 million shares at $4 each) AugustaCurrent assetsInventoryTrade receivablesBankTotal assetsEquity and liabilitiesEquityEquity shares of $1 eachRetained earn

Review from student

Studypool Student
" Thanks for the help. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1831 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors