Professional Examinations Paper P2 (INT and UK) Corporate Reporting EXAM KIT P AP ER P ( IN T AN D U K) : CO RP OR A TE RE PO R TIN G British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by: Kaplan Publishing UK Unit The Business Centre Molly Millar’s Lane Wokingham Berkshire RG41 2QZ ISBN: 978-1-78415-233-8 © Kaplan Financial Limited, 2015 Printed and bound in Great Britain The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties Please consult your appropriate professional adviser as necessary Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials All rights reserved No part of this examination may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior permission from Kaplan Publishing Acknowledgements The past ACCA examination questions are the copyright of the Association of Chartered Certified Accountants The original answers to the questions from June 1994 onwards were produced by the examiners themselves and have been adapted by Kaplan Publishing We are grateful to the Chartered Institute of Management Accountants and the Institute of Chartered Accountants in England and Wales for permission to reproduce past examination questions The answers have been prepared by Kaplan Publishing ii KA PL AN P U BLI SH IN G CONTENTS Page Index to questions and answers v Analysis of past papers xi Exam technique xiii Paper specific information xv Kaplan’s recommended revision approach xix Kaplan’s detailed revision plan xxiii Technical update xxvii Section Practice questions UK GAAP focus questions 115 Answers to practice questions 119 UK GAAP focus answers 448 December 2014 exam questions 457 Answers to December 2014 exam questions 465 KA PL AN P U BLI SH IN G i ii P AP ER P ( IN T AN D U K) : CO RP OR A TE RE PO R TIN G Key features in this edition In addition to providing a wide ranging bank of real past exam questions, we have also included in this edition: • An analysis of all of the recent new syllabus examination papers • Paper specific information and advice on exam technique • Our recommended approach to make your revision for this particular subject as effective as possible This includes step by step guidance on how best to use our Kaplan material (Complete text, pocket notes and exam kit) at this stage in your studies • Enhanced tutorial answers packed with specific key answer tips, technical tutorial notes and exam technique tips from our experienced tutors • Complementary online resources including full tutor debriefs and question assistance to point you in the right direction when you get stuck You will find a wealth of other resources to help you with your studies on the following sites: www.MyKaplan.co.uk www.accaglobal.com/students/ UK GAAP Focus The Examiner has indicated that, for the purposes of this exam, International Financial Reporting Standards (IFRS) are the main accounting standards examined in the preparation of financial information The majority of the UK syllabus examination paper will be the same as the international paper, which is based on IFRS The UK paper will also test some differences between UK GAAP and the IFRS for small and medium entities There could be a focus on legal requirements, rather than accounting standard requirements It is anticipated that the differences will account for no more than 20% of the UK P2 paper UK syllabus students should refer to the list of examinable documents for the UK examination which identifies the main areas of difference between the IFRS for small and medium entities and UK GAAP and the extent to which those differences are examinable at P2 This document is available on the ACCA web site at www.accaglobal.com To assist UK syllabus students, additional questions and answers based on examinable UK content are included within this Exam Kit Quality and accuracy are of the utmost importance to us so if you spot an error in any of our products, please send an email to mykaplanreporting@kaplan.com with full details Our Quality Co-ordinator will work with our technical team to verify the error and take action to ensure it is corrected in future editions iv KA PL AN P U BLI SH IN G INDEX TO QUESTIONS AND ANSWERS INTRODUCTION Note that the majority of the questions within the kit are past ACCA exam questions, the more recent questions (from 2005) are labelled as such in the index Many of the old ACCA questions within this kit have been adapted to reflect the current style of paper and also the latest examinable documents If changed in any way from the original version, this is indicated in the end column of the index with the mark (A) The pilot paper is included at the end of the kit The final question of this pilot paper has been replaced because the subject matter covered, and the style of the coverage, is not reflective of current examinable documents or exam style KEY TO THE INDEX PAPER ENHANCEMENTS We have added the following enhancements to the answers in this exam kit: Key answer tips All answers include key answer tips to help your understanding of each question Tutorial note All answers include more tutorial notes to explain some of the technical points in more detail Top tutor tips For selected questions, we “walk through the answer” giving guidance on how to approach the questions with helpful ‘tips from a top tutor’, together with technical tutor notes These answers are indicated with the “footsteps” icon in the index KAPLAN PUBLISHING v P AP ER P ( IN T AN D U K) : CO RP OR A TE RE PO R TIN G ONLINE ENHANCEMENTS Timed question with Online tutor debrief For selected questions, we recommend that they are to be completed in full exam conditions (i.e properly timed in a closed book environment) In addition to the examiner’s technical answer, enhanced with key answer tips and tutorial notes in this exam kit, online you can find an answer debrief by a top tutor that: • works through the question in full • points out how to approach the question • how to ensure that the easy marks are obtained as quickly as possible, and • emphasises how to tackle exam questions and exam technique These questions are indicated with the “clock” icon in the index Online question assistance Have you ever looked at a question and not know where to start, or got stuck part way through? For selected questions, we have produced “Online question assistance” offering different levels of guidance, such as: • ensuring that you understand the question requirements fully, highlighting key terms and the meaning of the verbs used • how to read the question proactively, with knowledge of the requirements, to identify the topic areas covered • assessing the detail content of the question body, pointing out key information and explaining why it is important • help in devising a plan of attack With this assistance, you should then be able to attempt your answer confident that you know what is expected of you These questions are indicated with the “signpost” icon in the index Online question enhancements and answer debriefs are available on MyKaplan: www.MyKaplan.co.uk vi KA PL AN P U BLI SH IN G IN DE X TO Q UE S T ION S A N D A N S WE R S SECTION A-TYPE QUESTIONS Page number Question Answer Past exam (Adapted) Group financial statements Marchant (P/L and OCI - disposal) 119 Jun 14 (A) Angel (Statement of cash flows) 131 Dec 13 (A) Trailer (SFP – complex group) 10 139 Jun 13 (A) Minny (SFP – complex group) 13 151 Dec 12 (A) Robby (SFP – step acquisition) 16 161 Jun 12 (A) Traveler (SFP – share transactions) 19 172 Dec 11 (A) Rose (SFP – forex) 21 183 Jun 11 (A) Jocatt Group (Statement of cash flows) 24 192 Dec 10 (A) Ashanti (P/L and OCI – disposal) 28 201 Jun 10 (A) 10 Grange (SFP – share transactions) 30 211 Dec 09 (A) 11 Bravado (SFP – step acquisition) 33 221 Jun 09 (A) 12 Warrburt (Statement of cash flows) 36 232 Dec 08 (A) 13 Ribby, Hall and Zian (SFP – forex) 41 240 Jun 08 (A) 14 Andash (Statement of cash flows) 43 250 Dec 06 (A) 15 Parsley (P/L and OCI - forex) 47 256 16 Memo (SFP and P/L and OCI – forex) 49 263 17 Zambeze (Statement of cash flows) 52 270 SECTION B-TYPE QUESTIONS Reporting standards 18 Aspire 56 275 Jun 14 19 Minco 57 280 Jun 14 20 Havanna 58 285 Dec 13 (A) 21 Bental 60 290 Dec 13 (A) 22 Verge 61 295 Jun 13 23 Janne 63 301 Jun 13 24 Coate 64 306 Dec 12 (A) 25 Blackcutt 66 309 Dec 12 (A) 26 William 67 312 Jun 12 (A) 27 Ethan 68 315 Jun 12 28 Decany 69 318 Dec 11 29 Scramble 71 321 Dec 11 KA PL AN P U BLI SH IN G v ii P AP ER P ( IN T AN D U K) : CO RP OR A TE RE PO R TIN G 30 Lockfine 72 324 Jun 11 (A) 31 Alexandra 73 327 Jun 11 32 Margie 75 330 Dec 10 33 Greenie 76 333 Dec 10 34 Cate 78 338 Jun 10 (A) 35 Seltec 79 343 Jun 10 (A) 36 Key 80 347 Dec 09 37 Aron 82 352 Jun 09 38 Marrgrett 83 358 Dec 08 39 Norman 84 361 Jun 08 (A) 40 Macaljoy 85 364 Dec 07 41 Wader 87 369 Jun 07 (A) 42 Router 89 373 Jun 07 (A) 43 Egin 90 376 Jun 06 (A) 44 Tyre 91 380 Jun 06 (A) 45 Prochain 92 383 Jun 06 46 Panel 94 386 Dec 05 (A) 47 Vident 95 389 Jun 05 48 Artwright 96 392 49 Lucky Dairy 98 394 50 Shires Property Construction 99 397 51 Boomerang 101 402 Essay style questions 52 Debt and equity 103 408 Jun 14 (A) 53 Zack 104 410 Dec 13 54 Lizzer 105 413 Jun 13 55 Jayach 107 417 Dec 12 (A) 56 IFRS for SME Applied 108 421 Dec 10 (A) 57 Holcombe 109 425 Jun 10 58 Corporate Reporting 110 429 Dec 08 59 Management Commentary 110 433 60 Revenue Recognition 111 435 61 Impairment of Financial Assets 112 438 62 Impairment of Non-financial Assets 112 440 63 Integrated Reporting 113 442 64 Conceptual Framework 114 446 v ii i KA PL AN P U BLI SH IN G IN DE X TO Q UE S T ION S A N D A N S WE R S Page number Question Answer Past exam (Adapted) UK GAAP focus 65 Joey 115 448 Dec 14 (A) 66 Katye 115 449 Dec 14 67 Trailer 116 451 Jun 13 (A) 68 IFRS for SME and FRS 102 116 452 Dec 10 (A) 69 Herbie 117 454 KA PL AN P U BLI SH IN G ix P AP ER P ( IN T AN D U K) : CO RP OR A TE RE PO R TIN G x KA PL AN P U BLI SH IN G ... style of the exam and also the latest examinable documents The December 2014 exam questions and answers from the INT P2 paper are included in Sections and of the exam kit Where a past examination... conditions and could be: • a mock examination offered by your tuition provider, and/or • the pilot paper in the back of this exam kit, and/or • the last real examination paper (available shortly afterwards... differences are examinable at P2 This document is available on the ACCA web site at www.accaglobal.com To assist UK syllabus students, additional questions and answers based on examinable UK content