Examination Financial Accounting 4
Management 8
Name: ________________________________________
Class:
_________________________________________
Mock Exam 2015
Financial Accounting 4 - Results
Management 8
Lecturer:
Axel Winsky
Date:
Time:
60 minutes
Aids /
Materials allowed:
closed book exam, calculator
Note:

Please put your name down on all the sheets.

Write down your answers only on the sheets provided.

If there is not enough space, continue your answers on the back of the sheet. If
there still is not enough space, ask for further sheets.

Do not use any sheets of your own.

Do not write in pencil. (Exception: Graphs)
Exam Structure / Points:
Task
1
2
3
4
Total
Max. points
8
7
11
9
35
Points
achieved
Grade:
Date, Signature (Examiner): ____________________________________
Examination Financial Accounting 4
Management 8
Name: ________________________________________
Task 1 Consolidation Range
The S-group has the following structure. The percentage is the extent of votes. Decide which
entity will be consolidated with which method (according to IFRS/IAS) either in the group or
in a company. Use the abbreviation “fc” for full consolidation (group consolidation), “em” for
Equity method and “ac” for acquisition costs in the table below group structure.
Structure of S-group:
S
60%
A
40%
60%
B
20%
30%
C
D
40%
30%
E
15%
F
10%
G
A
B
C
D
E
F
F
G
Method
Group / company
fc
fc
fc
em
em
ac
em
ac
S
S
S
S
B
C
D
E
16 x 0.5 p. = 8 points
2
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Examination Financial Accounting 4
Management 8
Name: ________________________________________
Task 2 Unrealized Profits
The parent sold goods to its subsidiary and calculated from 2009 including 2011 with a profit
margin of 25%. In 2012 the parent reduced the profit margin by 5%. The table below shows
the changes in the stock of the subsidiary concerning goods from the parent only.
starting value
end value
2009
0.-
12`000.-
2010
12`000.-
15`000.-
2011
15`000.-
3`000.-
2012
3`000.-
5`000.-
Do all necessary records to eliminate the unrealized profits!
2009
Costs of goods
3`000.-
Goods
3`000.-
2010
Ret. Rev.
3`000.-
Goods
Costs of goods
3`000.750.-
Goods
750.-
3
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Examination Financial Accounting 4
Management 8
Name: ________________________________________
2011
Ret. Rev.
3`750.-
Goods
Goods
3`750.3`000.-
Costs of goods
3`000.-
2012
Ret. Rev.
750.-
Goods
Costs of goods
750.400.-
Goods
400.-
7 x 1 p. = 7 points
4
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Examination Financial Accounting 4
Management 8
Name: ________________________________________
Task 3 Minorities and Intragroup Transactions
The parent (P) owns since 5 years 60% of subsidiary 1 (S1) and 80% of subsidiary 2 (S2).
Do all necessary journal recordings (task 1 to 5) concerning the present year! The records for
the minority interest in the balance sheet and in the income statement are already done.
Use appropriate accounts.
1. S1 sold goods for 600 to S2 with a profit margin of 20%. All goods are paid and entirely
resold.
Goods sold
600
Costs of goods
600
2. At the beginning of the year, S2 had an unrealized profit of 30 in its stock.
Ret. Rev.
24
Minority interest in profit b.s.
6
Goods
30
3. To the end of the present year, the unrealized profit concerning the stock of S2 increased
by 10.
Net income b.s.
8
Goods
Costs of goods
8
8
Net income i.s.
8
5
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Examination Financial Accounting 4
Management 8
Minority interest profit b.s.
Name: ________________________________________
2
Goods
Costs of goods
2
2
Minority interest profit i.s.
2
4. Dividend payment of 50 by S1.
Net income b.s.
30
Ret. Rev.
Dividends
30
30
Net income i.s.
30
5. Last year, P gave a loan of 100 to S1 with an interest rate of 6% and an interest due date
of December, 31st.
Loan (liabilities)
100
Loan (assets)
Financial revenues
100
6
Financial costs
6
11 x 1 p. = 11 points
6
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Examination Financial Accounting 4
Management 8
Name: ________________________________________
Task 4 Investment Offsetting
Two years ago, company A bought 80% of company B shares for 90. At this moment, B had
a common stock of 50 and retained revenues of 30. At the end of this year, B has 10 more
retained revenues. The present value of goodwill is 10 including a current amortisation of 5.
Do all necessary records concerning investment offsetting including the goodwill evaluation.
Calculation:
80%
20%
∑
i.i.a.
90
- c.s.
-40
-10
50
- ret.rev.
-24
-6
30
-2
10
- incr. ret.rev.
goodwill
26
minority interest
17
amortisation ret.rev.
-11
amortisation i.s.
-5
present value goodwill
10
7
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Examination Financial Accounting 4
Management 8
Name: ________________________________________
Class:
Records:
Common stock
50
Retained revenues
30
Goodwill
26
I.i.A.
90
Minority interest
16
Retained revenues
2
Minority interest
2
Retained revenues
11
Amortisation goodwill
5
Goodwill
9 x 1 p. = 9 points
16
_________________________________________