EXAMINATION
FIRlOO
P?n 7n z?7_ q ' p o r t ?n & 7n H h n 7_y s ?s
N7t '
Dys5gsy gy1
/ ?m '
yTds1 g
s2ds1
j x 7m ?n ' r
f 7+' r h s 7_
/ ' 7z+' r
h n n 7 S o _' z
w?s ?t
W' X
d
! +o n '
( ?H' D
h ?Hs
( ?H' D
I u ' s t ?o n s
( ?H' D
! 7&' s
h n &' s ?H7n t 7_
f 7x p o ?n t s
( ?H' D
S r 7H' O' v ' _s
( ?H' D
k t +' r s
N7t ' "o r q ' s u _t
) r ?t ' y o u r 7n o n y m o u s zo H' o n ' 7z+ p 7&'
S o o H Ou z►
F
Puq _kk
Sida 1 av 10
2019-10-05
University West
Department of Economics and Informatics
Exam: Financial Reporting and Analysis, 7.5 ECTS. September/October
2019
Saturday, October 5, 2019
Time:
Lecturer: Anna Golec
Examiner: Maher Asal
Phone: 0048 603 100 84 7
Phone. 0046 768 509 002
Instructions
You are allowed to have a calculator and a dictionary. However, notes, books, ... etc. are NOT
ALLOWED
This exam consists of
• 45 multiple choice questions (45 points)
• 5 short, open response questions (15 points)
• 6 cases (30 points)
Please answer using the answer sheet!
The total number ofpoints in this exam is 90
This exam gives max 67% and the assignment (project) gives the remaining 33% of the final
grade. To pass the exam (and the whole course) you need to reach at least 50% of the exam
score.
Final grading thresholds (lower bounds) are:
90
80
70
60
50
%
%
%
%
%
for
for
for
for
for
A
B
C
D
E
Good luck!
f u _t ?p _' z+o ?z' q u ' s t ?o n s e7p p r o x d Dm ?n A
q u ' s t ?o n 9 s p o ?n t ' 7z+9 o n _y o n ' 7n s w ' r ?s zo r r ' zt p
Puq _kk
( ?H7 D 7v sy
DysTgsy gy1
sd
P?n 7n z?7_ s t 7t ' m ' n t m u s t always ?n z_u H' m
7p
j x p _7n 7t o r y n o t ' s
Up
un zo m ' ( t 7t ' m ' n t
zp
f 7n 7&' m ' n t N?s zu s s ?o n 7n H h n 7_y s ?s
Dd / +' 7u H?t o r is not o U_?&' H t o m
7p
G' ?n H' p ' n H' n t "r o m
t +' zo m p 7n y t +7t ?s 7u H?t ' H
Up / o z+' z►m o r ' t +7n 1yc o " "?n 7n z?7_ r ' zo r Hs "r o m
zp
/o
r ' p o rt
t +' &' n ' r 7_ Xo u rn
7_
7Uo u t t +' "?n H?n &s
2d ) +' n t +' zo m p 7n y ~
7n ?n v o ?z' "o r 7 s ' r v ?z' r ' n H' r ' H t o
t +?s zo m p 7n y o n ' m o n t + 7&o t t +'
t r 7n s 7zt ?o n w o u _H r ' s u _t ?n m
7p h n ?n zr ' 7s ' ?n t o t 7_ 7s s ' t s
Up h H' zr ' 7s ' ?n t o t 7_ 7s s ' t s
zp
Wo
' ""' zt o n t o t 7_ 7s s ' t s
0d
! u r z+7s ' o " ?n v ' n t o r ?' s w o u _H U' r ' "_' zt ' H ?n z7s + "_o w
s t 7t ' m ' n t 7s p 7r t o "
7p k p ' r 7t ?n & 7zt ?v ?t ?' s
Up
un v ' s t ?n & 7zt ?v ?t ?' s
zp
P?n 7n z?n & 7zt ?v ?t ?' s
1d
un 7n ?n zo m ' s t 7t ' m ' n t y o u z7n "?n H ?n "o r m 7t ?o n o n m
7p
O?7U?_?t ?' s
Up V7s +
zp
8d
q' v ' n u ' s
) +?z+ o " t +' "o __
o w ?n & s t 7t ' m ' n t s does not ?n z_u H' ?n "o r m 7t ?o n 7Uo u t H?v ?H' n Hs p 7?H o u t Uy t +'
zo m p 7n y m
7p
un zo m ' s t 7t ' m ' n t
Up ( t 7t ' m ' n t o " z+7n &' s ?n s +7r ' +o _H' r ' q u ?t y
zp
V7s + "_o w
s t 7t ' m ' n t
- d h zzo r H?n & t o
uPq ( t +' zo m p 7n y +7s t o
p ro
v ?H' ?n "o r m 7t ?o n o n zo m p r ' +' n s ?v ' ?n zo m '
7p h s 7 s ?n &_' s t 7t ' m ' n t o " zo m p r ' +' n s ?v ' ?n zo m ' 7n H t +?s ?s t +' o n _y o p t ?o n 7__o w ' H
Up h s t w o s ' p 7r 7t ' s t 7t ' m ' n t s m ?n zo m ' s t 7t ' m ' n t 7n H s t 7t ' m ' n t o " zo m p r ' +' n s ?v ' ?n zo m ' 7n H
t +?s ?s t +' o n _y o p t ?o n 7__o w ' H
zp
j ?t +' r 7s 7 s ?n &_' o r 7s t w o s ' p 7r 7t ' s t 7t ' m ' n t s
5d
un 7 z7s + "_o w
7p
Vo s t s o " &o o Hs s o _H
s t 7t ' m ' n t y o u will not "?n H ?n "o r m 7t ?o n o n m
Up P?x ' H 7s s ' t s p u r z+7s ' s
zp
us s u 7n z' o " n ' w
s +7r ' s
Td / +' "u n H7m ' n t 7_ z+7r 7zt ' r ?s t ?zs o " "?n 7n z?7_ s t 7t ' m ' n t s ' x p r ' s s ' H ?n t +' uPq ( Vo n z' p t u 7_
Pr 7m ' w o r ►eDysy p ?n z_u H' m
7p Vo m p 7r 7U?_?t y
Up q ' _' v 7n z'
zp
w' r ?"?7U?_?t y
sy d / +' m 7?n 7s s u m p t ?o n s u n H' r _y ?n & "?n 7n z?7_ r ' p o r t ?n & ' x p r ' s s ' H ?n t +' uPq ( Vo n z' p t u 7_
Pr 7m ' w o r ►eDysy p ?n z_u H' m
Puq _ky
( ?H7 2 7v sy
DysTgsy gy1
7p
h zzr u 7_ U7s ?s
Up
/ ?m ' _?n ' s s
zp
; n H' r s t 7n H7U?_?t y
ssd / +' m o s t 7p p ro
n u m
p r ?7t ' w 7y t o zo m p u t ' U7s ?z j ! ( ?s t o H?v ?H' n ' t p ro
"?t Uy w ' ?&+t ' H 7v ' r 7&'
U' r o " s +7r ' s d un z7s ' o " t +' zo n s o _?H7t ' H "?n 7n z?7_ s t 7t ' m ' n t t +' n o m ?n 7t o r s +o u _H ?n z_u H' m
7p / o t 7_ n ' t p ro
"?t H?s z_o s ' H ?n t +' ?n zo m ' s t 7t ' m ' n t m ?n u s p r ' "' r r ' H H?v ?H' n Hs
Up W' t p ro
"?t 7tt r ?Uu t 7U_' t o t +' s +7r ' +o _H' r s o " t +' p 7r ' n t zo m p 7n y m ?n u s p r ' "' r r ' H H?v ?H' n Hs
zp
"?t 7tt r ?Uu t 7U_' t o t +' s +7r ' +o _H' r s o " t +' p 7r ' n t zo m p 7n y m ?n u s m ?n o r ?t y ?n t ' r ' s t
W' t p ro
sDd w' r t ?z7_ zo m m o n s ?z ' 7n 7_y s ?s o " t +' U7_7n z' s +' ' t p r ' s ' n t s t +' ?t ' m s 7s 7 p ' r z' n t 7&' o "m
7p / o t 7_ r ' v ' n u ' s
Up / o t 7_ 7s s ' t s
zp
/ o t 7_ ' q u ?t y
s2 d Qo r ?zo n t 7_ zo m m o n s ?z ' 7n 7_y s ?s o " t +' ?n zo m ' s t 7t ' m ' n t p r ' s ' n t s t +' ?t ' m s ?n r ' _7t ?o n t o m
7p
! r ' v ?o u s y ' 7r v 7_u '
Up / o t 7_ 7s s ' t s
zp
/ o t 7_ r ' v ' n u ' s
s0d Nu ! o n t 7n 7_y s ?s 7__o w s 7 m u _t ?s t ' p H' zo m p o s ?t ?o n o " 7 U7s ?z r 7t ?o w +?z+ ?s m
7p
O' v ' r 7&'
Up h s s ' t t u rn
zp
q ' t u rn
o v ' r
o n ' q u ?t y
s1d ) +' n 7 zo m p 7n y R
s zu r r ' n t _?7U?_?t ?' s 7r ' +?&+' r t +7n zu r r ' n t 7s s ' t s w ' w ?_
_ s 7y t +7t t +'
zo m p 7n y R
s n ' t w o r ►?n & z7p ?t 7_ ?s m
7p
! o s ?t ?v '
Up W' &7t ?v '
zp
j q u 7_ t o z ' ro
s8d I u ?z►r 7t ?o ?s 7n ' x 7m p _' o "
7p j ""?
z?' n zy m ' 7s u r ' s
Up O?q u ?H?t y m ' 7s u r ' s
zp
( o _v ' n zy m ' 7s u r ' s
s- d k p ' r 7t ?n & zy z_' w ?__ U' zo m ' _o n &' r w +' n m
7p
Wu m U' r o " H7y s o " p 7y 7U_' s r 7t ?o ?n zr ' 7s ' s
Up N7y s s 7_' s o n
zp
+7n H r 7t ?o ?n zr ' 7s ' s
V7s + zo n v ' r s ?o n zy z_' ?n zr ' 7s ' s
s5d W' &7t ?v ' z7s + zo n v ' r s ?o n zy z_' z7n s u &&' s t t +7t m
7p / +' zo m p 7n y ?s +7v ?n & 7 s t ro
n & U7r &7?n ?n & p o w ' r s 7&7?n s t s u p p _?' r s 7n H zu s t o m ' r s
Up / +' zo m p 7n y +7s t o p 7y "o r H' _?v ' r ?' s ' 7r _?' r t +7n t +' y r ' z' ?v ' p 7y m ' n t s "r o m
zp
/ +' zo m p 7n y +7s p ro
zu s t o m ' r s
U_' m s w ?t + u n zo __
' zt 7U_' r ' z' ?v 7U_' s
sTd u" zo m p 7n y h u s ' s ) ' ?&+t ' H h v ' r 7&' Vo s t 7n H zo m p 7n y G u s ' s OuPk "o r ?n v ' n t o r y m 7n 7&' m ' n t t
?t z7n
U' s t 7t ' H "o r s u r ' t +7t m
7p Vo m p 7n y h ?s r ' p o r t ?n & 7zzo r H?n & t o
Puq _ky
uPq (
( ?H7 0 7v sy
Dy sTgsy gy1
Up Vo m p 7n y G ?s r ' p o r t ?n & 7zzo r H?n & t o
zp
Go t + zo m p 7n ?' s r ' p o rt
; ( Shh!
7zzo r H?n & t o t +' s 7m ' s t 7n H7r H
Dy d u" zo m p 7n y h u s ' s PuPk 7n H zo m p 7n y Gu s ' s OuPk 7n H n o o t +' r H?""' r ' n z' s ' x ?s t t +' n
?n 7n
' n v ?ro n m ' n t o " rising prices:
7p Vo m p 7n y h w ?__+7v ' +?&+' r zu r r ' n t r 7t ?o
Up Vo m p 7n y G w ?__ +7v ' +?&+' r zu r r ' n t r 7t ?o
zp Go t + zo m p 7n ?' s w ?__ r ' p o r t t +' s 7m ' zu r r ' n t r 7t ?o
Dsd u" prices decrease o v ' r
Vo s t "o r ?n v ' n t o ry m 7n
7p Vo m p 7n y h w o u _H r ' p o
Up Vo m p 7n y G w o u _H r ' p o
zp Vo m p 7n y h w o u _H r ' p o
t ?m ' 7n H zo m p 7n y h u s '
7&' m ' n t t t +' n m
rt _o w ' r ?n v ' n t o ry v 7_u '
rt +?&+' r Vk S( t +7n zo m
rt +?&+' r p ro "?
t s t +7n zo m
DDd h zo m p 7n y 7zq u ?r' H &o o Hs "o r s 7_' ep o r z' _7?n
ht t +' ' n H o " t +' "?
r s t "?sz7_ p ' r ?o H t +' m 7r ►'t
7p ( +o u _H r ' p o rt t +' ?n zr ' 7s ' ?n v 7_u ' 7s o t +' r zo
Up ( +o u _H r ' p o rt t +' ?n zr ' 7s ' ?n v 7_u ' o n t +' ?n zo
zp ( +o u _H ?&n o r ' t +?s z+7n &' ?n m 7r ►
' t v 7_u '
s PuPk w +?_' zo m p 7n y Gu s ' s ) ' ?&+t ' H hv ' r 7&'
t +7n zo m p 7n y G
p 7n y h
p 7n y Gd
"?&u r ?n ' s p 7t $30 7n H r ' zo r H' H ?t 7s inventory.
v 7_u ' o " t +' &o o Hs ?s $40, s o t +' zo m p 7n y m
m p r ' +' n s ?v ' ?n zo m '
m ' s t 7t ' m ' n t
23. Vo m p 7n ?' s m 7y 7zzo u n t "o r 7n ?n zr ' 7s ' ?n 7__o w 7n z' "o r ?n v ' n t o r y o Us o _' n z' ei ?m p 7?rm ' n t i p ?n
7 zo u p _' o " w 7y s o n t +' ?n zo m ' s t 7t ' m ' n t d / +' incorrect o n ' w o u _H U' m
7p un z_u H?n & t +' _o s s ?n v 7_u ' 7s p 7r t o " t +' Vo s t s k " So o Hs ( o _H
Up un z_u H?n & 7 s ' p 7r 7t ' ?t ' m
7s p 7r t o " t +' o p ' r 7t ?o n 7_ ' x p ' n s ' s
zp un z_u H?n & t +' _o s s ?n v 7_u ' 7s p 7r t o " t +' "?n 7n z?7_ ' x p ' n s ' s
24. ) +?_' m 7n 7&?n & "?x ' H 7s s ' t s 7 "' w zr u z?7_ 7s s u m p t ?o n s n ' ' H t o U' m 7H' d / +' 7p p ro 7z+ t +7t
w o u _H _' 7H t o t +' lowest expenses in the first years w o u _H U' m
7p N' z_?n ?n & U7_7n z' H' p r ' z?7t ?o n 7n H s +o r t ' s t ?m 7t ' H u s ' "u _ _?"'
Up ( t r 7?&+t _?n ' H' p r ' z?7t ?o n 7n H s +o r t ' s t ?m 7t ' H u s ' "u _ _?"'
zp ( t r 7?&+t _?n ' H' p r ' z?7t ?o n 7n H _o n & ' s t ?m 7t ' H u s ' "u _ _?"'
D1d hzzo u
7p j 7r _y
Up j 7r _y
zp j 7r _y
D8d u"t
o p
7p Vo
Up Vo
zp Go
n t ?n & p o
r'v 'n u '
'x p 'n s '
z7s + r ' zo
_?zy ?s zo n s ?H' r ' H t o U' 7&&r ' s s ?v ' w +' n ?t _' 7Hs t o m
r ' zo &n ?t ?o n
r ' zo &n ?t?o n
&n ?t ?o n
U' "o r ' uPq ( s8 ?m p _' m ' n t 7t ?o n t zo m p 7n y h u s ' H "?n 7n z?7_ _' 7s ' s 7n H zo m p 7n y Gu s ' H
' r 7t ?n & _' 7s ' s eUo t + 7s 7 _' s s ' ' p t +' n 7s zo n s ' q u ' n z' m
m p 7n y h +7H +?&+' r z7s + "_o w "r o m o p ' r 7t ?n & 7zt ?v ?t ?' s
m p 7n y G +7H +?&+' r z7s + "_o w "r o m o p ' r 7t ?n & 7zt ?v ?t ?' s
t + zo m p 7n ?' s r ' p o rt ' H t +' s 7m ' z7s + "_o w "r o m o p ' r 7t ?n & 7zt ?v ?t ?' s
27. ) +' n 7 zo m p 7n y r ' p o tr s 7s s ' t s e! ! l j p u n H' r z7p ?t 7_ _' 7s ' s o n ?t s U7_7n z' s +' ' t ?t m ' 7n s t +7t
?t m
7p us 7 _' s s o r
Up us 7 _' s s ' '
zp us 7n ?n t ' r m ' H?7r y U' t w ' ' n _' s s o r 7n H _' s s ' '
Puq _ky
( ?H7 1 7v sy
DysTgsygy1
D5d ) +?_' z+o o s ?n & historical cost m o H' _ t +' zo m p 7n y w o u _H r ' zo r H t +' ?n zr ' 7s ' ?n m 7r ►
' t v 7_u ' o "
"?x ' H 7s s ' t s
7p k t +' r zo m p
Up un zo m ' s t 7t
zp / +?s ?n zr ' 7s
?n ?t s m
r ' +' n s ?v ' ?n zo m '
'm 'n t
' ?n v 7_u ' w o u _H U' ?&n o r ' H ?n t +' "?n 7n z?7_ s t 7t ' m ' n t s
DTd ) +' n zo m p 7n y h r ' p o r t s u n H' r ; ( Shh! 7n H y o u w 7n t t o zo m p 7r ' ?t t o zo m p 7n y Gt t +7t
r ' p o r t s u n H' r uPq( t +' n y o u +7v ' t o r ' m ' m U' r t +7t m
7p Vo m p 7n y h z7n z_7s s ?"y t +' H?v ?H' n Hs r ' z' ?v ' H 7s ' ?t +' r o p ' r 7t ?n & o r ?n v ' s t ?n & 7zt ?v ?t y w +?_'
zo m p 7n y G +7s n o s u z+ "_' x ?U?_?t y
Up Vo m p 7n y G z7n z_7s s ?"y t +' H?v ?H' n Hs r ' z' ?v ' H 7s ?n v ' s t ?n & 7zt ?v ?ty w +?_
' zo m p 7n y h +7s t o
z_7s s ?"y t +' m 7s o p ' r 7t ?n & 7zt ?v ?t y
zp Go t + zo m p 7n ?' s +7v ' ' q u 7_ "_' x ?U?_?
t y ?n z_7s s ?"y ?n & ?n t ' r ' s t s ' 7rn ' H
2yd
7p
Up
zp
/ +' zo m p 7n y u s ' s r ' v 7_u 7t ?o n m o H' _ "o r "?x ' H 7s s ' t s d ut m ' 7n s t +7t ?t ?s r ' p o r t ?n & u n H' r m
; ( Shh!
uPq (
hn y o " t +' t w o s t 7n H7r Hs s ?n z' Uo t + p ' r m ?t t +' r ' v 7_u 7t ?o n m o H' _
2sd Vo m p 7n y h 7zq u ?r' H D1c
?n s t ?t u t ?o n 7_ s +7r ' +o _H' r s
7p Vo m p 7n y h s +o u _H r ' "_
' zt
7zzo r H?n & t o ' q u ?ty m ' t +o
Up Vo m p 7n y h s +o u _H r ' "_
' zt
7zzo r H?n & t o p ro p o rt ?o n 7t
zp Vo m p 7n y h s +o u _H r ' "_
' zt
7zzo r H?n & t o 7zq u ?s ?t ?o n m
o " s +7r ' s ?n
?n zo m p 7n y
"?n 7n z?7_ p '
H
"?n 7n z?7_ p '
' zo n s o _?H7t
"?n 7n z?7_ p '
' t +o H
zo m p 7n y Gd / +' r ' 7r ' m 7n y o t +' r ?n H?v ?Hu 7_ 7n H
Gd / +?s m ' 7n s t +7t m
r "o r m 7n z' o " zo m p 7n y G?
n ?t s "?n 7n z?7_ s t 7t ' m ' n t
r "o r m 7n z' o " zo m p 7n y G?
n ?t s "?n 7n z?7_ s t 7t ' m ' n t
?o n m ' t +o H
r "o r m 7n z' o " zo m p 7n y G?
n ?t s "?n 7n z?7_ s t 7t ' m ' n t
2Dd u" 7 zo m p 7n y H' s ?&n 7t ' s 7 "?n 7n z?7_ 7s s ' t 7s i 7v 7?_7U_' "o r s 7_' i t +' n t +' u n r ' 7_?z ' H p ro "?
t s 7n H
_o s s ' s w o u _H U' ?n z_u H' H ?n m
7p un zo m ' s t 7t ' m ' n t
Up k t +' r zo m p r ' +' n s ?v ' ?n zo m '
zp ! r ' p 7?H ' x p ' n s ' s
22d
7p
Up
zp
hs m 7t u r ?t y H7t ' o " 7 Uo n H ?s s u ' H 7p p r o 7z+' s t t +' z7r r y ?n & v 7_u ' o " 7 Uo n H s o _H 7t p r ' m ?u m
G' zo m ' ?m p 7?r' H
un zr ' 7s ' t o ?t s p 7r v 7_u '
N' zr ' 7s ' t o ?t s p 7r v 7_u '
20d So o Hw ?__?s
7p Go o ►v 7_u '
Up P7?r v 7_u ' o
zp hzq u ?s ?t ?o n
t +' ' x z' s s o "m
o v ' r 7zq u ?s ?t ?o n v 7_u ' ep u r z+7s ' p r ?z' p
v ' r Uo o ►v 7_u '
v 7_u ' o v ' r "7?r v 7_u '
21d hzzo r H?n & t o t +' n ' w s t
z_7s s ?"?
' H ' ?t +' r 7s m
7p w7_u ' H 7t +?s t o r ?z7_ zo s t
Up w7_u ' H 7t +?s t o r ?z7_ zo s t
zp N' s ?&n 7t ' H 7t "7?r v 7_u '
t +ro u &+ p ro "?
t 7n H _o s s
Puq _
yy
w ?__
m
7n H7r H r ' &7r H?n & "?n 7n z?7_ ?n s t r u m ' n t s euPq ( Tp H' Ut ?n s t r u m ' n t s w ?__U'
o r H' s ?&n 7t ' H 7t "7?r v 7_u ' t +r o u &+ o t +' r zo m p r ' +' n s ?v ' ?n zo m '
o r H' s ?&n 7t ' H 7t "7?r v 7_u ' t +ro u &+ p ro "?
t 7n H _o s s
t +ro u &+ o t +' r zo m p r ' +' n s ?v ' ?n zo m ' o r H' s ?&n 7t ' H 7t "7?r v 7_u '
( ?H7 8 7v sy
DysTgsygy1
28d Vo m p 7n y h 7zq u ?r ' H 2yc o " s +7r ' z7p ?t 7_ o " zo m p 7n y G7n H +7s n o o t +' r s p ' z?7_ r ?&+t s 7n H
zo m p 7n y G?
s n o t 7X
o ?n t v ' n t u r ' d Vo m p 7n y h s +o u _H z_7s s ?"y Vo m p 7n y G7s m
7p "?n 7n z?7_ 7s s ' t
Up 7s s o z?7t ' zo m p 7n y w ?t + s ?&n ?"?z7n t ?n "_u ' n z'
zp
zo n t ro
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Open questions (6 min/ question; 3 points each; be precise and concise)
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Problem questions (10 min/question; 5 points each)
I.
Sitting on a meeting as an external consultant you hear the following discussion of CEO
(Jack) and board member of the company (Bob), who hired you :
CEO: We develop a new computer game that will improve our competitive advantage on the market.
The main programming is done but it still needs some corrections and final touch with the graphics.
I'm absolutely sure that when we release it in a year, we will become the market leader. The problem
is, that the shareholders are quite annoyed with the losses that we report, since we expense all our
R&D outlay.
Board member: Exactly. So I don't think that was a good solution. If we haven't expensed the R&D
outlay and we wouldn't have the problem now. We should reclassify them as soon as possible.
CEO: Excuse me, Bob, but you are not right. You can not capitalise R&D costs just like that. There are
strict rules, when to expense and when to capitalise. We can't do anything about the R&D costs that
we have already expensed.
Board member: Oh, don't be so conservative, Jack. The IFRS standards leave some space for
judgement. I'm sure we can do something about it. Our consultant will find a good solution.
Who turned out to be more competent? Explain why.
What should the company do with further R&D expenses regarding the new game (capitalise or
expense)?
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II.
Answer how will the financial statement of the company reflect the export transaction
at various points in time.
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p 7y m ' n t H7t ' ?n D m o n t +s d / +' "?sz7_ y ' 7r ' n Hs ?n s m o n t +d / +' j ; q A
SG! ' x z+7n &' r 7t ' ?s p r ' s ' n t ' H
?n t +' t 7U_' U' _o w d
Po r s u n ?t o "
j; q
On the transaction
date
SG!
On the balance sheet
date
yt5- s1
On the payment date
yt51y-
ytTyy2
hn s w ' r w +' t +' r t +' zo m p 7n y w o u _H r ' "_
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SG! r 7t ' er ' zo r H 7 t r 7n s 7zt ?o n
&7?n A
_o s s p o r s t 7t ' t +7t t +' r ' w o u _H U' n o ?n "_
u ' n z' o " t +' ' x z+7n &' r 7t ' m o v ' m ' n t s o n t +' "?
n 7n z?7_
s t 7t ' m ' n t s d
On the transaction
date
On the balance sheet
date
On the payment date
) o u _H t +' zo m p 7n y
r ' p o r t 7 t r 7n s 7zt ?o n &7?n
o r _o s s o n ' x z+7n &' r 7t ' x
/ +' v 7_u ' o " t +'
t r 7n s 7zt ?o n &7?n o r _o s s
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Ill.
The table presents profitability ratios for Company A and its industry peers. Assess the
situation of Company A and write a short interpretation e1 s ' n t ' n z' s pd
qk h
qk j
W' t p ro "?
t m 7r &?n
Company A
syc
s1c
5c
Industry average
syc
s5c
sDc
IV.
Sitting on a meeting as an external consultant you hear the following discussion between
employees:
A: We need to consolidate our foreign subsidiaries reporting in CHF to USD, since this is our
presentation currency in the financial statement. This would mean we have foreign exchange
translation exposure.
B: So we have CHF and USD - let me check - we should use current rate method since the
presentation currencies differ.
C: Not so fast - presentation currencies have nothing to do here. We should check for local currencies
and temporal method may still turn out to be the proper one.
A: And I agree with you, C, that temporal method may still be the proper one but even knowing the
local currencies we will not be able to decide.
C: Temporal method is a bit more complex but we don't have to calculate the FX exposure, because
under this method we can only have net asset exposure.
B: This is good. Since CHF weakened against USD, we will record a nice translation gain.
A: Isn't it exactly the opposite? You meant net asset exposure would result in translation loss, right?
B: No, I meant exactly what I said. CHF weakened which means more USD for the same amount of
CHF. And I still think we waste our time - current rate is the proper one, for sure.
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Who turned out to be most competent? Explain why.
V.
Answer the questions based on the information given.
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?n zu r r ' H t +' "o __o w ?n & zo s t s m
"7Ur ?zs u s ' H "o r syytyyy ; N( t
fabrics
accessories
Uu t t o n s 7n H o t +' r t 7?_
o r ?n & 7zz' s s o r ?' s u s ' H "o r sytyyy ; ( N
H?r' zt _7Uo u r zo s t s o " Dyytyyy ; ( N
o ""?
z' s t 7""s 7_7r ?' s o " 0ytyyy ; ( N
H' p r ' z?7t ?o n o " p ro Hu zt ?o n m 7z+?n ' r y 7n H ' q u ?p m ' n t o " 2ytyyy ; ( N
H' p r ' z?7t ?o n o " t +' zo m p u t ' r s 7n H o ""?
z' ' q u ?p m ' n t u s ' H Uy t +' Vj k 7n H V+?' " hzzo u n t 7n t
7n H o t +' r o ""?
z' s t 7"" Dtyyy ; ( N
"r ' ?&+t 7n H H' _?v ' r y z+7r &' s o n "7Ur ?zs o " 2tyyy ; ( N
s t o r ?n & o " "7Ur ?zs U' "o r ' 7n H Hu r ?n & t +' p ro Hu zt ?o n p ro z' s s s1tyyy ; ( N
s t o r ?n & o " s u ?t s U' "o r ' s +?p p ?n & t o zu s t o m ' r s 5tyyy ; ( N
/ +' zo m p 7n y Ho ' s n o t +7v ' 7n y w o r ►
g?n gp ro &r ' s s ?n v ' n t o r y 7t y ' 7r ' n Hd
What items should be expensed in profit and loss statement in the period? What is their total
value?
What items should be included in inventory and expensed when the goods are sold? What is their
total value?
VI.
Calculate basic and diluted EPS for the shareholders of company X.
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s +7r ' +o _H' r s d ht t +' U' &?n n ?n & o " t +' p ' r ?o H t +' zo m p 7n y +7H Dydyyydyyy zo m m o n s +7r ' s
o u t s t 7n H?n &d ht t +' U' &?n n ?n & o " t +' "o u r t + q u 7rt ' r t +' zo m p 7n y ?s s u ' H n ' w s +7r ' s 7n H t +' n u m U' r
o " zo m m o n s +7r ' s o u t s t 7n H?n & ?n zr ' 7s ' H t o D0dyyydyyy / o t 7_ 7m o u n t "o r p r ' "' r r ' H H?v ?H' n Hs
7zzo u n t ' H "o r 5dyyydyyy j ; q d ! r ' "' r r ' H s +7r ' s 7r ' zo n v ' r t ?U_' t o 1dyyydyyy zo m m o n s +7r ' s d
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FIR100- 2019/2020 Answer sheet
Student's code
_
For questions 1-45 put the correct answer in the table :
Example:
0.
Have you studied for the exam?
A.
Yes
8. No
C.
Marking correct answer
►
A
0
I'd rather not say ...
Answers:
1
10
19
28
37
2
11
20
29
38
3
12
21
30
39
4
13
22
31
40
5
14
23
32
41
6
15
24
33
42
7
16
25
34
43
8
17
26
35
44
9
18
27
36
45
For open response questions write a short answer:
A.
Some ratios, although having the same name, can be calculated in different ways. Provide two
different formulas for any of the activity ratios. (the same ratio - two different ways how analyst
calculate them)
1
FIRl00- 2019/2020 Answer sheet
Student's code
_
B.
Explain what kind of opinions (4 options) can an auditor express about financial statements and
what do they mean.
C.
Companies have some flexibility in financial reporting. Name three examples of situations when
company is required to make their own accounting policy choices, assumptions, estimations or
judgements. (e.g. PP&E valuation model)
D.
Explain the difference between local, functional and presentation currency.
local currency is the one ....
functional currency is the one ...
presentation currency is the one ...
2
FIR100- 2019/2020 Answer sheet
E.
I.
Student's code
_
What kind of inventory management method (FIFO, LIFO, WAC or SIM) would be the most suitable
for an art gallery and why.
Write a short note:
Who turned out to be more competent? Explain why.
What should the company do with further R&D expenses regarding the new game (capitalise or
expense)?
II.
Answer how will the financial statement of the company reflect the export transaction at
various points in time.
Answer whether the company would reflect the change in EUR/GBP rate (record a transaction gain/loss) or
state that there would be no influence of the exchange rate movements on the financial statements.
On the transaction
On the balance sheet
date
date
On the payment date
Would the company report
a transaction gain/loss on
exchange rate or none of
them?
The value of the transaction
gain or loss
(if applicable) is:
3
FIRl00- 2019/2020 Answer sheet
Ill.
Student's code
_
Write a short interpretation (5 sentences).
ROA
ROE
Net profit margin
Company A
10%
15%
8%
Industry average
10%
18%
12%
IV.
Write a short explanation.
Who turned out to be most competent? Explain why.
4
FIRl00- 2019/2020 Answer sheet
V.
Student's code
Allocate:
What items should be expensed in profit and
loss statement in the period?
What items should be included in inventory
and expensed when the goods are sold?
Total value:
Total value:
VI.
_
Calculate basic and diluted EPS for the shareholders of company X.
5