P2 Pass Year Paper

Corporate Reporting
(International)

Time allowed
Reading and planning:
Writing:

15 minutes
3 hours

This paper is divided into two sections:
Section A – This ONE question is compulsory and MUST be attempted
Section B – TWO questions ONLY to be attempted
Do NOT open this paper until instructed by the supervisor.
During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor.
This question paper must not be removed from the examination hall.

The Association of Chartered Certified Accountants

Paper P2 (INT)

Professional Pilot Paper – Essentials module

Section A – This ONE question is compulsory and MUST be attempted

1

The following draft financial statements relate to Zambeze, a public limited company:

Draft Group Balance Sheets at 30 June

Assets:
Non-current assets:
Property, plant and equipment
Goodwill
Investment in associate

2006
$m

2005
$m

1,315
30
270

1,005
25
290

1,615

1,320

650
610
50

580
530
140

1,310

1,250

2,925

2,570

Equity and liabilities:
Share capital
Share premium account
Revaluation reserve
Retained earnings

100
30
50
254

85
15
145
250

Minority interest

434
60

495
45

Total equity

494

540

Non-current liabilities
Current liabilities

850
1,581

600
1,430

Total liabilities

2,431

2,030

Total equity and liabilities

2,925

2,570

Current assets:
Inventories
Trade receivables
Cash at bank and cash equivalents

Total assets

Draft Group Income Statement for the year ended 30 June 2006 Revenue
Cost of sales
Gross profit
Distribution and administrative expenses
Finance costs (interest payable)
Share of profit in associate

$m
4,700
(3,400)
1,300
(600)
(40)
30

Profit before tax
Income tax expense (including tax on income from associate $10 million)

690
(210)