Assessment Schedule 2013 Accounting: Demonstrate understanding of company financial statement preparation (91406)

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1 NEA Level 3 Accounting (91406) 2013 page 1 of 10 Assessment Schedule 2013 Accounting: Demonstrate understanding of company financial statement preparation (91406) Assessment riteria Achievement Achievement with Merit Achievement with Excellence Demonstrate understanding involves applying company accounting elements to the preparation of financial statements that are fit for purpose. Demonstrate in-depth understanding involves explaining the application of company accounting elements to the preparation of financial statements that are fit for purpose. Demonstrate comprehensive understanding involves justifying the application of company accounting elements to the preparation of financial statements that are fit for purpose. Evidence Statement Question One (a) Sorano Healthcare Limited General Journal $000 $000 01/11/12 ontributed equity Retained earnings 400 Bank To record the repurchase of shares at a fair value of $7 per share 31/05/13 Retained earnings Final dividend To record the closing entry for 2012 final dividend payment. 31/05/13 Taxation expense / ncome summary Taxation payable To record tax expense for the 2013 year *Note: The final dividend stem may be Dividend or Dividend Paid (the year is not required but if it is included, it should be correct). General Journal orrect stem and correct figure and correct entry award U if correct stem and a figure orrect stem and correct figure and correct entry award U if correct stem and a figure (Debits must equal redits for grades to be given in each journal entry)

2 Question One (b) NEA Level 3 Accounting (91406) 2013 page 2 of 10 The Loss on sale of equipment is: non-cash item the amount of cash received from sale of equipment is the actual cash banked from the sale / cash flow shows only cash received from the sale / selling price for equipment is the cash received loss on sale is the difference between the carrying amount and the actual cash banked from the sale loss on sale is a book entry adjusting the depreciation allocated over the life of the asset to the market value on date of sale. Non-cash item Any other explanation from the other 3 bullet points

3 NEA Level 3 Accounting (91406) 2013 page 3 of 10 Question One (c) Sorano Healthcare Limited Statement of ash Flows for the year ended 31 May 2013 ASH FROM OPERATNG ATVTES ash was provided from: NZ$000 NZ$000 Receipts from customers ash was applied to: Payments to suppliers (36 500) Payments for other expenses (8 900) Payments for wages and salaries ( ) (Payment for wages and salaries and other expenses can be combined, with ( )) nterest paid (5 000) U Taxation paid (4 400) Net cash inflow from operating activities ASH FROM NVESTNG ATVTES ash was provided from: Sale of old equipment ash was applied to: Additional buildings (2 200) Additional equipment (15 000) Net cash outflow from investing activities (15 200) ASH FROM FNANNG ATVTES ash was provided from: Additional loan drawn down ash was applied to: Shares repurchased (2 800) Dividends (25 800) Net cash outflow from financing activities (24 600) NET ASH OUTFLOW (4 000) * Opening Bank Balance losing Bank Balance 7 100

4 NEA Level 3 Accounting (91406) 2013 page 4 of 10 General Journal orrect stem and correct figure award if one error in working orrect stem and correct figure - award U if correct stem and a figure orrect stem and correct figure - award U if correct stem and a figure U orrect stem and correct figure * orrect process and appropriate stems F Foreign, ie they do not belong in this financial statement Workings for Question One (a) and (c) Note: Any labelled working or abbreviated identifiable 3-column or T-ledger accounts can be used for assessing working where required. Any unlabelled accounts or numbers cannot be assessed. andidates are not expected to provide workings for straightforward calculations such as the increase in the land revaluation surplus. ontributed equity Balance r Bank r Retained earnings Balance r Profit for the period r Bank (repurchase) r Final dividend r nterim dividend r Accounts receivable Balance Dr Sales Dr ash Dr nventory Balance Dr ost of goods sold r Accounts Payable Dr Accounts payable Balance r nventory r ash r

5 NEA Level 3 Accounting (91406) 2013 page 5 of 10 Tax payable Balance 800 r Tax expense r ash r Accrued wages Balance 800 r Wages expense r ash r Pre-payments other expenses Balance Dr Other expenses r ash Dr Plant and equipment Balance Dr Disposal Dr ash Dr Disposal Plant and equipment Dr Accumulated depreciation Dr Bank Dr Loss on sale 400 NL Accumulated depreciation on plant and equipment Balance r Disposal r Depreciation r Judgement Statement Question One N1 N2 A3 A4 M5 M6 E7 E8 6 grades 9 grades 11 grades including 7 or 13 grades including 9 or 15 grades ncluding 14 or from (b) 17 grades ncluding 16 or from (b) 19 grades ncluding 12 from (b) 21 grades ncluding 14 from (b) Max 3 foreign Max 3 foreign Max 1 foreign item Max 1 foreign item No foreign No foreign

6 Question Two (a) NEA Level 3 Accounting (91406) 2013 page 6 of 10 Magnificent Air Services Limited General Ledger Retained Earnings Balance r Bank (repurchase) r ncome Summary (profit after tax) r Final dividend (2012) r nterim dividend (2013) r General Ledger orrect stem and correct figure and balance treated correctly award U for correct stem and a figure correctly treated orrect stem and correct figure and balance treated correctly award U for correct stem and a figure correctly treated Question Two (b) included in Notes to the financial statements under heading Accounts Receivable amount of $990 deducted from Accounts Receivable of $ to show net Accounts Receivable of $ decreases current assets as Accounts Receivable now shown as $ instead of $ $ is the likely amount of cash to be received from Accounts Receivable when the credit customers settle their debts. This is the estimated realisable value / impaired value / fair value $990 is the amount of Accounts Receivable that is unlikely to be paid by the credit customers is awarded for detailing the disclosure is by way of a note in the first bullet point Any other explanation from the other 3 bullet points

7 NEA Level 3 Accounting (91406) 2013 page 7 of 10 Question Two (c) urrent liabilities Magnificent Air Services Limited Statement of Financial Position (extract) as at 31 March 2013 Accrued expenses Accounts payable ncome in advance Bank U Loan (due October 2013) GST Taxation payable Non-current liabilities Loan Equity ontributed equity Buildings revaluation surplus Land revaluation surplus Retained earnings Uf $NZ $NZ Statement of Financial Position U Uf F orrect stem and correct figure - award U if correct stem and a figure orrect stem and correct figure - award U if correct stem and a figure orrect stem and correct figure orrect stem and figure correctly carried through from (a) Foreign, ie they do not belong in this financial statement Judgement Statement Question Two N1 N2 A3 A4 M5 M6 E7 E8 4 grades 6 grades 8 grades including 4 / 10 grades including 6 / 11 grades ncluding 8 / from (b) 13 grades ncluding 10 / from (b) 14 grades ncluding 7 from (b) 16 grades ncluding 8 from (b) Max 3 foreign Max 3 foreign Max 1 foreign item Max 1 foreign item No foreign No foreign

8 NEA Level 3 Accounting (91406) 2013 page 8 of 10 Question Three (a) (i) Magnificent Air Services Limited Notes to the Financial Statements (extract) Financial assets $NZ Opening balance U ncrease in fair value of financial assets recognised in profit / loss Balance at end of year U Financial assets comprise shares in Air New Zealand Limited. Notes to the Financial Statements U Appropriate stem and correct figure Appropriate stem and correct figure correctly treated Award U for Appropriate stem and a figure correctly Treated Question Three (a) (ii) ncreases profit for the year by $5 000 Treated as Other ncome Detail provided in Notes to the ncome Statement where a detailed list of Other ncome is provided for users of the financial statements Detail provided in the financial assets note to the Statement of Financial Position is awarded for detailing that the increase in fair value of financial assets increases profit Any other explanation from the other 3 bullet points Question Three (b) Magnificent Air Services Limited Notes to the Financial Statements (extract) ontributed Equity No. of shares $NZ Balance at 1 April Shares issued Shares repurchased (20 000) (60 000) Balance at 31 March Notes to the Financial Statements Appropriate stem and correct figures, correctly treated award U if appropriate stem and figures Appropriate stem and correct figures, correctly treated award U if appropriate stem and figures

9 NEA Level 3 Accounting (91406) 2013 page 9 of 10 Question Three (c) Magnificent Air Services Limited Notes to the Financial Statements (extract) Property, plant and equipment Land Buildings NZ$ NZ$ For the year ended 31 March 2013 Opening carrying amount ## Additions Disposals 0 0 Depreciation 0 (13 110) Revaluation losing carrying amount As at 31 March 2013 ost or valuation Accumulated depreciation 0 0 losing carrying amount U*U* Property, Plant, and Equipment Note ## orrect Figure for opening carrying amounts U*U* Appropriate stem and correct figure correctly treated award U for appropriate stem and a figure correctly treated Appropriate stem and correct figures correctly treated award U for appropriate stem and any figures correctly treated Appropriate stem for both closing carrying amounts and both carrying amounts equal

10 NEA Level 3 Accounting (91406) 2013 page 10 of 10 Judgement Statement Question Three N1 N2 A3 A4 M5 M6 E7 E8 4 grades 6 grades 8 grades including 4 / 10 grades including 6 / 12 grades ncluding 8 / or from (a)(ii) 14 grades ncluding 10 / or from (a)(ii) 16 grades ncluding 11 from (a)(ii) 18 grades ncluding 12 from (a)(ii) Overall Judgement Statement Not Achieved Achievement Achievement with Merit Achievement with Excellence Score range