ACC419 Past Questions 2015

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    campusflava
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    ACC419 ADVANCED FINANCIAL ACCOUNTING 3 UNIT TIME ALLOWED: 2HOURS

     

    INSTRUCTION:         ANSWER THREE QUESTIONS

     

    QUESTION ONE IS COMPULSORY

     

    QUESTION 1

     

    • Discuss the elements and the components of financial statements.
    • Describe characteristics of financial statements.

    (30 Marks)

     

    QUESTION 2

     

    • Discuss the procedures involved in the consolidation of income statement of a parent company and its subsidiaries.
    • Explain the principles for the use of equity accounting.

    (20 Marks)

     

    QUESTION 3

     

    • Define Vertical Group.
    • Discuss the principles for determining effective interest.

    (20 Marks)

     

    QUESTION 4

     

    • Discuss forms of business combination.
    • Give Reasons/benefits of business combination.

    (20 Marks)

     

    QUESTION 5

     

    Small Company Limited and Big Company Limited have decided to combine their business operations to become Large Company Limited. The balances in the terminal balance sheets of the combining businesses are as follows:

     

    Large Company Limited is to take over all the assets of the combining businesses by the issuance of its shares on the basis of 3 new shares of N1.00 each for existing N2.50 worth of Net Tangible Assets in each of the combining companies.

    • How many shares are due to the shareholders of Small Company Limited?

     

    • What is the total number of shares issued by Large Company Limited?

     

    (C) What is the value of purchased goodwill from the transaction?

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