题目内容

(b) ‘EAJ’, which commenced trading on 1 June 2003, is a business services group whose consultants implement
three types of application software packages designed to meet the accounting, distribution and manufacturing
requirements of its clients. Each consultant specialises in the implementation of one type of application software
i.e. accounting, distribution or manufacturing. EAJ does not sell application software packages. EAJ implements
application software packages but clients are responsible for purchasing the packages.
The following information relates to the year ended 31 May 2006.
(1) Each consultation, other than those detailed in notes (4) and (5), is charged at a rate of ￡700 per day for
new clients and ￡550 per day for existing clients. Consultants are budgeted to work for 240 days per year.
(2) The consultants are each paid a fixed annual salary of ￡50,000. In addition they receive a bonus of 40%
of the net value of the fee income generated in excess of budget minus the revenue foregone as a
consequence of undertaking remedial consultations (per notes 5 and 8) based on a ‘notional’ rate of ￡700
per consultant day. The bonus is shared equally among the consultants employed by EAJ on 31 May in the
year to which the bonus relates.
(3) Other operating expenses (excluding the salaries of the consultants) were budgeted at ￡3,600,000. The
actual amount incurred was ￡4,500,000.
(4) In an attempt to gain new business, consultants may undertake consultations on a ‘no-fee’ basis. Such
consultations are regarded as business development activity by the management of EAJ. Each of these
consultations is budgeted to take one consultant day.
(5) Consultants will sometimes undertake remedial consultations with new clients who experience problems
with regard to implementation. Remedial consultations are also provided on a non-chargeable, i.e. ‘no fee’
basis. Each of these consultations requires two consultant days.
(6) Since its formation EAJ has had a policy of maintaining staff at a level of 100 consultants on an ongoing
basis, irrespective of fluctuations in the level of demand.
Required:
Using the above information, analyse and discuss the performance of EAJ for the year ended 31 May 2006
under the following headings:
(i) Financial performance and competitiveness;
(ii) External effectiveness;
(iii) Internal efficiency. (15 marks)

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会计核算软件应具有输入操作人员岗位分工情况，防止非指定人员擅自使用的功能。()

对于设置好的报表在需要时只要运行报表编制功能即可产生需要的报表，无须每次重新定义该报表。()

3 Ashlee, a public limited company, is preparing its group financial statements for the year ended 31 March 2005. The
company applies newly issued IFRSs at the earliest opportunity. The group comprises three companies, Ashlee, the
holding company, and its 100% owned subsidiaries Pilot and Gibson, both public limited companies. The group
financial statements at first appeared to indicate that the group was solvent and in a good financial position. However,
after the year end, but prior to the approval of the financial statements mistakes have been found which affect the
financial position of the group to the extent that loan covenant agreements have been breached.
As a result the loan creditors require Ashlee to cut its costs, reduce its operations and reorganise its activities.
Therefore, redundancies are planned and the subsidiary, Pilot, is to be reorganised. The carrying value of Pilot’s net
assets, including allocated goodwill, was $85 million at 31 March 2005, before taking account of reorganisation
costs. The directors of Ashlee wish to include $4 million of reorganisation costs in the financial statements of Pilot for
the year ended 31 March 2005. The directors of Ashlee have prepared cash flow projections which indicate that the
net present value of future net cash flows from Pilot is expected to be $84 million if the reorganisation takes place
and $82 million if the reorganisation does not take place.
Ashlee had already decided prior to the year end to sell the other subsidiary, Gibson. Gibson will be sold after the
financial statements have been signed. The contract for the sale of Gibson was being negotiated at the time of the
preparation of the financial statements and it is expected that Gibson will be sold in June 2005.
The carrying amounts of Gibson and Pilot including allocated goodwill were as follows at the year end:
The fair value of the net assets of Gibson at the year end was $415 million and the estimated costs of selling the
company were $5 million.
Part of the business activity of Ashlee is to buy and sell property. The directors of Ashlee had signed a contract on
1 March 2005 to sell two of its development properties which are carried at the lower of cost and net realisable value
under IAS 2 ‘Inventories’. The sale was agreed at a figure of $40 million (carrying value $30 million). A receivable of
$40 million and profit of $10 million were recognised in the financial statements for the year ended 31 March 2005.
The sale of the properties was completed on 1 May 2005 when the legal title passed. The policy used in the prior
year was to recognise revenue when the sale of such properties had been completed.
Additionally, Ashlee had purchased, on 1 April 2004, 150,000 shares of a public limited company, Race, at a price
of $20 per share. Ashlee had incurred transaction costs of $100,000 to acquire the shares. The company is unsure
as to whether to classify this investment as ‘available for sale’ or ‘at fair value through profit and loss’ in the financial
statements for the year ended 31 March 2005. The quoted price of the shares at 31 March 2005 was $25 per share.
The shares purchased represent approximately 1% of the issued share capital of Race and are not classified as ‘held
for trading’.
There is no goodwill arising in the group financial statements other than that set out above.
Required:
Discuss the implications, with suitable computations, of the above events for the group financial statements of
Ashlee for the year ended 31 March 2005.
(25 marks)

1 Paxis plc will soon announce a takeover bid for Wragger plc, a company in the same industry. The initial bid will be
an all share bid of four Paxis shares for every five Wragger shares.
The most recent annual data relating to the two companies are shown below:
The takeover is expected to result in cost savings in advertising and distribution, reducing the operating costs
(including depreciation) of Paxis from 76% of sales to 70% of sales. The growth rate of the combined company is
expected to be 6% per year for four years, and 5% per year thereafter. Wragger’s debt obligations will be taken over
by Paxis. The corporate tax rate is expected to remain at 30%.
Sales and costs relevant to the decision may be assumed to be in cash terms.
Required:
(a) Using free cash flow analysis for each individual company and the potential combined company, estimate
how much synergy is expected to be created from the takeover. State clearly any assumptions that you make.
Note: The weighted average cost of capital of the combined company may be assumed to be the market weighted
average of the current costs of capital of the individual companies, weighted by the current market value of debt and
equity of the combined company, with the equity of Wragger adjusted for the effect of the bid price. (20 marks)