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Business Administration II: Practice Part 1
Business Administration II: Practice Part 1
Business Administration II
Subarea A:
Accounting
at the university of applied science Pforzheim
1
Prof. Dr. Robert Nothhelfer
c)
d)
e)
f)
In the balance sheet position cash and cash equivalence are cash, postal check (Postscheck) and
positive bank deposits included.
The KASPAR AG is the owner of shares, which are recognized as current assets. Last year the market
values of some of the shares were falling under the acquisition price. During the same period the value
of other shares was raising over the acquisition costs. All speculation gains and losses together are
coming to zero, so that in the balance sheet the shares are valuated with the same value as last year.
The KASPAR AG purchased in the last year 10 trucks and because of the positive economic situation
the declining balance depreciation (20%) was chosen. This year the KASPAR AG aims to report a high
profit. Therefore the management decided to depreciate all old and new trucks linear over a useful life of
20 years.
The KASPAR AG owns land since a longer period of time, which is valued by the acquisition costs of
200.000,- . The market value of the land increased during the period of time ten times. The managers
decided to valuate the land at the market value because of the principle of accuracy.
The KASPAR AG expect from some customers claims for damages because of insufficient services. The
claims of the customers were only verbally communicated (so far). Therefore the management decided
according to the periodization principle to recognize the claims of the customer in the next reporting
period.
After preparing the opening balance for the next reporting period, the KASPAR AG recognized, that they
forgot some bookings in the closing balance. According to the true and fair view they correct the
opening balance.
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Prof. Dr. Robert Nothhelfer
How will this transaction be accounted for in the balance sheet of the
Swimming GmbH be accounted for, if the swimsuits are still in the companys warehouse at the balance sheet date? Show the relevant GAAPs.
b2)
How should the swimsuits be accounted if they are sold completely by the
Swimming GmbH to the New Year swimmer Association for an
amount of 2400 at the day of delivery and are delivered at that date?
b3)
How will the financial statements be effected, if the suits are delivered and
paid in the next year and sales prices for these models are fallen to 15
per piece?
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Prof. Dr. Robert Nothhelfer
2.
2.2.3
100 T
300 T
100 T
10 T
100 T
70 T
50 T
80 T
With which amount will the machine be recognized at least / at the most
a) in the commercial balance sheet
b) in the tax balance sheet ?
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Prof. Dr. Robert Nothhelfer
Practice 5.1
A company has developed a new production technique. The development costs are 100.000
and are included as expenses in the income statement. This production technique was
registered as patent and approved. The company likes to use the production technic by
themselves.
a)
b)
How will the profit at closing date be influenced by recognition (and amortization).
Assume a useful life of 4 years and a linear / straight line amortization.
Please put the values in table below:
Change of
Profit
1. year
2. year
3. year
4. year
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Prof. Dr. Robert Nothhelfer
Practice 5.4
(Measurement, patent)
In the research department of the Genius GmbH two patents were developed and used in the
production process. Because this department only worked on these two patents it is proposed
to recognize the patents in the balance sheet. The Controlling department showed 60.000,for personnel expenses, 10.000,- for material and energy, and 15.000,- for general
administration expenses. The Looser AG is interested in also using these patents. They
provide a one-time payment of 100.000,-.
How are the costs of the patents in the balance sheet and income statement to be considered?
Which of the positions could, have to or could not be considered in the balance sheet of the
Bundy AG?
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Prof. Dr. Robert Nothhelfer
Land 5.000.000,Machinery 10.000.000,Inventories 1 5.000.000,Cash 20.000.000,Debt 30.000.000,Share capital and reserves 20.000.000,-
Hidden reserves were included in land (3.000.000,-) and in machines ( 4.000.000,-). The
debt was valued at the lower limit. The auditor estimates that there are hidden burdens in the
amount of 2.000.000,-. The Mickey Mouse AG was acquired in an asset deal, the individual
assets and liabilities have been included in the balance sheet of Dagobert Duck AG.
a. What is the value of the acquired goodwill?
b. Please create the balance sheet of the new Maus/Duck AG if the Dagobert Duck AG has at
the time of acquisition 10.000.000,- inventories, 40.000.000,- bank and 35.000.000,- debt.
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Prof. Dr. Robert Nothhelfer
Practice 6.1
(Recognition and measurement of non-current and current assets)
The Quarzsand AG owns the following listed shares. The acquisition costs and market values of
the shares are also listed below:
The future market development of the shares was predictable at the 31.12.20x0.
a) How should/could the shares be valued on Decemer 31st, 20X0 and on June 30th, 20X1?
b) Is the distinction between current and non-current assets relevant?
c) Will the result of a) be changed, if a tax balance should be created?
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Prof. Dr. Robert Nothhelfer
Practice 6.2
(Valuation simplification)
The Rad GmbH produces bicycles for children. At the balance sheet date the company has
1.800 parts on stock, which are from different purchases in the business year. It is not possible
to allocate the different parts to the individual purchases. The book keeping shows the
following information:
Initial value
Increase
Increase
Increase
Total decrease:
01.01.2006:
10.04.2006
15.09.2006
10.12.2006
1.400 pc. to 48
3.000 pc. to 45
2.500 pc. to 43
2.800 pc. to 46
7.900 pc.
a) What is the balance sheet amount, if the weighted periodic average is used?
b) Which other calculation methods are allowed under the german commercial code?
Calculate the book values according to those. Which calculation method would you
choose, if you want to show a profit as high as possible?
c) Which valuation methods are allowed according to the tax law?
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Prof. Dr. Robert Nothhelfer
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Prof. Dr. Robert Nothhelfer
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Prof. Dr. Robert Nothhelfer
Practice 8.1
(Deferred items)
Please name the balance sheet positions at the 31.12.20x1 of the following
transactions:
Advanced payments (paid) for rental for the year 20x2 of 12.000,-.
Received advanced payment of 34.000,- for a delivery in 20x2.
An amount of 25.000,- has to be paid regarding delivered raw material
supplies.
Lending of a loan about a nominal amount of 100.000,- which was paid out by
90 %.
Received lease payments of 300 for the first quarter 20x2.
The rent for the storage building used last year was not paid until now (15.000
EUR). At the 30.11.20x1 the company no longer used this storage building.
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Prof. Dr. Robert Nothhelfer
Practice 9.1
(Liabilities)
The credit AG issued a bond in the capital market which is used to finance a new
production line in business year 20x0. The bond has the following features:
Total nominal amount
Maturity
Issuing price
Redemption rate
Interest rate
2 Mio.;
10 years
90 %;
100%
8%
How could the credit AG treat this transaction in the balance sheet as of
31.12.20x0 and of the following business years?
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Prof. Dr. Robert Nothhelfer
Practice 9.2
(Provisions)
Carlo Manschetti provides high quality gold and silver jewelry for the German
aristocracy. From the house of Guldenburg a necklace was ordered. The agreed
purchase price amounts 50.000. As direct costs are expected 20,000 for
manufacturing and 20,000 for material.
The pro rata overheads costs are probably:
Material overhead costs
Manufacturing overhead costs
Depreciations
Administrative overheads
Distribution overheads
14.000,-;
4.000, 2.000,-;
500, 1.000,-
At the balance sheet date Manschetti has just started with the production of the
Necklace. Can or must Carlo Manschetti recognize for this pending transaction, a
provision in the commercial and tax balance sheet? What kind of provision would
be relevant here?
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Prof. Dr. Robert Nothhelfer
Exercise
The balance sheet of the Solvency AG at December 31st, 20X1 looks as follows (TEUR):
Debit
Land + Buildings
Office Equipment
Long-term loans
Inventories
Trade receivables
Cash / Cash equivalents
Total
180
30
70
50
40
30
400
Credit
Equity
Provisions
Long-term loans
Short-term loans
Trade payables
90
60
150
70
30
400
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Prof. Dr. Robert Nothhelfer