CONFIDENTIAL ACIJUN 2014/FAR410 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE FINANCIAL ACCOUNTING AND REPORTING 1 COURSE CODE : FAR410 EXAMINATION : JUNE 2014 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of two (2) questions. 2 ‘Answer ALL questions in the Answer Booklet, Start each answer on anew page. 3 Do not bring any material into the examination room unless permission is given by the invigilator. 4 Please check to make sure that this examination pack consists of: i) the Question Paper ji) an Answer Booklet ~ provided by the Faculty DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages © Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 2 ACIJUN 2014/FAR410 QUESTION 1 Uphill Bhd, a company incorporated in Malaysia is involved in manufacturing and selling of gymnasium and fitness equipment. Given below is the trial balance of Uphill Bhd as at 31 December 2013. Debit Credit | Rwo00_|_RM’000 Land at cost on 1 January 2073 8,550 Building at cost on 1 January 2013 9,450 Plant and machinery at cost on 1 January 2013 70,800 _| Accumulated depreciation on 1 January 2013: Building 2,250 Plant and machinery 4,320 Inventory on 31 December 2013 10,737 Trade receivables 8,100 —_| Bank _ 450 Trade payables 6,480 ‘Specific allowance for doubtful debts on 1 January 2013, — 405 Bank overdraft | 180. Tax paid 4275 | Ordinary shares of RM1 each on 1 January 2013 ee) Retained profit on 1 January 2013 7,470 | 5% Loan _ 4,500 | Sales revenue 85,860 Cost of sales 54,576 ‘Administrative cost 10,440 Distribution cost 7 3,150 Finance cost 117 Investment income L 780 [Dividend paid 2,250 - 122,895 | 122,895 Additional information: i. It is the company's policy to depreciate its building over 50 years and plant and machinery over 5 years. li, Uphill Bhd adopt revaluation model for its land. In line with recent changes in market value, the company revalued the land on 1 January 2013. The professional valuer determined the fair value to be RM10 million. iii, During the year 2013, Uphill Bhd issued 1 million ordinary shares at 10% premium. The transaction has yet to be recorded in the financial statements for the year ended 31 December 2013, iv, The finance costs include RM4,500 interest on bank overdraft and half yearly interest of 5% on loan. (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 3 ACIJUN 2014/FAR410 vi In May 2013, Uphill Bhd discovered that RM45,000 of the trade receivables is irrecoverable, However, the transaction has yet to be recorded. After analysing the credit risks of the trade receivables, management assessed that the amount of the specific allowance at the end of 2013 is RM400,000. Tax expense for the year ended 31 December 2013 was estimated to be RM4,500,000. Required: a. Prepare the following financial statements for publication in accordance with MFRS 101 Presentation of Financial Statements and other Malaysian Financial Reporting Standards: i, A Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2013. (8 marks) ji. A Statement of Changes in Equity for the year ended 31 December 2013. (8 marks) iii, A Statement of Financial Position as at 31 December 2013. (8 marks) iv. Anote on property, plant and equipment. (6 marks) Uphill Bhd acquired one of its machines on 1 January 2008. The machine is used to manufacture gymnasium and fitness equipment. The details of the machine are as follows: Invoice price of machine Delivery costs | Import duties and taxes Insurance on shipment General administrative costs Installation charges _ Estimated dismantling cost (the present value of the estimated dismantling cost is RM1,500) On 4 January 2010, Uphill Bhd upgraded the machine by adding a new component at a cost of RM6,880. This component reduced the production time and the useful life of the machine was revised to 5 years. ‘The machine was sold on 1 January 2014 for RM15,000. ‘© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL