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Aafr Test-2 Q. Paper Mah Final PDF
Aafr Test-2 Q. Paper Mah Final PDF
10 May, 2022
1.5 hour, 50 Marks
Class Test - 02 Sec (B)
Q.2 Quality Ltd granted share options to its 300 employees on 1 January 2015. Each employee will receive
1,000 share options provided they continue to work for Quality Ltd for 3 years from the grant date. The fair
value of each option at the grant date was Rs. 122.
The actual and expected staff movement over the 3 years to 31 December 2017 is provided below
2015: 25 employees left and another 40 were expected to leave over the next two years.
2016: A further 15 employees left and another 20 were expected to leave the following year
2017: A further 18 employees left
Required:
Calculate the charge to Quality Ltd’s statement of profit or loss for the year ended 31 December 2016 in
respect of the share options and prepare the journal entry to record this. (08)
Q.3 Abrar Limited has implemented in full IAS19 ‘Employee Benefits’ in its financial statements.
Rs. (000)
Current service cost 5,000
Interest cost 3,000
Opening fair value of plan assets 40,000
Interest income on plan assets 2,200
Closing fair value of plan assets 45,000
Opening present value of plan liabilities 42,000
Closing present value of plan liabilities 44,500
Past service cost (end of the year) 5,000
Refund available 300
Benefits paid during the year 10,000
Contribution in plan assets 13,500
Required:
Calculate the amount to be charged to statement of comprehensive income and extract of statement of
financial position. (07)
Advanced Accounting & Financial Reporting |Page 2 of 2
Q.4 On 1st January 2018, Mudasser Limited (ML) entered into a sale and lease back arrangement with Sarmaya
Bank (SB) in respect to a machine. The details of machine sold and leased back are as under:
Rs. in Million
Carrying value 87
Sale price to lessor 97
Fair Market Value 119
The Terms of the lease agreement are as follows:
Lease Term 4 Years
Annual Rental 22
Implicit rate rate 10%
Rental are paid in advance and the transfer of machine satisfies requirement of IFRS-15 to be accounted for
as sale.
Required:
a) Prepare Journal entries in the books of ML to record above transaction on 1st January 2018. (04)
b) Prepare relevant extracts of statement of financial position and comprehensive income and related
notes for the year ended December 31, 2018. (14)
Q.5 The profit after tax for Delta Limited for the year ended December 31, 2017 was Rs. 240 million. At
January 01, 2017, the company had in issue 40 million equity shares and Rs. 100 million 6% convertible
loan note. The loan note will mature in 2018 and will be redeemed at par or converted to equity shares on
the basis of 25 shares for each Rs. 1,000 of loan note at the loan note holders' option.
On April 01, 2017, Delta Limited made a fully subscribed rights issue of 1 new share for every 4 shares
held at a price of Rs. 32 each. The market price of the equity shares of Delta Limited, just before the issue,
was Rs. 42. The earnings per share (EPS) reported, for the year ended December 31, 2016, was Rs. 4.
Applicable income tax rate is 30%.
Required:
Calculate the basic EPS for Delta Limited (including comparatives) and the diluted EPS (comparatives not
required) that would be disclosed for the year ended December 31, 2017. (09)
(The End)