Chapter 10: Employee benefits
1. What is a paid absence? Provide an example.
Refer to section 10.4.4. Compensated absence refers to an employee entitlement to be paid during
certain absences. Examples include sick leave and annual lea
Chapter 11 - Property, plant and equipment
What assets constitute property, plant and equipment?
Para 6 of IAS 16 defines PPE as follows:
Property, plant and equipment are tangible items that:
(a) are held for use in the production
Chapter 19: Statement of cash flows
1. What is the purpose of a statement of cash flows?
Refer to section 19.3. The purpose of a statement of cash flows is to present information about
changes in the cash and cash equivalents of an en
Chapter 9 Inventories
Define cost as applied to the valuation of inventory.
The cost of inventories is the aggregate of:
The costs of purchase
The costs of conversion
Other costs to bring the inventories to their present locatio
Chapter 13 Intangible assets
What are the key characteristics of an intangible asset?
Para 8 of IAS 38 defines an intangible asset as:
An identifiable non-monetary asset without physical substance.
Key characteristics are:
Chapter 6 - Income taxes
What is the main principle of tax-effect accounting as outlined in IAS 12?
As the objective paragraph of IAS 12 points out, the principal issue in accounting for
income taxes is how to account for the curre
Activity-Based Costing Revision Question Solution
a) Using the appropriate measures of activity assign all costs that can be
specifically identified with Job 102 and calculate the total cost of Job 102 (Show
Target Cost and Life-Cycle Budgeting Question Solution
The target cost for the Waterone model that will meet the required price of $600 and
the required margin of 25% is:
Target cost = 600 x (1-0.25) = $ 450
The estimated manufacturing cost is
EQ1 - Part a Question and Solution.
Classify each of the following activities of a cable television company, using the
generic internal value chain given in the lecture notes.
Installing cable in the apartment of a
TRIMESTER 2 - 2015
ADVANCED MANAGEMENT ACCOUNTING
60 MINUTES, plus 5 minutes reading time
where notes may be made (on the question
paper) but no answer may be begun.
This is a CLOSED book test.
There is only ONE
Te Aro Tools Suggested Solution
Report to Frank Forks, the CEO of Te Aro Tools, advising
on the Groups transfer pricing system.
A good transfer pricing system should aim to motivate divisional managers to act
in the best interests of the
TRIMESTER 1 - 2016
ADVANCED MANAGEMENT ACCOUNTING
Report to the Directors of World of Blinds on the performance of two
products Blockout and Sunscreen and on the desirability of introducing the
new product Facette rolle
MowFast Ltd. Guideline case solution.
Report to the Directors of MowFast: to explain the difference in profitability of past
products (the Turbo and the Sprite mowers) and to provide information pertinent to
deciding if the new President mower should now
K2 Adventure Gear Ltd Guideline Solution
Report to the directors of K2 adventure Gear Ltd.
On the use of Strategic Cost Management (including value chain analysis)
to strengthen the companys strategic position.
Using Strategic Cost Mana
Suggested solution to KiwiPhone Ltd.
a) Shank and Govindarajans SCM has 3 key elements:
A Strategic Plan
First there must be clarity about the current strategy and the method that the company currently
achieves a competitive advantage. (For example
Report to the Managing Direct of Hamilton Engineering
If present transfer prices are used, sealed pump units should be sold at a price of $45
to give a maximum contribution at $56,000.
Group profits are theoretically maximised if Hutt