Page 20 - MCS August Day 1 Tasks

Chapter 6

ADVANCED FINANCIAL REPORTING

(F2) FAMILIARISATION

1. ANALYSIS OF PERFORMANCE AND POSITION

 Using suitable ratios analyse the financial performance and position of Montel using the
financial statements provided in the pre‐seen, together with any other relevant information
from the pre‐seen.
 Using suitable ratios analyse the financial performance and position of Kira using the financial
statements provided in the pre‐seen, together with any other relevant information from the
pre‐seen.

2. SOURCES OF LONG‐TERM FINANCE
 Consider the ways in which Montel could raise long‐term finance together with the reasons
why they may wish to raise finance and any relevant implications.
 Comment on the ability to calculate a weighted average cost of capital for Montel from the
pre‐seen information and its uses.

3. FINANCIAL REPORTING STANDARDS

Revise the requirements of each of the following accounting standards / topics and discuss how
they might be relevant to Montel and the pre‐seen information:
• IAS 2 Inventories
• IAS 8 Accounting policies, changes in accounting estimates and errors
• IAS 16 Property, plant and equipment
• IAS 36 Impairment of assets
• IAS 38 Intangible assets
• IAS 17 Leases
• IAS 18 Revenue
• IAS 20 Government grants and disclosure of government assistance
• IAS 37 Provisions, contingent liabilities and contingent assets
• IAS 21 Foreign currency – both foreign currency transactions and foreign operations
• IFRS 5 Assets held for sale and discontinued operations
• IFRS 8 Operating segments
• IFRS 3 Business combinations
• IFRS 10 Consolidated financial statements
 IFRS 11 Joint arrangements

KAPLAN PUBLISHING 15