Page 21 - CIMA MCS Workbook February 2019 - 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 Crowncare 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 Smilebrite 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 Crowncare could raise long‐term finance together with the
reasons why they may wish to do so, together with any relevant implications.
 Comment on the availability to calculate a weighted average cost of capital for Crowncare
from the pre‐seen, and its uses.

3. FINANCIAL REPORTING STANDARDS

Revise the requirements of each of the following financial reporting standards* / topics and
discuss how they may be relevant to Crowncare and the pre‐seen information.

 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
 IFRS 16 Leases
 IFRS 15 Revenue from contracts with customers
 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

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