- 5 Marks
BCL – Nov 2024 – L1 – Q5b – Registrar’s Power to Refuse Firm Registration
Circumstances under which the Registrar of Companies may refuse to register a firm or partnership.
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Question Tag: Legal Compliance
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+ past questions and counting.
- 20 Marks
AT – Nov 2023 – L1 – SB – Q3 – Capital Gains Tax
Evaluate capital gains tax implications and relief for Damaturu Nigeria Ltd on asset disposal and reinvestment under Nigerian tax laws.
Question
a. Explain the provisions of the Capital Gains Tax Act C1 LFN 2004 (as amended) in respect of tax payable on disposal of assets situated outside Nigeria by a non-Nigerian company. (2 Marks)
b. Damaturu Nigeria Limited had been in business as a manufacturer of dairy products for several years. In its bid to re-engineer its operations by investing in another viable product line (to be cited in a major city), the Board of Directors in February 2022, approved the sales and re-acquisition of some assets as shown below:
(i) The underlisted assets were acquired in 2015:
| Description | N’000 |
|---|---|
| Land | 25,000 |
| Plant and equipment | 13,000 |
| Factory building | 30,000 |
(ii) Sales proceeds from assets disposed of in July 2022:
| Description | N’000 |
|---|---|
| Land | 32,000 |
| Plant and equipment | 15,000 |
| Factory building | 38,000 |
(iii) Expenses incurred (as percentage of sales proceeds) in connection with disposal of assets:
- Legal: 1%
- Professional valuers’ fees: 3%
(iv) Re-investment in new assets (for the purpose of the business) to replace the disposed ones, was made between September and October, 2022:
| Description | N’000 |
|---|---|
| Land | 28,000 |
| Plant and equipment | 18,000 |
| Factory building | 30,000 |
Required:
i. Compute the capital gains tax payable (if any) for each of the transactions and state the date of payment of the tax due. (14 Marks)
ii. Determine the relief available (if any) on the investment in the new assets. (4 Marks)
(Total: 20 Marks)
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- 15 Marks
AA – May 2023 – L2 – SC – Q6 – Audit Documentation
Types, importance, and determining conditions for audit working paper files.
Question
At one of the seminars you attended on legal and regulatory frameworks of financial reporting, it was stated that one of the duties of the Financial Reporting Council of Nigeria (FRC) is to provide legal and regulatory frameworks for minimum practice guidelines for auditors in Nigeria. To do this, the FRC ensures that all activities of Registered Auditors, other Assurance Providers, and Audit Committee members are regulated to sustain best ethical practices and promote quality audit services.
It is part of the obligations of the Financial Reporting Council of Nigeria to conduct practice reviews of registered professionals. You learned that, for effective monitoring, the Audit Regulation mandates external auditors to create an audit file for each statutory audit carried out and to retain the working papers and other materials supporting the audit report conclusions for a minimum of seven years.
A classmate from university, now a banker, attended the seminar with you and has asked for further clarification on what is meant by “working paper” and why regulators are concerned with audit file reviews.
Required:
a. Identify the different types of audit working paper files. (5 Marks)
b. Outline the importance of audit working paper files. (5 Marks)
c. Explain briefly the conditions that determine the size of audit working papers. (5 Marks)
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- 8 Marks
BL – May 2023 – L1 – SB – Q4A – Company Law
Explain the steps in the procedure for the removal of statutory auditors from a public company.
Question
The Companies and Allied Matters Act, 2020 stipulates that public companies must appoint statutory auditors.
Required:
Explain briefly FOUR of the steps in the procedure for the removal of auditors of a public company before the expiration of their tenure of office.
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- Tags: Auditors, Company Law, Legal Compliance, Removal Procedures
- Level: Level 1
- Topic: Company Law
- Series: MAY 2023
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- 4 Marks
BMIS – Nov 2017 – L1 – Q4c – HR – Other human resources functions
Identify benefits to Adjala Ltd from having a robust health and safety policy.
Question
c) It is Adjala Ltd’s corporate responsibility to have a robust health and safety policy in place, to identify reasonably foreseeable risks and to reduce those risks as far as is reasonably practicable. For the organization, this means having a thorough policy statement, good organizational responsibilities, and tight procedures in place so that it can manage risk and comply with legislation.
Required:
Identify TWO benefits to Adjala Ltd from having a robust health and safety policy.
(4 marks)
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- 5 Marks
BCL – Nov 2024 – L1 – Q5b – Registrar’s Power to Refuse Firm Registration
Circumstances under which the Registrar of Companies may refuse to register a firm or partnership.
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- 20 Marks
AT – Nov 2023 – L1 – SB – Q3 – Capital Gains Tax
Evaluate capital gains tax implications and relief for Damaturu Nigeria Ltd on asset disposal and reinvestment under Nigerian tax laws.
Question
a. Explain the provisions of the Capital Gains Tax Act C1 LFN 2004 (as amended) in respect of tax payable on disposal of assets situated outside Nigeria by a non-Nigerian company. (2 Marks)
b. Damaturu Nigeria Limited had been in business as a manufacturer of dairy products for several years. In its bid to re-engineer its operations by investing in another viable product line (to be cited in a major city), the Board of Directors in February 2022, approved the sales and re-acquisition of some assets as shown below:
(i) The underlisted assets were acquired in 2015:
| Description | N’000 |
|---|---|
| Land | 25,000 |
| Plant and equipment | 13,000 |
| Factory building | 30,000 |
(ii) Sales proceeds from assets disposed of in July 2022:
| Description | N’000 |
|---|---|
| Land | 32,000 |
| Plant and equipment | 15,000 |
| Factory building | 38,000 |
(iii) Expenses incurred (as percentage of sales proceeds) in connection with disposal of assets:
- Legal: 1%
- Professional valuers’ fees: 3%
(iv) Re-investment in new assets (for the purpose of the business) to replace the disposed ones, was made between September and October, 2022:
| Description | N’000 |
|---|---|
| Land | 28,000 |
| Plant and equipment | 18,000 |
| Factory building | 30,000 |
Required:
i. Compute the capital gains tax payable (if any) for each of the transactions and state the date of payment of the tax due. (14 Marks)
ii. Determine the relief available (if any) on the investment in the new assets. (4 Marks)
(Total: 20 Marks)
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- 15 Marks
AA – May 2023 – L2 – SC – Q6 – Audit Documentation
Types, importance, and determining conditions for audit working paper files.
Question
At one of the seminars you attended on legal and regulatory frameworks of financial reporting, it was stated that one of the duties of the Financial Reporting Council of Nigeria (FRC) is to provide legal and regulatory frameworks for minimum practice guidelines for auditors in Nigeria. To do this, the FRC ensures that all activities of Registered Auditors, other Assurance Providers, and Audit Committee members are regulated to sustain best ethical practices and promote quality audit services.
It is part of the obligations of the Financial Reporting Council of Nigeria to conduct practice reviews of registered professionals. You learned that, for effective monitoring, the Audit Regulation mandates external auditors to create an audit file for each statutory audit carried out and to retain the working papers and other materials supporting the audit report conclusions for a minimum of seven years.
A classmate from university, now a banker, attended the seminar with you and has asked for further clarification on what is meant by “working paper” and why regulators are concerned with audit file reviews.
Required:
a. Identify the different types of audit working paper files. (5 Marks)
b. Outline the importance of audit working paper files. (5 Marks)
c. Explain briefly the conditions that determine the size of audit working papers. (5 Marks)
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- 8 Marks
BL – May 2023 – L1 – SB – Q4A – Company Law
Explain the steps in the procedure for the removal of statutory auditors from a public company.
Question
The Companies and Allied Matters Act, 2020 stipulates that public companies must appoint statutory auditors.
Required:
Explain briefly FOUR of the steps in the procedure for the removal of auditors of a public company before the expiration of their tenure of office.
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- Tags: Auditors, Company Law, Legal Compliance, Removal Procedures
- Level: Level 1
- Topic: Company Law
- Series: MAY 2023
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- 4 Marks
BMIS – Nov 2017 – L1 – Q4c – HR – Other human resources functions
Identify benefits to Adjala Ltd from having a robust health and safety policy.
Question
c) It is Adjala Ltd’s corporate responsibility to have a robust health and safety policy in place, to identify reasonably foreseeable risks and to reduce those risks as far as is reasonably practicable. For the organization, this means having a thorough policy statement, good organizational responsibilities, and tight procedures in place so that it can manage risk and comply with legislation.
Required:
Identify TWO benefits to Adjala Ltd from having a robust health and safety policy.
(4 marks)
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