- 20 Marks
CSMCE – OCT 2022 – L2 – Q7 – Short Notes on Marketing Concepts
Short notes on reach, product life cycle, interpersonal skills, and distribution channels.
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Series: APR 2022
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- 20 Marks
CSMCE – OCT 2022 – L2 – Q5 – Factors for Marketing Plan Failures
Factors responsible for marketing plan failures.
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- Tags: Failure Factors, Implementation, Marketing Plans, Strategy Issues
- Level: Level 2
- Topic: Failure Factors, MARKETING PLANNING
- Series: APR 2022
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- 20 Marks
CSMCE – OCT 2022 – L2 – Q4 -Importance of Meeting Service Quality Expectations
Reasons to meet or exceed targeted customers' service expectations.
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- 20 Marks
CSMCE – OCT 2022 – L2 – Q3 – F.I.N.D. Interview System Areas
Areas represented by F.I.N.D. in customer interviews
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- Tags: Customer Focus, F.I.N.D. System, Interview Areas, Sales Structure
- Level: Level 2
- Topic: The sales interview, Understanding the buying process
- Series: APR 2022
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- 20 Marks
CSMCE – OCT 2022 – L2 – Q2 – External Environmental Elements for Bank Planning
External elements affecting bank planning and their implications.
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- 20 Marks
BSIM – OCT 2022 – L3 – Q3 – IT in Market Research for Bank Branches
Ways IT can be applied in market research for new branches and methods for collecting qualitative data with IT usage.
Question
The management of a bank has decided to establish five new branches at vantage locations in the next quarter to attract new customers. You are the chairperson of a committee that is to conduct market research and identify the locations for establishing the new branches. Given the importance of the report, and the limited time available, the Committee has decided to adopt Information Technology in the conduct of the research.
a) Identify five (5) ways in which Information Technology could be applied in the conduct of the market research. [10 Marks]
b) Describe five (5) methods for collecting qualitative data and explain how IT could be used in any two of the data collection methods. [10 Marks]
[Total: 20 Marks]
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- 20 Marks
BSIM – OCT 2022 – L3 – Q2 – Virtual Organizations in Financial Institutions
Explain virtual organization and discuss managerial and technical issues in running one for financial institutions.
Question
The COVID-19 global pandemic and associated lockdowns compelled many financial institutions to adopt virtual approaches to service delivery to their customers. With many researchers predicting the reoccurrence of such pandemics, executives of financial institutions have expressed a keen interest in the concept of a virtual organization (VO), how to run an effective virtual organization, and the ensuing challenges. Explain what a virtual organization is and discuss the managerial and technical issues in running a virtual organization.
[20 Marks
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- Tags: COVID-19, Managerial Issues, Pandemics, Service Delivery, Technical Issues, Virtual Organization
- Level: Level 3
- Topic: Information Systems and the Bank
- Series: APR 2022, OCT 2022
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- 10 Marks
SCS – Apr 2022 – L3 – Q8 – Controlling risk
Explain five factors of internal control that HPC can implement to strengthen governance.
Question
The Accountant advised the CEO that to strengthen governance, the Board should concern itself with the establishment of strong internal control systems. Failures or weaknesses in internal controls will have adverse consequences for HPC’s finances, financial reporting, operational efficiency and effectiveness, or regulatory compliance.
Required:
Write a paper, explaining FIVE (5) factors to the Board the nature of internal controls that could be instituted by HPC to strengthen governance. (10 marks)
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- Tags: Corporate Governance, Governance, Internal Controls, Risk Management
- Level: Level 3
- Topic: Controlling Risk
- Series: APR 2022
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- 10 Marks
SCS – Apr 2022 – L3 – Q7 – Professional practice and codes of ethics
Discuss key governance issues based on Ghana’s Code of Best Practices considering the Board Chairman’s intentions.
Question
In reference to Ghana’s Code of Best Practices in Corporate Governance, discuss FOUR (4) key issues that could determine how well or badly HPC is governed, taking into consideration the intention and business relationship of the Board Chairman. (10 marks)
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- 5 Marks
AA – April 2022 – L2 – Q1c – Planning and Approach for Audit and Assurance Engagements
Enumerate five benefits of audit planning according to ISA 300.
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- 5 Marks
AA – April 2022 – L2 – Q1b – Audit and Assurance Evidence
Explain five factors that determine reliance on analytical procedures.
Question
ISA 520: “Analytical Procedures” provides guidance to auditors on the use of analytical procedures during the course of an external audit.
Required:
Explain FIVE (5) factors to consider when determining the extent of reliance that can be placed on the results of such procedures. (5 marks)
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- Tags: Analytical procedures, Audit, ISA 520, Reliance Factors
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Series: APR 2022
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- 5 Marks
AA – April 2022 – L2 – Q1a – Introduction to Audit and Assurance Engagements
State the primary and secondary objectives of an audit.
Question
Audit is the examination or inspection of various books of accounts by an auditor to certify that the accounts have been prepared according to the principles of accounting and to determine whether the Financial Statements prepared reflect a true and fair view of the state of affairs of a business.
Required:
i) State the Primary objective of an audit.
ii) State the Secondary objectives of an audit. (5 marks)
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- Tags: Assurance, Audit, Financial Statements, Objectives, Secondary Objectives
- Level: Level 2
- Topic: Introduction to Audit and Assurance Engagements
- Series: APR 2022
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- 20 Marks
CR – April 2022 – L3 – Q5 – Analysis and interpretation of financial statements
Write a report analyzing the financial performance and financial position of Azure Plc using financial ratios and sector averages.
Question
Azure Plc is a company that trades its ordinary shares on the Ghana Stock Exchange. Below are the statements of profit or loss for the year ended 31 December 2020 and for the first three quarters in 2020 published in line with the Ghana Stock Exchange regulations:
Statements of profit or loss of Azure Plc:
| Description | Year Ended 31 Dec 2020 (Audited) | Quarter 3 (Unaudited) | Quarter 2 (U
naudited) |
Quarter 1 (Unaudited) |
|---|---|---|---|---|
| Revenue | GH¢ 2,829 million | GH¢ 544 million | GH¢ 810 million | GH¢ 624 million |
| Cost of sales | (GH¢ 1,754 million) | (GH¢ 346 million) | (GH¢ 489 million) | (GH¢ 412 million) |
| Gross profit | GH¢ 1,075 million | GH¢ 198 million | GH¢ 321 million | GH¢ 212 million |
| Other operating income | GH¢ 72 million | GH¢ 32 million | GH¢ 21 million | GH¢ 23 million |
| Administrative expenses | (GH¢ 572 million) | (GH¢ 94 million) | (GH¢ 183 million) | (GH¢ 146 million) |
| Distribution costs | (GH¢ 265 million) | (GH¢ 73 million) | (GH¢ 62 million) | (GH¢ 65 million) |
| Finance costs | (GH¢ 15 million) | (GH¢ 11 million) | (GH¢ 2 million) | (GH¢ 2 million) |
| Profit before tax | GH¢ 295 million | GH¢ 52 million | GH¢ 95 million | GH¢ 22 million |
| Tax | (GH¢ 101 million) | (GH¢ 17 million) | (GH¢ 31 million) | (GH¢ 11 million) |
| Profit for the year | GH¢ 194 million | GH¢ 35 million | GH¢ 64 million | GH¢ 11 million |
Additional information:
The following ratios have been calculated for the relevant sector for the year ended 31 December 2020:
- Return on year-end capital employed: 18.30%
- Return on year-end equity: 16.05%
- Profit (before interest and tax) margin: 12.1%
- Gross profit margin: 43.22%
- Current ratio: 2.60
- Quick ratio: 1.25
- Assets turnover: 1.02
- Debt-to-equity ratio: 30.50%
Required:
Write a report to the Board of Directors of Azure Plc, analyzing the financial performance and financial position of the company using the above information to assist the Board in determining whether strategic adjustments are required and where, if any.
(20 marks)
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- Tags: Financial Performance, Gearing, Liquidity, Profitability, Ratio Analysis
- Level: Level 3
- Topic: Analysis and Interpretation of Financial Statements
- Series: APR 2022
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- 4 Marks
CR – April 2022 – L3 – Q4b – Business combinations and consolidation
Explain the reasons why it may be difficult to identify the acquirer in a business combination.
Question
b) All business combinations are accounted for by the acquisition method, which involves identifying the acquirer. However, it might not be easy to identify the acquirer.
Required:
Explain TWO (2) reasons why it might be difficult to identify the acquirer.
(4 marks)
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- Tags: Acquirer Identification, Acquisition Method, IFRS 3
- Level: Level 3
- Topic: Business combinations and consolidation
- Series: APR 2022
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- 16 Marks
CR – April 2022 – L3 – Q4a – Financial instruments: Recognition and measurement Corporate reporting
Calculate the amount of share capital written off and prepare the revised statement of financial position for Ega Ltd after the financial reorganization.
Question
a) Ega Ltd is a Private Limited Liability company operating in the agro-processing industry, currently facing trading difficulties. The most recent statement of financial position as at 31 March 2021 is as follows:
Additional information: The following financial reorganization scheme has been drawn up:
- Intangible fixed assets should be written off and remaining assets restated at their market values:
- Land and Buildings: GH¢161m
- Plant and Machinery: GH¢200m
- Inventory: GH¢162m
- Receivables: GH¢88m
- Ordinary share capital should be written down as necessary to enable assets and liabilities to be restated at realistic values and to clear the debit balance in retained earnings.
- The 12% debenture should be converted into 80 million ordinary shares at GH¢1 each.
- Directors should subscribe for a further 200 million ordinary shares at GH¢1 each to provide cash for the reorganization.
- The bank will convert GH¢200m of the overdraft into a 14% loan, repayable over four annual installments starting 31 December 2021.
Required:
i) Calculate the amount to be written off the existing share capital. (4 marks)
ii) Prepare a revised Statement of Financial Position of Ega Ltd as at 1 April 2021, incorporating the proposed scheme for reorganization. (6 marks)
iii) Provide an assessment of the proposal for the future prospects of the company. (6 marks)
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- 10 Marks
CR – April 2022 – L3 – Q3b – Regulatory framework and ethics
Explain the ethical principles involved in the given scenario and recommend the appropriate actions based on the IFAC Code of Ethics.
Question
b) You are a newly qualified accountant in your fifth year of employment in a limited liability company. Your immediate supervisor has been on sick leave, and you are due for study leave. You have been told by the Finance Director that, before you go on leave, you must finish a task that should have been completed by your immediate supervisor. The deadline suggested to complete the task appears unrealistic, given the complexity of the task.
You feel that you are not sufficiently experienced to complete the task alone and would need additional supervision to complete it to the required standard. The Finance Director appears unable to offer the necessary support in this regard. Should you try to complete the work within the proposed timeframe but fail to meet the expected quality, you could face repercussions on your return from study leave. You feel slightly intimidated by the Finance Director and also feel pressure to do what you can for the company in these challenging times.
Required:
i) Using the IFAC Code of Ethics as a guide, explain the ethical principles that apply in the above scenario. (5 marks)
ii) Recommend the possible actions that you should take as a member of the Institute of Chartered Accountants, Ghana (ICAG), in dealing with this ethical dilemma. (5 marks)
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- Tags: Ethical dilemma, Ethics, Integrity, Objectivity, Professional Behaviour
- Level: Level 3
- Topic: Regulatory Framework and Ethics
- Series: APR 2022
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- 10 Marks
CR – April 2022 – L3 – Q3a – Financial instruments: Recognition and measurement
Account for finance lease and financial liability transactions according to relevant IFRS.
Question
a) Zeus Ltd manufactures equipment for lease or sale. The following transactions relate to Zeus Ltd for the year ended 31 December 2020:
i) On 31 December 2020, Zeus Ltd leased out equipment under a 10-year finance lease. The selling price of the leased item was GH¢50 million, and the net present value of the minimum lease payments was GH¢47 million. The carrying value of the leased asset was GH¢40 million, and the present value of the residual value of the product when it reverts to Zeus Ltd at the end of the lease term is GH¢2.8 million. Zeus Ltd has shown sales of GH¢50 million and cost of sales of GH¢40 million in its financial statements.
(5 marks)
ii) On 1 January 2020, Zeus Ltd raised finance by issuing a two-year deeply discounted 2% bond with a nominal value of GH¢20,000 that was issued at a discount of 5% and is redeemable at a premium of GH¢2,150. There were no issue costs. The bond has an effective interest rate of 10%.
(5 marks)
Required:
Recommend to the directors of Zeus Ltd how the above transactions should be accounted for in the financial statements for the year ended 31 December 2020 in accordance with relevant International Financial Reporting Standards.
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- 7 Marks
CR – Apr 2022 – L3 – Q2c – Earnings Per Share
Calculate and restate earnings per share (EPS) for the current and previous year, factoring in rights and bonus issues under IAS 33.
Question
On 1 January 2020, Kalimba Ltd had 2 million ordinary shares in issue. On 30 April 2020, the company issued 270,000 ordinary shares at full market price. On 31 July 2020, the company made a rights issue of 1 for 10 at GH¢2. The fair value of the shares on the last day before the rights issue was GH¢3.10. On 30 September 2020, the company made a 1 for 20 bonus issue. Profit for the period was GH¢400,000. The reported earnings per share for the year ended 31 December 2019 was GH¢0.186.
Required:
Calculate the earnings per share (EPS) for the year ended 31 December 2020, and the restated EPS for the year ended 31 December 2019, in accordance with relevant International Financial Reporting Standards (IFRS).
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- 7 Marks
CR – Apr 2022 – L3 – Q2b – IAS 19: Employee benefits
Recommend accounting treatment for pension obligations and restructuring costs in financial statements in accordance with relevant IFRS.
Question
Kaase Ltd, a public limited company, operates in the technology sector in Ghana. The company has decided to restructure one of its business segments, affecting employees in two locations. In the first location (A), half of the factory units were closed by 31 March 2021, and the affected employees’ pension benefits were frozen. After restructuring, the present value of the defined benefit obligation in this location was GH¢8 million. Before restructuring, the value was GH¢10 million, and the fair value of plan assets was GH¢7 million, resulting in a net pension liability of GH¢3 million.
In the second location (B), all activities were discontinued, and employees will receive GH¢4 million in exchange for a pension liability of GH¢2.4 million. Kaase Ltd estimates that restructuring costs excluding pension costs will be GH¢6 million. No formal announcement has been made due to a planned rights issue. The pension liability is currently included in non-current liabilities.
Required:
Recommend the accounting treatment of the above transaction in the financial statement of Kaase Ltd, including financial statement extracts for the year ended 31 March 2021, in accordance with relevant International Financial Reporting Standards (IFRS).
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- Tags: Defined benefit plans, Employee Benefits, IAS 19, IAS 37, Pension obligations, Restructuring costs
- Level: Level 3
- Topic: IAS 19: Employee Benefits
- Series: APR 2022
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