Series: MAR 2023

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Series

  • Filter by Topics

  • Filter by Levels

Has Case Study
  • 8 Marks

SCS – March 2023 – L3 – Q8 – International financial management

Discusses governance structure in terms of the separation of roles between the chairman and the CEO in line with the UK and Ghana Codes of Best Practices.

Dr. Kingsley Tettey is the Chairman of the 4-member board of directors, and Dr. Joy Tettey is the Medical Director. Clearly, the Chairman is not the Chief Executive Officer (CEO) or Medical Director of LCH.

Required:
Discuss what the Ghana Code of Best Practices and the UK Corporate Governance Code state about this governance structure.
(8 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q8 – International financial management"

Has Case Study
  • 12 Marks

SCS – March 2023 – L3 – Q7 – Professional practice and codes of ethics

Analyzes LCH board composition using governance codes and discusses OECD principles of disclosure and board responsibilities.

a) LCH’s Board of Directors is composed of four experienced professionals.

Required:
In reference to codes of corporate governance and the composition of LCH’s Board, analyze the view that the board has a suitable balance.
(5 marks)

b) The OECD Principles (2015) provide guidance through recommendations and annotations across six chapters. Principle 5 and 6 deal with disclosure and transparency and the responsibilities of the board respectively.

Required:
Provide the guidance and recommendations given on these principles and how relevant it is to LCH.
(7 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q7 – Professional practice and codes of ethics"

Has Case Study
  • 20 Marks

SCS – March 2023 – L3 – Q6 – International financial management

Explains the financial reporting implications of debt exchange and compares investing in bonds versus shares

LCH has invested GH¢1,000,000 in a 5-year Government of Ghana Bond with a coupon rate of 20%. As a result of the Government of Ghana DDE programme, LCH has no option but to exchange the old bond with the new bond.

Required:
a) Explain FIVE (5) financial reporting implications of the debt exchange on the financial statements of LCH as at 31 December 2022.
(10 marks)

b) Discuss FOUR (4) advantages and TWO (2) main disadvantages of investing in bonds rather than shares.
(10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q6 – International financial management"

Has Case Study
  • 10 Marks

SCS – March 2023 – L3 – Q5 – Strategy implementation

Uses Fitzgerald and Moon’s performance measurement dimensions to link LCH’s performance assessment to corporate strategy.

Fitzgerald and Moon (1996) provided a framework for analysing performance management systems in service industries like a hospital. They suggested that a performance management system in a service organisation can be analysed as a combination of three building blocks, namely:
i) Dimensions
ii) Standards
iii) Rewards.

Required:
Using Dimensions as a tool for performance measurement, discuss how LCH could link performance assessment to corporate strategy.
(10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q5 – Strategy implementation"

Has Case Study
  • 10 Marks

SCS – March 2023 – L3 – Q4 – Strategy, stakeholders, and mission

Compares mechanistic and organic structures and recommends which is more suitable for LCH.

An appropriate organizational structure should reflect the size and complexity of an entity.

Required:
Using the management study of Burns and Stalker that identified two categories of organization structure—a mechanistic structure and an organic structure—explain the differences between the two types of structures and determine which of the two is suitable for LCH.
(10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q4 – Strategy, stakeholders, and mission"

Has Case Study
  • 20 Marks

SCS – March 2023 – L3 – Q3 – Competitive advantage

Discusses the pros and cons of mergers and acquisitions and uses SWOT analysis to evaluate the business strategy

LCH is facing very stiff competition from both public and private health facilities. You have suggested that LCH consider either acquisition or mergers or both as a strategic move to survive in the industry.

a) Discuss FIVE (5) advantages and FIVE (5) disadvantages of a decision to consider acquisition and merger as a survival strategy.
(10 marks)

b) Using SWOT analysis, identify and discuss key factors that might affect LCH’s business strategy.
(10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q3 – Competitive advantage"

Has Case Study
  • 10 Marks

SCS – March 2023 – L3 – Q2 – Strategy, stakeholders, and mission

Uses the 4Ps of marketing mix and competitive environment to evaluate the feasibility of adopting telemedicine.

According to the Technical Advisor of the Board of Directors, Telemedicine, the remote diagnosis and treatment of patients by means of telecommunications technology is the way to go. This proposal has been subjected to a basic marketing feasibility analysis.

Required:
Using 4Ps of the marketing mix and the competitive environment that LCH operates, explain the factors to be taken into consideration when deciding on whether to adopt the proposal to move into Telemedicine.
(10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q2 – Strategy, stakeholders, and mission"

Has Case Study
  • 10 Marks

SCS – March 2023 – L3 – Q1 – Ethics and social responsibility

Explains the importance of good ethical behavior for accountants and reasons for the public’s high expectations from the accountancy profession.

a) At LCH, the Financial Accountant and the Internal Auditor have been designated as Ethics Focal Persons (EFP) to raise awareness of good ethical behavior among the staff.
As a student of ethics, explain FIVE (5) reasons why good ethical behavior (study and application of ethics) is important to today’s Accountant.
(5 marks)

b) The general public has high expectations of the accountancy profession and the idea of an ethical profession should be reinforced in their minds.
State THREE (3) reasons why the general public has high expectations of the accountancy profession to ensure good corporate governance practices.
(5 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "SCS – March 2023 – L3 – Q1 – Ethics and social responsibility"

  • 5 Marks

FR – Mar 2023 – L2 – Q5d – Business combinations and consolidation

Explains fair value in IFRS 13 and its application to assets and liabilities in business combinations.

d) IFRS 3: Business Combinations defines fair value consistently with IFRS 13: Fair Value Measurement. IFRS 3 requires the acquiree’s assets and liabilities to be incorporated into the consolidated financial statements at their fair values rather than at their carrying amounts.

Required:
i) Explain the meaning of fair value in accordance with IFRS 13. (2 marks)
ii) Explain the reasons why the acquiree’s assets and liabilities are measured and recognised at their fair value within the consolidated financial statements. (3 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FR – Mar 2023 – L2 – Q5d – Business combinations and consolidation"

  • 5 Marks

FR – March 2023 – L2 – Q5c – Preparation of Financial Statements

Determining the initial cost, depreciation charge, and carrying amount of the head office construction under IFRSs.

Lana Ltd is a public listed company in Ghana, located in the Northern Region. The company operates in the manufacturing sector and prepares its accounts to 31 December each year. During the year ended 31 December 2021, Lana Ltd built a head office. The costs associated with the construction of the head office are as follows:

GH¢ million
Fees for environmental certifications and building permits 0.5
Leasehold Land acquisition 10.0
Architect and engineer fees 1.0
Construction material and labor costs (including unused materials) 6.5

At 31 October 2021, when the head office extension became available for use, the cost of unused materials on site amounted to GH¢0.5 million. The total borrowing costs incurred on a loan specifically used to finance the head office extension amounted to GH¢0.8 million. The estimated useful life of the building was 40 years.

Required:
With reference to IFRSs, determine:
i) The initial cost to be capitalized.
ii) The depreciation charge for the year ended 31 December 2021.
iii) The carrying amount as of 31 December 2021.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FR – March 2023 – L2 – Q5c – Preparation of Financial Statements"

  • 4 Marks

AT – March 2023 – L3 – Q2d – Tax administration in Ghana

Discuss the tax implications of a free zone entity exceeding its approved local sales quota.

Koliko Ltd established a free zone entity in Ghana and got approval to sell 20% locally and export the rest from the Minister of Trade. Contrary to the approval, Koliko Ltd decided to export 60% and sell 40% of its produce into the local market.

According to the Board Chairman of the company, this was wrong and that the Ghana Revenue Authority would consider the whole arrangement as artificial since the company departed from the approval by the Ministry of Trade.

Required:
What is the tax implication of the above arrangement?

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "AT – March 2023 – L3 – Q2d – Tax administration in Ghana"

  • 4 Marks

AT – March 2023 – L3 – Q2c – Tax planning

Advise on which housing option is more tax-efficient for the Managing Director in relation to employment and rental income.

The Management of 6Up Ltd has asked for advice on which of the following options is better for their Managing Director in connection with tax planning:

Option 1:
To rent the Managing Director’s personal house for use by the Managing Director as part of his condition of employment while taking a withholding tax at the rate of 8% on the rental payment.

Option 2:
To rent another place for the Managing Director instead of his own place so he may consider renting out his place of residence.

Required:
Advise on which option is better from the standpoint of tax planning implication for the Managing Director.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "AT – March 2023 – L3 – Q2c – Tax planning"

  • 6 Marks

AT – March 2023 – L3 – Q2b – Business income – Corporate income tax

Discuss the tax implications of expenditures incurred for shareholders, executive directors, and non-executive directors.

Mamba, a company resident in Ghana, has spent the following amounts on its officers for 2020 and 2021 years of assessment:

Expenditure Shareholders (GH¢) Executive Directors (GH¢) Non-Executive Directors (GH¢)
2020 10,000,000 2,000,000 3,000,000
2021 20,000,000 3,000,000 3,000,000

The breakdown of the expenditure is as follows:

  • Shareholders: The company spent half the amounts for each of the years for its Annual General Meeting (AGM). The rest of the amount was spent on scholarships for shareholders’ children’s educational scholarships.
  • Executive Directors: The amount spent in 2020 was on providing security arrangements in the private residence of the Managing Director. The 2021 amount was spent on recreational facilities at the Deputy Managing Director’s private home.
  • Non-Executive Directors: The amounts for both years were spent to provide the directors with employable skills on the international arena when they exit as non-directors.

Required:
Enumerate the tax implication of these expenditures and comment on how the Ghana Revenue Authority would treat each of the expenditures. (6 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "AT – March 2023 – L3 – Q2b – Business income – Corporate income tax"

  • 6 Marks

AT – March 2023 – L3 – Q2a – Tax administration in Ghana

Discuss the tax position of NGOs in Ghana and their obligations under tax law.

A Pastor of a Church at Kasoa intends to run a Non-Governmental Organisation (NGO) to serve the needs of the catchment area with the hope that it would serve as a springboard to get a lot of people to fellowship with the Church.

The Pastor has invited you as a member of the community to give advice on how to position the NGO in order not to run into problems with the Ghana Revenue Authority in respect of tax issues.

Required:
Discuss the position of the tax laws on Non-Governmental Organisations.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "AT – March 2023 – L3 – Q2a – Tax administration in Ghana"

  • 8 Marks

AT – March 2023 – L3 – Q1b – Business income – Corporate income tax

Compute the tax payable by Manpower Ltd, considering foreign income and capital allowances.

Kofi Agyemang worked in Canada for a very long time and relocated to Ghana to benefit from the One District One Factory (1D1F) initiative. Kofi Agyemang set up a company called Manpower Ltd and was granted approval by the 1D1F Secretariat to operate a manufacturing company at Koforidua, the capital town of Eastern Region.

An extract from the accounts of Manpower Ltd for the 2021 year of assessment was as follows:

Description GH¢
Chargeable Income 2,000,000
Dividend from Val Ltd:
Ghana (gross) 100,000
Canada (net of tax) 120,000
Interest on current account from:
Ghana (gross) 80,000
Canada (net of taxes) 100,000
Rental Income:
Ghana (gross) 200,000
Canada (gross) 150,000
Depreciation 67,000

Additional information:
i) Taxes paid on the foreign income:

  • Dividend: GH¢18,000
  • Interest: GH¢15,000
  • Rental income: GH¢15,000

ii) Capital allowance agreed with the Ghana Revenue Authority amounted to GH¢140,000.

Required:
Compute the tax payable by Manpower Ltd for the 2021 year of assessment. (8 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "AT – March 2023 – L3 – Q1b – Business income – Corporate income tax"

  • 12 Marks

AT – March 2023 – L3 – Q1a – International taxation

Explain the benefits of converting an external company into a limited liability company, compute tax payable, and discuss tax implications of conversion.

Thunder Ltd resident in the USA has established an external company in Ghana as Thunder Ghana Ltd (Branch).

The following relates to the activities of Thunder Ghana Ltd (Branch) for 2021 year of assessment.

Description GH¢
Sales 1,200,000,000
Cost of sales (700,000,000)
Gross Profit 500,000,000
Add: Rental Income of Commercial Property (gross) 100,000,000
Add: Interest on Treasury bills (gross) 50,000,000
650,000,000
Less operating expenses:
Depreciation 1,200,000
Penalty 600,000
Sponsorship to shareholders’ children’s education 100,000
Interest on loan on capital project 50,000
Penalty imposed by Regulatory Authority 290,000
647,760,000

Capital allowance agreed with the Ghana Revenue Authority amounted to GH¢1,700,700.

The management of Thunder Ltd has indicated its willingness to convert the company as an external company into a limited liability company.

Required:
i) Explain THREE (3) reasons why it is better to convert the branch into a limited liability company rather than operate as an external company. (3 marks)
ii) Compute the tax payable and branch profit tax. (7 marks)
iii) What is the tax implication if an external company converts into a limited liability company? (2 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "AT – March 2023 – L3 – Q1a – International taxation"

  • 6 Marks

BCL – Mar 2023 – L1 – Q5b – Legal Implications Relating to Companies in Difficulty or Crisis

Explain the powers of receivers or managers in a voluntary liquidation process.

b) A person is not eligible to be appointed or to act as a receiver or manager unless that person has, in the opinion of the Registrar, the requisite expertise, skills, and experience to manage and administer a company in receivership.

Required:
Explain THREE (3) powers of receivers or managers in a voluntary liquidation process.
(6 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BCL – Mar 2023 – L1 – Q5b – Legal Implications Relating to Companies in Difficulty or Crisis"

  • 10 Marks

BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Distinguish between fixed and floating charges and explain circumstances for crystallization.

a) A company may raise a loan capital and/or long-term funds by the issue of a debenture or a series of debentures or of debenture stock in order to finance the business without increasing its share capital. Debentures may be secured by a charge or may be unsecured by any charge.

Required:
i) In THREE (3) ways, distinguish between a fixed charge and a floating charge.
(6 marks)

ii) Under what TWO (2) circumstances can a floating charge crystallize into a fixed charge?
(4 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies"

  • 10 Marks

BCL – Mar 2023 – L1 – Q4a – Employment Law

Identify grounds for unfair termination and remedies under the Labour Act, 1963 (Act 651).

a) In a negotiation meeting between the Ministry for Employment, representatives of the Mineworkers Union, and Management of Anglosilver Ltd, the meeting ended in a deadlock. The following day, the workers were notified that the company had been closed down. After some discussions, the workers were asked to sign declarations of confidence in the management as a precondition for re-engagement. They did so but were rather issued with letters of rejection.

Required:
i) Identify THREE (3) grounds on which termination of employment will be considered unfair under the Labour Act, 1963 (Act 651).
(6 marks)

ii) Explain TWO (2) remedies available to a worker who was issued with a letter of rejection and is alleging unfair termination.
(4 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BCL – Mar 2023 – L1 – Q4a – Employment Law"

  • 5 Marks

BCL – Mar 2023 – L1 – Q3a – Agency

Advise on the breach of contractual relationship between Joe Ocran and Tawiah, the estate agent.

Joe Ocran intended to sell two storey buildings. He agreed with Tawiah, an estate agent, that he would pay commission ‘on completion of sale’. Tawiah introduced a third party who wanted to buy both storey buildings, but Joe Ocran changed his mind and refused to sell. Tawiah is your neighbor who has heard you are reading a professional programme that contains business law. He is contemplating suing Joe for the commission and has approached you for advice.

Required:
Advise the parties whether there was a contracted relationship.
(5 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BCL – Mar 2023 – L1 – Q3a – Agency"

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Contact Info

  • +233203701923
    +233543919232
  • info@knowsia.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan