MOJAKOE AKUNTANSI KEUANGAN 1

Dilarang memperbanyak MOJAKOE ini tanpa seijin SPA FEUI. Download MOJAKOE dan SPA Mentoring di : http://spa-feui.com

AK1 UTS 2014

spa-feui.com

MID TERM EXAM 2013/2014

FINANCIAL ACCOUNTING 1

Wednesday, 16 October 2013

09.00 – 12.00 (3 hours)

This exam is CLOSED BOOKS; usage of financial calculator is allowed

Always provide calculation on every step of your answer

Provide your answer in a clear and readable form

QUESTION 1 (15%) – Conceptual Framework

1. What is the objective of financial statements according to the IASB conceptual framework?

2. According to the IASB conceptual framework, What are the four principal qualitative

characteristics ? Please explain!

3. In practice, there is often a trade-off between different qualitative characteristics of

information. In these situations, an appropriate balance among the characteristics must be

achieved in order to meet the objective of financial statements. Please give an example of

trade-off between qualitative characteristics of information!

QUESTION 2 (20%) –Statement of Comprehensive Income

Presented below is information related to Indostars Company in its first year of operation. The

following information is provided at December 31, 2012, the end of its first year.

Sales revenue €450,000

Cost of goods sold 210,000

Selling and administrative expenses 75,000

UNIVERSITAS INDONESIA

FACULTY OF ECONOMICS & BUSINESS

AK1 UTS 2014

spa-feui.com

Gain on sale of plant assets 45,000

Unrealized gain on available-for-sale financial assets 15,000

Interest Expense 10,000

Loss on discontinued operations 20,000

Allocation to non-controlling interest 26,000

Dividends declared and paid 8,000

Instructions:

a. Prepare in a good form a comprehensive income statement for the year 2012 using single

statement format (including the earnings per share). Assume a 30% tax rate and that there

were 100,000 ordinary shares outstanding during the year. (16%)

b. Compute the retained earnings balance at December 31, 2012. (4%)

AK1 UTS 2014

spa-feui.com

QUESTION 3 (20%) – Statement of Financial Position

The following data is summed from Bright Co.’s general ledger after adjustment on December 31, 2012

(in Rp. 000). All accounts have normal balances.

Cash 11,000

Accounts Receivables 7,000

Trading Securities 3,000

Merchandise Inventory 8,000

Supplies 5,000

Available for Sale Investment 6,500

Prepaid Insurance 12,000

Machine 60,000

Accumulated Depreciation - Machine 10,000

Accounts Payable 4,500

Notes Payable (due on October 1, 2014) 3,500

Unearned Fees 700

Interest Payable 900

Notes Payable (due on October 1, 2013) 2,000

Share Capital - Ordinary 60,000

Cash Dividends 5,500

Retained Earnings 20,900

Dividends Revenue 400

Sales 67,000

Income Tax Expense 1,000

Cost of Goods Sold 30,000

Utilities Expense 7,500

Interest Expense 1,500

Salaries Expense 12,500

Loss on sale of Investment 1,000

Revaluation surplus on equipment 1,100

Unrealized Gain/Loss on AFS Securities 500

Instructions:

Prepare Statement of Financial Position for Bright Co. as of December 31, 2012.

AK1 UTS 2014

spa-feui.com

QUESTION 4 (25%) – Receivables

QUESTION 4a (15%)

PT Melati Tbk is assessing the nature of its provision for the year ended December 31, 2012. PT Melati

calculate the impairment of trade receivables using a formulaic approach that is based on a specific

percentage of trade receivables. This general provision approach has been used by the company at

December 31, 2012. PT Mawar one of the credit customer has come to an agreement with PT Melati

Tbk whereby the amount outstanding of Rp 1,000 (million) will be paid on December 31, 2013. The

following is the analysis of the trade receivables as of December 31, 2012:

Name of Debtors Balance (Rp mio) Cash Expected Rp mio Due Date

PT Mawar 1,000 1,000 December 31, 2013

PT Kenanga 200 200 31 March 2013

Other Receivables (<50

mio)

2,000 1,800 On Average 31 March

2013

Total 3,200 3,000

PT Melati Tbk. has made allowance of Rp 203 mio against trade receivables which is based on the

difference between the cash expected to be received and the balance outstanding plus a 1% general

allowance. PT Kenanga has a similar credit risk to the "other receivables".

1. Is PT Melati Tbk's impairment policy comply with PSAK 55, Provide with Explananations! (5%)

2. Calculate the amount of provision for impairment of trade receivables that should be provided

by PT Melati under PSAK 55? provide the detail calculation! (In case necessary, the discount

rate used is 10%; present value of 1 for n=1 and i=10% is 0.90909) (7.5%)

3. Prepare journal entry for the provision (2.5%)

QUESTION 4b (10%)

Determine whether the following transfer of receivables can be derecognized and accounted for as a

sale or not. Provide an explanation and the proper accounting treatment (for the transferred

receivables and the cash / consideration received) for each case:

1. PT Matahati sold its receivables to third party subject to an agreement to buy it back at a fixed

price .

AK1 UTS 2014

spa-feui.com

2. PT Lala sold its receivables to Mega Finance on a non-guarantee (or without recourse) basis.

3. PT Mini sold its notes receivables with an option to repurchase the note at its fair value at the

time of the repurchase.

4. PT Bora-bora sold its short-term receivables in which it guarantees to compensate the buyer

for any credit losses.

QUESTION 5 (20%) – Inventory

Presented below is information related to Product D of PT Fabregas for the month of January 2013:

Date Product D Qty Unit Cost

01-Jan-13 Beg. Bal. 60 15.300

16-Jan-13 Purchase 95 15.800

22-Jan-13 Purchase 100 15.500

Date Product D Qty Unit Price

10-Jan-13 Sales 50 20.000

19-Jan-13 Sales 40 20.000

30-Jan-13 Sales 70 21.000

PT Fabregas uses the LCNRV method, on an individual-item basis, in pricing its inventory items.

Ending inventory on January 31, 2013, consists of the following:

Product Qty Cost Estimated

Sellling

Price

Cost to

Sell

Cost to

Complete

A 50 25.700 35.000 3.500 1.750

B 100 32.300 37.000 3.700 1.850

C 80 41.500 46.000 4.600 2.300

D ?? ?? 21.000 2.100 1.050

E 40 28.400 39.000 3.900 1.950

AK1 UTS 2014

spa-feui.com

Instructions

1. Compute the cost of goods sold and ending inventory of Product D using perpetual FIFO

method. Show your calculation. (8%)

2. Calculate ending inventory as of January 31, 2013 using LCNRV method. Use your answer from

#1 to complete the missing amount for Product D. (8%)

3. Prepare the journal entry required at January 31, 2013 to recognize any impairment loss of

inventory using the allowance method. (4%)

AK1 UTS 2014

spa-feui.com

Answers

I. Question 1

1. The objective of financial statements according to IASB Conceptual Framework is to provide

financial information about the reporting entity that is useful to present and portential equity

investors, lenders, and other creditors in making decisions in their capacity as capital

profiders. (page 42, chapter 2)

2. Four principle qualitative characteristics according to IASB Conceptual Framework(page 46) :

a) Comparability: A financial statement must enable the users to identify the real similarities and

differences in economic events between companies(and between periods). And includes

consistency, which means that a company applies the same accounting treatment to similar

events, from period to period (they must demonstrate the new adopted method if they want

to change an accounting method).

b) Verifabilitiy: A financial statement will be show the same result if measured by independent

measurers, using the same methods.

c) Timeliness: Financial statement should be able to provide information needed by decision-

makers before it loses its capacity to influence decisions.

d) Understandability: Financial statement must provide information that lets reasonably

informed users see its significance.

3. – Trade off between relevant information in a timely manner and taking time to make sure

that information is representational faithfullness. If information is not reported in a timely

manner it may lose it relevance.

II. Question 2

Indostars Company

Statement of comprehensive income

Fo period ended : 31 Dec 2012

(in €)

Sales revenue 450,000

Cost of goods sold (210,000)

Gross Profit 240,000

AK1 UTS 2014

spa-feui.com

Selling and administrative expenses (75,000)

Other income and expenses

Gain on sale of plant assets 45,000

Income from Operations 210,000

Financing Expense

Interest Expense (10,000)

Income before tax 200,000

Tax expense (30%) (60,000)

Income from continuing operation 140,000

Loss on discontinued operations (20,000)

Income tax on loss from DO 6,000

Net profit/loss from discontinued operations (14,000)

Net Income 126,000

Other Comprehensive Income

Unrealized gain on available-for-sale financial assets 15,000

Income tax on unrealized gain on AFS (4,500)

Comprehensive income 136,500

Attributeable to:

Shareholders of Indostars Company 110,500

Allocation to non-controlling interest 26,000

EPS 1,105

Retained earnings balance on 31 Dec 2012 = 102,500

AK1 UTS 2014

spa-feui.com

III. Question 3

Bright Co

Statement of Financial Position

On 31 Dec 2012

Cash Rp11.000 Accounts Payable Rp4.500

Account Receivable Rp7.000 Notes Payable Rp2.000

Trading Securities Rp3.000 Unearned Fees Rp700

Merchandise Inventory Rp8.000 Interest Payable Rp900

Supplies Rp5.000 Total Current Liabilities Rp8.100

Prepaid Insurance Rp12.000

Non-Current Liabilities

Total Current Assets Rp46.000

Notes Payable Rp3.500

Non-Current Assets Total Non-Current Liabilities Rp3.500

Machine Rp60.000 Owner's Equity

AFS Investment Rp6.500

Acc. Dep - Machine (Rp10.000) Share Capital Ordinary Rp60.000

Total Non-Current Assets Rp56.500 Retained Earnings Rp29.300

AOCI

Revaluation Surplus Rp1100

Total Assets Rp102.500 Unrealized Gain Rp500

Total Owner's Equity Rp90.900

Total Liabilities + Owner's Equity Rp102.500

IV. Question 4

4.a

1. Its not complied with PSAK 55. Because based on PSAK 55 the cash should be present

valued, while the situation does not present valued the cash.

2. Amount of Provision for the Trade receivables

AK1 UTS 2014

spa-feui.com

Book Balance (mio) Cash Expected (mio)

PT Mawar 1000 1000 909

PT Kenanga and others 2200 2000

Total 3200 2909

3. Journal Entry for the Provision

Impairement Allowance Required 291

Book Balance 203

Additional Provision Required 88

Impairement Loss ..................................................................88 Allowance for Impairement ............................................................... 88

4.b.

1) No, Because PT Matahari still has the duty to buy it back (pretty similar to as returning the

money they’ve lent). Treated as a liability (secured borrowing)

2) Yes, because it is followed by the transfer of risk and reward of the receivable. Treated as an

income (sale of account receivable, without guarantee)

3) Yes,since PT Mini has the option to buy it back again, not a duty. Treated as an income (sale

of account receivable, without guarantee)

4) No, because the risks of the receivable are still PT Bora-Bora’s duty. Therefore, it’s a

guaranteed sale which also referred as a failed sale. Treated as a liability (sale of account

receivable, with guarantee)

V. Question 5

1.

Date Purchased Sold or issued Balance

Units @ Total Units @ Total Units @ Total

01-Jan-

13 60 15.300 918.000

10-Jan-

13 50 15.300 765.000 10 15.300 153.000

16-Jan-

13 95 15.800 1.501.000 10 15.300 153.000

95 15.800 1.501.000

AK1 UTS 2014

spa-feui.com

19-Jan-

13 10 15.300 153.000 65 15.800 1.027.000

30 15.800 474.000

22-Jan-

13 100 15.500 1.550.000 65 15.800 1.027.000

100 15.500 1.550.000

30-Jan-

13 65 15.800 1.027.000 95 15.500 1.472.500

5 15.500 77.500

COGS = 765.000 + 153.000 + 474.000 + 1.027.000 + 77.500

= 2.496.500

Ending inventory : 95 units @ 15.500

: 1.472.500

2.

Product Qty Cost Net Realizable Value

Final Inventory

value

A 50 25.700 29.750 1.285.000

B 100 32.300 31.450 3.145.000

C 80 41.500 39.100 3.128.000

D 95 15.500 17.850 1.472.500

E 40 28.400 33.150 1.136.000

*NRV = Estimated selling price - cost to sell - cost to complete

3. Loss Due to Decline of Inventory to NRV 277.000

Allowance to reduce Inventory to NRV 277.000