掌握这3点答题技巧，ACCA考试机考客观题再也不懵逼

正确答案：

(a) (i) The definition of what constitutes a contract for the purpose of applying the standard is critical. The definition of contract is based on the definition of a contract in the USA and is similar to that in IAS 32 Financial Instruments: Presentation. A contract exists when an agreement between two or more parties creates enforceable rights and obligations between those parties. The agreement does not need to be in writing to be a contract but the decision as to whether a contractual right or obligation is enforceable is considered within the context of the relevant legal framework of a jurisdiction. Thus, whether a contract is enforceable will vary across jurisdictions. The performance obligation could include promises which result in a valid expectation that the entity will transfer goods or services to the customer even though those promises are not legally enforceable.

The first criteria set out in IFRS 15 is that the parties should have approved the contract and are committed to perform. their respective obligations. It would be questionable whether that contract is enforceable if this were not the case. In the case of oral or implied contracts, this may be difficult but all relevant facts and circumstances should be considered in assessing the parties’ commitment. The parties need not always be committed to fulfilling all of the obligations under a contract. IFRS 15 gives the example where a customer is required to purchase a minimum quantity of goods but past experience shows that the customer does not always do this and the other party does not enforce their contract rights. However, there needs to be evidence that the parties are substantially committed to the contract.

It is essential that each party’s rights and the payment terms can be identified regarding the goods or services to be transferred. This latter requirement is the key to determining the transaction price.

The contract must have commercial substance before revenue can be recognised, as without this requirement, entities might artificially inflate their revenue and it would be questionable whether the transaction has economic consequences. Further, it should be probable that the entity will collect the consideration due under the contract. An assessment of a customer’s credit risk is an important element in deciding whether a contract has validity but customer credit risk does not affect the measurement or presentation of revenue. The consideration may be different to the contract price because of discounts and bonus offerings. The entity should assess the ability of the customer to pay and the customer’s intention to pay the consideration. If a contract with a customer does not meet these criteria, the entity can continually re-assess the contract to determine whether it subsequently meets the criteria.

Two or more contracts which are entered into around the same time with the same customer may be combined and accounted for as a single contract, if they meet the specified criteria. The standard provides detailed requirements for contract modifications. A modification may be accounted for as a separate contract or a modification of the original contract, depending upon the circumstances of the case.

(ii) Step one in the five-step model requires the identification of the contract with the customer. After a contract has been determined to fall under IFRS 15, the following steps are required before revenue can be recognised.

Step two requires the identification of the separate performance obligations in the contract. This is often referred to as ’unbundling’, and is done at the beginning of a contract. The key factor in identifying a separate performance obligation is the distinctiveness of the good or service, or a bundle of goods or services. A good or service is distinct if the customer can benefit from the good or service on its own or together with other readily available resources and is separately identifiable from other elements of the contract. IFRS 15 requires a series of distinct goods or services which are substantially the same with the same pattern of transfer, to be regarded as a single performance obligation. A good or service, which has been delivered, may not be distinct if it cannot be used without another good or service which has not yet been delivered. Similarly, goods or services which are not distinct should be combined with other goods or services until the entity identifies a bundle of goods or services which is distinct. IFRS 15 provides indicators rather than criteria to determine when a good or service is distinct within the context of the contract. This allows management to apply judgement to determine the separate performance obligations which best reflect the economic substance of a transaction.

Step three requires the entity to determine the transaction price, which is the amount of consideration which an entity expects to be entitled to in exchange for the promised goods or services. This amount excludes amounts collected on behalf of a third party, for example, government taxes. An entity must determine the amount of consideration to which it expects to be entitled in order to recognise revenue.

The transaction price might include variable or contingent consideration. Variable consideration should be estimated as either the expected value or the most likely amount. Management should use the approach which it expects will best predict the amount of consideration and should be applied consistently throughout the contract. An entity can only include variable consideration in the transaction price to the extent that it is highly probable that a subsequent change in the estimated variable consideration will not result in a significant revenue reversal. If it is not appropriate to include all of the variable consideration in the transaction price, the entity should assess whether it should include part of the variable consideration. However, this latter amount still has to pass the ’revenue reversal’ test.

Additionally, an entity should estimate the transaction price taking into account non-cash consideration, consideration payable to the customer and the time value of money if a significant financing component is present. The latter is not required if the time period between the transfer of goods or services and payment is less than one year. If an entity anticipates that it may ultimately accept an amount lower than that initially promised in the contract due to, for example, past experience of discounts given, then revenue would be estimated at the lower amount with the collectability of that lower amount being assessed. Subsequently, if revenue already recognised is not collectable, impairment losses should be taken to profit or loss.

Step four requires the allocation of the transaction price to the separate performance obligations. The allocation is based on the relative standalone selling prices of the goods or services promised and is made at inception of the contract. It is not adjusted to reflect subsequent changes in the standalone selling prices of those goods or services. The best evidence of standalone selling price is the observable price of a good or service when the entity sells that good or service separately. If that is not available, an estimate is made by using an approach which maximises the use of observable inputs. For example, expected cost plus an appropriate margin or the assessment of market prices for similar goods or services adjusted for entity-specific costs and margins or in limited circumstances a residual approach. When a contract contains more than one distinct performance obligation, an entity allocates the transaction price to each distinct performance obligation on the basis of the standalone selling price.

Where the transaction price includes a variable amount and discounts, consideration needs to be given as to whether these amounts relate to all or only some of the performance obligations in the contract. Discounts and variable consideration will typically be allocated proportionately to all of the performance obligations in the contract. However, if certain conditions are met, they can be allocated to one or more separate performance obligations.

Step five requires revenue to be recognised as each performance obligation is satisfied. An entity satisfies a performance obligation by transferring control of a promised good or service to the customer, which could occur over time or at a point in time. The definition of control includes the ability to prevent others from directing the use of and obtaining the benefits from the asset. A performance obligation is satisfied at a point in time unless it meets one of three criteria set out in IFRS 15. Revenue is recognised in line with the pattern of transfer.

If an entity does not satisfy its performance obligation over time, it satisfies it at a point in time and revenue will be recognised when control is passed at that point in time. Factors which may indicate the passing of control include the present right to payment for the asset or the customer has legal title to the asset or the entity has transferred physical possession of the asset.

(b) (i) The contract contains a significant financing component because of the length of time between when the customer pays for the asset and when Tang transfers the asset to the customer, as well as the prevailing interest rates in the market. A contract with a customer which has a significant financing component should be separated into a revenue component (for the notional cash sales price) and a loan component. Consequently, the accounting for a sale arising from a contract which has a significant financing component should be comparable to the accounting for a loan with the same features. An entity should use the discount rate which would be reflected in a separate financing transaction between the entity and its customer at contract inception. The interest rate implicit in the transaction may be different from the rate to be used to discount the cash flows, which should be the entity’s incremental borrowing rate. IFRS 15 would therefore dictate that the rate which should be used in adjusting the promised consideration is 5%, which is the entity’s incremental borrowing rate, and not 11·8%.

Tang would account for the significant financing component as follows:

Recognise a contract liability for the $240,000 payment received on 1 December 2014 at the contract inception:

Dr Cash $240,000
Cr Contract liability $240,000

During the two years from contract inception (1 December 2014) until the transfer of the printing machine, Tang adjusts the amount of consideration and accretes the contract liability by recognising interest on $240,000 at 5% for two years.

Year to 30 November 2015
Dr Interest expense $12,000
Cr Contract liability $12,000

Contract liability would stand at $252,000 at 30 November 2015.

Year to 30 November 2016
Dr Interest expense $12,600
Cr Contract liability $12,600

Recognition of contract revenue on transfer of printing machine at 30 November 2016 of $264,600 by debiting contract liability and crediting revenue with this amount.

(ii) Tang accounts for the promised bundle of goods and services as a single performance obligation satisfied over time in accordance with IFRS 15. At the inception of the contract, Tang expects the following:

Transaction price $1,500,000
Expected costs $800,000
Expected profit (46·7%) $700,000

At contract inception, Tang excludes the $100,000 bonus from the transaction price because it cannot conclude that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. Completion of the printing machine is highly susceptible to factors outside the entity’s influence. By the end of the first year, the entity has satisfied 65% of its performance obligation on the basis of costs incurred to date. Costs incurred to date are therefore $520,000 and Tang reassesses the variable consideration and concludes that the amount is still constrained. Therefore at 30 November 2015, the following would be recognised:

Revenue $975,000
Costs $520,000
Gross profit $455,000

However, on 4 December 2015, the contract is modified. As a result, the fixed consideration and expected costs increase by $110,000 and $60,000, respectively. The total potential consideration after the modification is $1,710,000 which is $1,610,000 fixed consideration + $100,000 completion bonus. In addition, the allowable time for achieving the bonus is extended by six months with the result that Tang concludes that it is highly probable that including the bonus in the transaction price will not result in a significant reversal in the amount of cumulative revenue recognised in accordance with IFRS 15. Therefore the bonus of $100,000 can be included in the transaction price. Tang also concludes that the contract remains a single performance obligation. Thus,Tang accounts for the contract modification as if it were part of the original contract. Therefore, Tang updates its estimates of costs and revenue as follows:

Tang has satisfied 60·5% of its performance obligation ($520,000 actual costs incurred compared to $860,000 total expected costs). The entity recognises additional revenue of $59,550 [(60·5% of $1,710,000) – $975,000 revenue recognised to date] at the date of the modification as a cumulative catch-up adjustment. As the contract amendment took place after the year end, the additional revenue would not be treated as an adjusting event.

正确答案：
(ii) ‘No frills’ low-cost budget airlines are usually associated with the following characteristics. Each of these characteristics
is considered in the context of Oceania National Airlines (ONA).
– Operational economies of scale
Increased flight frequency brings operational economies and is attractive to both business and leisure travellers. In
the international sector where ONA is currently experiencing competition from established ‘no frills’ low-cost budget
airlines ONA has, on average, one flight per day to each city. It would have to greatly extend its flight network, flight
frequency and the size of its aircraft fleet if it planned to become a ‘no frills’ carrier in this sector. This fleet
expansion appears counter to the culture of an organisation that has expanded very gradually since its formation.
Table 1 shows only three aircraft added to the fleet in the period 2004–2006. It is likely that the fleet size would
have to double for ONA to become a serious ‘no frills’ operator in the international sector. In the regional sector, the
flight density, an average of three flights per day, is more characteristic of a ‘no frills’ airline. However, ONA would
have to address the relatively low utilisation of its aircraft (see Tables 1 and 2) and the cost of maintenance
associated with a relatively old fleet of aircraft.
– Reduced costs through direct sales
On-line booking is primarily aimed at eliminating commission sales (usually made through travel agents). ‘No frills’
low-cost budget airlines typically achieve over 80% of their sales on-line. The comparative figure for ONA (see
Table 2) is 40% for regional sales and 60% for international sales, compared with an average of 84% for their
competitors. Clearly a major change in selling channels would have to take place for ONA to become a ‘no frills’
low-cost budget airline. It is difficult to know whether this is possible. The low percentage of regional on-line sales
seems to suggest that the citizens of Oceania may be more comfortable buying through third parties such as travel
agents.
– Reduced customer service
‘No frills’ low-cost budget airlines usually do not offer customer services such as free meals, free drinks and the
allocation of passengers to specific seats. ONA prides itself on its in-flight customer service and this was one of the
major factors that led to its accolade as Regional Airline of the Year. To move to a ‘no frills’ strategy, ONA would
have to abandon a long held tradition of excellent customer service. This would require a major cultural change
within the organisation. It would also probably lead to disbanding the award winning (Golden Bowl) catering
department and the redundancies of catering staff could prove difficult to implement in a heavily unionised
organisation.
Johnson, Scholes and Whittington have suggested that if an organisation is to ‘achieve competitive advantage through
a low price strategy then it has two basic choices. The first is to try and identify a market segment which is unattractive
(or inaccessible) to competitors and in this way avoid competitive pressures to erode price.’ It is not possible for ONA to
pursue this policy in the international sector because of significant competition from established continental ‘no frills’
low-cost budget airlines. It may be a candidate strategy for the regional sector, but the emergence of small ‘no frills’ lowcost
budget airlines in these countries threaten this. Many of these airlines enter the market with very low overheads
and use the ‘no frills’ approach as a strategy to gain market share before progressing to alternative strategies.
Secondly, a ‘no frills’ strategy depends for its success on margin. Johnson, Scholes and Whittington suggest that ‘in the
long run, a low price strategy cannot be pursued without a low-cost base’. Evidence from the scenario suggests that ONA
does not have a low cost base. It continues to maintain overheads (such as a catering department) that its competitors
have either disbanded or outsourced. More fundamentally (from Table 2), its flight crew enjoy above average wages and
the whole company is heavily unionised. The scenario acknowledges that the company pays above industry salaries and
offers excellent benefits such as a generous non-contributory pension. Aircraft utilisation and aircraft age also suggest a
relatively high cost base. The aircraft are older than their competitors and presumably incur greater maintenance costs.
ONA’s utilisation of its aircraft is also lower than its competitors. It seems highly unlikely that ONA can achieve the
changes required in culture, cost base and operations required for it to become a ‘no frills’ low-cost budget airline. Other
factors serve to reinforce this. For example:
– Many ‘no frills’ low-cost budget airlines fly into airports that offer cheaper taking off and landing fees. Many of these
airports are relatively remote from the cities they serve. This may be acceptable to leisure travellers, but not to
business travellers – ONA’s primary market in the regional sector.
– Most ‘no frills’ low-cost budget airlines have a standardised fleet leading to commonality and familiarity in
maintenance. Although ONA has a relatively small fleet it is split between three aircraft types. This is due to
historical reasons. The Boeing 737s and Airbus A320s appear to be very similar aircraft. However, the Boeings
were inherited from OceaniaAir and the Airbuses from Transport Oceania.
In conclusion, the CEO’s decision to reject a ‘no frills’ strategy for ONA appears to be justifiable. It would require major
changes in structure, cost and culture that would be difficult to justify given ONA’s current position. Revolution is the
term used by Baligan and Hope to describe a major rapid strategic change. It is associated with a sudden transformation
required to react to extreme pressures on the organisation. Such an approach is often required when the company is
facing a crisis and needs to quickly change direction. There is no evidence to support the need for a radical
transformation. This is why the CEO brands the change to a ‘no frills’ low-cost budget airline as ‘unnecessary’. The
financial situation (Table 3) is still relatively healthy and there is no evidence of corporate predators. It can be argued
that a more incremental approach to change would be beneficial, building on the strengths of the organisation and the
competencies of its employees. Moving ONA to a ‘no frills’ model would require seismic changes in cost and culture. If
ONA really wanted to move into this sector then they would be better advised to start afresh with a separate brand andairline and to concentrate on the regional sector where it has a head start over many of its competitors.

正确答案：
(b) Implications for the auditor’s report
(i) Management Report
■ $4·5 million represents 3·75% of total assets, 1·7% of revenue and 48·9% profit before tax. As this is material
by any criteria (exceeding all of 2% of total assets, 1/2% revenue and 5% PBT), the specific disclosure requirements
of IASs need to be met (IAS 1 ‘Presentation of Financial Statements’).
■ The Management Report discloses the amount and the reason for a material change in equity whereas the financial
statements do not show the reason for the change and suggest that it is immaterial. As the increase in equity
attributable to this adjustment is nearly half as much as that attributable to PBT there is a material inconsistency
between the Management Report and the audited financial statements.
■ Amendment to the Management Report is not required.
Tutorial note: Marks will be awarded for arguing, alternatively, that the Management Report disclosure needs to
be amended to clarify that the revaluation arises from the first time implementation.
■ Amendment to the financial statements is required because the disclosure is:
– incorrect – as, on first adoption of IAS 40, the fair value adjustment should be against the opening balance
of retained earnings; and
– inadequate – because it is being ‘supplemented’ by additional disclosure in a document which is not within
the scope of the audit of financial statements.
■ Whilst it is true that the adoption of IAS 40 did not have a significant impact on results of operations, Hegas’s
financial position has increased by nearly 4% in respect of the revaluation (to fair value) of just one asset category
(investment properties). As this is significant, the statement in the notes should be redrafted.
■ If the financial statements are not amended, the auditor’s report should be qualified ‘except for’ on grounds of
disagreement (non-compliance with IAS 40) as the matter is material but not pervasive. Additional disclosure
should also be given (e.g. that the ‘other difference’ is a fair value adjustment).
■ However, it is likely that when faced with the prospect of a qualified auditor’s report Hegas’s management will
rectify the financial statements so that an unmodified auditor’s report can be issued.
Tutorial note: Marks will be awarded for other relevant points e.g. citing IAS 8 ‘Accounting Policies, Changes in
Accounting Estimates and Errors’.
(ii) Chairman’s statement
Tutorial note: Hegas is privately-owned therefore IAS 14 ‘Segment Reporting’ does not apply and the proportion of
revenue attributable to hydro-electricity will not be required to be disclosed in the financial statements. However, credit
will be awarded for discussing the implications for the auditor’s report if it is regarded as a material inconsistency on
the assumption that segment revenue (or similar) is reported in the financial statements.
■ The assertion in the chairman’s statement, which does not fall within the scope of the audit of the financial
statements, claims two things, namely that the company:
(1) is ‘one of the world’s largest generators of hydro-electricity’; and
(2) has ‘a dedicated commitment to accountable ethical professionalism’.
■ To the extent that this information does not relate to matters disclosed in the financial statements it may give rise
to a material misstatement of fact. In particular, the first statement presents a misleading impression of the
company’s size. In misleading a user of the financial statements with this statement, the second statement is not
true (as it is not ethical or professional to mislead the reader and potentially undermine the credibility of the
financial statements).
■ The first statement is a material misstatement of fact because, for example:
– the company is privately-owned, and publicly-owned international/multi-nationals are larger;
– the company’s main activity is civil engineering not electricity generation (only 14% of revenue is derived from
HEP);
– as the company ranks at best eighth against African companies alone it ranks much lower globally.
■ Hegas should be asked to reconsider the wording of the chairman’s statement (i.e. removing these assertions) and
consult, as necessary, the company’s legal advisor.
■ If the statement is not changed there will be no grounds for qualification of the opinion on the audited financial
statements. The audit firm should therefore take legal advice on how the matter should be reported.
■ However, an emphasis of matter paragraph may be used to report on matters other than those affecting the audited
financial statements. For example, to explain the misstatement of fact if management refuses to make the
amendment.
Tutorial note: Marks will also be awarded for relevant comments about the chairman’s statement being perceived by
many readers to be subject to audit and therefore that the unfounded statement might undermine the credibility of the
financial statements. Shareholders tend to rely on the chairman’s statement, even though it is not regulated or audited,
because modern financial statements are so complex.