s
Brighton Business School
Undergraduate Programmes
Level Five Examination
28th May 2021
FA283: Financial Accounting and Reporting
_________________________________________________________________________
Instruction to candidates:
Time allowed: 6 hours (7 ½ hours if you have a Learning Support Plan in place) to
complete the paper
Rubric: You are required to answer FOUR questions in total
Section A: The question in this section is COMPULSORY and MUST be answered
Section B: You are required to answer any THREE questions from this section
Please show all your workings to maximise marks. All questions carry 25 marks
Submission:
You are required to submit your exam answers to the relevant Turnitin Submission
Point on Student Central in the Assessment and Grades Area. This should be in the
form of a word document. Please do not include your name on the answer document
as papers will be marked anonymously. You must however include your student
number on the work submitted.
Word Count:
1,000 words for each hour of the original duration of your exam. The maximum word
count for this exam is 3,000 words. Please do not exceed the word count as the work
will not be marked.
Handwritten calculations and diagrams:
You may use Excel for calculations and workings which form part of your answer or for
presenting financial information, but these must not be submitted separately,
but must be embedded into your Word document submission. Similarly, any
handwritten calculations or diagrams that form part of your answer should be
photographed and embedded into the Word document.
Nature of examination: Unseen
Allowable Material: Non-programmable calculators are permitted
Page 1 of 10
FA283: Financial Accounting and Reporting
28th May 2021
, Section A: You MUST answer QUESTION ONE in this section
Question 1
The summarised trial balance of Startick Plc as at 30 September 2021 as follows:
£000 £000
Plant and equipment – at cost (note (ii)) 292,500
Land (£25 million) and buildings – at cost (note (ii)) 175,000
Investment properties at fair value (note (iii)) 100,000
Intangible assets (note (iv)) 80,000
Current assets 266,500
Draft Profit for the year (notes (i) and (vi)) 98,500
Share capital (£1 each) 100,000
Retained earnings as at 1 October 2020 145,500
Accumulated depreciation at 1 October 2020:
buildings 100,000
plant and equipment 172,500
Current liabilities 194,500
Deferred tax (note (v)) 12,500
Current tax (note (v)) 5,500
Proceeds from disposal of property (note (iii)) 85,000
914,000 914,000
Notes:
(i) In deriving the draft profit for the year, Startick had reported a sale amounting to £36.45
million, which took place on 1 October 2020. The terms of the sale involved the transfer of
goods, which took place on 1 October 2020, but terms of payment whereby payment by the
customer was to be in two years’ time on 1 October 2022. Startick borrows from their bank at
a rate of 8% per annum.
(ii) Property plant and equipment:
Land and buildings have been carried at cost up to 30 September 2020. Of the cost of £175
million, £25 million was attributable to land.
However, the price of property has increased significantly in recent years and so the
directors decided to revalue the land and buildings. On 1 October 2020, an independent
surveyor valued the land at £40 million and the buildings at £195 million at that date. The
remaining life of these buildings at 1 October 2020 was 15 years. Startick does not make an
annual transfer to retained profits to reflect the realisation of the revaluation gain.
Plant and equipment is depreciated at 12½% per annum using the reducing balance
method.
No depreciation has yet been charged on any non-current asset for the year ended 30
September 2021.
Page 2 of 10
FA283: Financial Accounting and Reporting
28th May 2021
Brighton Business School
Undergraduate Programmes
Level Five Examination
28th May 2021
FA283: Financial Accounting and Reporting
_________________________________________________________________________
Instruction to candidates:
Time allowed: 6 hours (7 ½ hours if you have a Learning Support Plan in place) to
complete the paper
Rubric: You are required to answer FOUR questions in total
Section A: The question in this section is COMPULSORY and MUST be answered
Section B: You are required to answer any THREE questions from this section
Please show all your workings to maximise marks. All questions carry 25 marks
Submission:
You are required to submit your exam answers to the relevant Turnitin Submission
Point on Student Central in the Assessment and Grades Area. This should be in the
form of a word document. Please do not include your name on the answer document
as papers will be marked anonymously. You must however include your student
number on the work submitted.
Word Count:
1,000 words for each hour of the original duration of your exam. The maximum word
count for this exam is 3,000 words. Please do not exceed the word count as the work
will not be marked.
Handwritten calculations and diagrams:
You may use Excel for calculations and workings which form part of your answer or for
presenting financial information, but these must not be submitted separately,
but must be embedded into your Word document submission. Similarly, any
handwritten calculations or diagrams that form part of your answer should be
photographed and embedded into the Word document.
Nature of examination: Unseen
Allowable Material: Non-programmable calculators are permitted
Page 1 of 10
FA283: Financial Accounting and Reporting
28th May 2021
, Section A: You MUST answer QUESTION ONE in this section
Question 1
The summarised trial balance of Startick Plc as at 30 September 2021 as follows:
£000 £000
Plant and equipment – at cost (note (ii)) 292,500
Land (£25 million) and buildings – at cost (note (ii)) 175,000
Investment properties at fair value (note (iii)) 100,000
Intangible assets (note (iv)) 80,000
Current assets 266,500
Draft Profit for the year (notes (i) and (vi)) 98,500
Share capital (£1 each) 100,000
Retained earnings as at 1 October 2020 145,500
Accumulated depreciation at 1 October 2020:
buildings 100,000
plant and equipment 172,500
Current liabilities 194,500
Deferred tax (note (v)) 12,500
Current tax (note (v)) 5,500
Proceeds from disposal of property (note (iii)) 85,000
914,000 914,000
Notes:
(i) In deriving the draft profit for the year, Startick had reported a sale amounting to £36.45
million, which took place on 1 October 2020. The terms of the sale involved the transfer of
goods, which took place on 1 October 2020, but terms of payment whereby payment by the
customer was to be in two years’ time on 1 October 2022. Startick borrows from their bank at
a rate of 8% per annum.
(ii) Property plant and equipment:
Land and buildings have been carried at cost up to 30 September 2020. Of the cost of £175
million, £25 million was attributable to land.
However, the price of property has increased significantly in recent years and so the
directors decided to revalue the land and buildings. On 1 October 2020, an independent
surveyor valued the land at £40 million and the buildings at £195 million at that date. The
remaining life of these buildings at 1 October 2020 was 15 years. Startick does not make an
annual transfer to retained profits to reflect the realisation of the revaluation gain.
Plant and equipment is depreciated at 12½% per annum using the reducing balance
method.
No depreciation has yet been charged on any non-current asset for the year ended 30
September 2021.
Page 2 of 10
FA283: Financial Accounting and Reporting
28th May 2021
