ACCA FR case studies
ACCA FR · Put your knowledge to work in context.
ACCA Financial Reporting (FR) is a professional-level examination within the ACCA Qualification, aimed at candidates who already understand the basics of double-entry bookkeeping and are moving on to how financial statements are prepared, presented and interpreted under international standards. It suits learners working towards the ACCA Qualification, finance professionals in reporting roles, and graduates who want demonstrable competence in preparing and analysing financial information. The ACCA FR case studies are 5 cases and about 4,042 words.
1Sale and repurchase of a warehouse: has the asset really been sold?
On 1 October 20X5 Halden Co sold a warehouse to Kestrel Bank for 8.0m cash and on the same day signed a binding agreement to repurchase it on 30 September 20X8 for 9.2m. The warehouse's carrying amount was 6.0m, its fair value was independently assessed at 8.0m, and its remaining useful life is 20 years.
755 words, about 4 min2Litigation, insurance and an onerous supply contract
Meridian Co is being sued by a customer over components supplied in March 20X5. Meridian's legal advisers confirm that a judgement is more likely than not to go against the company and quantify the loss at 1.4m; a negotiated settlement of 1.1m is being discussed but is described only as possible.
747 words, about 4 min3Is the 16.1% ROCE a step change or an accounting artefact?
Northgate Co's draft results for the year to 31 March 20X6 show revenue of 61.0m (20X5: 50.0m), operating profit of 9.8m (20X5: 7.0m) and capital employed at the year end of 60.8m (20X5: 56.5m), giving ROCE of 16.1% against 12.4%. The CEO's board paper describes this as 'a step change in operating efficiency'.
749 words, about 4 min4Goodwill, NCI and a change in ownership interest
On 1 January 20X6 Perch Co acquired 80% of Minnow Co for 46m cash. At acquisition Minnow's net assets had a carrying amount of 38m.
831 words, about 4 min5A hard-coded fix and an out-of-date FX table
You are a trainee in the group reporting team of a listed retailer with a 31 December year end. The consolidation is built in a cloud spreadsheet shared across four countries.
960 words, about 5 min