（d) Sirus raised a loan with a bank of $2 million on 1 May 2007. The market interest rate

(c) On 1 May 2007 Sirus acquired another company, Marne plc. The directors of Marne, who were the only

shareholders, were offered an increased profit share in the enlarged business for a period of two years after the

date of acquisition as an incentive to accept the purchase offer. After this period, normal remuneration levels will

be resumed. Sirus estimated that this would cost them $5 million at 30 April 2008, and a further $6 million at

30 April 2009. These amounts will be paid in cash shortly after the respective year ends. (5 marks)

Required:

Draft a report to the directors of Sirus which discusses the principles and nature of the accounting treatment of

the above elements under International Financial Reporting Standards in the financial statements for the year

ended 30 April 2008.

notify applicant. The B/L was issued accordingly but the applicant's house No. in the address of notify party was wrongly mentioned. The issuing bank raised the discrepancy. Is the issuing bank correct？ Please justify your answer.

(1)( ) Yes.

(2)( ) No.

(3)( ) This is a typing error.

(4)( ) The address of the notify party must correspond with the L/C.

(b) When a director retires, amounts become payable to the director as a form. of retirement benefit as an annuity.

These amounts are not based on salaries paid to the director under an employment contract. Sirus has

contractual or constructive obligations to make payments to former directors as at 30 April 2008 as follows:

(i) certain former directors are paid a fixed annual amount for a fixed term beginning on the first anniversary of

the director’s retirement. If the director dies, an amount representing the present value of the future payment

is paid to the director’s estate.

(ii) in the case of other former directors, they are paid a fixed annual amount which ceases on death.

The rights to the annuities are determined by the length of service of the former directors and are set out in the

former directors’ service contracts. (6 marks)

Required:

Draft a report to the directors of Sirus which discusses the principles and nature of the accounting treatment of

the above elements under International Financial Reporting Standards in the financial statements for the year

ended 30 April 2008.

t shows the B/L date as 30th September 2008 while the document was received by the issuing bank on 5th October 2008. The issuing bank raised a discrepancy on 10th October 2008. The Document was later accepted by the applicant on 15th October 2008. The Issuing bank communicated its acceptance on 16th October 2008. Which one of the following is the correct maturity date of the bill？

(1)( ) 29th November 2008

(2)( ) 4th December 2008

(3)( ) 14th December 2008

(4)( ) 51h December 2008

A.raised

B.had raised

C.was raised

D.had been raised

A.having raised

B.has raised

C.having risen

D.has risen

A.A. To be born…was raised

B.B. Born…is raised

C.C. Being born…have raised

D.D. Born…was raised

A.put

B.rose

C.set

D.raised

A.raising

B. raised

C. arousing

D. aroused

A.rose

B.raised

C.arose

D.araised