Drop shipping, wholesale and()are all available.我们可接受直接代发、批发和代工。

(a) Kayte operates in the shipping industry and owns vessels for transportation. In June 2014, Kayte acquired Ceemone whose assets were entirely investments in small companies. The small companies each owned and operated one or two shipping vessels. There were no employees in Ceemone or the small companies. At the acquisition date, there were only limited activities related to managing the small companies as most activities were outsourced. All the personnel in Ceemone were employed by a separate management company. The companies owning the vessels had an agreement with the management company concerning assistance with chartering, purchase and sale of vessels and any technical management. The management company used a shipbroker to assist with some of these tasks.

Kayte accounted for the investment in Ceemone as an asset acquisition. The consideration paid and related transaction costs were recognised as the acquisition price of the vessels. Kayte argued that the vessels were only passive investments and that Ceemone did not own a business consisting of processes, since all activities regarding commercial and technical management were outsourced to the management company. As a result, the acquisition was accounted for as if the vessels were acquired on a stand-alone basis.

Additionally, Kayte had borrowed heavily to purchase some vessels and was struggling to meet its debt obligations. Kayte had sold some of these vessels but in some cases, the bank did not wish Kayte to sell the vessel. In these cases, the vessel was transferred to a new entity, in which the bank retained a variable interest based upon the level of the indebtedness. Kayte’s directors felt that the entity was a subsidiary of the bank and are uncertain as to whether they have complied with the requirements of IFRS 3 Business Combinations and IFRS 10 Consolidated Financial Statements as regards the above transactions. (12 marks)

(b) Kayte’s vessels constitute a material part of its total assets. The economic life of the vessels is estimated to be 30 years, but the useful life of some of the vessels is only 10 years because Kayte’s policy is to sell these vessels when they are 10 years old. Kayte estimated the residual value of these vessels at sale to be half of acquisition cost and this value was assumed to be constant during their useful life. Kayte argued that the estimates of residual value used were conservative in view of an immature market with a high degree of uncertainty and presented documentation which indicated some vessels were being sold for a price considerably above carrying value. Broker valuations of the residual value were considerably higher than those used by Kayte. Kayte argued against broker valuations on the grounds that it would result in greater volatility in reporting.

Kayte keeps some of the vessels for the whole 30 years and these vessels are required to undergo an engine overhaul in dry dock every 10 years to restore their service potential, hence the reason why some of the vessels are sold. The residual value of the vessels kept for 30 years is based upon the steel value of the vessel at the end of its economic life. At the time of purchase, the service potential which will be required to be restored by the engine overhaul is measured based on the cost as if it had been performed at the time of the purchase of the vessel. In the current period, one of the vessels had to have its engine totally replaced after only eight years. Normally, engines last for the 30-year economic life if overhauled every 10 years. Additionally, one type of vessel was having its funnels replaced after 15 years but the funnels had not been depreciated separately. (11 marks)

Required:

Discuss the accounting treatment of the above transactions in the financial statements of Kayte.

Note: The mark allocation is shown against each of the elements above.

Professional marks will be awarded in question 3 for clarity and quality of presentation. (2 marks)

Please fill the following particulars in a credit form to issue a Red Clause credit.

(1)issuing date: 6 June, 200×

(2)Credit No. 256734

(3)Credit amount: AUD64,000.00 (say Australian dollars...)

(4)expiry date: 31 July, 200×

(5)available with the advising bank by negotiation

(6)shipment date: 16 July, 200×

(7)special condition

"The Issuing Bank authorises the Negotiating Bank to pay 60% of the amount of the Credit in advance to the beneficiary against the following presentations:

Ⅰ. a receipt for the advance duly signed by the beneficiary;

Ⅱ. an undertaking from the beneficiary to utilize the funds to purchase and pack the goods;

Ⅲ. the undertaking of the beneficiary to present full set of documents as stipulated in the Credit to the Negotiating bank within the expiry of the credit.

After the advance payment has been made to the beneficiary, the Negotiating Bank may claim reimbursement to be supported by the receipt and undertaking on the Issuing Bank which will reimburse the negotiating bank immediately.

Upon negotiation of documents presented by the beneficiary, the advance payment for 60% of the credit amount will be deducted from the whole negotiating amount for beneficiary's refundment. The remaining approximate 40o-/o of the invoice value will be claimed by the Negotiating bank on the Issuing Bank for its reimbursement. "

Red Clause Credit

Name of Issuing Bank Place and date of issue

Bank of Australia, London, (1) ____________

Name of Beneficiary Advised through

To: Marlin Wool Company, Melbourne Bank of Australia, Melbourne

Dear Sirs,

At the request and on the instructions of (name and address of the applicant), we hereby issue an Irrevocable Documentary Credit No. (2) ______ for (3) ______ (say ____________) to expire on or before (4) ______ at Melbourne (5) __________________ of your draft for 40% of the invoice value drawn at sight on us against the presentation of the documents detailed herein:

① Commercial invoice in triplicate.

② Full set clean on board ocean bills of lading made out to order endorsed in blank marked "freight prepaid".

③ Packing list in triplicate.

Evidencing shipment from London to Melbourne not later than (6) ______.

Partial shipments not allowed. Transhipment allowed.

(7)Special condition

____________________________________________________________

____________________________________________________________

Instructions to the Negotiating Bank

All shipping documents in compliance with the terms and conditions of the credit shall be forwarded by you immediately to us for beneficiary's refundment of 60% advance payment and claiming your reimbursement of 40% invoice value.

We engage with drawers and bona-fide holders of draft (s) drawn under and negotiated in compliance with the terms and conditions of the credit that such draft (s) shall be duly honoured upon due presentation.

This Credit is subject to UCP 600.

Yours faithfully

Bank of Australia,

London

dignature(s)

Shipping Order(S/O)

Shipping instructions

A.shipping marks

B.shipping documents

C.Shipping Order

D.shipping bills

The shipping order is issued by the master or the mate. ( )

参考答案：错误