The company carried a detailed（）on the market in order to improve its product.

(ii) The property of the former administrative centre of Tyre is owned by the company. Tyre had decided in the year

that the property was surplus to requirements and demolished the building on 10 June 2006. After demolition,

the company will have to carry out remedial environmental work, which is a legal requirement resulting from the

demolition. It was intended that the land would be sold after the remedial work had been carried out. However,

land prices are currently increasing in value and, therefore, the company has decided that it will not sell the land

immediately. Tyres uses the ‘cost model’ in IAS16 ‘Property, plant and equipment’ and has owned the property

for many years. (7 marks)

Required:

Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended

31 May 2006.

(The mark allocation is shown against each of the above items)

Insurance policies usually contain a (56) clause that excludes a fixed amount of the loss from (57) Casualty insurance policies frequently contain a coinsurance clause in the contract. A coinsurance clause provides that the insurance company shall be liable (58) only a portion of any loss (59) by the insured unless the insured carries insurance which totals a certain percent, frequently 80-90 percent of the fair value of the asset. In the (60) of a loss, the insured recovers from the insurance company that portion of the loss which the face of the insurance policy bears to the amount of insurance that should be carried as required by the coinsurance clause.

(41)

A．deductible

B．exemptible

C．expectable

D．escapable

ion is $2,000,000 in 2018.Milroy's gross receipts have always exceeded $40,000,000.Milroy's interest expense is $800,000.Which of the follow is correct？()

A、Milroy can deduct $800,000 of interest expense

B、Milroy can deduct $600,000 of interest expense and can carry forward the remaining $200,000 indefinitely

C、Milroy can deduct $600,000 of interest expense and the remaining $200,000 can not be carried forward

D、Milroy can deduct $600,000 of interest expense and can carry back the remaining $200,0003 years

E、Milroy cannot deduct any interest expense

ed 31 December 2005

included the following figures:

$

Profit 684,000

Closing inventory 116,800

Trade receivables 248,000

Allowance for receivables 10,000

No adjustments have yet been made for the following matters:

(1) The company’s inventory count was carried out on 3 January 2006 leading to the figure shown above. Sales

between the close of business on 31 December 2005 and the inventory count totalled $36,000. There were no

deliveries from suppliers in that period. The company fixes selling prices to produce a 40% gross profit on sales.

The $36,000 sales were included in the sales records in January 2006.

(2) $10,000 of goods supplied on sale or return terms in December 2005 have been included as sales and

receivables. They had cost $6,000. On 10 January 2006 the customer returned the goods in good condition.

(3) Goods included in inventory at cost $18,000 were sold in January 2006 for $13,500. Selling expenses were

$500.

(4) $8,000 of trade receivables are to be written off.

(5) The allowance for receivables is to be adjusted to the equivalent of 5% of the trade receivables after allowing for

the above matters, based on past experience.

Required:

(a) Prepare a statement showing the effect of the adjustments on the company’s net profit for the year ended

31 December 2005. (5 marks)

rrency during the financial

year ended 31 October 2006 and has conducted foreign operations through a foreign entity. Its functional and

presentation currency is the dollar. A summary of the foreign currency activities is set out below:

(a) Misson has a 100% owned foreign subsidiary, Chong, which was formed on 1 November 2004 with a share

capital of 100 million euros which has been taken as the cost of the investment. The total shareholders’ equity

of the subsidiary as at 31 October 2005 and 31 October 2006 was 140 million euros and 160 million euros

respectively. Chong has not paid any dividends to Misson and has no other reserves than retained earnings in its

financial statements. The subsidiary was sold on 31 October 2006 for 195 million euros.

Misson would like to know how to treat the sale of the subsidiary in the parent and group accounts for the year

ended 31 October 2006. (8 marks)

Required:

Discuss the accounting treatment of the above transactions in accordance with the advice required by the

directors.

(Candidates should show detailed workings as well as a discussion of the accounting treatment used.)

(教材对话原文)

Michael: They are testing the 3D printer. Don’t you come and see it？

Lucas: What？ Never heard of it.

Michael: It is one of the most latest technological innovations.

Lucas: Really？{A; B; C; D; E}.

Michael: Come on! You should learn to be open-minded.

Lucas: {A; B; C; D; E}

Michael: The 3D printing technology could be used in construction, engineering, biomedicine, and many other fields. It can print anything, a house, a car, even a liver!

Lucas: That can’t be true. I will never believe this.

Michael:{A; B; C; D; E}.All these will be absolutely carried out by 3D printers. There’s a company called Natural Machines has introduced a 3D printer for food producing.

Lucas: I guess that there are a lot of procedures involved in this process. So this printer must be very big.

Michael:{A; B; C; D; E}. It can print all kinds of dessert and starter.

Lucas: Is it expensive？

Michael:{A; B; C; D; E}.

A. It is about $.1,000

B. Maybe its functions are questionable

C. It is really true.

D. What are the main functions of it？

E. In fact, it is as big as an oven

In 1985, the Coca-cola company made the decision to change the formula of its leading soft drink. (1985年，可口可乐公司决定改变他们主要的软饮料的配方)The change was based on the findings of many market studies. These studies had shown that the general response to the new product was good. However, the change of the traditional Coca-cola by New Coke was rejected by the majority of drinkers. In fact, the company had to step back and restart production of the old formula of Coca-cola.

The most important reason why New Coke was rejected was the emotional relationship that existed between drinkers and the old soft drink formula. Drinking Coca-cola had become a tradition for many people over its 99 years of existence. The change made by the company was not only in Coke’s formula but also in the traditional values and memories that it represented to the drinkers. “We had taken away more than the product Coca-cola. We had taken away a little part of them and their past.” The drinkers rejected this “improvement”, because “they believed that Coke stood for traditional value...so they felt betrayed when the product changed completely overnight”.

Although a lot of research was done by Coca-cola company, it didn’t show the depth of drinkers’emotion for the product. The studies took many forms, but none of the tests was able to measure the degree of personal and emotional reactions caused by the disappearance of the old, traditional Coca-cola. The weakness of the research was that it was mainly quantitative in form. The result was only numbers that could not show the deep meaning the product had for many people. A more extensive study focusing on the qualitative aspects of the change would perhaps have been able to demonstrate the close relationship existing between drinkers and product.

1.Coca-cola company changed the formula in 1985 because __________.

A.it led the soft drink industry in the market

B.its market studies supported the change in the formula

C.it carried out market research for expansion

D.it simply felt the need to make the change

2.According to the passage, the drinkers rejected New Coke because of __________.

A.the late response to the market by Coca-cola company

B.the reproduction of Coca-cola’s old drink formula

C.a strong dislike by Coca-cola’s regular drinkers

D.the emotional relationship between the drinkers and the old soft drink

3.The product Coca-cola was believed to stand for __________.

A.traditional values and good memories

B.traditional customs and happy days

C.past honors and efficient management

D.top quality and wonderful taste

4.Which of the following statements is true？

A.Research by Coca-cola considered emotional factors.

B.Coca-cola did little research before they made the change.

C.Research by Coca-cola was quantitative rather than qualitative.

D.Research by Coca-cola was both quantitative and qualitative.

5.The author of the article clearly indicates that __________.

A.the weakness of the research could have been removed

B.Coca-cola should have measured the quantitative factors more carefully

C.Coca-cola should have done a more extensive qualitative study

D.A slower change of the product might have improved the sales of the company

1. His son is (luck)______________ enough to have been admitted to this large company.

2. After an (introduce) _______________ by the manager, we’ll go on with the day’s discussion.

3. We must keep the manager (inform)______________of the advertising campaign.

4. It is suggested that the president of the Union (make) _________________ a speech on behalf of all workers.

5. Having been badly damaged by the earthquake, the town has to be (rebuild)__________ .

6. With such a short time (leave)_________, it’s impossible for us to finish this complicated experiment.

7. The local economy depends (heavy) _________ on the exports of manufacture’s goods.

8. The proposal about the annual sales (discuss) ___________at the next board meeting.

9. If your neighbors are too noisy, then you have a good reason to make your (complain)______________.

10. Lily tends to get very (patience)__________ if you ask her more than two questions.

III. Reading Comprehension (30’)

Directions: Read the following passage and then choose the best answers to the questions that follow.

Task 1

When it comes to human resources, hiring highly-skilled staff is not usually enough for a company to function successfully. Besides the knowledge in their particular fields, employees must always have additional skills—those of co-operation. In the case that work tasks can only be carried out by communicating with people, accepting common decisions, solving problems, sharing information and helping one another, teamwork skills are vital.

While some jobs may require talent, the ability to work as a team is learned

profits of the business

equally. On 28 February 2007 the partners sold the business to Razor Ltd, in exchange for shares in Razor Ltd, with

each former partner owning one third of the new company.

The recent, tax adjusted, trading profits of the Stiletto Partnership have been as follows:

￡

Year ended 30 June 2006 92,124

1 July 2006 to 28 February 2007 81,795

Clint, who was 65 on 5 October 2006, retired when the business was sold to Razor Ltd. He is now suggesting that

if the sale of the partnership, and his retirement, had been delayed until 30 April 2007, his total tax liability would

have been reduced. Clint’s only other income is gross pension income of ￡6,100 per year, which he began receiving

in the tax year 2005/06. Clint did not receive any salary or dividends from Razor Ltd. It is estimated that the

partnership’s tax adjusted trading profits for the period from 1 March 2007 to 30 April 2007 would have been

￡20,760. Clint has overlap profits of ￡14,250 brought forward from when the partnership began trading.

Razor Ltd manufactures industrial cutting tools. On 1 July 2007, Razor Ltd will subscribe for the whole of the ordinary

share capital of Cutlass Inc, a company newly incorporated in the country of Sharpenia. It is intended that Cutlass

Inc will purchase partly finished tools from Razor Ltd and customise them in Sharpenia. It is anticipated that Cutlass

Inc’s annual profits chargeable to corporation tax will be approximately ￡120,000.

Ben and Amy will be the directors of Cutlass Inc, although Ben will not be involved in the company’s business on a

day-to-day basis. Amy intends to spend one or two weeks each month in the country of Sharpenia looking after the

company’s affairs. The remainder of her time will be spent in the UK. Amy has employment contracts with both Razor

Ltd and Cutlass Inc and her duties for Cutlass Inc will be carried out wholly in Sharpenia. Cutlass Inc will pay for

Amy’s flights to and from Sharpenia and for her husband and baby to visit her there twice a year. Amy is currently

UK resident and ordinarily resident.

The system of income tax and corporation tax in the country of Sharpenia is broadly similar to that in the UK although

the rate of corporation tax is 38% regardless of the level of profits. There is a double tax treaty between the UK and

Sharpenia based on the OECD model treaty. The clause in the treaty dealing with company residency states that a

company resident in both countries under domestic law will be regarded under the treaty as being resident only in the

country where it is effectively managed and controlled. Sharpenia is not a member of the European Union.

Required:

(a) (i) Calculate Clint’s taxable trading profits for the tax years 2006/07 and 2007/08 for both of the

alternative retirement dates (28 February 2007 and 30 April 2007). (3 marks)

others fail, often with great losses7 The answer is not simple, and certainly we cannot say that "good" products succeed while "bad" products fail. Many products that function well and seem to meet consumer needs have fallen by the wayside. Sometimes, virtually identical products exist in the market at the same time with one emerging as profitable while the other fails. Mc. Neal Laboratories' Tylenol has become successful as an aspirin substitute, yet Bristol Meyers entered the test market at about the same time with Neotrend, also a substitute for aspirin which quickly failed.

The nature of the product is a factor in its success or failure, but the important point is that they should aim at meeting the customer's need, and the introductory promotion should seek to communicate that need satisfying quality and motivate the customer to try the product. Often, attitude change is involved, and, in the extreme, changes in life style. may be sought.

Here the company walks a tightrope. A new product is more likely to be successful if it represents a truly novel way of solving a customer problem, but this very newness, if carried too far, may ask the customer to learn new behavior. patterns. The customer will make the change if the perceived benefit is sufficient, but inertia is strong and consumers will often not go to the effort that is required. During the late sixties and early seventies Bristol Meyers met with new product failures that exemplify both of these problems. In 1967 and 1968 the company entered the market with a $ 5 million advertising campaign for fact toothpaste, and an $11 million campaign to promote resolve. Both products failed quickly, not be cause they didn't work or because there was no consumer need, but apparently because consumers just could see no reason to shift from an already satisfactory product to a different one that promised no new benefit.

The first sentence of the first paragraph is a question, to which the answer is______

A．that the good products succeed while the bad fail

B．that the "good" are not really good but the "bad" are actually bad

C．that new products will succeed if they function well and fail if they don't

D．not given in the paragraph