ACCA Financial Reporting pass rate

Groups and associates

Wexford Co acquired 70% of Yelland Co on 1 January 2025. At that date Yelland Co's share capital was $2,000,000 and retained earnings $3,000,000, and plant had a fair value $600,000 above its carrying amount with a remaining useful life of four years (straight line).

At 31 December 2026 Yelland Co's retained earnings were $4,400,000. During 2026 Yelland Co sold goods to Wexford Co for $1,200,000 at a markup of 25% on cost; a quarter of these goods were still in Wexford Co's inventory at 31 December 2026.

Non-controlling interest is measured at its proportionate share of Yelland Co's identifiable net assets. Goodwill is not impaired and Yelland Co has paid no dividends.

What is the non-controlling interest in the consolidated statement of financial position at 31 December 2026? (2 marks)

$

Single entity financial statements

Ingleby Co presents expenses by function. Its draft cost of sales for the year is $21,600,000, before the following:

(1) Buildings cost $10,000,000 (excluding land) and are depreciated on a straight-line basis over 50 years; 60% of building depreciation is charged to cost of sales and the rest to administrative expenses.

(2) Plant cost $8,000,000 with accumulated depreciation of $2,000,000 at the start of the year. It is depreciated at 20% a year on the reducing balance basis, all charged to cost of sales.

(3) Closing inventory, already deducted at its cost, includes items that cost $300,000 and have a net realisable value of $180,000.

What is Ingleby Co's cost of sales for the year? (2 marks)

$

Interpreting financial statements

Ingleby Co's figures ($000) are: 20X6: revenue 14,600, cost of sales 9,125, inventory 1,500, trade receivables 2,400, trade payables 1,000. 20X5: revenue 12,775, cost of sales 7,300, inventory 1,000, trade receivables 1,575, trade payables 1,000.

The cash operating cycle is inventory days plus receivables days less payables days. Inventory and payables days use cost of sales, receivables days use revenue, all on year-end balances and a 365-day year.

By how many days did Ingleby Co's cash operating cycle lengthen from 20X5 to 20X6, in days to one decimal place? (2 marks)

$