题目内容
（请给出正确答案）
A、its asset-liability structure.
B、rates of interest when the assets and liabilities were put on the books.
C、the riskiness of its loans and investments.
D、the cost of its deposit and non-deposit sources of funds.
E、All of the above.
如果结果不匹配，请 联系老师 获取答案
更多“An FI's net interest income re…”相关的问题
A、the market value of equity.
B、net interest income.
C、both market value of equity and net interest income.
D、the FI's capital position.
E、the prices of assets and liabilities.
ive gap of -$25 million, the expected change in net interest income is()
A、$100,000.00
B、($100,000.00)
C、($625,000.00)
D、($250,000.00)
E、$250,000.00
Net present value = 1,645,000 – 2,000,000 = ($355,000) so reject the project.
The following information was included with the draft investment appraisal:
1. The initial investment is $2 million
2. Selling price: $12/unit (current price terms), selling price infl ation is 5% per year
3. Variable cost: $7/unit (current price terms), variable cost infl ation is 4% per year
4. Fixed overhead costs: $500,000/year (current price terms), fi xed cost infl ation is 6% per year
5. $200,000/year of the fi xed costs are development costs that have already been incurred and are being recovered by an annual charge to the project
6. Investment fi nancing is by a $2 million loan at a fi xed interest rate of 10% per year
7. OKM Co can claim 25% reducing balance capital allowances on this investment and pays taxation one year in arrears at a rate of 30% per year
8. The scrap value of machinery at the end of the four-year project is $250,000
9. The real weighted average cost of capital of OKM Co is 7% per year
10. The general rate of infl ation is expected to be 4？7% per year
Required:
(a) Identify and comment on any errors in the investment appraisal prepared by the trainee accountant. (5 marks)
(b) Prepare a revised calculation of the net present value of the proposed investment project and comment on the project’s acceptability. (12 marks)
(c) Discuss the problems faced when undertaking investment appraisal in the following areas and comment on how these problems can be overcome:
(i) assets with replacement cycles of different lengths;
(ii) an investment project has several internal rates of return;
(iii) the business risk of an investment project is signifi cantly different from the business risk of current operations. (8 marks)
A、benefits the FI by increasing the market value of the FI's liabilities
B、harms the FI by increasing the market value of the FI's liabilities
C、harms the FI by decreasing the market value of the FI's liabilities
D、benefits the FI by decreasing the market value of the FI's liabilities
E、benefits the FI by decreasing the market value of the FI's assets
A、As interest rate shocks increase in size.
B、As interest rate shocks decrease in size.
C、When maturity distributions of an FI's assets and liabilities are considered.
D、As inflation decreases.
E、When the leverage adjustment is incorporated.
Which of the following accounting treatments correctly applies the principle of faithful representation？
A.Reporting a transaction based on its legal status rather than its economic substance
B.Excluding a subsidiary from consolidation because its activities are not compatible with those of the rest of the group
C.Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to equity shares as debt (liability)
D.Allocating part of the sales proceeds of a motor vehicle to interest received even though it was sold with 0% (interest free) finance
Witch measures non-controlling interest at fair value, based on share price.The market value of Wizard shares at the date of acquisition was $1.75.At 31 March 20X9 the retained earnings of Wizard were $750,000.
At what amount should the non- controlling interest appear in the consolidated statement of financial position of Witch at 31 March 20X9().
A、$195,000
B、$193,125
C、$135,000
D、$188,750
A、the duration model.
B、the maturity model.
C、the repricing model.
D、the funding gap model.
E、All of the above.
After preparing a draft statement of profit or loss (before interest and tax) for the year ended 31 March 20X6 (before any adjustments which may be required by notes (i) to (iv) below), the summarised trial balance of Triage Co as at 31 March 20X6 is:
The following notes are relevant:
(i) Triage Co issued 400,000 $100 6% convertible loan notes on 1 April 20X5. Interest is payable annually in arrears on 31 March each year. The loans can be converted to equity shares on the basis of 20 shares for each $100 loan note on 31 March 20X8 or redeemed at par for cash on the same date. An equivalent loan without the conversion rights would have required an interest rate of 8%.
The present value of $1 receivable at the end of each year, based on discount rates of 6% and 8%, are:
(ii) Non-current assets:
The directors decided to revalue the leased property at $66·3m on 1 October 20X5. Triage Co does not make an annual transfer from the revaluation surplus to retained earnings to reflect the realisation of the revaluation gain; however, the revaluation will give rise to a deferred tax liability at the company’s tax rate of 20%.
The leased property is depreciated on a straight-line basis and plant and equipment at 15% per annum using the reducing balance method.
No depreciation has yet been charged on any non-current assets for the year ended 31 March 20X6.
(iii) In September 20X5, the directors of Triage Co discovered a fraud. In total, $700,000 which had been included as receivables in the above trial balance had been stolen by an employee. $450,000 of this related to the year ended 31 March 20X5, the rest to the current year. The directors are hopeful that 50% of the losses can be recovered from the company’s insurers.
(iv) A provision of $2·7m is required for current income tax on the profit of the year to 31 March 20X6. The balance on current tax in the trial balance is the under/over provision of tax for the previous year. In addition to the temporary differences relating to the information in note (ii), at 31 March 20X6, the carrying amounts of Triage Co’s net assets are $12m more than their tax base.
Required:
(a) Prepare a schedule of adjustments required to the draft profit before interest and tax (in the above trial balance) to give the profit or loss of Triage Co for the year ended 31 March 20X6 as a result of the information in notes (i) to (iv) above.
(b) Prepare the statement of financial position of Triage Co as at 31 March 20X6.
(c) The issue of convertible loan notes can potentially dilute the basic earnings per share (EPS). Calculate the diluted earnings per share for Triage Co for the year ended 31 March 20X6 (there is no need to calculate the basic EPS).
Note: A statement of changes in equity and the notes to the statement of financial position are not required.
The following mark allocation is provided as guidance for this question:
(a) 5 marks
(b) 12 marks
(c) 3 marks
