LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:49 Page F7 Paper F7 Financial Reporting (International) ACCA LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:49 Page FINANCIAL REPORTING (INTERNATIONAL) British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by InterActive World Wide Limited Westgate House, 8-9 Holborn London EC1N 2LL www.iaww.com/publishing ISBN 978-1-907217-01-2 First Edition 2009 Printed in Romania NEW ISBN NUMBER WANTED © 2009 InterActive World Wide Limited London School of Business & Finance and the LSBF logo are trademarks or registered trademarks of London School of Business & Finance (UK) Limited in the UK and in other countries and are used under license All used brand names or typeface names are trademarks or registered trademarks of their respective holders All our rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of InterActive World Wide LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:49 Page FOREWORD Foreword Thank you for choosing to study with the London School of Business and Finance A dynamic, quality-oriented and innovative educational institution, the London School of Business and Finance offers specialised programmes, designed with students and employers in mind We are always at the frontline, driving the latest professional developments and trends LSBF attracts the highest-quality candidates from over 140 countries worldwide We work in partnership with leading accountancy firms, banks and best-practice organisations – enabling thousands of students to realise their full potential in accountancy, finance and the business world With an international perspective, LSBF has developed a rich portfolio of professional qualifications and executive education programmes To complement our face-to-face and cutting-edge online learning products, LSBF is now pleased to offer tailored study materials to support students in their preparation for exams The exam-focused content in this manual will provide you with a comprehensive and up-to-date understanding of the ACCA syllabus We have an award-winning team of tutors, who are highly experienced in helping students through their professional exams and have received consistently excellent feedback I hope that you will find this manual helpful and wish you the best of luck in your studies Aaron Etingen ACCA, MSI, Founder and CEO LSB_F7 Financial Reporting_section 1:297mm x 210mm FINANCIAL REPORTING (INTERNATIONAL) 10/8/09 11:49 Page LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:49 Page CONTENTS Contents Foreword About ACCA Paper F7 Contents Syllabus and Study Guide 11 Pilot Paper 27 Chapter - The Consolidated Statement of Financial Position 51 Examinable Documents Chapter - The Consolidated Income Statement 47 85 Chapter - Associates 107 Chapter - Tangible Non-current Assests 145 Chapter - Impairment of Assets 179 Chapter - Inventory and Construction 209 Chapter 11 - Tax and Deferred Tax 239 Chapter - Published Accounts - an Introduction Chapter - Intangible Assets Chapter - Leasing Chapter 10 - Reporting Financial Performance Chapter 12 - Provisions and Contingencies 129 165 193 227 253 Chapter 13 - Substance over Form 271 Chapter 15 - Financial Instruments 305 Chapter 14 - Conceptual and Regulatory 287 Chapter 16 - Earnings per Share 323 Chapter 18 - Statements of Cash Flows 363 Chapter 17 - Analysis and Interpretation Chapter 19 - Alternative Models and Practices Feedback and Review Form 339 385 395 LSB_F7 Financial Reporting_section 1:297mm x 210mm FINANCIAL REPORTING (INTERNATIONAL) 10/8/09 11:49 Page LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:49 Page F7 About ACCA Paper F7 Financial Reporting (International) LSB_F7 Financial Reporting_section 1:297mm x 210mm FINANCIAL REPORTING (INTERNATIONAL) 10/8/09 11:50 Page LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:50 Page ABOUT ACCA PAPER F7 - FINANCIAL REPORTING (INTERNATIONAL) Aim of the Paper The aim of the paper is to introduce knowledge and understanding of management accounting.The paper develops knowledge and understanding of how to prepare and calculate costing information for use within a business Outline of the Syllabus Explain the nature of cost and management accounting Explain the purpose of cost and management accounting Identify and describe costs by classification, behaviour and purpose Explain and apply cost accounting techniques Prepare and coordinate budgets for feedback and control Use management accounting techniques to make and support decision making Format of the Exam Paper The syllabus is assessed by a two hour computer-based examination The examination consists of a mixture of mark and mark questions There will be 40 compulsory mark questions There will be 10 compulsory mark questions NEW COPY WANTED Getting the most from your studies Manage your time effectively If you have a busy work schedule use your study planner to catch up Do not allow yourself to fall behind Make sure that you can apply all the numbers to the formulae and can perform the calculations accurately Practice as many questions as you can You should aim to have attempted every question in the revision kit at least twice before the exam LSB_F7 Financial Reporting_section 1:297mm x 210mm FINANCIAL REPORTING (INTERNATIONAL) 10 10/8/09 11:50 Page 10 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 131 PUBLISHED ACCOUNTS - AN INTRODUCTION Context The majority of the F7 syllabus is concerned with the production of published company accounts This chapter revises the IAS formats which should be used for such accounts Subsequent chapters will consider how individual elements are measured and reported within published company accounts As such, this chapter provides a framework for the remainder of the text Exam Hints Published company accounts are always examined as question of the F7 paper The usual requirement is to produce certain financial statements from a trial balance, in accordance with the requirements of IAS 1, taking into account a number of adjustments Key Learning Points • • • • • • IAS revised requires a set of financial statements to include: A statement of financial position (previously the balance sheet) A statement of comprehensive income (previously the income statement) A statement of changes in equity A statement of cash flows (previously the cash flow statement) Notes to the accounts Statement of Financial Position • IAS requires an asset or liability to be classified as current where: • It will be settled within 12 months of the reporting date, or • It is held for the purpose of trading, or • It is part of the entity’s normal operating cycle Statement of Comprehensive Income • IAS requires companies to provide a performance statement which reports both profit and other comprehensive income • These may be reported together in a single statement of comprehensive income or separately in an income statement and statement showing other comprehensive income • Other comprehensive income includes income and expenses that are not recognised in profit or loss such as revaluation gains and gains or losses on available for sale financial assets Statement of Changes in Equity • The statement of changes in equity shows the changes in equity in a period arising from transactions between the entity and its owners in their capacity as owners, such as issues of shares and dividends • Total comprehensive income is shown only in aggregate within the statement of changes in equity so as not to detract from owner transactions Relevant Accounting Standards IAS Presentation of Financial Statements (revised 2007) Technical Articles The following article explains IAS revised and is available on ACCA’s website http://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_feb08_griffiths.pdf 131 LSB_F7 Financial Reporting_section 1:297mm x 210mm FINANCIAL REPORTING (INTERNATIONAL) 132 10/8/09 11:52 Page 132 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 133 PUBLISHED ACCOUNTS - AN INTRODUCTION IAS Revised IAS provides guidance on the form and content of the financial statements It was revised in 2007 with the aim of changing how financial information was aggregated in order to improve its usefulness IAS revised requires a set of financial statements to include: • A statement of financial position (previously the balance sheet) • A statement of comprehensive income (previously the income statement) • A statement of changes in equity • A statement of cash flows (previously the cash flow statement) • Notes to the accounts This chapter does not discuss statements of cash flows, which are covered in chapter 18, nor does it discuss notes to the accounts (disclosures), which are considered throughout the text Statement of Financial Position The following statement of financial position format is adapted from the appendix to IAS It is the format which you should use in F7 exam questions Statement of Financial Position as at 31 December 20X8 Assets Non-Current Assets Property, plant and equipment $000 Goodwill Inventories 80,000 387,999 88,432 Trade receivables 87,455 Cash and cash equivalents 13,400 Other current assets 10,000 Total assets Equity and Liabilities Share capital Retained earnings Other components of equity Total equity Non-Current Liabilities Long-term borrowings Deferred tax (chapter 11) Long-term provisions Total non-current liabilities 187,999 120,000 Other intangible assets Current Assets $000 190,287 578,286 75,000 170,497 113,000 358,497 50,000 40,000 10,000 100,000 133 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 134 FINANCIAL REPORTING (INTERNATIONAL) Current Liabilities Trade and other payables 56,489 Current portion of long-term borrowings 10,000 Short-term borrowings (overdraft) Current tax payable Total current liabilities 2,300 51,000 Total liabilities Total Equity and Liabilities 2.0.1 119,789 578,286 EQUITY IAS aggregates reserves other than retained earnings into ‘other components of equity’ This may include: • Share premium account • Revaluation reserve • General reserve For the purposes of your exam, you can list these separately in the statement of financial position without losing any marks 2.0.2 THE CURRENT / NON-CURRENT DISTINCTION IAS requires an asset or liability to be classified as current where: • It will be settled within 12 months of the reporting date, or • It is held for the purpose of trading, or • It is part of the entity’s normal operating cycle Therefore retailers who provide extended credit as a sales incentive should include receivables as current, even where the credit term extends to more than a year Statement of Comprehensive Income IAS requires companies to provide a performance statement which reports both • • Profit, and Other comprehensive income These may be reported together in a single statement of comprehensive income or separately in an income statement and statement showing other comprehensive income The term ‘income statement’ is generally used to refer to that part of the statement which provides detail of profit (i.e income and expenses), even where a single statement of comprehensive income is provided 3.0.1 OTHER COMPREHENSIVE INCOME Other comprehensive income is defined as comprising: items of income and expense that are not recognised in profit or loss as required or permitted by other IFRSs For the purposes of the F7 syllabus, it includes: Movements in the revaluation surplus (seen previously at F3 , and discussed in more detail in chapter 5), and Gains and losses on available-for-sale financial assets (discussed in more detail in chapter 15) 134 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 135 PUBLISHED ACCOUNTS - AN INTRODUCTION 3.1 FORMAT OF A SINGLE STATEMENT OF COMPREHENSIVE INCOME Where a single statement approach is taken, the statement of comprehensive income appears as follows: Statement of Comprehensive Income for the Year Ended 31 December 20X8 Revenue Cost of sales Gross profit Other income 385,000 (188,000) 197,000 10,000 Distribution costs (48,500) Profit from operations 120,800 Administrative expenses Other expenses Finance cost Profit before tax Income tax expense Profit for the year Other Comprehensive Income Gains on property revaluation Available for sale financial assets Total Comprehensive Income 3.2 $000 (37,700) (1,000) (7,000) 112,800 53,000 59,800 10,000 13,450 84,250 FORMATS OF SEPARATE INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME Where two separate statements are produced: • An income statement shows the profit or loss for the year, and • A statement of comprehensive income shows the total comprehensive income for the year Income Statement for the Year Ended 31 December 20X8 Revenue Cost of sales Gross profit Other income $000 385,000 (188,000) 197,000 10,000 Distribution costs (48,500) Profit from operations 120,800 Administrative expenses Other expenses Finance cost Profit before tax Income tax expense Profit for the year (37,700) (1,000) (7,000) 112,800 53,000 59,800 135 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 136 FINANCIAL REPORTING (INTERNATIONAL) Statement of Comprehensive Income for the Year Ended 31 December 20X8 $000 Profit for the year 59,800 Gains on property revaluation 10,000 Total comprehensive income 83,250 Other comprehensive income Available for sale financial assets 3.3 13,450 EXCEPTIONAL ITEMS IAS requires that additional line items are disclosed in the income statement where they are relevant to an understanding of an entity’s financial performance Certain material income or expense items are therefore normally listed on the face of the income statement before profit from operations IAS does not allow the presentation of any items as extraordinary Statement of Changes in Equity The statement of changes in equity shows the changes in equity in a period arising from transactions between the entity and its owners in their capacity as owners It therefore highlights: • Issues of new shares, and • Dividends All other changes in equity during a period are due to profits and other comprehensive income As these are detailed in the statement of comprehensive income, they are shown only in aggregate within the statement of changes in equity so as not to detract from owner transactions Nevertheless, the statement of changes in equity links the statements of financial position and comprehensive income: Balance at 31 December 20X7 Change in accounting policy1 Restated balance Issue of share capital Dividends Total comprehensive income for year Reserves transfer Balance at 31 December 20X8 136 Share capital $000 Share premium $000 Retained earnings $000 Revaluation reserve $000 AFS financial assets $000 Total $000 70,000 63,000 118,697 20,000 (3,450) 268,247 (500) (500) 70,000 63,000 118,197 10,000 (3,450) 267,747 - - (9,500) - - (9,500) - - 59,800 2,000 10,000 (2,000) 13,450 83,250 75,000 75,000 170,497 28,000 10,000 358,497 5,000 - 12,000 - - - - - 17,000 - LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 137 PUBLISHED ACCOUNTS - AN INTRODUCTION A change in accounting policy results in a prior year adjustment This was seen at F3 level and is revised in chapter 14 A reserves transfer arises as a result of a revaluation and is discussed in more detail in chapter Learning Example 4.1 You are the financial accountant of Interceptor, a listed company engaged in the manufacture of security equipment The trial balance at 31 March 20X8 was as follows: Ordinary shares 7.5% redeemable $1 preference shares 10% loan stock 20X9-20Y0 Retained earnings at April 20X7 Provision for warranties Revenue Staff costs Overheads Raw materials purchases Investments at cost HMRC – VAT HMRC – PAYE and NIC Interest received Interest paid (including loan stock Interest for the year Interim preference dividend Corporation tax underprovided Bank Prepayments and accruals Receivables and payables Freehold land at cost Freehold buildings at cost Other non-current assets at carrying Value: Plant and machinery Motor vehicles Fixtures and fittings Raw materials inventory 1.4.X7 Finished goods inventory 1.4.X7 Additional information: $000 $ 15,600 27,590 12,250 800 850 75 120 2,460 880 9,290 2,800 13,520 55 800 950 2,970 92,410 $000 8,000 2,000 3,000 5,835 1,250 66,980 65 210 60 ,250 3,760 1,400 92,410 Staff costs are apportioned 7:1:2 between the production, distribution and administration functions respectively Overheads are split as follows: Production Distribution Administration $000 19,200 6,310 2,080 The buildings were all acquired on April 20X7 with an estimated useful life of 40 years Depreciation is to be apportioned 80% to production and 20% to administration The estimate of $4.2m provided for corporation tax payable on the profits of the previous year was agreed at $4.32m and paid on the due date Taxation on the profits of the current year is estimated at $3m 137 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 138 FINANCIAL REPORTING (INTERNATIONAL) Inventory at 31 March 20X8 totalled $3.99m The loan stock is redeemable in two equal instalments on 31 March 20X9 and 20Y0 Freehold land was revalued to $2m at the end of the year A provision of $2m is required in respect of warranties at the year end Prepare for publication a single statement of comprehensive income and statement of changes in equity for the year ended 31 March 20X8 and the statement of financial position at that date Exam Hint The December 08 published company accounts question required candidates to produce statements of comprehensive income, financial position and changes in equity The examiner reported that the SOCE appeared to be less well understood than the other statements with candidates unsure of what to include Exam Focus The examiner will sometimes introduce the following complications to a published company accounts question: • A suspense account • A requirement to re-draft rather than draw up the financial statements 5.0.1 SUSPENSE ACCOUNT Where the trial balance presented in the question does not balance, a suspense account is created As part of drawing up the final financial statements, you must eliminate this suspense account Learning Example 4.2 The trial balance of Laxton at 31 December 20X8 shows ordinary share capital of $100,000 in 50c shares There is no share premium account A suspense account in the trial balance of $37,500 Cr contains the credit entry of a rights issue of shares made in June 20X8 The terms of the rights issue was for at 75c per share What amounts should be reported as ordinary share capital and share premium in the statement of financial position at 31 December 20X8? Exam Hint The December 07 published accounts question included a suspense account in the trial balance, relating to the incorrect recording of a share issue The examiner did not report that this caused problems 5.0.2 REDRAFTING OF ACCOUNTS Where first draft accounts are presented in the question and you are required to redraft them, there will be accompanying information detailing required adjustments The process is therefore essentially the same as that for a mainstream published accounts question, although the basic information is given in financial statement rather than trial balance form 138 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 139 PUBLISHED ACCOUNTS - AN INTRODUCTION Learning Example 4.3 The draft statement of financial position shown below has been prepared for Altered as at 31 December 20X8 Cost Depreciation Carrying value $000 $000 $000 Non-current assets Land and buildings 9,000 1,000 8,000 Plant and equipment 21,000 9,000 12,000 Current assets Inventory Receivables Cash at bank Equity and liabilities Capital and reserves Retained earnings Non-current liabilities Loan notes (2012) Current liabilities Trade payables Suspense account 20,000 3,000 2,600 1,900 7,500 27,500 6,000 12,400 2,000 2,100 22,500 5,000 27,500 The following additional information is available: (1) It has been decided to revalue the land and buildings to $12m at the year end (2) Trade receivables totalling $200,000 are to be written off (3) During the year there was a contra settlement of $106,000 in which an amount due to a supplier was set off against the amount due from the same company for goods sold to it No entry has been made yet to record the set off (4) Some inventory items in the statement of financial position at a cost of $500,000 were sold just after the reporting date for $400,000 with selling expenses of $40,000 (5) The suspense account is made up of two items: (a) The proceeds of an issue of 4,000 50c shares at $1.10 per share, credited to the suspense account from the cash book (b) The balance of the account is the proceeds of sale of plant sold on January 20X8 This plant had a carrying value at the date of sale of $700,000 and had originally cost $1.4million Apart from the cash book entry to record the proceeds, no other entries have yet been made in respect of this disposal Depreciation on the plant has been charged at 25% on a straight line basis Redraft the statement of financial position at 31 December 20X8, making appropriate adjustments for items (1) to (5) above A separate calculation should be shown for retained earnings Exam Hint In June 2008, candidates were presented with a draft statement of financial position and required to use this, together with supplementary information, to recalculate profit and produce statements of financial position and changes in equity Exam Hint The examiner has indicated that 10 of the 25 marks within the published company accounts question will be available for knowledge of accounting standards Some of the topics covered in the remaining chapters of this book will therefore form part of a published accounts question 139 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 140 FINANCIAL REPORTING (INTERNATIONAL) Solution 4.1 Statement of Financial Position for Interceptor at 31 March 20X8 Assets Non-Current Assets Freehold land $000 Freehold buildings ($2,800,000 x 39/40) 2,000 2,730 Plant and machinery 13,520 Fixtures and fittings 800 Motor vehicles 55 Investments at cost Current Assets Inventories Trade receivables Prepayments Cash and cash equivalents 800 19,905 3,990 9,290 880 2,460 Total Assets Share capital Retained earnings (SOCE) Other components of equity (Revaluation reserve) Total equity Non-Current Liabilities preference shares 10% loan stock 20Y0 Total non-current liabilities Current Liabilities 8,000 600 1,500 3,760 10% Loan stock 20X9 1,500 Accrued redeemable preference share dividend (2m x 7.5% x ½) Current tax payable 3,000 Total liabilities Total Equity and Liabilities 3,500 75 1,250 Total current liabilities 21,165 2,000 Accruals Other taxes payable (65 + 210) 12,565 2,000 Trade and other payables Provision for warranties 16,620 36,525 Equity and Liabilities 140 $000 285 11,860 36,525 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 141 PUBLISHED ACCOUNTS - AN INTRODUCTION Statement of Comprehensive Income for Interceptor for the Year Ended 31 March 20X8 $000 66,980 Revenue Cost of sales (W) (42,356) Gross profit 24,624 Distribution costs (W) (7,870) Profit from operations 10,790 Administrative expenses (W) (5,964) Investment income 60 Finance costs (850 + 75 + 75 accrued) (1,000) Taxation (3m + 120 underprovision) (3,120) Profit before tax 9,850 Profit for the year 6,730 Other comprehensive income Revaluation surplus 600 Total comprehensive income 7,330 Statement of Changes in Equity for Interceptor for Year Ended 31 March 20X8 Share capital Retained earnings Revaluation surplus At April 20X7 8,000 5,835 - At 31 March 20X8 Total comprehensive income Working – Expenses Opening inventory (950 + 2,970) Raw material purchases $000 - 8,000 12,565 600 Cost of sales Distribution Administration 1,560 3,120 $000 3,920 Overheads 19,200 in warranty provision 2,000 – 1,250) $000 600 $000 12,250 (3,990) Depreciation on building (8:0:2) $2.8m/40 $000 6,730 Closing inventory Staff costs (7:1:2) $000 10,920 6,310 56 75042,356 2,080 14 7,870 5,964 141 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 142 FINANCIAL REPORTING (INTERNATIONAL) Solution 4.2 Share capital $100,000 + (200,000 shares /4 x 50c) Share premium (200,000 shares/4 x 25c) The suspense account is cleared by: Dr Suspense Cr Share capital Cr Share premium $ 125,000 12,500 $37,500 $25,000 $12,500 Solution 4.3 Statement of Financial Position for Altered at 31 December 20X8 Assets Non-Current Assets Land and buildings (W1) Plant and equipment (W1) $000 12,000 19,600 $000 1,000 7,950 Current Assets Inventories (3,000 – 140) 11,000 11,650 22,650 2,860 Receivables (2,600 – 200 irr debts – 106 contra) 2,294 Cash at bank 1,900 7,054 29,704 Equity and Liabilities Share capital (6,000 + 2,000) 8,000 Share premium (4m x 60c) 2,400 Retained earnings (W2) 12,310 Revaluation reserve 3,000 25,710 Non-Current Liabilities Loan notes (2012) 2,000 Trade payables (2,100 – 106 contra) 1,994 Current Liabilities Workings (W1) Non-Current Assets Draft cost Revaluation / disposal Revised 142 $000 29,704 Land and Plant and buildings Machinery 9,000 21,000 $000 3,000 12,000 $000 (1,400) 19,600 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:52 Page 143 PUBLISHED ACCOUNTS - AN INTRODUCTION Draft depreciation Depreciation to disposal Extra year’s depreciation on disposal 1,000 (700) Revised 1,000 (W2) Retained Earnings $000 Draft Irrecoverable debts Inventory adjustment to NRV Depreciation charged wrongly on disposal Loss on disposal (W3) Revised (W3) Suspense and Disposal Credit balance on suspense account Debit to suspense re share issue (4m x $1.1) Balance on suspense = disposal proceeds Proceeds Carrying value at disposal Loss on disposal 9,000 (350) 7,950 12,400 (200) (140) 350 (100) 12,310 $000 5,000 (4,400) 600 600 (700) (100) Learning Summary • • • • Learn the IAS formats of the statements of financial position, comprehensive income and changes in equity Complete the quick test for Chapter Watch the video clip called ‘x Attempt question x from the Question and Answer book 143 LSB_F7 Financial Reporting_section 1:297mm x 210mm FINANCIAL REPORTING (INTERNATIONAL) 144 10/8/09 11:52 Page 144 LSB_F7 Financial Reporting_section 1:297mm x 210mm 10/8/09 11:53 Page 145 Tangible Non-Current Assets 145 ... LSB_F7 Financial Reporting_ section 1: 297mm x 210 mm FINANCIAL REPORTING (INTERNATIONAL) 10 10 /8/09 11 :50 Page 10 LSB_F7 Financial Reporting_ section 1: 297mm x 210 mm 10 /8/09 11 :50 Page 11 F7 Syllabus... and Study Guide LSB_F7 Financial Reporting_ section 1: 297mm x 210 mm FINANCIAL REPORTING (INTERNATIONAL) 12 10 /8/09 11 :50 Page 12 LSB_F7 Financial Reporting_ section 1: 297mm x 210 mm 10 /8/09 11 :50... Accountants ACCA LSB_F7 Financial Reporting_ section 1: 297mm x 210 mm FINANCIAL REPORTING (INTERNATIONAL) 30 10 /8/09 11 :50 Page 30 LSB_F7 Financial Reporting_ section 1: 297mm x 210 mm 10 /8/09 11 :50 Page 31