2016年ACCA考试模拟试题：会计师与企业（1）[1]

Section A–BOTH questions are compulsory and MUST be attempted　　1 Doric Co,a listed company,has two manufacturing divisions:parts and fridges.It has been manufacturing parts for domestic refrigeration and air conditioning systems for a number of years,which it sells to producers of fridges and air conditioners worldwide.It also sells around 50% of the parts it manufactures to its fridge production division.It started producing and selling its own brand of fridges a few years ago.After limited initial success,competition in the fridge market became very tough and revenue and profits have been declining.Without further investment there are currently few growth prospects in either the parts or the fridge divisions.Doric Co borrowed heavily to finance the development and launch of its fridges,and has now reached its maximum overdraft limit.The markets have taken a pessimistic view of the company and its share price has declined to 50c per share from a high of $2.85 per share around three years ago.

　　Extracts from the most recent financial statements:

　　A survey from the refrigeration and air conditioning parts market has indicated that there is potential for Doric Co to manufacture parts for mobile refrigeration units used in cargo planes and containers.If this venture goes ahead then the parts division before-tax profits are expected to grow by 5% per year.The proposed venture would need an initial one-off investment of $50 million.

　　Suggested proposals

　　The Board of Directors has arranged for a meeting to discuss how to proceed and is considering each of the following proposals:

　　1.To cease trading and close down the company entirely.

　　2.To undertake corporate restructuring in order to reduce the level of debt and obtain the additional capital investment required to continue current operations.

　　5.To close the fridge division and continue the parts division through a leveraged management buy-out,involving some executive特许公认会计师(ACCA/CAT)