A1 | Strategic Objectives Part 2 (Timed)

Three of the following are objectives of the International Integrated Reporting Council (IIRC).

Choose the ONE that is NOT.

An integrated report should disclose information about matters that substantively affect the organisation’s ability to create value over the short, medium and long term.

The steps in the materiality determination process for preparing and presenting this report are as follows: 

Drag and drop the steps in the correct order;

Select THREE objectives of Integrated Reporting, as identified by the International Integrated Reporting Council (IIRC).

Fill in the blanks in the following sentences regarding capitals in the framework: Select TWO from option below

The capital that encompasses all renewable and non-renewable environmental resources e.g. forests and eco-system health, ………………is known as capital.

The capital pertaining to relationship building between the entity, stakeholder groups and communities e.g. shared norms, common values and trust, is known as ……………..capital.

On today’s spot market, 1 GB Pound can be exchanged for 102 Japanese Yen. In the one-year forward market, 1 GB Pound can be exchanged for 107 Japanese Yen. The one-year, risk-free rate of interest is 7.8% in the UK.

Assuming that the interest rate parity holds, the yield today on 1 year, risk-free Japanese securities is:

Which statement is truly reflective of the international integrated reporting council (IIRC) and its framework?

Drag and drop the terms below with the correct definition given by the International Integrated Reporting Council (IIRC) for integrated reporting.

The share price of Robert Co. rose from $4.00 to $4.60 last year. During the year, Robert Co. paid out a dividend of $0.24 per share.

According to this information, last year the annual return to investors was:

Thembi Inc. is based in country Y, where the functional currency is the Y$. Some of Thembi Inc.’s suppliers are based in the UK, and they invoice Thembi Inc. in British Pounds (GBP). Therefore, the directors of Thembi Inc. keep a close eye on the exchange rate between the Y$ and the GBP, and they use the interest rate parity theory to estimate the likely future exchange rates.

The current spot rate is Y$/GBP 1.88 (that is Y$ 1 = GBP 1.88), and the expected interest rates in the UK and country Y respectively are 5% and 8% over the next year.

Using the interest rate parity theory and assuming that the current forward rate is the best forecast of the future spot rate, what is the forecast spot rate in one year’s time?

All of the following are considered as purposes of financial objectives EXCEPT:

Sesotho Fashioning Ltd is a clothing retailer. The organisation has recently set an objective to have the highest levels of customer service in the Lesotho.

Which of the following capitals does this objective most relate to?

Botho University is a publicly funded university in the Lesotho.

Which of the following would be a measure of economy when carrying out a value for money analysis of the school?

Select the THREE statements below that are TRUE regarding GRI and IR.

Choose the term below that is NOT a principle for defining report quality for sustainability reporting under GRI.

Mpho is the CEO of a well-known gender equality charity, She-Hive. Her main purpose is to encourage the abolition of pay differences based on gender with perceptible outcomes via polling the top 500 companies on the domestic stock market. To conduct this campaign, she has three separate departments at her disposal and a budget of £52m.

At the end of the business year, surveys show that the pay difference decreased in 58% of the top companies overall.

Mpho’s financial report states that 30% of the staff under her management were often idle and the campaign cost was £54.4m.

Given this information, in which overarching not-for-profit objectives (if any) has Mpho failed (select all that apply)?

BasaliTech Inc. is about to prepare a sustainability report for the first time, following the Global Reporting Initiative Guidelines.

The directors are currently preparing the section covering General Standard Disclosures.

Choose the headings below that the directors of BasaliTech Inc. should NOT include in this section.

Seven guiding principles underpin the preparation and presentation of an integrated report.

Choose the answer below that is NOT a guiding principle for the integrated report.

The financial statements of Technicorp have just been released. The following are Technicorp’s Statement of Profit or Loss and other Comprehensive Income and Statement of Financial Position as of 31st December 2017.

The debt ratio of Technicorp is: ………………%

All of the following are principles that define report content as set out by the Global Reporting Initiative (GRI) EXCEPT:

Moonlight Inc. is a listed company. In its recent annual report, Moonlight Inc. has defined its three financial objectives as follows: 

• To increase dividends by 10% a year. 
• To keep gearing below 60%. 
• To expand by internal growth and/or by horizontal integration via acquisition of companies operating in the same industry sector.

Given this information, which of the following is NOT a valid criticism of Moonlight Inc.’s financial objectives?

Emmanuel, CEO of FairMoney Inc. and Peter Ramos, the finance manager, are discussing the nature of capital and value, and they are not in agreement. They are worried by this since it could imply that FairMoney Inc.’s integrated reporting is being conducted in an erroneous manner.

Read the following statements by each individual and conclude who has the correct understanding of capital and value:

“Capitals are stocks of value that are increased, decreased or transformed through the various activities and outputs of the entity. For example, if we have an inventory of 40 barrels of beer, each of which has a value of £10, our products have an equivalent worth of £400” – Peter Ramos

“Value is the attached monetary value or assessed worth of an asset, good or service. This can be given to things which seemingly do not have monetary worth such as goodwill or copyrights” – Emmanuel

Select the statement that is true for profit making entities.

Select the THREE answers below that are considered Content Elements as defined by the International Integrated Reporting Council’s Framework.

Which of the following is NOT likely to lead to an increase in shareholder value?

Three of the following are fundamental concepts of the International Integrated Reporting Council (IIRC).

Choose the ONE that is NOT.