Company financial statement preparation

Practice

Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.

Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.

Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.

Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.

What actually comes up

Three years of real questions, with the figures the marking schedule actually used and the grade band each part sat at. These papers are mostly "complete the statement" — the value here is in the EXPLAIN parts, which is where the judgement (and the marks) live.

Across 4 years

The pattern — what to prepare

The 2022 paper ↗ Marking schedule ↗

Question 1 — Dividends, a share issue, and a fair value decrease

Contributed equity opening balance $410 000, plus a $48 000 share issue on 1/07/21. An interim dividend of $30 000 was paid 15/12/21. Shares in RLS Limited fell in value from $84 000 to $80 000.

• Interim dividend paid = $30 000
• Final dividend (2021) = 40c/share = $72 000
• Interim dividend (2022) = 15c/share = $30 000
• Fair value of RLS Limited shares: $84 000 → $80 000

• a Journal the payment of the interim dividend and complete the contributed equity general ledger account, including the share issue. Achieved
• b On 15 May 2022 directors proposed a final dividend for 2022 of 35c per share, totalling $70 000, to be paid 1 June 2022. Complete the distributions note, including both dividends declared during the year and the dividend declared after reporting date. Merit
• c Accounts payable
  7 100; loan (9 months) $30 000; accrued expense $5 000; income in advance $28 000; tax payable $21 300. Complete the current liability section of the Statement of Financial Position, including the total. Merit
• d Explain the impact of the decrease in fair value of the shares in RLS Limited on current assets and equity, using relevant figures. Excellence

Question 2 — A buildings revaluation, tax, and the PPE and revenue notes

Profit before tax $263 000. Buildings opening carrying amount $440 000, accumulated depreciation

• Profit before tax = $263 000
• Buildings revaluation gain = $27 000
• Provisional tax paid = $52 300

• a Journal the transfer of accumulated depreciation on buildings to buildings on revaluation, and complete the buildings revaluation surplus ledger account. Achieved
• b Income tax expense for the year is $73 600. Complete the Statement of Comprehensive Income extract, including income tax expense, profit for the year, other comprehensive income (the buildings revaluation gain), and total comprehensive income. Merit
• c Accommodation revenue $388 000, rafting revenue $630 000. Complete the revenue note and the property, plant and equipment note for buildings, including opening and closing carrying amounts. Merit
• d Explain the impact of paying provisional tax of $52 300 on current liabilities at balance date. Excellence

Question 3 — Statement of Cash Flows, retained earnings, and dividends paid

Cash from customers $3 700 000, cash paid to suppliers

• Net cash from operating = $415 000
• Net cash from investing = −
  30 000
• Dividends paid =
  50 000

• a Complete the operating and investing activity sections of the Statement of Cash Flows, including both net cash totals. Merit
• b Complete the retained earnings general ledger account for the year, including profit for the year, dividends, and the closing balance. Merit
• c Explain in detail the reporting of dividends paid in the Statement of Cash Flows, including the activity section and the impact on the closing bank balance. Excellence

The 2025 paper ↗ Marking schedule ↗

Question 1 — Income tax and the Statement of Comprehensive Income

Income tax expense for the year is $46 800; provisional tax of $25 300 has already been paid.

• Income tax expense = $46 800
• Provisional tax paid = $25 300

• a Journal the decrease in fair value of financial assets ($3 000) and the income tax expense for the year. Achieved
• b Your friend thinks taxation payable should be reported as $46 800. Explain in detail why your friend is incorrect, referring to the relevant accounts and the correct amount to report. Excellence
• c Revenue $991 000, other income $4 800, general expenses $320 000, wages $427 500, depreciation $63 500, finance costs
  3 500, gains on revaluation of buildings $22 300 and land $28 000. Complete the Statement of Comprehensive Income for the year, including total income, total expenses, profit for the year, other comprehensive income and total comprehensive income. Merit

Question 2 — Equity and the distributions note

Retained earnings (opening) $219 000; profit for the year

• Opening retained earnings = $219 000
• Profit for the year =
  21 500
• Dividends declared = $50 000 + $42 000

• a Journal the transfer of accumulated depreciation on buildings to buildings on revaluation, and complete the contributed equity and buildings revaluation surplus ledger accounts. Achieved
• b Your friend thinks retained earnings should be reported as $219 000. Explain in detail why your friend is incorrect, referring to the relevant accounts and the correct amount to report. Excellence
• c Complete the equity section of the Statement of Financial Position, including the total for equity. Merit
• d On 28 April 2025 — after balance date — directors declared a final dividend of 18c per share, totalling $54 000, to be paid 28 May 2025. Complete the distributions note, including the dividends declared during the year and the dividend declared after reporting date. Merit

Question 3 — Statement of Cash Flows

Fauro Limited sold shares it held in Mainfreight Limited (carrying amount

• Sale of Mainfreight shares =
  9 000
• Share repurchase = 25 000 × $2.20 = $55 000

• a Complete the operating and investing activity sections of the Statement of Cash Flows. Merit
• b Journal the share repurchase: 25 000 shares at a fair value of $2.20. Achieved
• c Explain in detail the difference between the reporting of the sale of the Mainfreight shares and the repurchase of the company's own shares, using the relevant activity sections, figures, and the net impact on the closing bank balance. Excellence

The 2024 paper ↗ Marking schedule ↗

Question 1 — Revaluation, dividends paid vs received

An interim dividend (2024) of $30 000 was paid. Maleai Limited also holds 20 000 shares in MVK Limited, which paid an interim dividend of 12.5c per share.

• Interim dividend paid = $30 000
• Dividend received = 20 000 × 12.5c = $2 500

• a Journal the gain on revaluation of land and the closing entry for the final dividend (2023). Achieved
• b Complete the property, plant and equipment note, including opening and closing carrying amounts for land, buildings, and boats and equipment. Merit
• c Complete the non-current assets section of the Statement of Financial Position, including the total. Achieved
• d Explain the different treatment of the interim dividend (2024) $30 000 paid, and the interim dividend of 12.5c per share received from MVK Limited, including the impact on profit for the year and retained earnings. Excellence

Question 2 — Retained earnings and a share repurchase

Retained earnings opening balance

• 5 000 shares repurchased at $2.80, originally issued at $2.20

• a Journal the closing entry for profit for the year,
  77 200, and complete the retained earnings general ledger account including the share repurchase, both dividends, and the closing balance. Merit
• b Complete the current liabilities and equity sections of the Statement of Financial Position, including subtotals. Merit
• c Explain the impact of the share repurchase on the financial statements, using relevant figures for current assets, contributed equity, retained earnings and total equity. Excellence

The 2023 paper ↗ Marking schedule ↗

Question 1 — A land revaluation and the Statement of Comprehensive Income

Land carrying amount was $200 000, with a

• Land: $200 000 → $240 000
• Revaluation surplus:
  0 000 → $50 000

• a Journal the increase in fair value of shares held, and complete the taxation payable general ledger account. Achieved
• b Explain the impact of the gain on land revaluation on the Statement of Financial Position, using relevant figures for the PPE note, net assets and equity. Excellence
• c Complete the other income note to the financial statements. Achieved
• d Complete the Statement of Comprehensive Income for the year. Merit

Question 2 — A share repurchase at the original issue price, and a final dividend closed

50 000 shares were repurchased for $90 000 — the same average price (

• 50 000 shares repurchased, $90 000, matching the
  .80 original issue price

• a Complete the current asset section of the Statement of Financial Position. Achieved
• b Journal entries relating to the year, including the share repurchase and the closing entry for the final dividend (2022). Merit
• c Complete the contributed equity note, including opening balance, the share repurchase, and closing balance (both number of shares and dollars). Merit
• d Explain the treatment of the final dividend (2022) in the financial statements for the year, referring to when it was disclosed and when it reduced retained earnings. Excellence

Question 3 — Statement of Cash Flows and a tractor trade-in

Daffodil Field Limited traded in an old tractor (carrying amount $20 000) against a new one costing $90 000, receiving a trade-in allowance of

• New tractor cost = $90 000
• Trade-in allowance =
  8 000 (non-cash)

• a Complete the operating and financing activity sections of the Statement of Cash Flows. Merit
• b Complete the contributed equity general ledger account using relevant information. Achieved
• c Explain in detail how the purchase of the tractor will be reported in the Statement of Cash Flows, including the treatment of the trade-in allowance. Excellence

Read the last column as a to-do list. Every "explain in detail" part is Excellence-weighted and follows the same four-step shape: name the relevant accounts, state the correct figure with its arithmetic, and say WHERE it is reported — practising that shape pays off across all three questions, every year.

Past exams & resources

⏱ Timed opens the paper and starts a countdown matching the exam length. Official NZQA PDFs. If a link 404s, that year’s paper may sit under a slightly different code: browse the NZQA subject page.