March 7, 2017 at 11:48 am
opentuition_teamKeymasterMarch 7, 2017 at 2:04 pm
I thought exam was ok, was pretty proud of myself with Q1a, was only out by about $6k and I know this is because I forgot to adjust reserves for forex and the transfer from CI to NCI. The rest of the questions who knows but I didn’t feel under too much time pressure, finished a minute or two before time up. It was a nice exam, just hope I’ve passed it now.March 7, 2017 at 2:08 pm
i missed the exam due to health related illness was the first q SOFP? gutted i couldnt make it have to wait til next time nowMarch 7, 2017 at 2:32 pm
It was a fair exam. I just dont think i was good enough to beat it today!March 7, 2017 at 2:42 pm
Guys anyone knows what to do with the 5% risk in Q1? ?March 7, 2017 at 2:46 pm
a consolidated SOFP (2 subs incl. foreign, disposal of investment from 60 to 54%)
b investment property valuation policy (from HC to FV and effect on foreign translation)
c IAS 21 + use of AVG exchange rates
a investment property
b Intangible assets
c impairment of CGU
a operating lease
b debt instrument valuation (FV)
c revenue recognition + provisionsMarch 7, 2017 at 2:54 pm
Did anyone attempt question 4??? May I know what are your points for this question?March 7, 2017 at 3:29 pm
Hi Ooi, I did Q4. For the first part. Fair presentation, I just discussed about the fundamental and enhancing characteristics of Financial statements and how they aid in the decision of users like investors. Then discussed a bit about how errors and ommissions affect decisions. Forgot to talk about damage to reputation.
4a2. Outline how exposure draft differs in recognition criteria. I mentioned the definitions for assets, liabilities, equity, income and expenses stated in conceptual framework. I chose to discuss about the current issue on Leases which address Liabilities. Mentioned Exposure Draft is now redefining all leases as that which transfers risks and rewards. Operating Lease to be included. Type A and Type B lease
4a3. Discuss benefits of Integrated Framework
I mentioned about non-financial being provided. Narrative of the contents.
4b. Purchase agreement 1. Record cost as there has been transfer of asset. Mentioned IAS16. Contingent Asset recorded.
Purchase agreement 2. Contingent Asset not recorded as its not probable that the supplier will not pay compensation. Breach of contract. I might have made a mistake here but I said that hire purchase of the machinery and additional costs incurred recognised as per IAS16. Mentioned Provision should be recognised for the possible obligation to pay supplier if contract terms fulfiled.March 7, 2017 at 3:32 pm
In Q1 we went from 60% to 54% which would usually still be classed as a subsidiary but the wording of the question threw me cos it actually stated that the 54% represented ‘significant influence’ which would imply it’s an associate rather than a sub? Views/comments??March 7, 2017 at 3:45 pm
Thank you for letting me know what came up guys seems i missed out on an exam id of been able to attempt quite well 🙁March 7, 2017 at 3:55 pm
doid anyone use that 5% risk factor in question 1?March 7, 2017 at 5:17 pm
P2 March 2017 Questions
Q1. Statement of Financial Position for year ended 31st December 2016
Sub 1. Acquired 60% holding on 1/1/16
Retained Earnings at Acquistion date:$23million
Fair value of NCI:$18million
Goodwill not impaired
Disposed 6% holding on 31st Dec 2016
NCI increased to 46%
Sub 2. Foreign sub with functional currency Dra
Had trade losses at year end Dra 30.8 million
Property at Carrying Value Dra 12million
Fair value Dra 22 million
50% for rental
50% owner occupied
15% impairment loss recognised
No OCE in either
Also had Share Appreciation Rights
4 year scheme
Scheme Start date 1.1.15
FV at year end 31.12.15
Fv at year end 31.12.16 -$10
Foreign Exchange rates
1.1.16 – 2
1a.Uk Group acquired. Directors are not sure how to account for Sub. Not understand much about FRS101 and FRS102.
Directors decide not to show Directors Remuneration using the True and Fair Override in the Companies Act 2006.
1c. Foreign Exchange Effects on Translating using the average rate at year end. Discuss how average method calculated, ethical issues and effects of using average rate
Q3.a. Carsoon Co-retailer of motor vehicles
Lease vehicles to customers for 3 years
Contract terms: Penalty if Drive more than 10,000miles. Vehicle cannot be used in other jurisdictions. Maintenance responsibility remains with Carsoon
Vehicle should be unmodified during lease term
Vehicle can be bought at above market value at the end of lease term
Or returned to Carsoon who will subsequently sell it at its retail outlets.
Discuss how to account lease from inception to the sale 8marks
Q3b. Debt instrument $6m. Interest -4% Effective rate of interest-4%
6 years term
Credit losses equal to $400000
Fair value as per Level 1 -$5.3m
Company forecast using own fair valuation method-$5.5m
Sold instrument after year end for $5.3m
Discuss how the debt instrument should be recorded at the end of year with reference to relevant standards?
Q3c. Carsoon enters into a contract to construct retail outlet on customers land. Contract terms state penalty payable to customer if delays in construction likewise Carsoon penalises customer if they cannot gain access.
Project was delayed and also there was restricted access. Additional costs incurred. Carsoon wants to offset penalty payable against the penalty receivable. Additional costs including Administrative expenses incurred.
Developed a storage facility. Capitalised expenses as asset.
Discuss how to account for the above?
Q4. A1.Discuss how users percieve Financial Statements are fairly represented?
A2. Outline how recognition criteria in Conceptual Framework is differentiated in Exposure Draft?
A3. Discuss the benefits of Integrated Reporting
4B. A co enters into a purchase contract to buy machinery for $4m and $6m. Delays in delivery is penalised and supplier should compensate $500k
Contract 1. Machine Delivery delayed. Compensation received
Contract 2. Machinery not received. No compensation received. Instead ACo had to hire machinery to meet production targets..
Discuss how to account for this using relevant standards.March 7, 2017 at 5:49 pm
Very fair paper overall but too many mistakes made for a pass this time. Didn’t convert goodwill to $, spent too long on questions 2 and 3, didn’t discount the SBP, didn’t complete Q1b or c. So so poor but chin up, go again, I actually enjoy P2??March 7, 2017 at 5:58 pm
I used 5% discount factor, there were cash flows of some kind of which I needed to find present value of year 2 and 3 can’t remember why, but I do remember using itMarch 7, 2017 at 6:26 pm
I used my 5% discount for paragraph 5 of question 1 as part the rights went to current the remaining had to be discounted. 85*5000*1/4 was current. Discount the rest.
Also, what was your total Goodwill on the face of the SFP I got about 74.2 after sub conversion.March 7, 2017 at 6:47 pm
I don’t even bothered to think why that discount factor was given.March 7, 2017 at 6:49 pm
My total of CSOFP was 227.3 all tallied.March 7, 2017 at 8:10 pm
No, I was really perplexed by it!March 7, 2017 at 8:51 pm
In Q1 we went from 60% to 54% which would usually still be classed as a subsidiary but the wording of the question threw me cos it actually stated that the 54% represented ‘significant influence’ which would imply it’s an associate rather than a sub? Views/comments??
Anyone??March 7, 2017 at 9:07 pm
I think this was referring to the fact that it still had control and should still be consolidated – don’t think it is great wording but that is how they have written it in the past papers I looked at.March 7, 2017 at 9:17 pm
How many marks were for the directors remun part of Q1 b? I must have completely missed that line.March 7, 2017 at 9:59 pm
I think that was the UK version paper judging by the question above. That definitely wasn’t on the international paper.March 7, 2017 at 10:11 pm
Oh that’s good to know. My head was melted by the time I got to the b and c parts so thought I missed it. Ran way over my time and made a mess of the consol even though I’d done one yesterday from 2011 that was almost identical. It’s never quite the same when you’re in the exam hall. Pity as a mark in the high twenties was well achievable on the consol.March 7, 2017 at 10:16 pm
Did the question 1A about Shared based payment really stipulate Share appreciations rights because as far as i know ,the question only quoted share options so its only recognised as equity settled and no cash settled?March 7, 2017 at 10:25 pm
The exam was very fair, but I completely messed up question 1, which by the way was pretty easy compared to other foreign subs in past exams….I just hope I did enough with questions 2 & 3 to secure a pass, as I didn’t do justice to question 1.
The topic ‘*** ACCA P2 March 2017 Exam was.. Instant Poll and comments ***’ is closed to new replies.