September 5, 2017 at 11:35 am
opentuition_teamKeymasterSeptember 5, 2017 at 4:32 pm
What were the topics assessed?September 5, 2017 at 4:42 pm
Cash Flow on Q1September 5, 2017 at 4:47 pm
anyone did question 4? what was the treatment for last part of IFRS 16 questions? bicycles and cars?September 5, 2017 at 5:04 pm
How did everyone find that exam?
I thought it was very hard compared to previous sittings. The cash flow question blew away even though I practices it and watched the tutor revision video where he goes through the cash flow.
I had my final net cash flow figure as 33 (I included the 2 cash from the net asset at acquisition however I think it was (31)?
I attempted question 2 and 3
Question 2 SBP was bit tough too but the impairment one on IAS 38 was fairly straight forward.
Any other comments? What did people do with the cash flow? I really struggled.September 5, 2017 at 5:05 pm
Bicycles were low-value leased assets and could therefore be expensed directly to P&L (no lease asset recorded).
With cars I said that the company could have a policy for the same class of leased assets and treat them the same eventhough their contract terms and conditions might slightly differ – but not sure about it.September 5, 2017 at 5:13 pm
hi zuzanaa, yeah i also replied on same lines. did u attempt q 3?September 5, 2017 at 5:14 pm
Despite being well prepared for the exam I struggled with the cash flow question. Seemed much harder than previous CSOCF sittings…..September 5, 2017 at 5:15 pm
I did Q4 but ran out of time to do the last Q properly. Managed to say the cars are a lease and bicycle not because of low value and short term.September 5, 2017 at 5:20 pm
I really struggled with CFS. I skipped to q2 and q4. Then ended with q1 with very little time left. I pray it will be enough. Was much more prepared for an SFP.September 5, 2017 at 5:36 pm
I have never said this before but this exam was a nightmare. Although Q2 and Q3 were relatively easy but Q1 SCF was definitely not. Or maybe I didn’t practice it enough as I really didn’t expect it to show up. Was hoping for a consolidation question. I just hope I pass.September 5, 2017 at 5:54 pm
Anyone remember the questions ?September 5, 2017 at 5:54 pm
I thought the exam was hard, but I knew a little about a lot, and sometimes that’s a problem when choosing which questions I know more about, considering the spread of the standards I knew over the questions.
I practised SFP last night, when my gut feel was saying cash flow, but luckily, I watched the revision video of Chris for more than once two days ago, and I remembered the techniques and also T accounts, very helpful indeed. I am just hoping I did enough to pass.
Q2 was average for me in terms of difficulty, although I understood the standards, the time I had left and the bit of knowledge, trying to generate ideas was a bit of a struggle. Again, I hope I did enough.
Q3 I know the revenue from contracts with customers very well but for the rest of the question, I rushed through b and didn’t even manage to do c. probably get about 1/3 of the marks, if I’m lucky.
Now time to focus on P3 for Thursday 🙂September 5, 2017 at 5:56 pm
I have never said this before but this exam was a nightmare. Although Q2 and Q3 were relatively easy but Q1 SCF was definitely not. Or maybe I didn’t practice it enough as I really didn’t expect it to show up. Was hoping for a consolidation question. I just hope I pass.
Very time pressured for question 1 I watched Chris cashflow last night but when I opened the question today I was baffled and though I expected cashflow my T accounts were all over the place 🙁September 5, 2017 at 6:07 pm
Yes, I attempted Q3.
a) The revenue was an easy one, I think. Just illustrated the five step approach with the example and unbundled the sale of turbine and maintenance, calculated SSP and then revenue.
b) the steel derivative bought in euro – I did not write much. I think that they need to charge the change in FV to PL because the FV changed due to the change of forex and not the underlying hedged asset.
c) testing for new turbines and how to record income from sale of energy. I was not sure… what did you write?September 5, 2017 at 6:11 pm
Q1 b What did you write about the decommissioning and restoration costs?
If I understood correctly, Mirror accounted for the restoration costs against the PPE at the initial recognition – that was really weird. I think they should have booked a separate provision as the item satisfies the definition of liability and not asset.September 5, 2017 at 6:17 pm
Yes please does anyone remember q2 (a) SBP requirements?September 5, 2017 at 6:32 pm
1) cashflow with 80% acquisition during year and joint venture
1)B) principles of decommissioning cost and if it’s against the definition of asset as per framework
1)C) benefits of environmental disclosures and ethical issues in overstating environmental performance
2) A) Why grant date for equity and reporting for liability, will expense change based on vesting conditions, why non-employees and employees treatment different, difference in definition of fair value as per IFRS 13 and IFRS 2)
2)B) CGU impairment where CV included current liabilities but value in use didn’t include
2)C) Fixed rate loan treatment (actively traded) so ftvpl and also they used internal wacc which is level 3 when interest rate publicly available
3) a) simple IFRS 15 of wind turbines + warranty and maintenance contract
3)b) fixed price contract to buy steel in foreign currency (embedded derivative)
3)c) Offshore wind farm was being built to test prototype so capitalise or not as per IAS 38, they got income during testing so how to account for itSeptember 5, 2017 at 6:39 pm
Tough enough exam.
Read a article which suggested doing the exam in reverse (start with Q4 and go backward) glad I took that advice it helped me attempt the full 100 marks.
I was not expecting Cash flow however I practised Weston 2 weeks ago and practice Jocatt question a lot last night. Glad now I did as I was able to least give it a fair attempt. There was one or two similarities with the Jocatt question.
Q4 I was happy leases came up. I had read so many articles on it it made me blue in the face. I was hoping for that provisions or goodwill as a current issue question.
I thought it wasn’t too difficult to think of why simply improving disclosure requirements would not be enough for leases. Because the big problem was how they were accounted for it was an accounting problem and ‘off balance’ financing that was causing a fuss not any disclosures.
I knew the implication for the SOFP (such as the effect on the gearing ratio) and SOCI but less so the SOCF.
I knew that for companies like big airline companies who leases a lot of parts it could have very significant impact on their profit and balance sheet ratios if they were using operating leases.
The cars then I didn’t fully know but gave a fair judgement on whether they should be treated individually. Said they should as different terms will mean different lease life therefore different depreciation, etc.
The bikes was too easy. If you knew the excemptions available under IFRS 16 this was very obvious. They were low value/immaterial for instance.
Then I done Q3 a fair question on revenue recognition in part a, difficult dereritive question in part b and a question on land and research and development under IFRS 15. IIRC it wasn’t legally permissible. Said to treat the energy as a sale and any remaining use as inventory. Q3 wasn’t too good but gave it my best shot. Hopefully I passed it.
Then Q 1 (c) was integrated reporting and benifits and ethical issues with the environmental disclosures in it.
Among benifits I said it highlights their valuable CSR efforts to stakeholders and ethical issues I mentioned how thy can ‘cherry pick’ what they want to report and deceive stakeholders potentially and their CSR may be strategic only and only be doing it because it brings them value only. Mention how if they don’t live up to what they’ve promised it will have big implications for their reputation.
Part B I waffled about why the decommissions cost is direct, necessary and part of the cost of the asset. Not my best attempt but hopefully I passed. Mentioned they have a constructive liability and so must account for it.
The Cash flow well I gave it my best. I done the obvious like Depreciation, amortisation, goodwill impairment, tax paid, etc.
It is boardline for me I feel. A marginal pass or a marginal fail coming my way. Not going to give a second thought until October though there is no point. What will be will be. Enjoy discussing it post exam though nevertheless.
Staying calm and not panicking is so important in this exam glad I was able to keep my cool even if not everything I wanted came up. If I do get a pass it would be becomes I didn’t cry when the SOFP or SOCI question I wanted didn’t come up. I said right let’s just deal with this we move on and we fight to pick up as many marks as possible. I knew I had done a CF last thing last night to have it fresh in my mind so I knew I had enough to at least pick up a few marks here and there.September 5, 2017 at 7:04 pm
Bicycles expensed directly to spl – low value and short term
Cars are service contract not lease contract as the leased asset is not identified
That was my answerSeptember 5, 2017 at 7:20 pm
What did people get as net cash flow equivalent figure? (33)
and good will was this full good will method? NCI was given.September 5, 2017 at 7:33 pm
Was a disaster. Time to prepare for the Dec resit!
I didn’t have time to revise all the standards – my own fault for being complacent ??September 5, 2017 at 7:33 pm
Was a disaster. Time to prepare for the Dec resit!
I didn’t have time to revise all the standards – my own fault for being complacent ??September 5, 2017 at 8:12 pm
Wowee, that was tough. I’m still hanging on to a bit of faith that I will do ok, but geez that exam was a gut punch for me. I always had zero intention of doing Q4, whatever it would turn out to be, but lo and behold, after browsing through the paper and seeing the terror inside, Q4 ended up being the first thing I attempted! Didn’t want to spend too long on questions though, so ended up hopping around. Never got back to discussing the cars for employees in the last part of Q4.
Ran away from Q3, fought with Q2. Knew the standards but it was tough applying them to question. Kinda expected Cash flows in Q1 but still didn’t want it lol. Tried my best for that and part c and made-up stuff for part b 😛
Praying that I made it though. Super tough, but I must say I tried my hardest. 🙂September 5, 2017 at 11:06 pm
This is officially my toughest ACCA exam.
To many regrets. Starting the exam with the cashflows question; and wasting time to the detriment of other questions.
Not reading the question well enough to understand what the requirements are. After the cashflows, i was already pressed for time, so i just started answering questions. 3a – IFRS15 looked easy; so i jumped at it….. by the time i got to the b part I didn’t know what the question was about; and i didnt have time to cancel and answer number 2.
The only bright side of the exam was IFRS 16Leases.
I can only hope for a pass.
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