March 8, 2016 at 11:00 am
opentuition_teamKeymasterMarch 8, 2016 at 4:36 pm
The p2 paper was not bad overall but I don’t know if I did enough to pass
Started on q2 and completed q3 next with 90 mins left
q2 was FV scenarios –
q3 was a mix of treatment of Leases, PPE & Inv property, Intangibles & AHFS
Hope I will have got 30 marks between both
Q1 was a SFP. D shaped complex group.
A few horrible bits thrown in about goodwill and revaluations
Did all the workings but did not get time to add up the figures in sfp – a disaster basically
Started on 1b with 1 0 min left
Maybe 1 mark of 8
Q1c wasn’t bad but not enough timeMarch 8, 2016 at 4:39 pm
Didn’t think it was a particularly nice paper, as Marin says some nasty/strange adjustments in the consolidation.
I went for question 2 and 3, as I didn’t revise current standards. Current standards looked easier though if you knew your stuff on that.
Quite tough I thought! I’d estimate I got 40%-52%. Praying I will scrape a low pass!
Good luck everyone.I’m going to keep practicing in case I need to do it in June..March 8, 2016 at 5:26 pm
Question 1 was horrible!!! Too many things to consider. Couldn’t even determine whether I was to comment on a treatment or actually implement a treatment to affect the SFP. SIGH!!! June sitting here I come.March 8, 2016 at 5:37 pm
The only positive is I attempted everything but very confusing paper. 3rd time lucky in June I hope :((March 8, 2016 at 5:52 pm
I attempted the entire paper also. I changed a part of my question 4 from the correct thing to an incorrect answer. I am praying that I pass this… question 1 had confusing parts but I put something down and hopefully it is correct…March 8, 2016 at 5:59 pm
It was really demanding especially with the adjustment in Q1. Too much time was wasted on Q1 and having little to do with my third question. I could only attempt 70% – 77%. Time management is very key in this exam. I pray I pass. God help us!March 8, 2016 at 6:12 pm
What did you put for question 4 lee?March 8, 2016 at 6:23 pm
I put that deferred tax assets should only bever recognised if the subsequent year will have taxable profits to offer the deferred tax asset. I listed the indicators of impairment and indicated that regulators in these economic times are looking at fs being misshapen especially in the overstatement of assets. For the other part I put that you can’t change the useful life of the intangible assets to indefinite .. I know that is incorrect.March 8, 2016 at 7:11 pm
Anyone else just going to continue practicing P2 until the exam results come out?
I’d be very surprised if I had passed to be honest, and I expect a mark in the 40’s 🙁
My plan is if I continue practicing questions from now until the results I will not forget any of the knowledge I already have acquired and may even improve up to a pass standard..
Then if the worst happens and I do fail I will be in a very strong position to study even harder for another 2 months and make sure of a pass in June..
I’m also going to start one more exam in the meantime.March 8, 2016 at 7:41 pm
I put about intangible asset could change to infinite as under ias 8 change of estimate.
Ifrs sme practical I put about staff training cost benefit analysis. More comparable with other entities in the industry, limited disclosures and that its watered down version of full ifrs
ethics question I put about Acca code and spoke why it should be associate and mentioned other aspects of control such appointing temp staff being on the board etc.
Q3 operating leases recognised in p/l explained what finance lease was cr non curt lis and dr assets and Dep under ias 16
Ias10 on one part regarding something I can’t remember now in q3 I think
My statement was out by approx 300
Q4 operating segments in relation to the branches?
Did direct and indirect on group structure.
Cant think of owt else think I mentioned abit on ias 37 in question 1 and did journal entries to show.
Feel rubbish after this exam I really do and my writing was atrocious lolMarch 8, 2016 at 8:05 pm
Q3 & 4 by 11:45 and then Q1b & c part by 12:10 leaving me a nice 1 hour five minutes for the consolidation. But the same thing happened to me, the adjustments in consolidation messed it up for me, but still hoping to get there just abouts !March 8, 2016 at 8:20 pm
This is my take on it please correct me if i’m wrong as i’m not 100% sure.
Part a) I got the SFP to balance at 4406.5.Had to write off the acquisition costs which they had included. Had to remove the Indirect holding adj and include FVA for PPE, Land and Provisions and depreciate the FVA PPE over 2 years in W2 Net Assets. Onerous contracts settlement in one of the notes. I included the Reval in PPE/OCI and then split the 5 floor building into 3 floors PPE and 2 floors Inv property. The partial goodwill impairment needed a notional goodwill gross up which gave a grp imp of apprx 60.
Part b)i) Was IAS 27 which i left till last and didnt do great on! ii) Was the considerations of Business model and Cashflows when dealing with Equity Investments (FV PNL or sometimes FVOCI if criteria met/election made)
Part c) Was the Ethics q relating to the director wanting to misrepresent a clear associate as an Investment, because it was making losses. They had 30% and 2 out of 8 directors, and due to lack of recent training was unsure and therefore wanted to keep losses off the SFP. Just spouted out ACCA Ethics buzzwords like Proff Comp/Behaviour/Integrity/Objectivity etc.
Q3) Part a) included 2 portfolios of receivables. 1 which was factored but with recourse, so needed to be treated as a loan. The other one needed an increased loss allowance (lifetime loss) based on the weighted averages and amounts given (approx 83k in total so an increase of 33k from the 50k that was previously recognised). Part b) related to construction costs and HFS. Possible IAS 10 event but i stated it was non-adjusting as the decision to sell was 3 months after year-end. Part c) involved 3 leases, 1 F and 2 OP and involved 3 deposits and how to account for them.
Q4) Part a) was adoption of IFRS (IFRS 1). I stated the need for a transition date,comparison year, recognise/derecognise items in accordance with IFRS and measure/reclassify items in accordance with IFRS. G/L to Ret Engs not PNL.
Part b) Involved The implications of Def Tax and Imp under economic downturn. I stated the additional importance for observing indicators of imp and stated the limits on DTA for losses carried forward in relation to likelihood of future profit (unlikely in Downturn).
Part c) Was a company who was incorrectly holding an intangible without reliably measuring/knowing its FEB/Economic life. Then the same company incorrectly selecting CGU’s without relevant data under IFRS 8.
It was not the easiest topics! And most of what i was expecting never showed!! Thoughts?March 8, 2016 at 8:20 pm
Of course.March 8, 2016 at 9:27 pm
I pretty much did what you did with a few exceptions:
1 . Q1a – I didnt gross up the goodwill.. part c .. i used words like relevance and faithful representation. The issue in my opinion was they not wanting to put as no significance since there was only one other shareholder so i didnt bother mentioning the losses.
2. Q4 – a. Somehow I couldnt get my thoughts into words well about caparability, timing, restatements. I messed up part c because i said that they shouldnt change the useful life although it may be allowed, i think. the just needed to check impairment and that the indefinite useful life is still appropriate annual.
3. Q3. Expected credit losses went clean out of my head. So I rambled hoping to pick up a mark for trying.March 8, 2016 at 9:42 pm
I thought it was OK. The issue I have is the time management. It is extremely tough to get the consolidation down in 63 minutes. Thinking fast under pressure …. I guess that what is expected of professionals. I honestly think it will be a SCRAPE pass if I do pass. If I don’t, I guess there is always June. I can’t remember now but I didn’t think it was necessary to gross up the goodwill for the impairment as wasn’t Lambley measured at Full GW method. I just don’t remember and it’s too late to change anything. Marks are awarded for technique and method too even if the figures are wrong. So if I go on that, I MAY have passed. But who knows…. April will tell. Here’s hoping. But at this stage, I am not giving up on completing these papers.March 8, 2016 at 9:45 pm
Glad this paper is over…wrote last December… First attempt with 50… It’s a tough one…good luck guys…March 8, 2016 at 9:49 pm
Same as that for question 1c and it was worth 7 marks so they were easy marks I thought and not to be ignored if between a pass and fail. I explained that they should account for it as a share of profit of associate and investment in associate (how to do that with the CSID working), what they should do with the dividend, and then I discussed the director having a duty of stewardship to the shareholders etc, true and fair view of accounts, the shareholders would expect to see the associate in the group accounts even though they were making losses. The number of directors at only 2 wasn’t a valid reason to not include it, as it owned 30% so that means significant influence. Don’t consolidate but do present in the accounts. That is what I said. I hope I scored at least 6 out of the 7. In this paper, every mark counts.March 8, 2016 at 10:17 pm
Lambley Was prop of net assets. The one beginning with H was Full GW. Yeah the Ethics question seems a safe bet for at least 4/5 marks. I said that because he hadn’t attended a course for a long time, then they’re lacking on CPD. I really don’t like the writing style in thi exam. It needs a financial dictionary/thesaurus!March 8, 2016 at 10:41 pm
I’m Amazed at how much of the info from the exam people remember.
From reading your comments I realise I didn’t gross up the Goodwill either but think that’s the least of my problems. Will be sitting it again in June and yes will keep the study going. Even if I pass it’s the one subject I feel we should know how to apply in the real world anyway so the study won’t be a waste. It wasn’t a horrible exam but definitely time constraint was a problem and not being 100% on how to apply my knowledge.
Best of luck!March 8, 2016 at 10:49 pm
Was question 1 step acquisition or mixed group. I thought it was step acquisition that B acquired 60% of L and 25% of H. And the purchased 70% more in H on 1 July 2015. So from associate to sub.
And how were we to treat Q.3 c) leases?
And Q2 c) NCI? Preferred shares etcMarch 8, 2016 at 11:05 pm
Not a step-acq. D-shape. L acq 70% of H so this gave B 42% (60%x70%) plus the 25% Direct gave a 67% holding with a 33% NCI.March 8, 2016 at 11:36 pm
Did you all time apportion from the date of acquisition? 6 months?March 9, 2016 at 12:11 am
Acca63 I actually did step acquisition too. I thought that’s what it was. Wow. Can’t remember exactly now. What happens if your group structure is wrong? How much of a marking down can you get?March 9, 2016 at 12:16 am
I did step acquisition as well but I can’t remember. There was so much going on
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