- This topic has 4 replies, 2 voices, and was last updated 6 years ago by
.
- Posts
Sir in one of the examples you said that Foreign exchange loss on goodwill should be adjusted in the Group retained earning.
However in Question 9 of bpp kit the exchange diff on goodwill of 36 is not being adjusted in GRE.Sir in the same question the way they have calculated the Translation gain/loss is completely diff to the method taught by you. And im not getting the right answer following the method stated in OT notes.
Can you please solve the this particular aspect as well by showing the calculations.
Its Working 9 in Revision kit BPPYou have to start by asking whether this will be examined and how it will be examined.
1. Not that likely to come up.
2. If it comes up, the consolidation would be for the first year of ownership of the sub – to avoid complications.How many marks?
1. Explanation 2 marks – 1 of those is just for explaining that XD are in OCI.
2. Calculation 2 marks – 1 if you’ve had a vague attempt and 2 if it’s nearly right – you don’t have to get it completely right in SBR.
So, whatever, you score 3/4 as a minimum – 75%. If you try to get it completely right you will run out of time, which is very bad.
Over the years I’ve taught on this paper I think I’ve seen 3 different methods – it doesn’t matter which you use. But I can remember teaching this example at BPP and it took me 20 minutes to prove XD.
So, the short answer is this is not where you should be sending time. The focus of SBR is that you can explain things to management and accounts users and neither would be very interested in proving XD (which is why it would be strange to examine it)
You should be spending time on Section 3 of the kit which will give you a better idea of how things are examined.
Yes got it. But Section 2 in the updated revision kit is quite tricky and confusing. Never knew the conceptual framework would be so challenging.
The syllabus is challenging. However, the marking is generous. Re the framework, what really matters is that you have some understanding of:
1. Definitions of assets, liabilities etc
2. The characteristics of financial information – eg faithful representation
3. The (unsolved) dilemna as to what should be in the P&L and what should be in OCI
- The topic ‘BPP kit Question 9 – Foreign Operation’ is closed to new replies.