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For Q1: unfortunately I had a difference of $4m
-I was unsure about how to treat the $2m on the Investment Property
-It wasnt clear to me what the NCI in Sub 2 (forget name!) was at the end of the period (i.e. 60% or 70%) as the parent owned Sub2 for the full year so NCI share of post acq profit was only 30% but clearly there is then a sale at the end – just didnt know how to treat it…
-For the provision at acq I took the expected value, and at the end of year I took the paid settled amount at it was within 12 months of year end – was bluffing on this
-For the 10% share swap I had: carrying value of the Sub 2 (goodwill of 71 + FV of 375 = 446m) * 10% = 44.6m meaning increase in the swap of $48m – $44.6m = $3.4m to Retained earningsThe rest of the paper was difficult as required application of specific principles which I didnt understand to be fair. I attempted Q2 and Q4 but forget my answers on those now.
Did anyone think there was some information missing in the share question (no 24 I think) where we had a purchase and then a sale of share but no sale value? Maybe I missed something but there were associated costs for all the purchases but no income for the sale…. thoughts?
Found it quite tough… for question 5, what discount rate did you guys use? 8% or 6%. Was it better to buy or lease the machine… or have I missed the point….
