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Boom!!! 59% was so sure I was gonna fail. Also passed p1. Those were the final 2…,I’m now finished. So so happy.
Hope everyone else did well.
I may be incorrect but the th fair value was 20 and the tax base was 15. Therefore a temp dif of 5m at 30% is 1.5m. This then needed to be deduced from the fair value of assets acquired. So goodwill was 30 less fav of na of 20 less the dt of 1.5. So goodwill was 11.5. (That’s what I calculated anyway). So this increases the impairment of goodwill to be added back in operating activities.
Think the nic was q3 a) . I too treated it as a finance liability due to the fact there was a contractual obligation to pay the principle of b shares.
Was dreading cash flow but I didn’t think it was too bad. I got dt on in acq as $1.5m too which in turn increases the goodwill on acquisition. Had no idea about the borrowing costs part of ppe or the capital grant but think I got everything else. Part b I spit each section between the deposit / finace income and penLty. Discussed how each would be treated in soploci and consequently in the cash flow. Ie deduct the finance income and add the interest received. Re the 7m loan did any treat this as a financial asset instead of cash equivalent due to the fact it wasn’t extremely liquid? There using amortized cost and discount to presnt value??? ( might be completely wrong here) ethics part was straight forward enough.
Q 2 a was rev recognition of services . Just talked about stages of completion and allocating revenue to the elements of the contract. B was asset held for sale and whether or not proviso s should be accounted for under 3 scenarios. Not 100% on that one. Spoke Bout ifr5 the concentrate on each of the 3 items and how they should have been Ccontes for. I don’t think any needed a provision. Part c was sale and lease back cv 4.2m fv 5m and different sp. of 5m or 6m or 4.8m or 4m. I said that for both. Sale price of 5 or 4.8 a profit is recognised and charged to pl. sale price of 6 there was profit of 0.8 and 1m was treated as a loan and spread over the life of the lease. Sp of 4 was a loss to pl.
Q3 was next. I just discussed was an nic should be. That is fb of nic at acquisition plus share of post acq profits. Further more said should be finance liability as contractual right to repay the holders. (Min of 3ys )
Part b was hedging. Hate hedging but think I got enough down like can only hedge any item at inception . So could not use the associate .
Part c was hell. Had no idea. Just waffled on what little I know about combinations. Hated this part the most.
Didn’t look at q4 in depth but didn’t revised on my current issues. Was predicting debt vs equity which would have been my knight in shining armour.
I revised really well for this exam but thought the exam was horrible overall. No main topics any where.., where was NCA / sbp / financial instruments / pensions. Income taxes . I will be incredibly lucky if I pass this exam