[denny1]

Hi all,

Decided to go with management gateway route but not registered with CIMA yet. A small clarification, whether we need registration as student to access all past management Case study pre-seen, model answers and examiner response. Got November 2016 from one web site.

[denny1]

None of the working capital questions came for me. Not even as MCQs, anyway all MCQs were tricky. Long form questions, I got NPV, wacc as calculation. Then more writing in terms of questions like, difference between NPV and IRR, benefit of convertible loan note. For NPV I got something like 2.5 million with initial investment was 5 million. Tricky part was wc required at the end of each year as 5% of sales. Sensitivity was ok with only 3 marks. Variable bank was a problem, no idea how to consider that. Sure shot mcq were, shares sold in secondary market, LC issuance process, repurchase interest rate, market price of loan notes etc.

[denny1]

@hayor said:
Ideally Development cost is capitalised when some conditions are met and which I believe we all know and remember we don’t depreciate Development cost og not completed yet??? as depreciation starts from the date it is substantially completed so are you saying depreciation of plant should be added and re-depreciated? pls come clear

Related to Depreciation of plant used for development project, somewhere I read that Depreciation should be charged to profit or loss, unless it is included in the carrying amount of another asset. Since we are capitalizing development cost as an asset, we can capitalize those depreciation expense rather than charging to P&L

[denny1]

@surajnair said:
I cant recollect Goodwill question. Asset one if you’re referring to the section A mcq question,the right option is C(which says future benefits should be measured reliably) – not in the asset definition.

Ya, that’s the one. But is it cost which need to be measured reliably and future benefit should flow into Entity. I selected that option I guess. MCQs will always create some problems, I really don’t know to tackle those well.

[denny1]

@laughingcoffin said:
How did u guys calculate the ratios in question 31</blockquote
I got GP margin of 22% for both year and some different operating margin, but didn’t know how to calculate adjusted ratios as sub was sold in Jan itself so i assumed no number related sub was there in consol number.

Made some adjustments for excluding profit on sale from admin expenses. Then wrote something on that line.

[denny1]

However I think it was also mentioned additional depreciation was to charged to revaluation reserve.

[denny1]

@feroz1234 said:
In relation to if dep’n should be capitalised as part of cost of constructing a new asset, what did you guys choose?

Also i picked all 3 goodwill patent and licence one had infinite life – The option being all 3 should be tested for impairment yearly.

With regards to the mcq on enhancing characteristics of Financial statements what did you guys pick?

For enhancing selected understandability, comparability, timeliness verifiability

Related Impairments, I have selected goodwill, indefinite life

Also value of patent post allocation of impairments loss, I have apportioned only patent and license after adjusting for goodwill as property had same value

[denny1]

@feroz1234 said:
Which option did you guys pick for inventory valuation or something.

Was it A which ended along the lines of bringing it to its present location and condition.

or option C bring inventory to its saleable condition?

I selected cost plus to complete and selling cost was smth like 166 per 100 unit, I guess finally gave 14300 some like that as answer.

[denny1]

@laughingcoffin said:
Denny1 did the CBE i think we had no fill in the blanks

Anybody remember any of the section b questions

Sorry not fill in the blanks, it was to complete a given sentence with appropriate drop down answer.

[denny1]

@surajnair said:
Huh? Which part?

One was to credit the bargain purchase goodwill and other I think it was definition of assets or something like that.

[denny1]

For two fill in the blanks to complete the definitions, anyone remember those. Just to get some confidence so that at least some answers are correct.

[denny1]

@nataliam2 said:
I know the rules but I couldnt get to any answer. THis is how I calculate:

10m*6%*7/12 = 350
2m*4.5%*2/12 = 15

10m+350-15 = 10335

so how do you get 10435? where is my mistake?

I calculated like

10m*6%*9/12 = 450
2m*4.5%*2/12 = 15

10m+450-15

[denny1]

When ACCA will be publishing the answer as past paper, will it be before July 17.

[denny1]

@aaradhya33 said:
yes natalia.You had to capitalize the borrowing cost from feb to October.

but also since it had been invested elsewhere for 2 months (2m*4.5%*2/12)
this should be deducted.

i think the answer was 10435000

I also select the same answer for capitalization.

[denny1]

@cossie1990 said:
I had an issue with interpretating what Q31 was asking ref the ratios.

The question stated ‘using the financial statements provided’ but was I meant to adjust for the 3 months of spectra that were included? I knew the formulas and wrote them down so may get some credit for that. I feel the question was a bit misleading if you were meant to adjust the figures, which I could have done quite easily but chose to follow what the question said.

Anyone else have a similar dilemma or just me? 🙁

Question specifically asked how the interpretation would be misleading with the disposal. This is what I thought so wrote something in line. But i didn’t have a clue on how to separate the number from consolidated

[denny1]

@hayor said:
For the issue cost did you deduct 200 from proceeds of issue of loan and as well deducted it out of admin expenses?

Also for investment income how did you treat it…..since 300 is credited initially of which 200 is related to gain on equity investment I deduct 200 from and show it under OCI making investment income just 100

I did the same, got total oci of 6440 something like that. Hope that would be correct.

[denny1]

@aaradhya33 said:
What extra questions?
There were no extra questions :/

May be, one if the candidate who I met was saying this. Not 10 should be 5 question with 2 marks.

[denny1]

@aaradhya33 said:
excess dep? had not been charged so i added 3.5/20 = 175k to COS.

Yeah,adding inventory to R/E wad a very tricky one.None of the questions I attempted while practising had that twist!!

Historical cost bases dep was already charged to cost so I didn’t do it. Now we can’t do anything. But I had no idea about 10 marks extra questions. This was my first exam and I didn’t come across that idea. What they will do with that extra questions.

[denny1]

For single company statement, I didn’t adjust any depreciation as excess was adjusted to revaluation. I guess that would be right. But forgot to add back the inventory adj in RE. Cash flow was dividend and loan taken. For investing only purchase of some shares. For comparison i got Profit on sale of some 0.85 million, if I remember correctly.

After seeing all the above comments, i am bit worried now.

[denny1]

Hi all, I guess for morning and evening there were two set of questions. Mine was Second half. Longer form questions 1 was on comparison for two consol number with disposal happened 3 months into an year. Which I have calculated the said ratios and wrote something. Second question I got Profit was approx 2945 plus some revaluation 3500 to 6445 approx. Overall I think it was really tricky

[Author]

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