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Thanks, palmy I was indeed looking for this, as I printed it last sitting, unfortunately got 46, so need to retake, but a great summary tool to have on the go, and keep memorizing it. Thanks Neil!
Sorry, one more question, in Dec12 exam, investment in Associate, regarding the received dividend, I am confused with the necessary entries. Received dividend $2m: Cr Income, Dr Cash, then if Cr Investment in Associate, where another debit goes? Or was it assumed that we were entitled to the dividend but it wasn’t paid by cash, therefore we reduced the investment value? Should we always assume that it is not paid, unless it’s specifically told?
Was this the key indication that total assets should be used: “the recoverable amount has been determined without consideration of liabilities”, if yes, so it is tricky, as it took me awhile to figure it out, and having in mind the exam pressure, the examiner really challenges us out 🙂
Mike,
I have one more question. could you please advice when to use Net Assets figure for calculating goodwill impairment, and when we should use Total assets figure for goodwill impairment? I got confused by looking at the Dec 2011 and Dec 2012 exam questions 1, when in one case Total assets were used, while in other Net assets were used.
Thank you.
Thanks Mike for your time in answering my queries. I am actually from Kaunas but live now in Vilnius 🙂
Hi Mike,
Indeed it’s Lithuanian concern 🙂 Thanks for re-confirming, as I thought that workings are the most important, but after listening to Exam prep video from Becker, the speaker Phil Bradbury said that examiners expects to find the answers in Financial Position instead of looking for them in workings, and that we should spend time on preparing pro forma of consolidated FS, line by line, as soon as we have each answer. That’s why I got confused, but if you believe that we shouldn’t lose points, so I agree with you not to waist time on it.
Thanks 🙂
It seems that this topic is not popular by examiner but few exam tips recommends to review this area. You also mentioned in the lecture notes that there is 20% chance in general for this topic to be on the exam but I can’t find any exam questions related to it, so as to see how it looks like? Are there any smaller questions, 7 marks or so to review for practice?
I do not see the loan in this example, it maybe related to adjustment to depreciation of plant after FV adjustment but I am not sure if we should include this in goodwill calculation, as I saw in other examples it would be excluded?
Thanks, I reviewed those mini exercises, indeed it helped. I just have one question In goodwill mini exercise answer nr8 Ret ears 6 months (21,000 + 2,000)/2, how did you calculated 2,000, I couldn’t understand. Page 245, F7 Notes 2015.
Thank you.Dear Mike,
Thank you for the answer. I understand as I also can’t decide on which areas to put more focus. Could you advice where could we practice with the newest IFRS 15 info, as probably it could be tested on the exam?
Rasa.
Dear Mike,
In course notes P2 in Chapter 1, Example 1 (Ausra and Danute), you mentioned that if we want to practice different type of share exchange payments for acquisition we could find different exercises at the end of the notes? Could you please specify where those examples are, as I can’t find them. Thanks a lot!
Rasa.
If anyone has received the mock exam please share. Thanks. 4rasap@gmail.com
@asadwasty: may you please send me the mock as well. Highly appreciate. 4rasap@gmail.com