[Gvtftf]

Dear Sir,

All of these events occurred after the reporting period snd before fs were authorized for issue.

In the second option, claims were before year end, psyment was after year end.

My assumption is: options 1,2 and 4 are adjusting. Kindly ask you to review my assumption.

Thanks.

[Gvtftf]

Mr Little,

The options mcqs looked exactly like you wrote and asked for when parent can be exempted. I chose A option:1,2,3

[Gvtftf]

Dear Mike,

So, if, for example, I face the following MCQ:

Choose from the following statements the ones that give a parent an exemption from preparing consolidated accounts:

1) The ultimate parent publishes ifrs compliant FS
2) a parent’s shares are not publicly traded
3) its not in the process of issuing shares
4) it has/acquiries a subsidiary to sell it soon

I will choose the first three statements as correct then?

My reasoning is that the first three are included in the list of four circumstances giving the parent sn exemption from preparing consolidated reports; while the last one refers to circumstances that leade to an exclusion of subsidiary, which is not the same with an exemption for parent?

Thank you.

[Gvtftf]

A parent need not present consolidated financial statements if and only if all of the following are fulfilled:
The parent is itself a wholly-owned or partially-owned subsidiary of another entity, and its other owners (including those who are not entitled to vote) have been informed about, and do not object to, the parent not presenting consolidated financial statements;
Its securities are not publicly traded;
It is not in the process of issuing securities in public security markets; and
The ultimate or intermediate parent publishes consolidated financial statements that comply with International Financial Reporting Standards.

[Gvtftf]

Dear Mr Little,

To eliminate any misunderstanding, I was referring to the circumstances in which parent is exempted from preparing consolidated financial statements, not to the circumstances in which subsidiary is exempted from consolidation.

[Gvtftf]

Mr Little,

I have just reviewed relevant IFRS and they specify only 4 conditions, this one was not there. As far as I understood, IFRS 5 removed this exception. Could you confirm this, please?

[Gvtftf]

Thank you, sir!

Btw, can we actually say that contingent asset is an asset? I mean, if the question asks to choose asset/liability from the four options, do we have to take contingent asset or liability as the right options?

[Gvtftf]

@natty2 said:
Hi mike little Thank you for your lecture however I have a few queries. First in part (a) I do not understand how you got the 6million in the shares section 40mil+6mil=46 million and the pre acquisition of 6million also, in point (111) can you explain the question a little more I do not quite understand the terms. In part (b) you have cost ,profit & selling price is the selling price 560 000 or 5.6 million & how did you arrive at 5mths @1.2 mil=6 million

Nattu2, i have created this topic to ask my question. Not for you. If you want to ask something, create your own topic, so that Mr Little can clearly see the questions. Where is your logic?

[Gvtftf]

Mr Little, as a follow up, even if associate sold some goods to P during post acquisition, or vice versa, we still dont deduct that figure from consolidated revenue, right? I mean abother what if we have this scenario?

[Gvtftf]

Mr Little, can we recognize a patent or another intangible asset acquired through business combination? Thanks in advance

[Gvtftf]

Thanks for clarification, Mr Little. This was eating my brains the whole time.

[Gvtftf]

Thank you sir. So, the first option is not recognized as an asset in FS, but the second option will be recognized as a liability then, right?

[Gvtftf]

There are some mcqs that are still concerning me most:

1) the one with lease, where i got 2000 overstatement
2) the one with grant balance, i dont remember was there an option with 3.75 or 3.25? I got C, but cannot remember the number
3) There was one mcq where the first statement was smth about gain on revaluation is recognized only at the disposal or what was it? I remember choosing it as false
4) One mcq which asked about held for sale criteria. I remember choosing two options there, the one with available for immediate sale and the one with highly probable, but what were the other options?

[Gvtftf]

Sir, its even more than ok 🙂 thank you!

[Gvtftf]

Thank you, i got overstatement of 2000 as well!

Dear Sir, my last question to you till next sitting (probably). Just tell me yes or no, please.

Grant is received in April 1, 2015. Year end is 31th of September. Grant amount is 5,000,000. Time period: 10 years; calculation should be based on months. What is the balance in 31th of September 2018?

I got 3.25 million. Does this sound reasonable? 6 months for 2015; 12 months for 2016; 12 months for 2017; 12 months for 2018. Hope my calculated answer is correct.

Thank you.

[Gvtftf]

Dear Mike,

The payments were made in arrears. Was signed on January 1 2010 and the question asked for 31 December 2010. So, overstatement of 2000?

[Gvtftf]

@christa316 said:
Both

But did they ask for commentary on 3 marks question? As far as i remember, they only asked for commentary on 12 marks questiins, the first one was only calculation.

[Gvtftf]

@christa316 said:
Yes it was only 3 marks

Christa, were we asked to comment on it as well, or just calculations for 2015 and 2016 roce?

[Gvtftf]

Anyone remembers having 3.25 million as deferred grant balance in one of the mcqs?

[Gvtftf]

@christa316 said:
I know. I’m just saying they only penalizeonce

Thanks. It was 3 marks, right?

[Gvtftf]

@christa316 said:
But it depends on the ratios you choose. If it was opm or gpm then skipping it won’t make a diff.

Mine also included the AT so I’m the one who should have included it

I was talking about ROCE in first 3 marks question

[Gvtftf]

@christa316 said:
Last time I checked acca only penalizes once. Were your calcs based on continuing ops?

Yeah, i mean pbit was based on continuing, i think i didnt deduct 9000 only, in the denominator

[Gvtftf]

@christa316 said:
The question said to calculate based on continuing operations only.they gave you the net assets of the discontinued ops which was 9mil

Christa, in case we didnt deduct 9000 but wrote out the formula and made other calculations in roce as needed, will we be awarded partial marks?

[Gvtftf]

Anyone remembers the mcq related to IFRS 5 recognition of assets held for sale?

[Gvtftf]

Sir, in case you have some minutes tomorrow when you can access the question, kindly ask you to review the validity of my approach and briefly look at Q3 section D to reflect on validity of comment related to that question above. Thank you very much.

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