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Passed with 74%. Final paper and passed everything at the first attempt. So glad to be done lol
khandelwalmak@gmail.com wrote:Guys how did you address below :
Part 1: The FV of the assets and liabilities is the FV of the net assets, but you do have to figure out the FV of the asset not captured in the net assets. I used to value of the share capital and retained earnings as such:
Share Capital = $10m
Retained Earnings = $42.3m
FV of Land (or PPE), bal. fig = $3mSum: FV of Net Assets = $55.3m
Part 2: Yes, you consider the loan notes when calculating the Investment in the joint venture. Since the FV of the loan notes was given, I didn’t do any additional calculations and just used that.
ryanwilkes1985 wrote:The customer received the data over the time of the service contract with presentations and reports at specific times – it was one performance obligation but the control over the data was passed over time with the presentations
No, I did not miss it. That was deliberately added to the question for this reason lol. Revenue is recognised per performance obligation so the submission of data and reports does not amount to the performance of anything. How would you even quantify what portion of revenue to recognise for “time to time”?
Equity accounting is the same accounting method for Investments in associates, so you don’t consolidate. The question was to explain how the investment will be accounted for in the financial statement, which is to recognise the share of loss made and reduce the investment accordingly.
ryanwilkes1985 wrote:One because you couldn’t consume one without the other. The licence was dependent on the service contract. Over time and you needed to apportion a value to both parts of the contract.
As a single performance obligation, revenue should be recognised at a single point, once control passes on to the customer.
For the joint venture, there was no need to consolidate as it should be accounted for using equity accounting, so why would you be calculating goodwill at all?
usmn567 wrote:So were two separate performance obligations or not
It was a single performance obligation cause the data would be useless to the customers without a license. Obligation is satisfied once the licenses are granted.
ryanwilkes1985 wrote:Annoyed didn’t get reorganising provision but got decommissioning – can’t get them all
I think this was a joint venture between the three of them as a unianimous vote was required.
Afternoon session. The paper was quite hard and I tried to rush but barely finished. Don’t think I used a lot of the exhibit either, my answers were just pulling from general knowledge and trying to apply them to the scenario. Definitely didn’t use model, apart from the internal and external factor driving change/to consider when implementing change.
Quite sure I’ll pass but barely.adamek144 wrote:I got positive NPV too but I did the working capital the wrong way round – included it as inflow in Y0 and as negative in Y3….
I also only included fixed costs of 6m every year (not sure that’s correct), which resulted in operating loss in Y3 and hence no tax on profit, which threw me and I think I’ve done something wrong…..<br>Has anyone got that?I initially got an operating loss in Y3 too and it threw me. The fixed costs are correct. I had to adjust the expected sales volume in Y3 (75% decline from Y2). I initially had about 4,900 units (~19000*0.25) but I had to revise that to about 11,000 units (~19000/1.75) which led to an operating profit.
agboolakenny84 wrote:Mine was early discount. Different paper types. Was your NPV in the second theory question positive or negative ?
I got a positive NPV. Did you use the entire fixed costs amount ($45m) or just the incremental ($6m)?
Zak97 wrote:Section C was analysis of 2 options, option 1 was factoring and the effect it has on investment, option 2 was Miller method and a ton of theory questions about Miller method
Was option 1 factoring or just early settlement discount offer? I don’t remember a factor being mentioned
Divyaprakash wrote:Did anyone get questions on issue costs ??
Yeah, I did. Something about the amount being charged to the SPL instead of being deducted from the loan proceeds
piotr88 wrote:I chose ‘neither’. I think that only goodwill and intangible assets with indefinite useful life have to be reviewed annually.
Okay, has to be different options then cause I didn’t have neither.
agboolakenny84 wrote:Yes this question. What did you choose ?
There was no ‘neither’ option.
I chose goodwill and patent only because the license had a definite lifespan.
agboolakenny84 wrote:Who got the intangible assets question in section B? Was the answer neither ….
I got the one on intangible assets. The questions were on annual impairment review, cash generating unit, P&L expense on impairment, and other 2.
Which are you referring to?
agboolakenny84 wrote:Grace how was your paper ?
It was much better than I expected. The level of difficulty was about the same (or even less) than the questions in the Kaplan exam kit.
How did you find the exam?
shelbywinter wrote:Do people get given different exams? My FR exam was not like george9710 mentioned.
I had the same questions. No. 1 was no. 2 for me and vice versa.
Yeah, people do get different sets of questions.
Pratibhapahwa4313 wrote:The whole 3 hours is a blur now. I cant even recall if I was in my senses while writing the paper. I screwed up the loss relief section C question (this I am definite about). Section A was on a bit difficult side. I was expecting it to be easier. Section B was still manageable.
This! Section A was the hardest for me too. Kinda ruined the entire exam mood as it got me tense immediately.
FYA is usually not prorated though because there isn’t a limit. AIA is prorated based of the 1m limit
