[henrivs]

got my balance sheet to balance, spent an hour and a half on it though…. Didn’t leave enough time to finish all of question 2 and 3.

With regards to the sub held for sale, there was a revaluation gain before it was classified as held for sale (I think the amount was 42??) which I put to retained earnings. Then when it was classified as held for sale I put it as the fair value less cost to sell (as it was lower) and there was a loss compared to the carrying value which I put to retained earnings. I think this is the correct treatment??

Section 2 and 3 had some nasty questions: Did anyone else conclude that the property valuation would actually be classed as a level two valuation? Not a level one valuation? As it wasn’t identical to the property they were attempting to value (it was more prestigious and had a car park)??

Also the gearing/present value stuff wasn’t bad. The gearing went from 0.3 to 0.33? Because you add the new present value of the liabilities to the total debt. Then with the equity add the lease asset 12 (less depreciation 1.2 – 10 yrs lease term?) and take away the closing lease liability which was 12 + 0.48 (4% interest) less the cash payment of 1.5 which was 10.98. The addition of the asset and liability to the equity pretty much cancelled each other out anyway.

Hard exam though, if I’ve passed it’s marginally

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