[ish123]

@ddmoo said:
What did people write for the what was missing from the PID question? I wrote:

Risks not identified and analysed (use TARA)
No project sponsor listed
No measures given for how the objectives would be measured

Not sure if they were right.

For PID I said a good PID contains time, cost, business case, project sponsor and project manager.

then said the document didn’t make clear who the project sponsor is and what’s the implication of it.

No mention of project manger and the implication

and business case was not properly conducted as risk and impact on the business were missing.

for 6 marks I though that was sufficient.

[ish123]

@agostinho said:
I think that exchange rate changed from 1.5 to 1.4 so making raw materials more expensive. In the narrative explained something in this sense also.

Are you sure? I thought it said from Q2 the fx has changed to $1 to 1.5. Then the narrative stated for the previous calculation they were using 1.4? I could be wrong.

[ish123]

For question 2, can anyone remember the mark split for A and B?

Also how did you guys do the FX part for A? I knew it will consume lot of time so took a shortcut by looking at the percentage increase from 1.4 to 1.5 meaning 7% decrease in COS and as it applies to only 50% of the COS I just decreased total COS by 3.5% (I know its not the correct way but hoping after rounding the figure should be close)

[ish123]

Weird! Posted the above comment yesterday and it’s showing up today…..won’t even let me delete it.

[ish123]

@james1114563 said:

Tax, meh. Mentioned the theory, temporary and permenant. There was a difference of about 3m or Soemthing, deferred tax liability?

Tell me about it…felt the same.

@james1114563 said:
I focuses more on ethics. Lack of professional behaviour, competence, integrity not disclosing. Mentioned about fraud, disqualification etc etc. Standard ethical things

Yea I remember mentioning that directors are not being transparent and it’s not a faithful representation of FS.

@james1114563 said:
About 1B, I said how the company may have a future impact from the decision not to restructure. It was also after the audit opinion, therefore is that bad? Said could be misleading if they’ve decided to not to do it etc. Also they incurred dismantling costs, therefore more expenses.

.

I thought this was bit of an open ended question too….I remember taking about how the provision needs to be reversed, if there was a legal/constructive obligation for already stating the redundancy thus seek legal advice and should provide for it as requires. Then when on to talk about how the company gearing is already high and they already spent money on restructuring thus if there is a problem with debt covenant (probably went off topic a bit). And also as mentioned before whether it is a adjusting period or not.

[ish123]

@gt0707 said:
for PPE i meant:
Group PPE
P+B+T——– ****
land ———– ***
plant —- — — **
total ———- ………

i have not this total here, but for each item in SoFP, i mentioned the working number, like say for PPE item in sofp i mentioned (w1)

I believe you should be fine as you have referenced your working.

[ish123]

@james1114563 said:
Theory was similar I got an impairment of 0.85 in 2A. Thought was a detailed but nice question.

2C I mentioned the steps and said how it’s a Performance obligation at conception as that’s when R and R transfer. Howver if they can’t pay and they knew that shouldn’t take revenue at all. Something along those lines.

Tax, meh. Mentioned the theory, temporary and permenant. There was a difference of about 3m or Soemthing, deferred tax liability?

3C was hard, fudged about trying to explain about business combinations.
Agree on held for sale too.

About 1B, I said how the company may have a future impact from the decision not to restructure. It was also after the audit opinion, therefore is that bad? Said could be misleading if they’ve decided to not to do it etc. Also they incurred dismantling costs, therefore more expenses.

Did mention how they may get a credit in the next year though and additional revenue. But leaned on the more negative side.

I focuses more on ethics. Lack of professional behaviour, competence, integrity not disclosing. Mentioned about fraud, disqualification etc etc. Standard ethical things

Hopefully done enough! Made silly little mistakes which I hope don’t cost me.

Tell me about it…felt the same about the tax.

1.c Yea I remember mentioning that directors are not being transparent and it’s not a faithful representation of FS.

1.b I thought this was bit of an open ended question too….I remember taking about how the provision needs to be reversed, if there was a legal/constructive obligation for already stating the redundancy thus seek legal advice and should provide for it as requires. Then when on to talk about how the company gearing is already high and they already spent money on restructuring thus if there is a problem with debt covenant (probably went off topic a bit). And also as mentioned before whether it is a adjusting period or not.

[ish123]

@gt0707 said:
hello guys

i would like to know while preparing the working for conslidation, like group PPE, RE, OCE, & NCI, if we put the adjustment to be made in each working and don’t compute total and put in the sofp, will the workings be marked. or will we be penalised for the total not included in SOFP

I’m guessing you mean like PPE(100+50) and then not adding up? If so that’s what I did as BPP lecturers alway say don’t waste time adding up and examiner isn’t there to test if you can add up.

[ish123]

Here is my two pennies worth;

Q1 Seemed OK, although I may have messed up the NCI for Basil.
For restructuring calculation I only took 9 (redundancy payment of 4 and 3 onerous contract) thus excluding operating loss, gain on disposal and relocation cost. Hoping I got it right.

1.b going back to restructure, can’t remember exactly what I wrote but said it’s a non adjusting event unless additional cost relates to prior period.

1.c where director created a company to get loan. Basically taked about how the subsidiary wasn’t a ‘business’ as defined by business combination and taked little bit on ethics.

2.a was based on purchase of foreign PPE with foreign loan. Basically taked about how monetary and non monetary item translated and interest expense translated using average rate. Then done some calculation and then 31/Aug there was a revaluation which I translated to show imparirment which should go to p/l

2.b was deferred tax, was bit tricky as I didn’t spend too much time on DT but done a calculation to show goodwill of 5 with DT liability of 1 on it. Tried to talk little bit on temporary difference but nothing significant. Also done calculation to show DTL/DTA for each assets and liabilities using subs tax rate this time.

2.c was revenue recognition, this was a question from past paper where you had to state 5 requirements under identify a contract and the other company does not meet the last criteria of “entity will probably collect the consideration”. One mistake I did on this was I supposed to write non-refundable payment was a deposit liability but I said it was prepayment.

3.a I talked about how it is important to separate debt and equity. Defined both and mentioned “Fixed test” as an option to identify equity. Then said how the entity need to calculate it.

3.b talked about what qualifies as held for sale and the entity should recognise it as held for sale. Also quickly mentioned how it should show as one line item on SOPL and SPFP.

3.c Simply ran out of time!

[ish123]

Hi Samin, I usually do the following:

1.Read requirement
2.Group structure
3.Draw up the proforma (remember to add exchange difference in OCI)
4.Download parent
5.Translate Sub
6.Download Sub
7.Start working on adjustments starting with Goodwill
8.Complete working for RE, OCE, NCI once you have taken care of all adjustments.

Doing 1 to 6 will make sure you get the easy marks.

Hope this helps.

[Author]

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