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What did we get for a saving on taking the discount? I used the overdraft calc as a cost too. But not sure that was right
@suf23 said:
@leahedwards1Yes!
At first, I used the $ value. Then five minutes later, I was like wait what…I then divided by unit price like you did.
EOQ gave 15,000 iirc
15,000 snap!
@leahedwards1 said:
I can’t remember the exact figures for EOQ but it confused me a little as they gave the demand as a $ value and so I divided the value by the unit price to get the annual demand – did anyone else pick this up?Yeah so I did the value did used that to get a demand of 480k units
@suf23 said:
How did you guys answer the CAPM Q in Q #32 (part B)?</blockquotJust put how betas are good and described them and how they increased risk etc
@ch305 said:
How did you calculate the savings from EOQ?I did the formula so
2x480kx248.44/1.06
Came to a re order every 15k units or so.
They were holding too much stock a time
@complicated said:
Which question was that on the balancing charge?Shouldn’t the forward rate be 15.66 something? Dollar was the domestic currency. (If I’m on the same question)
Yeah it was like half as the rates for a year, 1.56 something I think yeah for the six month forward rate
@accastudent1986 said:
I remember the question stating that the tax liability is settled in the same year actually, i think at the time i panicked and interpreted that to mean that the tax is actually paid in the year it’s due 🙁Well I think so anyway, way I read it. I could be wrong
@complicated said:
The MCQs were OK, except questions on the nominal interest rates and inflation rates.
Who said only options 1 and 2 were correct, for the four way equivalence question? Real interest rates should be the same – but im not positive!
The last second question on depreciation of euros caught me off guard too- higher inflation should lead to depreciation of domestic currency so option 1 may be out (since dollar has inflation rate), but I really wasn’t sure about option 2. 🙁 oh how much I hate the MCQs, one wrong move will cost you two marks 🙁Hope the exam went well for everyone!!
I put option 3 for that one, al 3 were correct I think
@accastudent1986 said:
For the written NPV question what year did every start the inflation from? T1?And also what year did everyone start the tax payable and tax depreciation from? T2?
From T1 and tax was payable same year too. TAD too year 1
@mpi9 said:
With the bank is making sense with the cash which is part of working capital. Dividend was not part of working capital. So quite sure that answer of dividend was good …Wouldn’t they need working capital to pay the dividend?
Thought it was an okay paper.Anyone get a balancing charge of 250?
NPV and receivable were good.
20k+ saving on EOQ. 6250 taking the discount.
Mentioned how they could factor, offer discounts and employ better credit managers etc.
Inflated sales variable and fixed costs. Inflated working capital with the movement each and head and then put it back. Big positive NPV.
Currencies the rate strengthened on 15-20
@affan2k1 said:
I write that ASSET should not be considered as ASSET HELD FOR SALE in Q 3 B.I thought it was?
Readily available, for sale, likely with 12months and also close to sale. Sale price close to fair value too@ish123 said:
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.
Yeah, sounds good. Written I thought was okay! Just realised I forgot to spilt impairment between nci and parent, unbelievable. Annoying!
I felt good about most of the written parts and did every part of the sfp, just not all fully correct.
I accrued for half the loss on joint venture to profit and put half the assets in the sfp. Hopefully get couple marks for that sort of thing. Restricting I got 12m? 4 + 3m for onerous and then redundancy of the rest?
Impairment I did the nci wrong but just ended up impairing goodwill only.
With the balance sheet only other things were remembering to do journals for all the differences to FV.
With the deferred consideration I just discounted to pv. I think you had to do something with finance costs and build it back up but ran out of time.
Lots to pick at!
@ish123 said:
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 takes 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 requirement 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 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!
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.
Generally thought it was okay…
Quick thoughts. SFP! Pretty simple computation. Few adjustments. I made a few silly mistakes but generally did most of them okay.
Operating lease
Joint ventures
Deferred consideration
Impairment
Restructing
NCI was a different formula. Other than that mostly fine.The theory on restructuring and the impacts on next year for b was okay too. Ethics was fine too.
2 was tricky. Was revenue, deferred tax and forex/assets. Managed to muddle through. Thought tax was the hardest
3 was tough. Had investment/ifrs 3, ifrs 5 assets held for sale and also ias 10 events after balance sheet date.
Didn’t know what to write for ifrs 3 question but other two managed to write a fair bit.