Forum Replies Created
- Posts
In note 2: “The fair value of a 20% holding of the non-controlling interest was $72 million; a 30% holding was $108 million and a 44% holding was $161 million.”
After the acquisition, Minny is effectively holding 56% of Heeny (70% of 80%). So you use the value of 44% as the fair falue of NCI at acquisition.
The amounts for 20% NCI(72m) and 30% NCI(108m) are provided to make students struggling which NCI value to use.
Just apply the basic formula for calculating goodwill at acquisition.
Goodwill = Consideration + NCI – Net assets value of the subsidiary
If the consideration changes (due to any of the reasons which you explained) whilst NCI and NAV remain unchanged, goodwill will be affected.
Four compulsory questions. (i.e. 1 compulsory question in Part A and 2 out of 3 questions in Part B for current format)
No consolidated financial statements. (i.e. Q1 first part for current format)
Current issue question will not be a full question (i.e. Q4 for current format).“IFRS 3 allows an accounting policy choice, available on a transaction by transaction basis, to measure non-controlling interests (NCI) either at:
fair value (sometimes called the full goodwill method),
or the NCI’s proportionate share of net assets of the acquiree.”If you are close to the membership (say 1-2 paper(s) left), you can state how many papers you have left for ACCA when you are applying for a job.
Ideally, “a relevant role” means that you have a job where the majority of your time is spent on activities and tasks that are accounting, finance, audit and assurance related, or in other related technical areas such as taxation, insolvency and forensics. (Copied from ACCA website)
But it is arguable.
Meanwhile, in addition to 36 months experience in a relevant role, you will also need to achieve the 5 essentials objectives PLUS 4 (out of 15) technical objectives in order to apply for ACCA membership. It is questionable that a compliance role will achieve 4 objectives in the technical section. You may want to double check the descriptions of the objectives from the link below.
Not suggesting you to go into detail about it.
For lessor under IFRS16, more info is required to be disclosed about the lessor’ leasing activities and its risk exposure particularly to residual value risk.
if you have already passed some p papers before, you should know how much knowledge you need to gather in order to have a guaranteed 50%.
Try to go through as many accounting standards as possible before start reading / practicing pass papers – it may be hard to identify the accounting issues in the questions if you don’t have the brief concepts of the standards.
Good luck to you mate. I passed all my p papers first time.
Have you taken any p level paper before?
It is not undoable but you will have to study very hard in the upcoming 4 weeks.
You are expected to learn plenty of knowledge on the accounting standards.
Also you need to practice a lot of consolidation questions which you can find in past papers (question 1a, a guaranteed 30/35 marks). You can barely pass if you mess up the consolidation question.
Both of the above elements are essential for getting a pass in P2.
Sorry did not read it in details.
yes you are correct that the classification still exists for lessors. The accounting treatments are mostly remained unchanged except for disclosure requirements if it is an operating lease.
For lessor (normal lease / buyer side in sales and leaseback), you will still need to determine whether the lease-back meets the conditions of a finance lease (same as the old IAS17 if you studied before). If it does not, you use operating lease accounting.
The above is just based my understanding on IFRS16.
Post this to “Ask ACCA Tutor forum”.
By the way i think there is no longer classification of finance / operating under IFRS16.
Stating the IAS/IFRS number is fine. You wont get extra marks for writing the names of the standards in full.
You should post this to the “ask the tutor forum” if you want advice from Mike.
From the auditor’s view you dont actually have the fixed asset at your office.
Tuition providers should not be able to get the results directly from ACCA. Not receiving any email from them just means that they have not sent one:)
Just clam down and good luck to everyone.:)
@andrewmc said:
I’m still waiting for my certificate, even though the meeting, during which I’m told it was signed & sealed, was over 3 weeks ago. My qualification was several months ago.They seal the member certificates on a quarterly basis (Jan, Apr, Jul, Sep), usually before the release of exam results.
The study text contains way too much information compared with what you actually need to pass the exams
I got an email from ACCA in the end of September saying “Your certificate will arrive in 6-8 weeks.”
We only “remeasure” the financial assets at its fair value under FVTPL or FVTOCI.
There is no reason to revaluate the financial assets under amortised costs, because they are expected to be held to maturity.
You do not have “control” over the associate or other investment. You only use equity accounting to record associates. Therefore, selling a subsidiary to an associate means that the investment no longer belongs to the parent after the sale. You have to calculated the gain/loss on disposal.
The then subsidiary will no longer be an investment of the parent (not in the parent’s entity level balance sheet) nor part of the group (not in the consolidated accounts).
Suggest to post this question to “ask tutor” forum if you need further clarification.
Copied from ACCA’s model answer:
The transaction has commercial substance and so the cost of the property acquired should be measured at the fair value of the asset given up. The fair value of the asset given up can be reliably measured using IFRS 13 principles and so the property should have been recorded at $7m rather than $5m. A profit on disposal should have arisen of $2m which will need to be credited to retained earnings. The $0·5m spent on staff relocation is not directly attributable to the property and so should have been expensed. Depreciation should be charged of $7m/35 x 6/12 = $100,000. This would leave a carrying amount before revaluation at 31 October 2015 of $6·9m. The fair value at this date is 75m dinars/9·5 = $7·9m. A revaluation gain should be recorded in other components of equity of $1m.
there isn’t a defaulted one. You should be able to find hints in the paragraphs telling you which method to use.
For most questions (especially Q2 and Q3) you will get marks for (1) identifying the accounting issues, (2) writing definitions and relevant accounting standards, (3) applying the definitions / accounting treatments to the facts in the case, and (4) drawing conclusions for each question.
One mark per point.
Yes you can write the relevant IASs / IFRSs.