[mari15]

Yes indeed that is AAA; thanks for your answer

[mari15]

@93kiwi said:
Thoughts from attempting this exam.

I felt it was very time pressured exam having to rush two questions.
Didn’t think there was enough time to sit and think (plan) what the questions were asking with info provided in the scenario.

Question 3 was a disaster for me, I would be surprised if I scored any marks on this one.

I looked through the whole paper, and was shocked to see Foreign Sub as Q1.
But saw Q4 and thought probably will be able to gain most marks here (in my opinion this was a nice question if you knew the contents)

But I found it difficult to relate the scenario with questions… so wrote was whatever came into my mind.

I don’t know if I will pass, not sure if gained enough marks as answers were not as detailed due to time pressure.

Fingers crossed, have done enough to get 50.

I had the same approach

[mari15]

@kanchandhankar said:
I remember reporting date was 31 dec 20×6 but date of disposal of subsidiary was 31 sep 20×6

I assumed goodwill and assets needs to be retranslated before the disposal as sales proceeds was in dollar.

There was some impairment in year ended 20×5

If I remember correctly My goodwill was 42m Dinars and after impairment it was 36 ?
Functional currency q marks was 7 marks
Calculation of goodwill on acq and just before disposal and exch diff was 5 marks
Discuss goodwill calculation and exch diff was 5
Calculation of profit or loss on disposal 3 marks (I remember mine was profit)

Same result here for goodwill but then it was supposed to be translated in dollars with Sep 20×6 rate

[mari15]

@badare said:
Question a: this was Joint venture as it fulfulled the joint venture requirement.

1. the joint arrangement has separate entity- i think Kuran
2. Major decisions regarding the entity require unanimous decision of all parties
therefore should be accounted as joint venture in that ,Cyrpto should account their share of the assets and liabilities ( 45%) in Kuran.

This was definitely not a subsidiary or associate
bcos in subsidiary the parent has control and makes all decisions
in associate also one entity has control and makes all decision.
also it is not joint operation as there is no separate entity in joint operation

And where was unanimous decision required in this case?

[mari15]

@mehwishnaeem said:
I chose Subsidiary I don’t know

I also chosed Subsidiary and account for with Acquisition method

[mari15]

That was unexpired basis…total basis is 4

[mari15]

Equity value of Salerno 650m and Chawon 60 m. Combined comaony equity value 746m so the additional value created 36 m. Anyone gor to the same results?

[mari15]

640 contracts sell futures seven month receipt 10080 m JPY which will be invested for 6 months at annual rate 1.2. From JPY EUR and ARD EUR lower rates I was calculating JPY ARD spot and then based on inflation rates the rate in one year time.Then the value needed for invested translated in JPY-from this deducted the 10080 plus the deposit interest and the extra debt required was around 3000 m JPY (don’t remember the exact figure).Sounds familiar for anyone?

[mari15]

640

[mari15]

Thank you

[mari15]

Hi John,

Yes it is clear now – I just revised the Study text again after my post so sorry for silly question

[mari15]

Hi John,

I was following one of your lectures based on another SWAP exercise and I see that you are applying the same logic in this case – which I do understand.

But in the answer section for Keshi they are clearly saying that the company is borrowing at LIBOR+0.4 prior to SWAP and you’re mentioning that without SWAP Keshi is paying 5.5%.

So I need to admit that I am a bit lost.

[mari15]

Thanks,

Indeed – I was going more deep in the Text Study book and got the same understanding.

[mari15]

Thanks for the clarifications

[mari15]

Hi,

Actually this is from Kaplan exam kit.Please see examples below:

Dec05 Adapted:
The them park would cost a total of $400 million.The after tax realisable value is expected to be between $250 milion and $300 million.$250 million of the investment will attract 25% per year tax allowable depreciation allowances on a reducing balances basis.
Answer:No balamcing allowances or charges have been estimated as the realisable value has been estimated on after-tax basis.

Dec03 Adapted:
The investment would cost 580 million.Tax allowablew depreciation is 25% per year on reducing balance basis.The after-tax realisable value is estimated to be 150 million.

I can see that is about after-tax realisable value but it’s not 100% clear for me.

Thank you

[mari15]

You’re right sorry.Thanks for letting me know

[mari15]

@rohvj said:
I got 260 for necklaces. Anyone else get that?

I got the same

[mari15]

I got 260 for necklaces. Anyone else get that?

I think I got the same.

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