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Marker of ACCA also commented that the candidates have not scored well on long question (20 marks) of ratio. They failed to compare and comment the variance of the ratio. They just calculated the ratio and leave it out.
I have doubted that in Q31 Note 1 The inventory of 800,000 has fair value 1,000,000. So we need to adjust to fair value ? From IAS 2, inventories carried at lower of cost and NRV. I also did the exercise at the back of the text book, and there was similar scenario about fair value of inventory, and it was stated that Inventory carried at Fair value which is lower than cost 20m, coming this point they adjusted 20m to goodwill. This case Fair value < Cost… However, in our exam, Cost < FV. I treated FV as Selling price, hence I did not adjust inventory in Net Asset of Subsidiary. Another part, Consolidated P&L … in term of share in associate, we need to take profit of associate as I remembered 2.4m * 25% = 600,000 and the dividend received from associate is 200,000. Should we take 2,400,000-200,000 and then * 25% or take 600,000 – 200,000 … How about dividend received from Associate anyone consolidated it ? I also did an exercise at the back of the text book and there was similar scenario as well, and they stated that the Profit Already deducted the amount of dividend paid, hence they just took that Profit * Percentage own in associate.