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I agree with borwnowl. You should start with a single paper and once you are on track and gain the confidence back try more than one.
I would advice you to go for F7. The paper basically has a pattern [Q1 = Group accounting, Q2 = Financial Statement Preparation, Q3 = Cashflow or ratio analysis and Q4 + Q5 = Standard related questions.]. If you give proper time and are able to have a strong grip on your standards, this is an easy paper to pass. Also, if you have a good hold over your Q1, Q2 and Q3 you are on your way to a pass grade. There are also a number of materials out there that will help you practice standard related questions.Good Luck with you attempt.
As the company has an intention to buy this land for future development it should be accounted for as an investment property. Once the construction is complete, the IP should be transferred to owner occupied property and accounted for using IAS16 Property Plant and Equipment. (I have explained the details below)
Second key fact: It does not have a policy for revaluing its land and buildings unless they are an investment property.
Standard: Investment property is initially measured at cost, including transaction costs. Such cost should not include start-up costs, abnormal waste, or initial operating losses incurred before the investment property achieves the planned level of occupancy; subsequently IAS 40 permits entities to choose between a fair value model, and a cost model.
One has to keep in mind that IAS40 states that one method must be adopted for all of an entity’s investment property.
As it’s the company policy to measure IP at FV and the land is an IP, therefore these should be accounted for as asset at FV.Yes you can! The different year end does not matter its the financial figure that you are analyzing.
No you cannot register for F4. As F4 is the skill module, the system entry will require you to have either passed the knowledge module (f1,f, f3) exams or chose the knowledge module with the F4. It is better for you to register for the CBE exam first and pass these. Once these are cleared and your myacca account is updated you will be able to enter for F4.
You need to have an understanding of these models. You will not be examined on these but a question might be set that includes figures (already) calculated using these models. For questions such as these the examiner assumes you have the knowledge of how he calculated the figures.
For example, you might get a budgeting question where the next quarter sales figures is given in the exam and the examiner has forecasted it using a time series basis. Your requirement wont be asking you to recalculate or comment but know how relevant the figure is for, let say, variance calculation purposes.The key to P2 is standards. Ensure that you make the best attempt to learning and understanding your IFRSs. The rest is group accounting and ethics, which will seem like a piece of cake once you have mastered the standards.
Good Luck!A company (supermarket chain) has a policy for buying up available land in suitable locations for potential development for future stores. It does not have a policy for revaluing its land and buildings unless they are an investment property. At the year end they held land on which construction of a new store had started at a total cost of £30m.
The key facts from your questions are: there is a policy for buying available land for potential development.
Standard: IAS40 states that Land or building, or part of a building, or both, held by the owner or the lessee under a finance lease to earn rentals and/or for capital appreciation, rather than for use in production or supply of goods and services or for administrative purposes or for sale in the ordinary course of business is an investment property.Examples of investment property: [IAS 40.8]
land held for long-term capital appreciation
land held for undetermined future use
building leased out under an operating lease
vacant building held to be leased out under an operating lease
property that is being constructed or developed for future use as investment propertyAs the company has an intention to buy this land for development it should be accounted for as an investment property.
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