[omz86]

Do you remember your working for investment in associate?
Did you use the FV consideration for the original acquisiton and how did you calculate the associates post acq reserves?

[omz86]

@thatgirl said:
In part A ii) yes you are right this part was confusing but if you looked at the date in this question they asked position on 31.03.20×6 whereas in the scenario text they mentioned that additional 18% was bought on 01.04.20×6! Therefore this question was to account using equity accounting.

I was also confused so I had to reread and look at the dates more attentively

I see so we were only meant to equity account for the 30%?

[omz86]

@bg12321 said:
Yep so part a) equity method, i.e. the CSI method in the SOFP (SPLOCI wasn’t examined).

Part b) consolidation using step acquisition technique

Wasn’t part a) primarily discussion around significant influence vs control?

It was only a couple of hours ago and my mind has already gone to mush haha

Yeah
part A (i) asked why was it accounted for as an associate and not a sub/control or something

and

(ii) was to equity account for the extra 18% (30% to 48%) it since it was correctly accounted for as an associate. My mind went blank on this one. Did we have to calculate investment in associate and if yes what was the working?

Part B (i)(ii)
If i remeber correclty was assume control has taken place calculate the goodwill, net assets and explain why they have control (share options, key management personnel, majority shareholding etc)

[omz86]

I dont think that was the case. Im pretty sure Q1 Part (a) was strictly equity method. The question in a(i)(ii) said it was ‘correctly’ accounted for as an associate and we were asked to use the equity method. It was only in Part (b) were we asked to treat it as if control had taken place.

[omz86]

Q1
A (ii) How do we calculate ‘investment in associate’ after acquiring a further 30% equity share?

[omz86]

That makes things a lot easier. Thank you

[omz86]

I believe I uploaded the incorrect file with regards to the reference list. A very silly mistake on my behalf. Could you please advise me on which files I would have to resubmit and whether three meetings with a mentor is necessary. Thanks!

[omz86]

Hi LL, thank you for your reply. The thing is it was in alphabetical order since I used endnote! Could I challenge or dispute this in anyway if it turns out that it was in alphabetical order?

[omz86]

I passed 8 out of 9 on my first attempt in topic 8 and failed on referencing, which is so annoying!! Overall my referencing was good but not perfect I admit, but it did not deserve a fail. I feel its their way to justify making more money.The feedback I received was as follows:

6. Information gathering and Referencing Fail

Reasons for fail and advice for improvement:
Although you have provided some referencing your referencing skills show many weaknesses and therefore you are recommended to consult Appendix 3 of the Information Pack for guidance. One of the purposes of referencing is that the reader can find the item in the reference list and seek out the source easily. This is not possible with your list as it is firstly not arranged in alphabetical order and secondly because the text and list references do not match (you need to have basically the same format for both). For example you show NHS 2012 in your text but there is no entry NHS (2012) in your list – using an electronic search I did find https://www.nhs.uk/news/food-and-diet/sweet-breakfast-cereals-too-sugary-for-kids/,. This means that you need to go through your list and report and ensure that the references match and using the NHS example above this should be listed as NHS (2012) followed by the title of the article “Sweet Breakfast Cereals too Sugary for Kids’ accompanied by the URL and the date you last accessed the source. You also need to ensure that all references are included as even using an electronic search both your marker and I could not find several of these. Everything referenced in the text must be set out in the required detail in the list.

From the feedback I’m assuming my reference list was the only problem? Does that mean I would only have to resubmit the reference list ? Any advise would be much appreciated. Thanks!

[omz86]

For my clarification, is the deadline on midnight tomorrow?

[omz86]

Excel has an option to arrange in alphabetical order, so I copy and pasted my reference list to excel, arranged it and then copy and pasted back to word

[omz86]

Hey everyone,

I have a few questions in regards to referencing, mainly related to the annual reports, it would be great if anyone can clarify a few points;

1) I’ve referenced all annual reports multiple times in this format i.e (ABC Annual Report 2014, pg 7). is this correct? and when referencing an Annual Report more than once from the same year should we add letters after the year? Also what if we reference the same page (FS) more than once?

2) How should we reference the Annual Report under ‘list of references’, do we have to add every page we referenced?

3) What exactly can we reference back to the appendix and how should that be done?

Thanks.

[omz86]

There was also a mcq for when business valuation is useful? There were 2 options (i) To value a takeover bid (ii) to value a division. I chose only valuing for a takeover bid. Can someone confirm the correct answer?

[omz86]

Q32. Cost of machine was paid for on the first year of production. Did we have to include it in YR1 calculations?

[omz86]

I had a wacc of around 7.3%
Cost of equity= 49×1.05/7.26 -49 or something
MV of equity = 15/0.5 x 7.26

Cost of debt= 6.8% using interpolation and irr
MV of loan notes=10000000/100 x94

Cost of bank loan= tax relief so 6.8% as well
Book value= 5m

Feel free to correct me as to where I wwant wrong

[omz86]

I had the same answer. 3060 shortage of shakes.

[omz86]

Aha that makes sense. Thanks
What was the answer for break even. I guessed D 16875

[omz86]

What was the answer to the mcq on roi. Did we have to deduct 40k from assets and add 250k for the new machine and add 10k to profit?

[omz86]

Q32 was confusing. I ranked by contribution per limited resource(betta?) 1. Cookies 2.Cakes then finally 3.Shakes which left 12,000-10,060=1940 grams after maximum demand(each shake used 1gram) So I calculated shortage as 5000-1940= 3060 and total profit as total contribution from sales-fixed costs.

[omz86]

57 first attempt. Thought I had failed, lost 15 marks in the exam

[omz86]

Yep really disappointed. I got 23 for cost to manufacture component x Calculated labour as 8 per hour. L took 3 hours at a labour cost of 24 if I remember correctly.

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