[P2-D2]

Hi,

I would be using the 22,746 and not the figure that has been used of 23,000 (could it just be rounded up for simplicity?)

Please note, and it is important, that this is an old question and finance leases no longer exist for the lessee under the updated IFRS 16.

Thanks

[P2-D2]

Hi,

This adjustment of 10,000 is a consolidation adjustment in the group accounts to reflect the fair value of the net assets at acquisition and the reporting date as per IFRS 3. It is not a revaluation of PPE in the individual accounts as per IAS 16. In the individual accounts the PPE is not adjusted, it is only the group accounts that are adjusted and the gain is part of the post-acquisition retained earnings.

Thanks

[P2-D2]

Hi,

This adjustment of 10,000 is a consolidation adjustment in the group accounts to reflect the fair value of the net assets at acquisition and the reporting date as per IFRS 3. It is not a revaluation of PPE in the individual accounts as per IAS 16. In the individual accounts the PPE is not adjusted, it is only the group accounts that are adjusted and the gain is part of the post-acquisition retained earnings.

Thanks

[P2-D2]

You will usually see $000s but it will be clear from the question what is required to be answered.

Thanks

[P2-D2]

No and you can find what is and isn’t on the syllabus via this link – https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/syllabus-study-guide.html

[P2-D2]

You would account for it in the usual fashion under IFRS 15.

[P2-D2]

It doesn’t matter, you need to be ready for all types of question. Do not try to spot patterns or question spot.

[P2-D2]

Wouldn’t it be 6 if it was the nearest million and not 6.3?

[P2-D2]

Hi,

Lessor accounting is not on the FR paper, so please post the query on the SBR forum for your answer.

Thanks

[P2-D2]

Hi,

It is because if we invested our money in shares as opposed to property then the gain/loss would be taken through profit or loss. If we decided as an alternative to invest our money in property then for comparability purposes we should also record any gain/loss through profit or loss.

Thanks

[P2-D2]

Hi,

You would revalue the PPE as normal in the accounts of company A (presumably the subsidiary) at the date the revaluation took place (end of 2024). This is not the acquisition date and so we do not make any adjustments to what has already been calculated at the acquisition date (net assets and goodwill).

The revaluation is a post-acquisition movement and the group share of the post-acquisition movement in the revaluation is added to the group revaluation reserve on the SFP. The gain of 40,000 will be shown 100% through group OCI.

Thanks

[P2-D2]

Hi,

I’ll give you some help to see if you can make some progress with it.

Let’s start with the deferred tax as this is what you will likely see in the exam. From the information given we can calculate a carrying value and tax base. Just make up a cost for the asset and deduct the amounts given. You can then follow the steps for calculating DT as given in the class notes.

For the current tax then you need to adjust the PBT by adding back the depreciation before then deducting the tax depreciation. You can then apply the tax rate to get the amount in the SFP and SPL.

Give it a go and see how you get on.

Thanks

[P2-D2]

Hi,

The NCA is revalued to FV on the date of reclassification as HFS, so this would be based on the 42million less the 10% reduction in selling price expected. So the net figure would be 37.8 million as the expected selling price, from which we then deduct the 1 million selling costs.

Thanks

[P2-D2]

Hi,

I think that this is possibly the worst way to study. Yes, you need to use the past exam papers but only for the revision phase. You fist need to understand the rules in the accounting standards and learn how to apply them to specific scenarios. Once you have done this then you can begin to practise the exam questions to exam conditions, i.e. to time and without any answers.

Thanks

[P2-D2]

Hi,

Your understanding appears correct but the transaction took place on the last day of the reporting period, so there hasn’t been any interest accrued. Interest will only accrue from the start of the following year.

Thanks

[P2-D2]

Hi,

You will need to attempt the question first before I give any answers. Let me know what it is specifically that you are struggling with and then I can help you.

Thanks

[P2-D2]

Yes, we should include the revaluation of land in the SOCIE. It has just been forgotten to be added in.

Thanks.

[P2-D2]

Hi,

Yes, it looks like it should either be an acquisition date of 1 July or it should be 6-months is 1 June.

Thanks,

[P2-D2]

Hi,

Your should present the figures based on what the financial statements are prepared in, usually $’000s. You wouldn’t lose any marks in the exam for rounding.

Thanks

[P2-D2]

Hi,

I think that it is an error in the question, sorry. It should be the four years.

Thanks

[P2-D2]

Hi,

1. We would depreciate the 8,000 over the remaining useful life but this is done in the following year, 20X6. The reduction in value to 8,000 happened on the last day of the reporting period.

2. No, we deducted the 3,850 as this is the amount that was held in the revaluation reserve that we can use for the impairment. The remainder of 400 goes through profit or loss

[P2-D2]

The 5.4 is the b/f deferred tax balance, so we need to look at the movement in the balance and compare the closing figure to the opening figure.

The final expense through profit or loss is the movement on the deferred tax balance (2,400) plus the current tax expense.

Thanks

[P2-D2]

Hi,

You will need to contact the ACCA directly about this one as it is on their platform and not ours sorry.

Thanks

[P2-D2]

Hi,

I think that you’ve posted this question to the wrong as there isn’t anything on the FR syllabus related to SBAs.

Thanks

[P2-D2]

The answer must be wrong as the PURP needs to be added in to the cost of sale figure to increase the overall expense and reduce the profit.

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