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I thought I was prepared. I don’t spot study for ACCA, I tried to cover everything as much as I possibly could, but for this paper I was wrong! Turned out, I did not remember disincorp relief, I did not remember close company’s definition and force what I know through to ruin it (thought in Q1 part (b) where they hint about the employment benefit cost for the car was a red-herring), I did not revise pension enough to do Q5 but could not do Q4 either! I’m quite messed up and I know I am going back to the hall in March 🙁 Feel like this paper test a lot of specific nitty gritty areas than the general bigger picture.
Don’t give up. Even you’re self studying, there are easy things that can you can probably learn last minute:
1) Remember all the pro-forma for Q1 and Q2.
Q1: Consolidated financial position- remember how to calculate goodwill (consist of 3 components), how to calculate post acquisition profit, NCI’s equity and group RE. These are fairly simple. In terms of adjustment, always look out for fair value adjustment and inter-company transaction.
Consolidated P&L- Remember that mid-year acq needs pro-rate. again, remember adjustments for goods in transit and revaluation. remember NCI calculation.
Q2: Main adjustments that repeatedly found: tax & deferred tax, revenue recognition, lease (IMO).
2) You do get some easy marks from transferring figure on question to your set-up proforma so don”t give up! Apparently you are not expected to know all the adjustments to pass it!
3) I hate Q3 too- my instinct is just keep writing (for interpretation). Know some basic ratios.
Q1 and Q2 are quite generic. There are random adjustment that were meant to make you trip. But if you practice 4-5 question sets continuously you’ll get the gist. Q3 ratios, many ppl love it as it’s simple (but I hate it as I cannot remember formulaes and they dont make straightforward sense to me). So if it’s your kind of thing there’s something on your side already! And for Q4 and Q5- I say, go with the flow. No point to stress yourself but prepare what you can right now (Q1-3)
Don’t give up, you may strike a score, keep going 🙂