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Impairment was 14 which went to RE.
I got a Partial disposal gain of 1.6.
I put it at amortised cost of 41.6 8% rental 12% effective because it was collecting cash flow and eventually sell asset. Think you are correct though.Section B was a write off, waffled on about standards but nothing flowed! Roll on Strategic paper!
I seem to remember having an impairment for goodwill in note 1. I took figures from my year end equity table added the FV adjustment on intangibles less depreciation (4 years ago worth of depn). Added GW then compared it to Recoverable amount which gave me an impairment on GW of 8 I think. And since it was proportionate it all goes to RE.
Failed the paper exam in december and got 48%, absolute no chance Im getting higher the CBE was a disaster. Good that Im not alone here, thought my professional paper was easier than this dumb paper. ACCA are raking in the money with this exam, pass rate will be going down again
I think they were getting at amortised cost method for valuing financial assets, does it pass contractual cash flow or business model test. I said if they buy and sell financial assets they have to use fair value method. Then went onto investment property being valued at cost or fair value method. If the business deals in investment property it might want to use fair value etc.
31 I saw it as a discountinued operation so disclosed sperately, took out the 1.5m loss from operating expenses. Then as the non core activities were included as notes deducted these from rev / cos. Assumed the 10% management charge was included in revenue so reversed this and revised for new charge / rent. Scratching my head now because although it didn’t acquire surely it wanted us to make adjustments assuming it had and calculate ratios accordingly. I said no buy because high gearing made it very risky!
Section A was DT heavy, one question annoying me on the deferred tax balance at 30 June X7, I went for 10500 as 50% depn first year gave TD 30000 and 25% Cap allowance on cost second gave 5000 then x by 30% tax?!
Employment benefit question did anyone knock £5000 off list price and use 18% for car benefit?
Also capital allowances for Corp tax question got the 8/12 WDA for Special rate pool and Main pool the first car I put as FYA then someone told me it wasn’t new?!
Q 31. I split property and plant. Property cost b/f was 75k – 15k accumulated depn (5 years of 25 years). Revaluation took place half way though year to 66.3m (weird number) then depreciated 6/12 at 3k plus 6/12 at 66.3/20 remaining years. Pretty sure this is wrong but gave it a crack. I tried to break the conversion loan into liability and equity so was like 40m so 2.4m * DF ??? for 2 years plus the 42.4 in final year? equity was balancing figure. Again my SOFP didnt balance but think that deferred tax messed me up.
Multiple choice were fine if you knew your standards.