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I got the same questions as well!
The answers I got are,
1. Base case NPV = 13.7m (discounted at 11%)
APV = 18m2. Oxwicks Co S/H gets about 13.9% increase in value, so not meeting 15% target.
3. Interest rate futures – 4.95% effective rate, which is cheaper than FRA.
Interest rate swap gives the expected 5.25%Hope everything is correct!
I got exactly these same questions.. Did the first question well.. The remaining 3 questions were disaster. Couldn’t even understand what standard those questions were taken from. Expected IAS 36, IAS 37, IFRS 13, IFRS 8 and all. Nothing came.. I’m 100% sure I’ll need to resit.
Okay sir.. Thank you.. I understand why it’s deducted. BTW, what if a subsidiary has been disposed while there is an intra company payable balance to the parent? As these are eliminated in consolidation, do we need to add back on disposal date? (Because after disposal, the entities are no longer in the group)
Hi,
I have completed all the skills exams and I want to get my advanced diploma certificate urgently. So if I start EPSM immediately and passed it, will I be able to get my certificate immediately? And the results of EPSM will be received immediately right?
Hi,
For those who sit for SBR in INT, Current issues is not necessary right? That means we can sit for September exam with 2020-21 (Sep – Jun) study text and kit right?
Thank you so much.. BTW what if we quote a wrong standard number? Losing all marks?
Thanks a lot for your explanation :). And I have another little doubt. Can you please clarify?
Let’s say P owns 100% of the S. P sold goods to S during the year and there is unrealized profit amounting 10,000. So this must be removed from the group accounts by crediting the group inventory and debiting retained earnings of P. However, S would have arrived at their retained earnings figure without eliminating the 10,000. Therefore this would have increased the RE by 10,000 as the closing inventory is increased by 10,000. And then we allocate the parent 100% from the RE of S. So here, isn’t the profit overstated? And is there any more adjustment required?
(I got this in Kaplan work book and they had not given any adjustment except CR inventory and DR retained earnings)That means, M should have recorded NRV loss of 2m prior to selling to N? And therefore loss has already been realised. And also intercompany transaction must be eliminated right? So 12m shouldn’t be included in revenue and COS right?
Okay understood. And also in terms of FV adjustment of subsidiary when acquired how does deferred tax arises on net assets? I mean tax is charged on statement of profit or loss figures right? And the debit/ credit entry for the deferred tax is recorded in goodwill. Could you please explain the logic in that? Other normal deferred tax cases are understandable but this isn’t.
Okay understood. Then, let’s say the asset is sold for FV of 750,000 less CA of 700,000 there will be a profit on sale of 50,000. Then in the books of the seller, the lease receivable of 750,000 is going to be made up of the present value formula. I.e if let’s say the lease is gonna be for 5 years and the interest rate is 10%, then 750,000 will need to be divided by the annuity factor of 3.791 which will give the annual lease payment of 197,837. Is that correct?
aytashi wrote:simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?
Both companies using mark up on cost right? Not margin
aytashi wrote:I have another MCQ question, which I couldn’t calculate. If someone did answer this question please share how you calculated it. I got confused because I didn’t know how to get budgeted number of units. Here is the question:
I got this question. It was so confusing and I took a lot of time trying to find the answer. Finally I chose 240 (A) which is the material usage variance I guess. Because I remember I came across this type of question when I was doing past papers and the answer was the material usage variance.
This is how I arrived at the answer.
Online sales – (0.6*1.25) = $0.75
Warehouse sales – (1.2/4) = $3 from one warehouse, because they had told the fifth warehouse was opened this year. So, in the previous year it must be four. Therefore, (1.2/4)*5 = $1.5So in total – 1.5+0.75 = $2.25.
Can’t this be okay?
@Kim Smith, re-election of directors doesn’t mean their remuneration is updated right?
rashard wrote:Guys, I got a question related to materiality in part A. Preliminary materiality was set at 25k. And also there was a misstatement of 12k which was uncorrected. The question asked was to select two correct statements in relation to a misstatement of 15k.
I can remember I picked<br> 1. This misstatement is not material therefore adjustment is not required<br> 2. Opinion will not be modified
@Kim Smith from the below, can the first option be correct in general? I.e adjustment is not required as it is not materialranganaherath wrote:Did you get a MCQ question about the two analytical procedures for a certain figure ( I can’t remember what it was exactly for )
Yes.. When they ask about analytical procedures, we have to pick the answers those come like comparing with prior year or industry.
But they had not told it’s material in aggregate.. So I thought it’s not material
For 50k, I think it’s qualified due to inability to obtain sufficient evidence because it doesn’t affect the whole FS right?
” Which of the below is not a role of audit Committee? ”
Anyone can remember the answer for that?
