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Hello,
I am also self study for P2. Come and join us at the chat room normally in the evening UK time. There are regulars that study there solving some kit questions.
What edition text book do you use?
Anything that is updated IAS is the best for the exam. So… if you use the latest text book, you do not have to worry any more.
My favourite IAS resources is from
https://www.iasplus.com/standard/ias19.htmAs far as I know about the IAS to be examine. Basically it can be any IAS on any question number. So we have to study everything that is examinable for P2.
I hope that helps.
You are right.
In the question, if it says… NCI is proportional to the share of Net Assets then NCI goodwill is zero.
If it says…. NCI´s Fair Value at acquisition is xxx then it is a full goodwill method, meaning NCI has share of goodwill at acquisition.
Ok. Thank you Mike.
I think I got it. Your suggestion of allocating the impairment is the same as the exam question answer.
Maybe the Kaplan text book is wrong.
Just for your info.
There are people who are already coming every evening UK time in P2 chat room to do the study session / Kit practice.
I hope to join you as well whenever I can.
I am sure your contribution is highly appreciated. 😀
There are study session going on almost every evening UK time in P2 chat room.
The topic is various depends on request. Not necessarily lead by me, no leaders appointed. Who ever is strongest at the topic or can be all share the knowledge.
All are welcome.
On Sundays always same time same place. Topic can be anything. Just come and practice.
Good luck with the exam preparation to all.
Let me try to answer my very best. I hope I did not make any mistake.
a. Cash-Generating Units
Recoverable amount should be determined for the individual asset, if possible. [IAS 36.66]
If it is not possible to determine the recoverable amount (fair value less cost to sell and value in use) for the individual asset, then determine recoverable amount for the asset’s cash-generating unit (CGU). [IAS 36.66] The CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. [IAS 36.6]
b. Impairment occurs when the Carrying Value is higher than Recoverable Value.
Recoverable Value is the higher of
VALUE IN USE
or
FAIR VALUE less COST TO SELLlets calculate the Carrying Value
Cost ………………………………… 112 M
Residual value………10%………..11.2M
Total…………………………………..110.8M
Depreciated 4 years……………..( 26.88M)
Total Carrying Value…………….. 72.92MWe now need to compare the higher of Fair Value less cost to sell and the VIU.
FV – cost to sell = 33.6M – 0 = 33.6MVIU with discount rate of 5%=
Y1 = 19.6 / 1,05^1 = 18.67
Y2 = 19.6 / 1.05^2 = 17.78
Y3 = 19.6 / 1.05^3 = 16.93
Y4 = 19.6 / 1.05^4 = 16.12
Y5 = 19.6 / 1.05^5 = 15.36
Y6 = 19.6 / 1.05^6 = 14.63
total……………………..99.48SO now we are comparing 72.92M with 99.48M
The Recoverable Value is HIGHER than the Carrying Value
So the Equipment is NOT IMPAIRED.If you have the answer there with you, have I answered it correctly?
Hi,
Here is what I got:
https://www.santandershareholder.co.uk/shareholder-services/faq/loan-notes/What is a Loan Note?
A Loan Note is a document evidencing the terms on which a debt is owed to you by the issuer of the Loan Note. Interest is payable to the Loan Note holder until the debt is paid back during, or at the end of, a fixed period.So.. the company that issues the loan notes (ISSUER) actually receive your money and write a document of IOU (Loan Note). You get interest on the loan and get repayment.
https://www.iasplus.com/standard/ias32.htm
says..
Financial liability: any liability that is:
a contractual obligation:
to deliver cash or another financial asset to another entity; or
to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or
etc…So… for the ISSUERS of the LOAN NOTE, they will record it as A LIABILITY
becuz it is a contractual agreement to deliver in this case CASH.I hope that helps.
Read the solution carefully.
The price of $500 each includes a credit free of $25 (interest) and $10 for 3 years of parts.
So the real price of the machine is $500 – $25 – ($10 X 3)
then recognise the $25 as interest income.
and Warranty revenue $30.what was the question all about?
I have Kaplan Dec 2009 and June 2010 version. I have a funny feeling my TYU 4 is different from yours.
Usually you can use the text book for June 2011 exam for the Dec 2011 exam. So… I would say YES.
I think there are 2 choices:
1. If INT stream is what you want, I think there is still a chance for you to contact ACCA to change your stream from UK to INT.2. Return the book and replace it witl the UK stream if you want the UK stream.
I also think that there are a lot of similarities but I don´t know how different they are.
IF FULL GOODWILL METHOD
NCI at year end = Fair Value of NCI at acquisition + NCI % (YE Net Assets – Acquisition Net Assets)IF PROPOTION GOODWILL METHOD
NCI at year end = (NCI % X Net Assets at acquisition) + NCI % x (YE Net Assets – Acquisition Net Assets)I hope that helps.
you may be interested in joining the study session. The details are on the top topic of this forum.
Impairment of Goodwill depends on the Goodwill measuring method.
Full Goodwill method: Some part of the impairment would affect the Parent´s and Sub´s Retained Earnings
Proportionate Goodwill method would affect only Parent´s Retained Earnings
Maybe you can try the past exam questions and repeat as many times as you can the questions from the revision kit if you cannot obtain the MOCK exams.
The best way to know is to check on the ACCA syllabus for P2 vs the text book´s ACCA syllabus.
Dear Mike,
Thank you for your answer. Here is what the Kaplan text book says on one of its example:
Goodwill at fair value
5,999 Shillings @ 5.5 opening (or acq’n) rate….. 1,091
5,999 Shillings @ 5.0 closing rate……………………1,200
………………………………………………………………….._____
Exchange gain split in proportion per W3 (5:1) ….. 109
for parent .. 91
for NCI …….18W3 shows that Proportionate goodwill for Parent is 5,000 and goodwill for NCI is 1,000 (so it is 5:1)
Based on that Kaplan text book is suggesting that the share of FOREX gain from Goodwill is apportioned based on the Goodwill´s apportion instead of the % of ownership/share.
The exam answer is suggesting the apportion of % of ownership.
In your opinion, which one is correct?
Thank you again.
Ratna
well u c when you do your consolidation, which means putting 2 or 3 or however many FSs into one and represent the FSs as one (a whole) then you need to eliminate the Intercompany Profits (PUP, URP whatever u want to call it).
This basically is like one company cannot sell to itself and make profit to itself. That is why you need to eliminate them.
Does it make sense?
Kindle can convert PDF file to kindle friendly version by setting it up on kindle then sent the file to your own registered email with the subject CONVERT. There must be some kind of instructions to do so in amazon.com — kindle section.
The only thing is that the formatting like the SOFP and SOCI may all be scrambled.
you may find the answers on the OT course note or your text book.
The answer would be like… PICCO
Professionalism
Independence
Competenece and Due Care
Confidentiality
Objectivity
