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Hi
Choose AAA!!!!
I did both APM and AAA. APM has a really easy syllabus but the exam itself is a mess. Questions are very difficult to answer just because the examiner is so unclear, determining what he wants and what will get you marks is a mystery most of the time.
If you struggled with PM, personally I’d stay well clear
The syllabus of AAA is straight forward, the exam is very challenging but the application style to scenarios is quite fun. Its a game of spot the mistakes and application of fundamental accounting standards to back up your points. If you did well in P2 and did basic Audit standards at uni you will be fine!
Its up to you of course but also remember that pass rates tend to be lower for APM too.
Good luck in whatever you decide to go for.
Hi Fashola
Not sure but I think Mike would want you to open a new subject thread for this? However, I can help you with this as I’ve been alerted to your email.
$3,500 is for the period from 1 Oct 2013 – 30 Sept 2014 (reporting date) i.e the whole year!
But we have only had our Subtrak business since 1 Jan 2014. That means that from 1 Oct to the 31 Dec, we have no right to our percentage of their retained earnings, but after this we do! How much did they earn in that period? Well lets look at the P&L!!
For the whole year Subtrak made $2,000. The question says treat income and expenditure evenly through out the year. So lets do that!!
1 Jan to 30 Sept is 9 months… $2,000 x 9/12 = 1,500 (post acquisition profit!)
If they are subtracting 1,500 from the 3,500 they are therefore working out the pre acquisition retained earnings (the part we can’t take) which is required for the goodwill calculation.
I find it helpful to draw a timeline diagram when working these out. Just helps me to visualize when everything took place.
Hope this helps. If not, I’m sure Mike will reply on a new thread.
Regards
River
Yes Thank you
On a different point, If its not too much trouble, could you also explain why the Cash in transit is CR PAYABLES?? $400 DR Bank overdraft Not CR Receivables DR Bank overdraft?
Is’nt the parents statements showing receivables too high because the cash has been transferred on a later date from the subsidary?
Thanks for your quick response.
Unfortunately, I bought a BPP revision kit which reflects the ACCA answer. Wish i’d been consistent with the companies of my texts. I’ve had real trouble reconciling the different methods!
From what you have said it seems that if PPE is revalued at the reporting date rather than at acquisition then you should really reflect not in retained earnings of the parent but within Revaluation reserve / OCI.
However, NCI % of the revaluation IS in its retained earnings. Is this because it’s not permitted to show NCI % of its revaluation reserve as a separate line, so we therefore have to just include it in NCI retained earnings?? (Can you confirm / elaborate?)NCI Calculation I used…
F.V of NCI 4,500
Post acq retain (20% 2,000) 400 600 reval’n is within this 2,000 figure!!
less GW Imp % NCI (20% 500) (100)
Total 4,800 (which is correct answer stated but is the method correct or have I just fluked it?)Probably not put in a very elegant way but hope this reflects the method / reasoning i’m using and hopefully any error / misunderstanding.
Brilliant!
I’ve got it! Thanks Mike. It’s so easy to just follow a proforma without actually knowing what you are doing! I’ll never make this mistake again now because I actually understand why I’m doing the calculation.
I think so!
Could you just check i’ve got the right reasoning…
So effectively when dealing with a subsidiary we need to account for the NCI because we have control. What we are doing is still representing the FULL impairment in the financial statements but separating this in two distinct parts on the Balance sheet. (This is why we take the percentages to the different Retained Earnings)
Since this is an associate we do not have control but significant influence only, we ARE the NCI! and of course do NOT have to represent anything other than our own share. Therefore it will be impaired by the full amount stated.
Yes thank you John
I’m not quite as confident as Michael here, but you have helped me so much! I have very little money and you have made it possible for me to embark on this great ACCA adventure!! F5 was a great success lets hope F9 will be too!
Thanks again for all your hard work and generosity. Im sure I speak for all users of OT It is greatly appreciated.Multiple choice was a nightmare! Some calculations were straight forward but as far as theory questions…Where on earth is the information in the study text for the knowledge on this? No matter how well you know the material you are always second guessing yourself on 2 out of the 4 options. Bring back 4 long questions!!
I don’t think this will make the exams easier guys. Different yes!
The thing with multi choice is you are either right or wrong. No marks can be given for working. This is a great disadvantage since you cannot show the examiner you have knowledge. On long 20 mark questions, even if you did not get the correct answer, as long as you knew something on the subject it was possible to gain easy marks.
I really prefer the old style but I guess it stops people from question spotting, which ACCA keep saying is a problem? Can’t say I agree with this theory either!
If you want greater difficulty perhaps ACCA should introduce negative marking! That would be harsh!! (i’m joking ACCA please don’t!)
I do like the fact F4 is CBE though!!! Its the one I have been putting off.
Thanks John
I must be honest and say i’m slightly relieved that you are unimpressed by the question and really hope this is not the tone of multi choice questions for the future exam. This is an approved ACCA providers question I have purchased on a CD.
Thank you for your explanation, I can see the reasoning now, but i’m not sure I would get there on my own; and In 2 minutes, NO WAY!! I’ve spent a few hours trying to reason what is happening!!
Oh well, I’ll just keep practicing.
I know you are all very busy at OT but will you be putting any resources together on Multi choice questions?
Thanx
River