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How did everyone find today – I thought the paper was very common sense, rather than models etc. overall I thought it was a good paper?
What I did may be wrong – that’s the problem with too much analysing after the exams finished – you assume you’re wrong and everyone else is right!
I had the lease as slightly cheaper and the next q implied this was correct … it said other than NPV cost
Section A was good and section C too – AgeAid which was a NFP with a lease or buy decision and then a WACC for the other Sect C Q. Lots of commentary / discussion marks available – CAPM & DVM, 3Es and VFM, why a lease v buying, and link between cost of finance and creditor hierarchy.
However – section B was brutal!!!! FX question & Working capital were horrible but the business valuation was ok. So overall I voted ok and am hopeful for a first time pass.
75% first time pass so I’m delighted and looking forward to FM as I found AA tricky for sure.
From memory I selected the option for just one colleague as they were being asked to sell non audit services and her partner was in the marketing dept in a responsible position, assuming it was the same question
I agree with the comment above on section A, which I found harder, particularly as there were a lot of questions that required two or more responses as the answer. However I found Section B surprisingly ok, with questions that were challenging but achievable if you had put the work in so I’m hopeful for a first time pass overall.
If a grant becomes repayable, it should be treated as a change in estimate. Where the original grant related to income, the repayment should be applied first against any related unamortised deferred credit, and any excess should be dealt with as an expense. Where the original grant related to an asset, the repayment should be treated as increasing the carrying amount of the asset or reducing the deferred income balance. The cumulative depreciation which would have been charged had the grant not been received should be charged as an expense. [IAS 20.32]
I think this is the answer in part, I assumed two years had been released as we were at the end of the period.
I treated as a capital grant – offset the 10k in Deferred Incone and charge the rest to P&L as loss I think
Yep that was the same paper I had – I found it pretty reasonable. The bit regarding the Repayment of the gov grant was the bit that made me think.
Thanks for such a clear and comprehensive reply. This is really helpful. I’m just trying to understand as I’m finding this area tough – I can remember the treatment but have a sense that I don’t fully understand why I’m doing things in a particular way. However hopefully this will become clearer as my studies progress?
So pleased – passed with 89%. I worked hard for this paper and found the lectures really comprehensive. Thanks so much!
