Forum Replies Created
- Posts
Key management personnel:
Those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of that entity.
The accountant wasn’t a director and to me it appeared he was a consumer of decisions rather than having any authority so wasn’t key management personnel.
@nieffee said:
Does anyone remember any of the mark allocation …. trying to just go over how I did. I know I shouldn’t torture myself. I can’t change it now. But it does help me lolQuestion 1
Functional currency (6)
Goodwill , impairment, exch loss etc (5?)
Accounting for Crotchets customer contracts (4?)
How to account for Quaver (4?)
Bonds! (11)Total 30
Question 2
Provision for restructure (6)
Related party. Wife’s shares (3?)
Stewardship? (3?)
Ethics points (6?)
Professional marks (2)Total 20
Question 3
Accounting for stadium barriers (?)
Sale and leaseback (?)
Intangible contracts, bonus, CGU (?)Total 25
Question 4
Sustainability (8)
£16m (£2 mil saving, £10m loss in sales ) and accounting for old lease (6)
Pension calculation defined Benefit
And Effect of PBT of above 2 (9)
Professional (2)Total 25
Also feel free to correct anything that’s wrong !
Remind me again, what was Quaver in Q1?
I thought Ethics was 5 marks this time but can’t remember how the 20 marks added up. Maybe the related party was 4 instead of 3?
Did anyone put the wife was a related party? I thought not as the accountant wasn’t key management personnel.
@katie8223 said:
This was my first paper based exam and I have to say, computer based is SO much easier in terms of you can structure your answer a lot better and delete/re write. In this paper one I wasn’t even given any draft paper to write notes so had to go straight into writing the answer, which made it look messy at times and not flow well.
In terms of the exam itself, this was my first time doing SBR, I thought the first half of the paper was a lot easier than the second half.Agree on CBE and 1st vs 2nd half.
I sat the CBE variant in the UK and it was much easier to structure and digest information. The ability to select and read only relevant sections to the question being asked was great as was being able to change between word and excel.
Reviewing all the previous exams I think the 1st half has always been easier as it has followed a similar format each time – groups and ethics.
I don’t think we can complain too much around the 2nd half because I think there is a very similar question around player registration intangibles in the past papers. I might change my mind when I get my result! 🙂
What I can remember :
Q1
Functional currency – Grommits due to economic forces.
Goodwill – calculate in dinars then report at rate on date of acquisition. Bit of a twist here as they had some assets in Grommits and Dinars. I converted all to Grommits then to usd.
Impairment – why was there no average rate given? I took a punt and use 7.5 as the average between start and end.
Bonds
Amortisation calc fine with credit risk. Didn’t know how to treat the calc for the recognition of 12 months losses so took another punt on taking the expected value of losses to Pnl and offsetting asset in sofp.Q2
Provision – no legal or constructive so no.
Event after reporting period – does it impact going concern? Will it impact at depot date?Can’t remember the other accounting question
Confidentiality ethics with insider trading
Q3
Intangibles – tough one!
Seemed like the entity was using amortisation cost measurement with amortisation over useful life and business standard was fair value with annual review. Thought both were fine but didn’t agree with how the originally recognised the fair value of intangibles – seemed to only look at production costs?
Stadium
Sale and lease back.
Thought it represented a sale with a portion being retained. Calc was tricky because future dates and depn and not sure it was fully required but went for it anyway and explained IFRS 15 and control principles
Stadium barriers – far fetched but argued to capitalise as they would increase revenue through extra safety and increased attendance levels ?
Contact intangibles – amortise over contract and amend when life of intangible changes. Indicators of impairment include damage to players and roll up to larger cgu.
Q4
Waffle about sustainability and investors being conscientious and reputation damage if not. Threw in a bit about integrated reporting
Don’t aggregate provision with income for new building. And don’t recognise either of them.
Lease – tough, derecognised asset as control passed to new lease holder. Kept lease liability as not cancelled yet.
12 months lease so short term and accrue p&l?
Pension
Interest to p&l
Service (current and previous) to p&l
Remeasure to OCIcalc – take out provision for losses and take int and service to p&l
Passed 1st attempt with 77%. Now taking a break before SBR in March.
My best advice for anyone struggling is to practice past paper questions as much as possible.
Felt the exam was pretty fair and agree with comments so far.
Opted for lease over buy but feel like I may have included too much or not enough tax for the lease. I could be wrong but I remember John explaining in his lecture that you get one more/less year of tax relief from leasing due to the up front payments. Not too worried as it’s only a mark or two.
I went for 6% cost of capital in financing for lease vs buy.
Capital rationing I talked more about government and regulatory restrictions but looking back think the question wanted answers around SME specific problems.
Fx money market hedge question was unusual as it only took the answer as far as the amount received in local ccy rather than adding the interest that could be received by depositing.
Nothing on Islamic Finance thankfully.
Nothing on CAPM which I revised a lot.
Pass with 61%. Bit disappointed as I this is my lowest score from f5-f8 and I was scoring ~75% in the Kaplan marked questions.
Still, a pass and onto Financial Management.
@avishco said:
What was the answer of the letter of representation? on date of audit report being issued or the day audit work was completed??This question completely stumped me! Had a guess at the date the audit work was completed but it was just a guess.
Also forgot some of the items within the Audit Strategy, and struggled to come up with 2 of the 4 procedures required for testing the Completness of a Payables balance, but other than that I think the exam went OK.
Good luck everyone.
@kawaa said:
Congrats. What is pass time on the train ?
Did you use any revision kit or practiced through prior exams ?Thank you! Passing time is an idiom that means occupying time. I occupy the time I spend travelling on the train with Open Tuition lectures.
I used the Kaplan study kit with study text, revision kit, and pocket sized notes. I read the study text and completed all exercises then moved onto the revision kit where I focused on my weak areas.
Passed 1st time with 81% using Kaplan Study Text and some OpenTuition videos for more difficult topics (and to pass time on the train).
Quite surprised as wasn’t sure I justified my conclusions enough on the Lemon & Lime question around investment decisions but happy nonetheless. I can’t remember if it was Lemon or Lime but I recommended the well established boutique fashion company based on their increased potential to expand online, more profitable margins, and lower capital.
Onto A&A next!
It went ok, didn’t learn the majority of dates or tax administration rules so lost marks there. Also have a few questions for anyone who knows :
For chattels sold over 6k and purchased below – should the calculation for gross proceeds include or exclude selling fees? Had a sale at 7200 after auctions fees and wasn’t sure to use (7200-6000)x5/3 or 7200+auctions fees-6000 x 5/3.
For cars bought for higher price and sold in same year at lower, would the capital allowance be the difference between purchase and sale?
Are bonuses paid to non directors added to employment income on payment date or entitlement date?
@jetavi said:
But @rossacca does the presentation contribute to the scores? As in, does the examiner gives scores for the presentation? Cuz as far as I have come to know what the answer is matters and presentation is not the top priority since no marks are given for that….But if this is actually true… Will make a note for the future papers!
No marks for presentation but a well structured response will make it easier for both the examiner and yourself in checking the clarity of your points.