[scarborough]

I have been set the exact same question by Kaplan as their Dec 15 mock,

I understand that it does not meet the definition of a financial asset, what i am struggling with is should it just be classed as an investment on the SOFP and should be revalued at every year end to its fair value?

Any help would be great…

Thanks

[scarborough]

I think the fact it mentions fair value and that the oil is actively traded in markets….

I just assumed as fair value was mentioned that IFRS 13 applies.

I was leaning towards IAS 2 as the standard but thought I’d double check.

Thanks

[scarborough]

Hi,

I have this exact same question in my Mock exam and i am struggling with the accounting for associates part, i have included all the points made but i am struggling to put much else.

What calculations would you suggest i need to push up my marks?

[scarborough]

this was a mock question set from Kaplan.The question makes reference to 8 marks in total for the answer and i think that it whats throwing me? I understand the contributions made are what are to be shown in the P&L but i assumed i’m missing something key given the marks at stake?

Thanks

[Author]

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