[stevo82]

@chris1975z said:
Can’t remember much about investment properties in q1 at all? I think I mumbled on that properties as part of construction activities should be recorded in WIP – i.e. profits released as contract progresses using input method (% of profit as costs) or output method (profit released as a % of work complete).

In hindsight – I should have pointed to the risks as incorrect classification from the outset and changes in accounting policy (maybe?) – Like I say – Q1…disaster!

The only part I was happy with was the provision (retraining costs not allowed) and also procedures (inspect sample contracts for redundancy entitlements, recalculate and verify accuracy to client schedule, inspect offer letters of further employment for those not being made redundant – test completeness, re-cast client schedule – accuracy, inspect board minutes for any legal claims arising from “incorrect dismissal costs”.

How about you?

i was rushing to read the question and think i missed the bit where it mentioned a fv gain being recorded (someone mentions this earlier on in the thread) so I talked about incorrect classification etc…suppose its only a couple of marks! i think i talked about most of the business risks and mentioned about revenue being overstated and about the provision as you mentioned

I overran this question by about 15mins which meant I was chasing the rest of the paper a little…although i didnt mind the section B questions think I answered Q3 and Q4 and then went back and rushed the last 25 mark question in about 25 mins!

The 25 mark question was by far the worst for me just hope i picked up the easy marks! its quite frustrating trying to write enough to make sure you pick up enough marks but at the same time making sure you don’t waffle!!!

[stevo82]

@chris1975z said:
From memory I think it’s the part where it stated hedge criteria has been met. Sub worked under non-IFRS framework so I suggested risk that parent co IFRS policy not used – i.e. perhaps gains were shown in P&L rather than OCI (as I concluded a cash-flow hedge) and that the consolidation process would not pick up error. Gains only recycled to P&L when the hedged item “matures”, thus profits/losses may be overstated depending on gain/loss on instrument at year end if not correctly presented in OCI etc.

well your memory is better than mine! what did you write about the investment property in Q1? in my haste and panic of thetime I think I went off on a completely different tangent!!

[stevo82]

@chris1975z said:
I personally think the only circumstance to mirror my disappointment on leaving the exam hall yesterday will be watching England’s performance in this summer’s world cup.

Question 1 blew me away in trying to identify the sufficient number of business risks and RoMM’s. Panic set in and poor exam technique followed.

Coupled with a poor choice of one of the optional questions (why oh why did I choose the question containing a lump of Financial Instruments?!?!).

I felt it prudent to delay issuing a response until today to let the “dust settle” as very emotional after a bottle of Prosseco yesterday afternoon!

The only positive was the KAM question but certainly not enough to get me through. Passed every other paper at first attempt. I’ll be fortunate to get low 40’s on this.

I’ll take this week “off” (if nothing else then to give my hand a rest) and then back to revision again from next Monday.

I genuinely wish everybody the very best of luck and hope all your hard work and effort is rewarded with a pass in July.

3rd September booked as annual leave already….

Best wishes to all.

Chris was this the part of the question with the derivatives? I think you will do better than you think if you’ve stated the obvious i.e complex area etc!!

[stevo82]

think I missed the fact one was not employed therefore no class 1a, still probably only half a mark missed! Wasn’t it a close company as pretty much run by the two 20% shareholders (father & son) with the others being minority shareholders? Think I mentioned the niece giving further control as associated but I think I was clutching at straws by then!

[stevo82]

can anyone remember the actual scenario for the Valentine and Wild transactions? I can’t quite remember but thought that it was only the building that was sold and not Valentine? Could have misread it in my haste!

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