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I think you DR cash CR Liability at point of receipt, but then you have to wait until the condition has been met at which point DR liability CR income statement
Yeh had the email for feedback earlier today. Gave my honest feedback but cant imagine it will help.
for the debt or payables question, the company has the ability to withhold payments to the bank if the quality of wood is no sub standard. if this was debt, then the company would not have this right? this is and executory contract with the bank. the payable to the other company was settled and stock transferred to the bank.
i think the fact that as a group we still cant quite decide the answer, even after googling, shows how poor the exam was. These exams need to be clear cut demonstrations of learning the syllabus. ive discussed the questions with many of my fully qualified colleagues and even they struggle to know how to understand the questions and how to answer them.
I had the same exam as above with the football Q and crypto etc
My takeaway from the whole exam. What a load of crap. So many marks on crypto? Seems insane to me to ask students to discuss the accounting process for something that doesn’t even have its own standard yet! I went down the ias 38 route as an intangible but may have mixed up and out FVTPL, think it should be FVTOCI if a gain and then FVTPL for a loss. Either way… questions just made little sense to me.
I got excited as the deferred tax part and then quickly disappointed when I realised it didn’t follow the typical deferred tax question and instead had to relate it back to FRS102 which I really couldn’t remember. Also I’ve never really seen a question that was relating to what seems like quite a niche company with slow profit progression? Wasn’t sure how to answer it as you wouldn’t carry the losses forward over multiple years if no profits expected?
The question about the crypto vesting scheme for the directors was bizarre, I didn’t really know how to answer it at first as I didn’t understand if they were given the coins and then also a car or If they were just given a car? I said liability at the end of the first year and then unwound it as and when the directors took the car but no idea.
Agree with what’s been said about the ethics question. Most ethics question seem to have a very obvious agenda. E.g can’t break covenant with bank or directors bonus is driven by profits. This one just felt like the director was lazy and negligent and didn’t really know how to manage risk? I’m wasn’t to sure the best way to answer. Seems more like he was incompetent at his job rather than he was intentionally acting unethical.
I too put lease for the football player but have since checked and think it should have been recognised as an asset due to the unconditional agreement to take to footballer on perm at the end of the free. I’m hoping someone can correct me and that the fact that they had to pay 10mil at the end of the 3 years meant it was a lease and then a purchase?
Overall, compared to other exams I reckon we were shafted haha ? see some of you at resits
