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The first question was step acqusition, 40% and then 20%, with initial 40% fair value increase, and fortunately the foreign subsidiary was 100% subsidiary and full year profit, requiring less calculations. Compared to past question was less tough, mainly because there was no need to make consolidated SOFP also, only P&L and OCI. Adjustments were straight forward including the pension, revaluation, purp etc.
The second part was testing IFRS 8 rules – mostly theory and not application. Thank god LSBF Mock and Becker Mock had same type of questions.
Second and third questions were mixed bag testing IAS 16 – ship with different parts with different life, entity giving a loan and then selling it to another testing IFRS 9 with expected credit loss, IFRS 13 impairment testing rules for a company with leisure and cargo ships and slowing economy etc. The question on IFRS 11 Joint Venture/Joint arrangement was highly confusing and same was the case of IFRS 16 Lease requirement for a company hiring ships on two different methods, one based on payment based on cargo weight and other hired for 6 months to 2 years.
Overall paper as compared to past questions were not tough.Thank you so much for the reply.
No rudeness was intended, please. Apologies, if you felt so.
All of us are thankful and indebted for the excellent free service.
As I said the errors if pointed out by us, students, will help you to make the notes bug free.I googled and found that similar query is already replied by tutor here. Please see whether this can help.
https://opentuition.com/topic/unrealised-profit-with-associate/
To put the subject in one place, Mike had replied that
“My method which I believe is the simplest is as follows:
Calculate the full unrealised profit and deduct that full amount from the associate’s results.
Then when we calculate the group’s share of the associate’s results, we are automatically eliminating the group’s share of that unrealised profit”
“The elimination of the pup in the associate’s statement of profit or loss has the effect of reducing the parent’s share because the profit figure is reduced”.
That’s the same effect as crediting Investment in Associate with the group’s share of the pup”
Please do not waste your time and money. According to ACCA there are many checks to ensure that there are no errors. Those who get 49% are double checked. Remember that they will not revise your marks in the review, but only check totals. There are no known instances where somebody’s results have changed after review.