[watsonsherlock]

Q1: I calculated all the fair values and adjusted in Goodwill calculation.Deferred tax on fair value adjustment(except customer database for me it was contingent asset). Concern was which percentage to apply for NCI calculation 40 or 52%? I got negative goodwill

Q2: It was straight forward

Q3: The first film was Inventory, the second film was Intangible asset and the third struggled and wrote as agent fee under IFRS 15

Q4:I wrote that it is Joint Venture between parties. Calculated goodwill bu I think wrongly took fair value of contingent consideration at 6,5 m but I thhink ot should be 5m. Direct costs 1m to PL. 20 m apportined between assets based on percentages and adjusted in PL and calucaled for depreciation in KPI measures.

[watsonsherlock]

I got negative goodwill. My concern how NCI was calculated? On 40% or 52%(net assets was 348 m)

[watsonsherlock]

To be honest, there were questions which I have never came across in Study Text, Mock Exams, Revision Kit and Past Papers(mainly Question 1 and Question 3)

Q1: I calculated assest value to and adjusted to fair value of USD 24 mln +1mln site preparation for residential area. The concept was that highest and best use, aslo legally permissible. I including whole 25 mln in goodwill calculation as it was said that “fair value of net identifiable assets excluding the following asset”. Then calculated goodwill fir both NCI versions. Share based payment part of this question was a question that I have not seen before. So I did not figure out how to calculate consideration with SBP. Only thing that I did, Consideration+15 mln+5 mln(additional due SBP change)

Q2: It was easiest part. Advance payment is deferred revenue so it is liablility. Preference shares with the option to convert to equity is Compount instrument so liability(asset) and equity part should be separated and recognized in Financial Statements. Deferred tax asset should be recognized when there is evidence for future gains, to whch against these tax assets could be utilized. There was no sign of future profit. So it is not deferred tax asset.
Ethich part talked about, self interest and intimidation threat as link to professional ethics

Q3: This question was also difficult. For license I said that, it is single performance obligagtion as technical support and update side cannot be sold as separate performance obligation. It is linked to the license. I recongnized shares as financial assets in customers interets as it gives voting rights also(do not exactly whether correspondent Liability part should be recognized). For royalty, I said that it is perfromance obligation satisfied over time, so royalty should be recognized when the customer sells music to open public.
There was a joint arrangement. I treated it as Joint Venture as each company has equal shares and contribution to the Joint Venture. About the derecognition of assets I wrote that, it such sale of an asset to other company at fair value, so gain should be recognized(not sure whether it is correct).
Unfortunately, I recognized cryptocurrency as Financial Asset(but it is intangible asset), and said further recogniion will depend on business model of the company(whether at amortized cost or fv through profit or loss)
I have no idea about the amendment to Defined Benefit Plan. I wrote common sense, why calculation of net interest cost and current service cost is important. I calculated current cost at adjusted value 6 million and net interest cost at year end value x discount rate.

Q4: It was about ROE measure. The first part was about accounting policy and I wrorte here common sense why some companies choose different accounting policies.
Calculated ROE measure as Net Profit/Equity as all other figures eliminates itself in the formula. I only adjusted Net Profit figure by subtracting share of profit of associate and equity part by adding back shares which company has bought back.

All in all it was difficult exam. Past Papers were much morer easier. Hope will not fail

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