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I did not include inventory in calculating goodwill either. I just put the FV adjustment of 4,000 for the propertly revaluation. hope it was right !
i put the 200 of inventory as a gain on the p+l.. any one else do that?Deferred consideration was $1.62 for each share provided. 9000 shares X 3/5 = 5400 number of shares.
1.62 x 5400 = 8748
8748 discounted by 8% = $8100Anyone else get that?
I did not include inventory because I was confused with FV measurement. As far as I know, inventory should be measured at lower of cost and NRV and not FV. I am not sure with this exam, although might have seemed easy but under time pressure, I could not concentrate v well.
Inventory fv adjustment should be included in the FV calculation because the calculation is based on values at the date of acquisition.
I forgot to include the unwinding of the deferred consideration as a finance cost
In section B did we had to capitalize the transaction cost as it said it hold for trading purpose? It hold it first for 1 year
Hi Yash, I think the transaction cost was capitalised but the fair value should be used at the reporting date which was 7 x 50,000 so the answer is $350,000, I could be wrong but that’s what the text book suggests
I got that wrong due to time pressure.
In MCQ i also get many Cs like 5 in a row 😮
the last question was a disaster did not had enough time to think through the adjustments on equity. Did anybody adjusted for 3000 the fair value of property?
what about ROCE i caculated it totasl assets current liabilities 40000-9200-1200-3000. Did anybody did the same?
In consolidation question i included inventory as a fair value adjustment. But know that my brain started to think lol i beleive it is wrong…because inventory is valued at cost or NRV so we should not care about the fair value on the other hand the subsidiary is valued at fair value and this would affect total assets… somebody can comment on this… i did not do any adjustments for inventory in profit or lossThanks, that sounds right, I’m fairly sure i’ve got that right, I think RE must be different to what I said then, thanks for the response.
1st question was a bit of a 50/50 for me what did everyone go for?
It was the one about advantages of a rules bases system
A
B) Firefighting
C) Accountant may be protected from law suit or something
D) cant be contradicting standardsC or D?
@andyt definitely C because employee is protected by litigation.
Well i circled C
@emma well i am pretty scared to see people saying got C’s in row. I had 3 B’s straight in a row 😛 i am damn sure each of my mcq in Section B is Accurate.
Q32
Revenue = 89300 (94000×95%)
COS =
Per P &L – 73000
Less licence 1000
Add discount 4000Total = 76,000
Interest was adjusted to 800
NCL would be £10,000 loan
Equity =
3000 Reval Reserve
3300 retained earnings -(given in the question)
+whatever share capital wasPBIT (needed for operational profit margin and ROCE) I got 3300.
ROCE was 13%
Asset Turnover 2.8
GPM 15.9%
OPM 3.9%
Sales per square metre = 7442Anyone get those?
For the deferred con its how many shares you acquired so you don’t multiply by 3/5
On the first MCQ I went D but wasn’t sure either way, I had arguments for against – For example D is actually a disadvantage of principles based because the leasing standard contradicts the one that sets of the basis for recognition.
Arguably though if an accountant follows the rules that could be a defence in court. – But then it does restrict what they can do as there is no “comply or explain” allowance
@andyt I think I got the same as you for every answer you’ve listed for Q32!
Well that’s reassuring! Unless we’re both wrong that is!
I can just about remember Q31 so will try list that later if anyone wants to compare notes. Got a badminton game to get to now though.
Andy
@andyt said:
Q32Revenue = 89300 (94000×95%)
COS =
Per P &L – 73000
Less licence 1000
Add discount 4000Total = 76,000
Interest was adjusted to 800
NCL would be £10,000 loan
Equity =
3000 Reval Reserve
3300 retained earnings -(given in the question)
+whatever share capital wasPBIT (needed for operational profit margin and ROCE) I got 3300.
ROCE was 13%
Asset Turnover 2.8
GPM 15.9%
OPM 3.9%
Sales per square metre = 7442Asset turnover i got the same all the rest ratios were much lower than sector average
revenue i got the same
cost of sales i think we should deduct the discount 10 as we lost it so my cost of sales 73000-1000 =72000 /90%@andyt said:
For the deferred con its how many shares you acquired so you don’t multiply by 3/5i dont understand why its 3/5 either.
shares acquired were 9000 and the payment per share was 1.60.
i forgot to discount it tho if you were supposed to, as it was deferred consideration.
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Lots of C answers.
Q31 deferred consideration divided by 1.08 gave 8100.
7 marks for calculating Goodwill looked like a lot?
Had to double check on 0.6×0.6 in one of the calculations.
3/5 and 60%, think was ok just looked a bit odd on the calculatorQ32 Hopefully got some marks adjusting revenue etc and redoing ratios
ran out of time on part c
High gearing %?
Very similar revenue per m squared. 2% below sector average.Q31 is a blur to me, i was under so much time pressure,
3 invigilators ere stood around a computer next to me because it was playing up and they were all having a natter! How bloody rude – i could not concentrate so much time was wasted !
Can anyone remind me? was it a Consol of SPLOCi ? or CSOFP?
p.s. i will not be doing a CBE ever again, and i do not recommend it to anyone.
My first time and my last time. Dont Do it !MCQ’s arent even MCQs, you just have a text box to enter a correct number !! Very unfair against the paper version
@andyt said:
For the deferred con its how many shares you acquired so you don’t multiply by 3/5Damn it, looks like I stuffed that one up
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