*** ACCA F7 December 2016 Exam was.. Instant Poll and comments ***

Didn’t we have to do a PV calc for def consideration? x 1/1.08 something I thought?

Hi mike, if the fair value of Subsidiary`s inventory were greater than its book value @ acquisition, i know the difference is included in NA of S@DOA while calculating g/will.
what are the relevant accounting entries if the inventory is not sold during the year? and 2) if it is sold in the year? thanks in advance.

Neither did I. My 13 marks are gone.

@samangika said:
neither did I. ??

Don’t worry you’ll lose only 1-2 marks max for that error.

I have doubted that in Q31 Note 1 The inventory of 800,000 has fair value 1,000,000. So we need to adjust to fair value ? From IAS 2, inventories carried at lower of cost and NRV. I also did the exercise at the back of the text book, and there was similar scenario about fair value of inventory, and it was stated that Inventory carried at Fair value which is lower than cost 20m, coming this point they adjusted 20m to goodwill. This case Fair value < Cost… However, in our exam, Cost < FV. I treated FV as Selling price, hence I did not adjust inventory in Net Asset of Subsidiary. Another part, Consolidated P&L … in term of share in associate, we need to take profit of associate as I remembered 2.4m * 25% = 600,000 and the dividend received from associate is 200,000. Should we take 2,400,000-200,000 and then * 25% or take 600,000 – 200,000 … How about dividend received from Associate anyone consolidated it ? I also did an exercise at the back of the text book and there was similar scenario as well, and they stated that the Profit Already deducted the amount of dividend paid, hence they just took that Profit * Percentage own in associate.

yeah i got the same !

Hey can someone please tell me i subtracted purp from COS calculations and forgot to consolidate subsidiaries investment income how many marks would be deducted????anyone?

what was the answer for the average shares I used the 2m shares as shares before issue. and I circled A. was not very sure of my answer

@sara18 said:

@flapper84 : yeah i got 21500 !!

Hi Sara, there is one word in the question that will determine whether we calculated the correct goodwill calculation. Unfortunately it doesn’t look good for us because a few others are sure they have calculated it correctly and have a different answer.

I will try to copy out the question and will show the two different interpretations:

Calculation of the parents consideration:

60% of the shares of the subsidiary by way of a share exchange of 3 shares in the parent for every 5 shares acquired (I think we all agree on this part that the consideration is 5400 x whatever the share price of the parent was at the date of acquisition)
In addition, the parent will pay $1.62 per share acquired/issued (this is the word we are all split on) in one years time. The rate of interest is 8% (I think we all agree we had to discount the value by 1/1.08)

The good news is whoever is wrong will only lose 1 mark for it

Are you sure?I’m pretty tensed about this

@flapper84 said:
Maybe 2/3 marks

are you sure I’m very tensed about it?

what was the approach to the MCQ where the consolidated ppe was required and a plant of carrying amt 70000 was disposed on 1/something/20×7

In mcq of impairment loss what we take higher or lower of Caring value and recoverable amount ?

Hello,

On the g/w calculation, I remeber that i was double checking should we take acquired from S shares or given shares (Parent gave), and i am sure we should have taken the acquired shares as that was said in question… “1.62 for every share acquired”