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@garriec said:
What did people get for the weighted average shares MPQ?Think I had A)2125000.
2000000 for 9months, and 2500000 for 3 months, with the assumption the share values were there to throw me off?
I didn’t go over much share stuff so wasn’t sure if the TERP was relevant.
I calculated terp and then a bonus fraction n thn calculated wans. the answer I got wasn’t thr in the option but option C was close to my answer as the first 3 numbers wer same though idk if m ryt
@fokum said:
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/20×7It was a purp we had to remove depreciation from both the figures n the difference between value of the item transferred and value before transfer
@asakar said:
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”
In the subsidary equity it had 15000
N 60% was owned by the patent so u take 60/100 X 15000 X 2/3 X 1.62For the EPS question you needed to use the TERP to get a bonus fraction, I think it was A) the answer.
The impairment question – Lower of CA and Recoverable amount – Recoverable amount if the higher of value in use and NRV
Anyone struggle on the Transfer from RE question? I deducted another 15 from the revaluation reserve
705-15 =690 and then added on the revaluation (after accounting for depreciation for the year I think)
@faze50 said:
Hi all, I found the exam mixed. Section a was really hard but like a lot of people I got lots of c’s and a few b’s, hardly any d’s. Apart from the 2 convertible loan questions in section B, the rest seemed OK. I’m really worried about section c, I don’t think I accounted for the deferred consideration correctly. I also included inventory at fair value which I don’t think is correct. For the second part of section c, the think the majority of answers to part a may be wrong, will that automatically mean the rest of my answers are rendered wrong? Also do you get carried forward marking? Thanks!Does anyone have any advice?
It was D I think. That is if its question 4 you’re talking about
You had to add the cost of the investment, share of the profits and then deduct the parents share of dividends paid
@andyt said:
For the EPS question you needed to use the TERP to get a bonus fraction, I think it was A) the answer.The impairment question – Lower of CA and Recoverable amount – Recoverable amount if the higher of value in use and NRV
Anyone struggle on the Transfer from RE question? I deducted another 15 from the revaluation reserve
705-15 =690 and then added on the revaluation (after accounting for depreciation for the year I think)
Me too- I got 690 (if I remember it correctly?). Pretty sure that you needed to deduct another 15 since the entity hadn’t made any transfer for the current year.
Errors don’t carry forward, however I think the markers are a bit lazy about it tbh, they are on a piece rate payment basis after all.
However from talking with tutors who have marked the feeling I get is if you are a border line fail they will put more effort in to making sure that they have awarded you any marks you should have got.
Bit crap if your way over the pass mark but handy if your on the threshold.
Budgeting I went with the % of garbage that was recycled rather than sent to landfill or w.e it was.
Revenue contract one the output methods are the ones based on certification or progress of the job. Anything to do with costs or labour is an input
What about the mcq answer for the budgeting, revenue contract, credit entry for tax, the the 2nd last mcq for the consol, which had option of 10, 45 and all? Then there was a mcq related to goodwill, revaluation in consol? Remember these?
Revaluation in consol = All of the parent, % of the Sub after acquisiton I think – bit vague now on the quesiton
The DT question the credits were the prepayments and the interest receivable the other two options – loan didnt effect tax and interest paid would be a DR to the DT I think as its tax relief you haven’t got yet rather than tax you haven’t paid yet
Can’t remember the question for the consol sorry
No it was an odd amount. I think the budgetting one was to say they had thrown in a not for profit.
Was there a cash flow question in there at all? I don’t remember
My answers for MCQs:
1-C 11-B 21-C
2-B 12-B 22-B
3-D 13-A 23-B
4-D 14-C 24-D
5-A 15-B 25-C
6-C 16-B 26-C
7-D 17-D 27-C
8-B 18-D 28-C
9-C 19-B 29-D
10-A 20-C 30-CPlease let me know your’s.Thanks !
@sahil1234 said:
For budgeting even I went for landfill%.
For rights issue the answer was part A
(A)2000000×9/12xcrap/terp(both figures given in question)
(B)2500000×3/12
add the two figures and you got your answerThink that answer was A
@andyt said:
For the EPS question you needed to use the TERP to get a bonus fraction, I think it was A) the answer.The impairment question – Lower of CA and Recoverable amount – Recoverable amount if the higher of value in use and NRV
Anyone struggle on the Transfer from RE question? I deducted another 15 from the revaluation reserve
705-15 =690 and then added on the revaluation (after accounting for depreciation for the year I think)
Yeah i got 690 too
When preparing consolidation question i did all the workings and calculated Goodwill. Then constructed P&L but across the account lines i wrote amounts which have to be summed (for example: Revenue 54,234 (w1)+456+3429/12*9) and did not calculate final results of the sums because did not have time. Is it alright like that? 🙁
Can anyone explain what they wrote on question 32 regarding the profitability and gearing. I wrote that after the adjustments their asset turnover has dropped significantly meaning they may have slow moving stock or stock that is going out of fashion. I also said that they seem to be struggling for cash based on the amount of cash in bank compared to inventory and the fact that they will be borrowing again immediately after the repayment of the loan note. I mention ROCE would still be higher than the new 8% loan note so that was a positive. I went on to talk about the fact that the main competitor has significant incluence over the profitability and could decide to increase prices thus squeezing profits.
In reflection I think I should have mentioned that they should explore other options such as negotiating a contract rather than acquiring the company.
I thinksome of my ratios may have been incorrect from the previous question but hopefully I will still get marks for some of my comments.
What did everyone else write?@garriec said:
Yea that budgeting one to do with waste collection seemed like a really random question. I too went with the landfill %age one.The weighted average no. of shares, A was the 2125000, but from what you put Andy, it doesn’t seem it was that 😀
2million x (prorate) 9/12? x bonus fraction which i think was old price, over new avg price
terp would have been 4 x 3.40 (ish?) = 13.60
1 x 2.30 2.30
TOTAL 15.90 / 5 = 3.18so 3.40/3.18 = 1.07
2million x (prorate) 9/12? [0.75] x 3.4/3.18 [1.07] = 1,605,000
250k x 3/12 [0.25] = 62,500
The numbers above are roughly what i remember, but obviously will be wrong.
The only number in the answers that was Sub 2million for weighted average was 1.9 something million ?
disclosure note : My memory is appalling. my recollection of the question and answers could be completely incorrect.
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