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Hello, good time of day!
ACCA has published the hybrid paper, and there are two questions (1st and 3rd) coming from the exam yesterday. Is there a possibility for you to kindly provide us with suggested solutions?
Thanks in advance!
Dear Sir,
Here is the link,
https://www.accaglobal.com/content/dam/ACCA_Global/Students/fun/f7/j16_hybrid_F7_q.pdf
The first and third questions are from yesterday’s exam. Will appreciate if there is a possibility to share with us your suggested solutions to these two questions.
Yes.. It would be great if we could get the suggested solutions so we get an idea of how we performed.
@mikelittle said:
I don’t see it!Please send me the link
Dead Sir,
So, would you find a little time to soften our exam concerns by providing your valuable suggestions?
Ok, both questions done – which figures are you worried about?
Please be specific – too long to type up all the workings and all the answers!
Dear Mr Little,
For Q1 goodwill and retained earnings please.
For Q2, revenue and contract asset please.
Thanks in advance.
Dear Sir,
Will it be posdible for you to publish only answers afterwards, without any workings? So that we can see other points as well
Hi Mike
I know this isn’t exactly a solution or music to your ears.
However, I’d be happy for you to send a picture via your phone, or email me a picture, and I’d be happy to upload/ write the workings out here?
I have a feeling different people will bug you for different things,
Let me know
JComplete statement of financial position for question 1 (although not asked for)
INCA (W2) 1,400
TNCA 25,400 + 13,500 – 2,500 + 500 = 36,900
Financial Asset 6,100 + 1,800 = 7,900Current Assets
Inventory 12,700 + 5,300 – 630 = 17,370
OCA 9,700 + 4,000 = 13,700Total assets 77,270
Shares 20,000 + 2,700 + 22,700
Premium 2,700 x $2 = 5,400
Ret ears 16,342
Nci 4,920Def tax 5,000 – 1,200 = 3,800
CL 11,100 + 10,200 = 21,300
Deferred payment 2,808Total capital + liabilities 77,270
OK?
Q3
Revenue 267,900 – 1,200 + 18,750 = 285,450
Cos 166,600 + 15,000 + 10,900 = 192,500GP 92,950
Admin 22,000
Distrib 20,000
Finch 2,205.6
Bk int 150
Roy inc (300)
Total expenses 44,055.6PBT 48,894.4
Tax 11,850
PAT 37,044,4TNCA L & B 16,000 + 52,200 – 2,900 = 65,300
PPE 82,700 – 36,700 -6,900 = 39,100
Patent 7,500 – 3,000 – 750 – 350 = 3,400Inventory 32,100
Rbles 38,500
Contract rbles 8,750Total assets 187,150
Shares 25,000
Other equity 2,430
Other equity per q 11,800
Reval res 8,800
Ret ears 45,444.4Total capital 93,474.4
Loan notes 28,275.6
Def tax 3,700
Def Income 1,200CL
Pbles 46,400
Tax 11,400
Bank 2,700Total capital and liabilities 187,150
Better?
Thank you so much! Would it be possible to show us your goodwill/ retained earnings calcs for Q1 please?
Goodwill
Shares 60% x 9,000 x 1 / 2 x 3 = 8,100
deferred cash 60% x 9,000 x 54 cents x 1 / 1.08 = 2,700
NCI 40% x 9,000 x $1.50 = 5,400Total worth 16,200
Shares 9,000
ret ears b/f 8,600
6 mths (1,500)
fv plant (2,500)
def tax 1,200FV of net assets 14,800
Goodwill 1,400
Ret ears calc
Z M
Per q 17,200 5,600
pup (630) –
fv asset 600 (200)
Unroll discount 2,700 x 8% / 2 = 108 –
fv plant – (2,500)
xs depn – 500
def tax – 1,200Total 17,062 4,600
less pre-acq – (5,800)
therefore post acq – (1,200Our share ( 720) 60%
total cons ret ears 16,342 –Dear mr Little,
Thank you very much.
Can you, please, explain the calculation of revenue in Q3?
Thanks
I’m not 100% sure of the revenue calculation
The $16 million invoice is in respect of a $20 sale, so a discounted value of 80%
Of the $18 million related to the product, 80% of that is $14.4 million and at the moment $16 million is in revenue
And 80% of the ongoing service costs is 80% x $2 million = $1.6 million
Of that $1.6 million, one year (ie a quarter) has already gone so I’ve deferred $1.2 million as deferred income and one quarter as having been earned
So revenue for this year is $14.4 million + $400,000 = $14.8 million
But $16 million is credited already in revenue so I’ve taken $1.2 million out and credited it to deferred income
(I’m not sure that that is the correct treatment for the discounted revenue, but that’s what I’ve done!)
Is that worth risking my reputation as an ethical accountant?
Probably not!
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