FR*** ACCA F7 June 2017 Exam was.. Instant Poll and comments ***

lol. What about the PURP? don't we need to apportion 60% of 150000*25/125 for the group R/E ? I thought that since it is Subsidiary that is selling to the parent, NCI needs to be given the 40% share of PURP?

Which one was that I'm not able to remember

I couldn't understand Q31 a) at all. I even cannot find what part of the theory am I missing to deal with it. I only did the ratios without doing any adjustments and some comments on them and I just hope to get some points for it. Some of MCQ of A and B section were tooo easy but some tooo tricky.

Aaradhia33 Yes I had the same thoughts but no one of the answers given didn't match with what I thought should be proportioned.

yes 31 was just hell. About that PURP,i got answer B)3600

@aaradhya33 said: yes 31 was just hell. About that PURP,i got answer B)3600

I dont think you have to proportionate it aaradhya. It was a sale from subsidiary to parent.you have to deduct the entire unrealised profit from retained earnings. Which would be 6k. Im prettyy sure about it

damn there goes my 2 marks lol

@aaradhya33 said: damn there goes my 2 marks lol

Hehe. Are you attempting any other subject this time?

yes suraj, I have f6 tommorow. what about you?

@aaradhya33 said: yes suraj, I have f6 tommorow. what about you?

Oh ya? Ace it. I have f9 day after tmrw. :D

Thankyou Suraj,its just small things of f6 that drives me crazy. Goodluck with your f9. Cheers.

@aaradhya33 said: Thankyou Suraj,its just small things of f6 that drives me crazy. Goodluck with your f9. Cheers.

Thanks :). Do well.

You are right is 3600 unrealised profit as subsidiary sells to parent and you have to apportion 60% of 6000 in R.E

What about increase or decrease in goodwill by 20.000? Does the question mention overstate or understate of liability? On section b were the two operations discontinued? Does anyone remember the question about capitalisation of borrowing costs? I think i found 10435000. The question about subsidiaries may all answers are right as the company has the right to exercise some options, maybe an indicator of control. Another two theoretical questions am not sure is the one with revenue recognition of combined goods in section b and another one about development costs - research expense over the life of project & capitilasatio of deprecation or neither of two??

are you 100% sure phil?

Hi all, I guess for morning and evening there were two set of questions. Mine was Second half. Longer form questions 1 was on comparison for two consol number with disposal happened 3 months into an year. Which I have calculated the said ratios and wrote something. Second question I got Profit was approx 2945 plus some revaluation 3500 to 6445 approx. Overall I think it was really tricky

@denny1 said: Hi all, I guess for morning and evening there were two set of questions. Mine was Second half. Longer form questions 1 was on comparison for two consol number with disposal happened 3 months into an year. Which I have calculated the said ratios and wrote something. Second question I got Profit was approx 2945 plus some revaluation 3500 to 6445 approx. Overall I think it was really tricky

yes denny me too;we had same question.I got net profit of 2915,so your and mine maybe same.

For single company statement, I didn't adjust any depreciation as excess was adjusted to revaluation. I guess that would be right. But forgot to add back the inventory adj in RE. Cash flow was dividend and loan taken. For investing only purchase of some shares. For comparison i got Profit on sale of some 0.85 million, if I remember correctly. After seeing all the above comments, i am bit worried now.

excess dep? had not been charged so i added 3.5/20 = 175k to COS. Yeah,adding inventory to R/E wad a very tricky one.None of the questions I attempted while practising had that twist!!

@aaradhya33 said: excess dep? had not been charged so i added 3.5/20 = 175k to COS. Yeah,adding inventory to R/E wad a very tricky one.None of the questions I attempted while practising had that twist!!

Historical cost bases dep was already charged to cost so I didn't do it. Now we can't do anything. But I had no idea about 10 marks extra questions. This was my first exam and I didn't come across that idea. What they will do with that extra questions.

What extra questions? There were no extra questions :/

@aaradhya33 said: What extra questions? There were no extra questions :/

May be, one if the candidate who I met was saying this. Not 10 should be 5 question with 2 marks.

It would have been great if there was one EXTRA consolidation question though :p haa

Got a profit of $850k on disposal......subsidiary is 100% owned

@paulwilliams100 said: I didn't split out the results of the subsidiary because it didn't say anything about the loss occurring evenly/not, nor when the goodwill was written down. I did talk about it quite a lot though and how it may have effected things, also brought in how the gearing had been lowered. For the profit/loss on disposal I worked out a profit of c800k (I think). I worked out the goodwill at acquisition, then did the value of the subsiduary at acquisition as what it cost, took off half the goodwill for the impairment, added the revaluation and took off the post acquisition loss. That came up with a figure about 800k below the £9m they got for it I think. Not entirely confident that was right but we will see.

Got a profit on disposable of $850k

@phil1990 said: What about increase or decrease in goodwill by 20.000? Does the question mention overstate or understate of liability? On section b were the two operations discontinued? Does anyone remember the question about capitalisation of borrowing costs? I think i found 10435000. The question about subsidiaries may all answers are right as the company has the right to exercise some options, maybe an indicator of control. Another two theoretical questions am not sure is the one with revenue recognition of combined goods in section b and another one about development costs - research expense over the life of project & capitilasatio of deprecation or neither of two??

it will be a decrease in goodwill as the liability is 20k below it's carrying amount which indicates a reduction in liability therefore an income which will be included in net asset acquired to increase the FV thereby reducing Goodwill. for the borrowing cost....i got thesame answer as you....let's just hope we r right? Research cost should be expensed as incurred not "over the life of the project" that's the tricky part quoted.. ... Examiners can be so funny

@aaradhya33 said: yes denny me too;we had same question.I got net profit of 2915,so your and mine maybe same.

Does this mean I'm safe too cause I got bet profit of $2915 as well!

@aaradhya33 said: yes denny me too;we had same question.I got net profit of 2915,so your and mine maybe same.

For the issue cost did you deduct 200 from proceeds of issue of loan and as well deducted it out of admin expenses? Also for investment income how did you treat it.....since 300 is credited initially of which 200 is related to gain on equity investment I deduct 200 from and show it under OCI making investment income just 100

@sayemahmed24 said: I think it would be relevant not comparability

The fundamental are Relevance and Faithful representation.... Enhancing are comparability, verifiability, Timeliness and understandability

@aaradhya33 said: I found interpretation very difficult. Also I think there was an adjustment needed in Q32's retained earnings in accordance with IAS 8 (valuation of inventory had changed and this requires a retrospective change)? I think other questions were okay. Also I got PAT of 2915.

Same here bro....PAT 2915