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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 trickyyes 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.
@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
@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 comparabilityThe 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
@surajnair said:
Mcqs as far as i can remember
1-A ratio not used by non profit entities -R0CE
2-goodwill in the consolidated statement: 80000(3.8-3)
3-unrealised profit to be adjusted – 6000 (150000/5 unsold inventory,25% mark up)
4- item not included in the definition of an asset -benefits measured reliably.
5-yearly impairment review- goodwill and patent.
6-which of the following are subsidiaries- i marked option B and C,i opted out option A as at the point of time the parent company held only 40% of the other company, i highly doubt if it’s right.
7-reason for increase in gp margin : option D (debtor going bankrupt)
Section B and C were really tricky for me. Only luck can get me through now.I concur with all except for 2…i know this particular question…..subsidiary sold to parent and URP would have been deducted from subsidiary’s post acquisition RE or profit for the year….The effect and implication of this on group retained earnings would have been 60% × 6000 = 3600
@hayor said:
Got a profit of $850k on disposal……subsidiary is 100% ownedI got the same. Thats great
I had an issue with interpretating what Q31 was asking ref the ratios.
The question stated ‘using the financial statements provided’ but was I meant to adjust for the 3 months of spectra that were included? I knew the formulas and wrote them down so may get some credit for that. I feel the question was a bit misleading if you were meant to adjust the figures, which I could have done quite easily but chose to follow what the question said.
Anyone else have a similar dilemma or just me? 🙁
@hayor said:
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
I did the same, got total oci of 6440 something like that. Hope that would be correct.
@cossie1990 said:
I had an issue with interpretating what Q31 was asking ref the ratios.The question stated ‘using the financial statements provided’ but was I meant to adjust for the 3 months of spectra that were included? I knew the formulas and wrote them down so may get some credit for that. I feel the question was a bit misleading if you were meant to adjust the figures, which I could have done quite easily but chose to follow what the question said.
Anyone else have a similar dilemma or just me? 🙁
Question specifically asked how the interpretation would be misleading with the disposal. This is what I thought so wrote something in line. But i didn’t have a clue on how to separate the number from consolidated
@23123fd said:
It was closing inventory, I remember it wellyes, it was closing inventory!
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