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- This topic has 100 replies, 39 voices, and was last updated 7 years ago by david1988.
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- December 6, 2016 at 5:44 pm #354629
I said that Minor was Dollar – I think that I went along the lines of ‘even though the facts appear to show that Minor’s functional currency is Euro, the subsidiary is not autonomous and provides monthly dividends to the parent – effective acting as a branch.’
I found 3B and 3C tough and I only had around 15-20 minutes to write them, so I felt the time pressure and didn’t have greatest structure in my answer.
3B – I think i mentioned how market conditions, cash flows, PV etc are incorporated into the FV of assets whereas the replacement cost does not and how that would affect the ‘gain’ that the director put down to their negotiation influence based on their liquidity position.
3C – I really ran out of time here, but identified an IAS36 impairment issue? The director said the licence wasn’t impaired as the PV of future cash flows was > carrying value – however the future cashflows were contingent on a possible change in law/regulations.
I don’t know if they’re the greatest of answers but I had to write something XD
December 6, 2016 at 5:48 pm #354632Hi,
Will the answers be available on this website? If so when?
Q1 I had a profit on disposal which I included in my p&l.
The fv adjustment I left the good will as it was originally (dont know if that was right) I added the fv depreciation to cost of sales.
I was really unsure of the both investment properties. I reversed out the 3m provision.
The pension seemed OK I thought the remeasurement was a gain.
Sales I was a bit unsure of treatment. I didn’t discount I took off the credit note and added the extra 7000 units at £1000.im sure I will find out that was wrong tho.
December 6, 2016 at 5:50 pm #354638@kevikraze said:
What the heck was part 1 b wanting? It was about the new rules for SMEs and to tell management about them. I found it frustrating as what limited knowledge I had of this the question already told you. 0/8 for me here.What was the trick on the product sale bit in question 1)? As simple as take off the 6m already included in revene and replace with the discounted price Revenue for the 13m units, and then take off the money lost for thr defective goods?
Did anyone get a gain on disposal of subsidiary of 13M? So I said it was a gain the group of 13m and a loss to the now associate of 13m. Didn’t know what to do here but so I took the 14M that it said had already been included away and replaced with the 13M for group revene and then included the 13m as a loss in the now in the now associate company who got 60% of the loss and then 40% of the loss came back to the group.
Was lucky for checking examiner articles on Ifrs 13 given half a chan was the only bit of exam I felt I knew the right answer for.
Kevin dont take my word on any of these as I just realised I did every question and was wondering why my timing so so wrong. I hope they take pity on me here 🙁
Part 1B was about Pensions and employee benefits so I just described the various Pensions and then gave a bit of FS treatment around this. I got about 6 points down max on this.
The product sales I did the same as yourself and got something like 6.8 million revenue and .2 of the discount going to cost of sales.
I misread the investment but and treated it as a normal property and jsut depreciated and sent the revaluation gain to the SPLOCI.
the disposal I did the exact same thing. I got 57 as the Transfer in less the conderation price and got 13.
December 6, 2016 at 5:59 pm #354646@mynameisearl said:
Hi,Will the answers be available on this website? If so when?
Q1 I had a profit on disposal which I included in my p&l.
The fv adjustment I left the good will as it was originally (dont know if that was right) I added the fv depreciation to cost of sales.
I was really unsure of the both investment properties. I reversed out the 3m provision.
The pension seemed OK I thought the remeasurement was a gain.
Sales I was a bit unsure of treatment. I didn’t discount I took off the credit note and added the extra 7000 units at £1000.im sure I will find out that was wrong tho.
I used the discounted charge as they had met the minimum criteria for the sales discount? Was 9 hundred and something. I also altered sales by the 240k for the credit note.
Also reversed the 3m provision and talked about how the estimate isn’t reliable and they might not do the repairs.
December 6, 2016 at 6:00 pm #354648For the last working note in question 1. Am not sure I got it right but this is what I did. 7000 × 950=6650000
Less 50×6000=300000
Less 40× 6000=240000
=6110000 which I added to the revenue.
The 300000 been reduction in selling price if they purchase over 10000 units while 240000 represents reduction in selling price as a result of the defect.December 6, 2016 at 6:04 pm #354653@ogunnubi said:
For the last working note in question 1. Am not sure I got it right but this is what I did. 7000 × 950=6650000
Less 50×6000=300000
Less 40× 6000=240000
=6110000 which I added to the revenue.
The 300000 been reduction in selling price if they purchase over 10000 units while 240000 represents reduction in selling price as a result of the defect.I didn’t give them the extra discount as I read it as they needed to buy 10,000 (contract) plus an extra 5,000 to get the discount.
Made a little note to say not giving them it as it was not certain that the buyer would qualify and no end date for the purchases was given?
Hopefully the examiner will feel sorry for me…December 6, 2016 at 6:05 pm #354654@paulbongiovanni said:
I said that Minor was Dollar – I think that I went along the lines of ‘even though the facts appear to show that Minor’s functional currency is Euro, the subsidiary is not autonomous and provides monthly dividends to the parent – effective acting as a branch.’I found 3B and 3C tough and I only had around 15-20 minutes to write them, so I felt the time pressure and didn’t have greatest structure in my answer.
3B – I think i mentioned how market conditions, cash flows, PV etc are incorporated into the FV of assets whereas the replacement cost does not and how that would affect the ‘gain’ that the director put down to their negotiation influence based on their liquidity position.
3C – I really ran out of time here, but identified an IAS36 impairment issue? The director said the licence wasn’t impaired as the PV of future cash flows was > carrying value – however the future cashflows were contingent on a possible change in law/regulations.
I don’t know if they’re the greatest of answers but I had to write something XD
I did the same as you, on all parts!
December 6, 2016 at 6:17 pm #354661AnonymousInactive- Topics: 0
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how did anyone apportion PL of Ginny upon disposal? got confused in the exam (
x9/12?December 6, 2016 at 6:22 pm #354662AnonymousInactive- Topics: 0
- Replies: 4
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and I had a gain on disposal, $24…
December 6, 2016 at 6:25 pm #354665@kerimova1808 said:
how did anyone apportion PL of Ginny upon disposal? got confused in the exam (
x9/12?Yup, did 9/12 income for Ginny. -!; 3/12 for income from associate
December 6, 2016 at 6:26 pm #354667@kerimova1808 said:
how did anyone apportion PL of Ginny upon disposal? got confused in the exam (
x9/12?I did exactly that! Then (was it?) 40% of 3/12 for the associate. Then entered what I calculated as a group loss on disposal of the 20%(?).
December 6, 2016 at 6:27 pm #354668Yes Gunny 9/12 & other 100%
December 6, 2016 at 6:29 pm #354671AnonymousInactive- Topics: 0
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yes, me too, took 40%x3/12 for associate
December 6, 2016 at 6:33 pm #354673Was Ginny the company in the middle of the P/L in the question does anyone know? I took 9/12 of the one that was furthest right I think that was Boo I’m guessing a gud few marks gone there already!
December 6, 2016 at 6:34 pm #354675I think between us we’ve got about a 150% pass mark already!
December 6, 2016 at 6:35 pm #354676I think no. Because order was 10,000 units. He has delivered 6,000 units with fault. The point you need to remember that both parties agreeed to adjust credit note in future payments. It means they will not adjust in sale al ready been made. So next 7,000 units cross the limit of order. Then 1st 4,000 x (1,000-40) & next 3,000 x (1,000-40-50) assume that the customer has ordered more even fault in product.
December 6, 2016 at 6:44 pm #354683How di they mark us? How many points do we loose for not giving the sales the discount?
As I read it that they hadn’t ordered the amount that qualified for the discount 🙁
Also I didn’t treat the investment property correctly. I depreciated it and put a gain to oci in error.
Also the goodwill impairment I based it on the $28 not the revised amount.
I put the remeasuremt as a gain to oci but was it a gain? I also Inc the oci for ginny to profit but don’t know if I should have ignored that.
I was stuck on part B.
Part course I said it was self interest threat and could miss lead potential investors and then zippy could get a bad reputation they should seek professional advice on classification. Maybe they were doing it to get a better bonus. Don’t know if I went off track from the q.
I did questions 2 and 3 but don’t remember them that we’ll.
Can someone give me a breakdown of 2 a B and 3 a B c.
I think it was 3c I didn’t have a clue just made it up about the loan that was guaranteed by the director or something.
Thanks
December 6, 2016 at 6:45 pm #354684@aamir300 said:
I think no. Because order was 10,000 units. He has delivered 6,000 units with fault. The point you need to remember that both parties agreeed to adjust credit note in future payments. It means they will not adjust in sale al ready been made. So next 7,000 units cross the limit of order. Then 1st 4,000 x (1,000-40) & next 3,000 x (1,000-40-50) assume that the customer has ordered more even fault in product.Yeah, I did exactly the same thing.
December 6, 2016 at 6:49 pm #354686@mynameisearl said:
Also I didn’t treat the investment property correctly. I depreciated it and put a gain to oci in error.
I put the remeasuremt as a gain to oci but was it a gain? I also Inc the oci for ginny to profit but don’t know if I should have ignored that.
Yeah, me too. I depreciated it and placed the gain to OCI. ): Seems quite a few students fell into this trap.
Yeah, the re measurement gain was a gain as per the question. I just Cr it to OCI.
December 6, 2016 at 6:51 pm #354687What about 1b? I don’t think I will get any marks for my answer as I just guessed why
December 6, 2016 at 6:52 pm #354688I got somthing like that… 12.4 i think not too sure… but i wasnt sure how to treat the gain recorded in their individual books so i just removed it from investment income… not sure :/
December 6, 2016 at 6:52 pm #354689I feel really unclear on the revenue part as I know I probably misread it and worried about the points I will loose
December 6, 2016 at 7:13 pm #354699The question did say a total of 6,000 units were produced initially. Then 7,000 were subsequently produced even though there was a contract of 10,000 units. The threshold for recognizing a discount is 15,000 units. However, Zippy sold only 13,000 units in total to them. They did not earn the discount.
Who else did question 4? it was a terrible question for me
December 6, 2016 at 7:25 pm #354703Thank you that’s how I read it. But don’t think I did the credit note correctly as I times by 6000 and deducted from revenue
December 6, 2016 at 8:25 pm #354735Did Q1 state the policy for investment properties was fair value rather than cost model?
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