*** ACCA P2 December 2016 Exam was.. Instant Poll and comments ***

Why a lot of people didn’t answer Q4, there was 18 free mak in part A & B(ii)

Part A was from technical articles

Please tell the name of technical articles if you can.

Thanks

What did people put for 1b and 1c?

@kelvinlengg said:
Does anyone remember the standards apply for Question 3(c)?
Was it the criteria for development cost to be capitalized under ias38??

I thought 3c was about how value in use should be calculated.

@mynameisearl said:
Thank 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

I deducted credit note as well from the revenue. It doesn’t matter when they agreed to settle it, what matters is that revenue for 6000 units that was initially recognized, now is lower due to defects hence credit note should be taken into consideration. This is my view.

@vebem said:
Please tell the name of article if you can.

Thanks

https://www.accaglobal.com/vn/en/student/exam-support-resources/professional-exams-study-resources/p2/technical-articles/impairment-of-financial-assets.html

“Impairment of financial assets”

I didn’t consolidate the results of subsidiary that was disposed..only gain and income from associate
how much will be effect on marking?

was the question about gains on losses on pension schemes as in defined contribution plan or defined benefit scheme? I think i messed that one up big time cause i thought it said the increase was in the ‘final’ salary? so treated the whole thing as actuarial gains and losses and so should be on OCI not PL.
aw i’m screwed

@almoosawi4 said:
Just quick question, Q1 (b) it was asking about P&L vs OCI and recycling process. Or it was about types of pensions?

I know 1C) was about the pension scheme and how the directors were worried about increase from 10-15 and how they planned to use creative accounting to have the pension costs go through oci which would increase operating profit and this is what their bonus was on, basically think you had to say the scenario and then talk about it being unethical ect.

1)b) I literally had no idea what this wanted, something about different Ifrs for small entities. 0/8 for me

@kevikraze said:
I know 1C) was about the pension scheme and how the directors were worried about increase from 10-15 and how they planned to use creative accounting to have the pension costs go through oci which would increase operating profit and this is what their bonus was on, basically think you had to say the scenario and then talk about it being unethical ect.

1)b) I literally had no idea what this wanted, something about different Ifrs for small entities. 0/8 for me

1 b) I thought it was about P&L vs OCI and recycling and I started to write about the technical artical.

https://www.accaglobal.com/an/en/student/exam-support-resources/professional-exams-study-resources/p2/technical-articles/pl-oci.html

In 1(a) I calculated loss on subsidiary disposal in CP&L because net assets od Ginny at disposal date increased significantly. At acquisition they were 114, next year 118 and at disposal plus 9/12 * TCI 48. For the building I assumed that 2 floors are PPE (owned-occupied by parent and by Boo-for group purposes BOO is also treated as owned occupied), remaining 8 floors as investment property. I calculated depreciation for PPE part only and revaluation gain for PPE included in OCI, revaluation for investment property in P&L.
Provision for repair I reversed-it is not in line with provision definition.
My main concerns regard revenue part-I think that discount should be included in price determination, opposite entry would be CR provision as customer will meet contract target.
Credit notes I also included as decrease of revenue.
1(b) here I mainly focused on accountign treatment and mismatch of showing remeasurement in OCI and rest of effects in P&L.
1(c) typical ethical question-I wrote taht directors are concerned to act ethically and honestly, about faithful presentation, about self-interest etc.

Question 2.
(a)Functional currency-I believe it should be dolar, yen, dolar. The third company is acting more like distribution centre and it’s prices are determined by Suntory.
(b) and (c) I don’t remember tchem well
impairment of intangible assets and depreciation based on economic useful life
(c) related party-I write only few sentences as normally writing definiton who and what is related party would take me 20min…
question 3
(a) fair value measurement of financial asset. Company used level 3 inputs while level1/2 were available and thanks to this overstated assets.
(b) I don’t remember-maybe I will wrote later about it
(c) it was about valuation of net assets of acquired subsidiary and the fact that acquirer recognized gain on bargain purchase. I wrote that this may be indicator that fair value of net assets was not correctly measured as it was based on level 3 input cost-approach (cost of replacement). It would be better to use market-approach or income approach based on DCF method.

For investment property, only 8/10 should be resognisd = 96 x 8 / 10
And two floor PPE = 81 x 2 / 10

Not sure if I rmb the number correctly
And the deprciation part I assume it is recorded correctly as per question said.

Minor definitely dollar, was just an extension of parents.

For p and l got the difference in disposal to what they recorded so stated down to FV adjustment.

Investment property I put two floors for ias 16 as parent and their sub used them. Then rest to ias 40. So 1.2 to oci and 4.8 to p/l.

For fire damaged out through 6m as impairment loss and another 3 to balance transaction out.

For sales I didn’t give discount as they didn’t reach sales target. As already recorded 6m I put another 6.76m through revenue.

Hard notes which looked easy but tricky.

Best thing I done was all theory first and spent one hour on the numbers and got it finished on time. I seen people round me start on the numbers and still on it over 95/100mins plus later. So more than half the time for 1/3rd marks.

Does anyone know when we get the results?