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

@glasgowceltic67 said:
Cheers Neil.

For goodwill as well I reduced to 18 and worked out impairment loss of 1.8. Thy what everyone else done?

Yes I originally calculated the goodwill in investment in Ginny to be $18m and the question mentioned the 10% impairment so adjusted for that $1.8m similar to you

@kakahh said:
For the revenue part – I thk discount should be included as per IFRS 15 step 3.

So the revenue should be 6000×960 + 7000×1000

They didn’t purchase over 15000, no further discount should be recognised

IFRS 15 Revenue from Contracts with Customers was issued by the IASB on 28 May 2014 and applies to an entity’s first annual IFRS financial statements for a period beginning on or after 1 January 2018.

ACCA posted the questions online. If tutor has any comments ?

What’s this about some people’s question 1b being about IFRS for SMEs?? I didn’t have any questions about SMEs in my paper?

This is if you took the UK variant (i.e. New UK GAAP, FRS102 etc.)

Have you guys noticed that ACCA published a technical Article just days before the exam (3 days) which was examined. I find this very disappointing and do not understand why no effort was made to publish this article any earlier, especially given that all exam papers are written well in advance!

I tried answering Q4 because Q3 is difficult for me (except the level disclosure).

Cant really remember the questions. For the principle i wrote something like providing a future expected credit loss so that entities would have sufficient buffer to protect themselves in the event of adverse market conditions.

I wrote the 3 stage general approach in which stage 1 refers to performing assets and not credit impaired upon origination. 12mths ECL to be provided at this stage. Stage 2 relates to significant deterioration in credit quality, to provide lifetime ECL. Stage 3 to is the impaired assets, lifetime ECL as well as to adjust the revenue recognition using a credit adjusted EIR.

Simplified approach allows entities to adopt a simpler method. This is by providing a lifetime ECL, eliminates the monitoring of credit quality. But the requirement is that the assets does not have a significant financing component and is not more than 12 mths.

Method for significant deterioration include change in price, credit spread, internal/external ratings, cross-defaults, mia/dpd.

Securitize loan. Originate at stage 1. Then transfer to stage 2. There was increase in credit risk due to market conditions affecting the repayment capability. Loan ratio to collateral also increased. The borrower also no longer deemed as low credit risk. But provision amount could be zero due to LGD portion(property value-collateral coverage against loan)

Clean loan. Originate stage 1(not credit impaired upon origination). Then remained at stage 1 as there is no change in pd rate. 12months ECL would be the 20% of gross loan expected loss if the loan defaults, as assumed no ammortisation and ignore time value of money. Nothing to do about the approx of lifetime pd(this is just to help if you think the loan significantly deteriorated).

What standards is used in P2 Q3 Part bq

What was the answer of principle related to financial asset…

Finally, the answers have been uploaded. Fingers crossed till 16 January

hi,

where have the answers been uploaded too? i can’t find them.

thank you

Visit acca globle then p2 past paper then scrol down there… U find answers below all past paper