Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › *** ACCA P2 December 2017 Exam was.. Instant Poll and comments ***
- This topic has 83 replies, 48 voices, and was last updated 6 years ago by jamham89.
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- December 6, 2017 at 10:36 am #420967
Also went on to explain the 10% of sales, profits and operating costs to disclose a segment and that you need to report 75% of turnover into segments.
December 6, 2017 at 10:37 am #420968Thanks fore reply Tanza, glad to hear someone did that too. 🙂
I am not sure about the legal fee. I think i put it in P&L but it should be only a mark? i hope!! haha..December 6, 2017 at 10:54 am #420979AnonymousInactive- Topics: 0
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Sure; But every mark counts;) Advise please how did you treat contract in part 2b? I put the principal (not agent).
And regarding question 3 b about vessels i believe in the case of freight vessels with a remaining contract for 7 years it must be impaired to recoverable amount – value in use -PV of future cash flows, and in the case of leisure vessels – FV-CTS;)again not sure;)December 6, 2017 at 1:22 pm #421008Like an idiot – I also forget to do the whole year conversion of FX Gain/Loss as was considering it a SOFP item – idiot!!!!
The rest of Q1 seemed ok though. I didn’t split DT liability between P&L & OCI though. Think I misread part B of Q1 too. Didn’t relate it back to the overseas sub – wrote general criteria and then stated could reclassify operating segments if more reliable and relevant information would result – also mentioned chief operating decision maker.
Q1 – all adjustments seemed straight forward. I had a loss on remeasurement to OCI, quite a large deferred tax liability movement (i.e. difference between opening DTL and closing DTL calculated as Fair Value less Tax Base & difference between both years charged to P&L). Interco sales of 120/4 (av rate). PUP then circa $4m (translated) from memory? FX loss on Goodwill upon translation and impairment was at average rate. Can’t remember many other adjustments in the question now!Borderline for me as Q2 & Q3 were, in the main, shocking!
Q2 – not a joint venture (control was too one sided). The other part – 49.1% holding did constitute control though (first refusal of share sale of others), large presence on voting committee etc – i.e. ability to control, rights to variable returns etc etc.
IFRS 9 questions – less said the better – if I got a couple of marks then I’ve done well!Q3 – nightmare. Operating lease and Finance Lease part seemed ok though. FL where “control” arose (in the 2nd scenario from memory). Also, as some leases were 6 months – 2 years, those below 12m could be treated as operating lease anyway. First example where lessor retained control I stated was an operating lease – they had substantial control (rights to direct where ships went, what cargo it held).
I also treated as principal and not agent – inventory obsolescence risk, control over establishing prices etc.
Impairment indicators – internal and external. External indicators present and therefore impairment likely to arise etc. Can’t remember much more the questions to be honest – all a bit of a blur!!
December 6, 2017 at 1:55 pm #421015For q1 b, has anyone mentionned the geographical aspect?? The paper looked ok but by reading all your comments there are so many little bits i think i missed…
December 6, 2017 at 2:02 pm #421025i found deferred tax 19.2 for OCI and 6 (credit) for P+L.
Does anyone find the same??December 6, 2017 at 2:04 pm #421028Tanza
Its a bit blur for my section b..
is Q2b the loan question? that sold part of the loan to someone else which ownership of reward and risk are transferred????
Q3B, is that the one with impairment?? I think i wrote something about indicators – internal and external as well.
>.< I really hope I will pass…
Sagp2, I did briefly.
December 6, 2017 at 2:07 pm #421038Phil1990, >.< i dont rmb but I think i got something different.
December 6, 2017 at 2:17 pm #421040AnonymousInactive- Topics: 0
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Regarding Q. 3b me too i wrote about about external indicators of impairment – depressed prices and etc., and internal also. Hope this what examiner wants to see.
Q. 2c was a loan question, but i am not sure about the right treatment,i wrote that as the company accepted the expected loss of 300 000, most probably 7 mln should be treated as a liability (risks not transferred)December 6, 2017 at 2:21 pm #421042AnonymousInactive- Topics: 0
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Chris
Question 3c about leases i wrote the same – 1st operational lease and 2nd right to use asset (in the case duration of the contract exceeds 12 months, not to be an exception)December 6, 2017 at 3:29 pm #421070I said the first contract didn’t contain a lease at all but unsure now.
Thought the second one was an operating lease because there wasn’t an option to buy the asset (at a reduced price) and the lease term wasn’t an extensive amount of the useful life. Only a few years from memory.December 6, 2017 at 4:28 pm #421116guys was it agent or principal? the standard says that the main characteristic is the control prior transfer to customer, so i choose agent…
December 6, 2017 at 4:40 pm #421126Indicators of principal are rights to set price (which they had), risk of inventory obsolence (which wasn’t there but arguably the arrangement was with the customer directly – the supplier was just delivering and therefore inventory obsolence would rest with them if returned). Also, I think there might have been some additional risk to manufacturer as the end customer had recourse against them.
Additionally, there weren’t just earning commission. The supplier just acted as a conduit for delivery – everything else was their responsibility so I said principal (in substance).
December 6, 2017 at 4:42 pm #421128Don’t have a clue about that. That question was my weakest by a country mile. I left it until the end. Punted for principal on basis that they were liable for defects. If I get 1 mark I’d be happy.
December 6, 2017 at 5:16 pm #421153About the same performance on mine on Financial Instruments!
December 6, 2017 at 5:16 pm #421154When i read all of you comments, i realize that i wrote too little time..i only have 1 hour to finish Q2 and Q3. Spent too much time on Q1..
i was shocked when i saw SOPL+ OCI Question..
Is Q2c debt factoring?
Q2b the contract with customer how come can write 7 marks..i only wrote reporting entity invoice customer, means have right to collect economic benefit. Reporting entity also responsible for risk of product so the entity have to bear risk…too little points
Q2a not a joint venture, i think. Don’t have unanimous consent in the decision making and also reporting entity acquired bond of Font, investment in debt, don’t have shareholding on Font…is it correct?December 6, 2017 at 6:59 pm #421234Guys was Shipshap the lessee or the lessor?? Your posts are confusing me…
December 6, 2017 at 7:04 pm #421246Yes I agree 100% plus the product was a specialised one which was designed by them.
December 6, 2017 at 7:41 pm #421263Im pretty sure shishap was the lessee so for them to recognise as a right to use asset the had to have exclusive use of the asset regardless of the length as long as its over a year and also control the assett of the lease as long as it was over a year.
In the first scenario i dont think they had control or exposure to risks as the company providing the ship maintained it chose routes times etc so it was a service contract i think not even an operating lease….but i may have got it wrong.
The second a right to use asset as it met all the criteria shipshap had the risks and controlled the asset. Npv the cashflows using the discount rate for the liability and add any upfront costs for the right to use asset and recognise it on the sfp. Then depreciate over the shorter of the lease and life of the asset. Apply the discount rate each year as interest to the liability and charge to spl and reduce the liability with any payments made for year end liability.
December 6, 2017 at 10:45 pm #421330Yes, Shipshape was def the lessee.
I’m glad somebody else thinks the first contract didn’t contain a lease.
I said to depreciate the second right of use asset over the lease term.
A liability would also be recognised at the PV of the lease payments. Right of use asset = lease liability plus direct costs (don’t think there were any in question).
December 7, 2017 at 1:52 am #421363tybell translation results in loss – explain how to do differed tax for PPE ( tax base has given as at start of the year is 300m and end of the year is 220m)
December 7, 2017 at 6:15 am #421387ARUMUGAM you should find deferred tax liability at beginning then at end and the difference you have to split it in OCI(revaluation) and the other to P&L. Do you remember what was the amount both years for FV and C.A??
December 7, 2017 at 2:37 pm #421581That’s the only thing I can think of in the consolidation question I didn’t get right. I just took it all to p&l. Im sure there’s other things wrong tho
December 8, 2017 at 10:05 am #421840Thanks Team. Wonderful Team. please notify me of follow up on mails.
December 8, 2017 at 3:30 pm #421920D-shaped group SPLOCI with a Fx sub
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