SBR*** ACCA P2 June 2017 Exam was.. Instant Poll and comments ***

The standard calculations of question 1 were straightforward, adjustments were bit difficult though. I had no idea what about factoring in part(b) but i gave it a shot. Question 2 was fair enough, but question 3 was a disaster

I think it's not about that they can't because it's in foreign currency. The company should adopt cost model or revaluation for PPE. If revaluation, than PPE should be revalued every reporting period. => translated at ex.rate at the date of revaluation. If cost model => ex.rate at the date of acquisition. + impairment indicators. I would probably translate it at the new rate if it was impaired(but not sure about it). As it was not revalued, I said that ex.rate at transaction date.

For q3, I completely agree... Also didn't like it. for a) I said that it should be discontinued operation, as it was closure of the major line of the business. I said that roylties should be recognised as other income in the preiod they relate to. I don't remeber what was there with licensing... For other consideration I also don't remember what I wrote. Anyone knows the answer? :) for b) I said that considertion = FV of licence (given in the question) + legal cost (600k-100k which relate to previous year). I think i said diff bw Consideration and NCI should go to PL, which is incorrect (should go to OCE). Not sure how strict they will be about it... c) DTA ... this was a difficult one for me... I wrote that it can be recognized only up to 70% of taxable difference (3*tax rate*70%). The rest should not be recognized, as there are expected future losses in the following 4 years. Any other ideas on these 3?

a) I also said it should be a discontinued operation and that the contingent consideration should be included in it. Royalties i said should be an intangible asset which i'm presuming is wrong. b) I only discounted the 100k legal costs and said that the remaining 500k could be capitalised. I also said the difference between consideration and NCI should go to retaining earnings. c) I wrote loads about the deferred tax standard and basically said that they couldn't recognise it as they were expecting a loss in the next four years.

What was Question 4 about???

Hi, I did Q1 (a) as the very last question i did. I managed to get half of the workings done, clearly labelled. However, i didnt have time to correctly input them into a laid out balance sheet. Will i get the marks (or some of them) for my workings even if i didnt have time to input them to B/S? It could be the deciding factor between me passing or failing.

I guess it was 25 share options, with the price at the grant date 18, and initial number of employee entitled - 5000

Yeah, think it was 5000 employees and 25 share options. What did you answer for this q? I done the calc's for the three years changing the no of employees and FV of options and noted that the treatment of averaging the cost was incorrect as the expense should have been recognised at best estimate each year end.

As I understand it - the price of the options in an equity-settled payment should be as that of the grant date, without revaluation.

@gavin23 said: I done the calc's for the three years changing the no of employees and FV of options and noted that the treatment of averaging the cost was incorrect as the expense should have been recognised at best estimate each year end.

The rest - I did the same as you

I took them to be SAR's but could have read it wrong.

@gavin23 said: I took them to be SAR's but could have read it wrong.

:( would be sad for me if I overlooked it. But good for you :)

Does anybody was answering the 4th question?

@dskinner83 said: It was about the Conceptual Framework exposure draft - first part was about Substance over form, prudence, dereconition and liability definition. In part b you had to say how some shares would be treated, and then I can't remember the very las part. I'm surprised so few people did question 4 - I did because I took one look at 3 and thought I'd take my chances with 4! Fingers crossed for a positive outcome.

haha)) same here...after i saw 3rd question even a bit, i said no chance to choose it.

@cm69170 said: Factoring is a topic studied at a much lower level, i remember it from F3 or possibly F7, surprised when that came up. Factoring with recourse is not passing the risks of the debt going bad to the factor as you would have to refund the factor if this happens. Without recourse the factor bears the risks, but something in the question stated that the longer the debt remains uncollected the more the business would have had to pay in interest... or something along those lines? It really is basic receivables stuff. Basic double entry of when the cash is received the receivables is wiped out and a provision for bad debts is created, etc etc etc Hard to get 9 marks there though, not sure if others found it the same!

Indeed factoring was hard because last time even i saw it, it was in f9 but from point of view finance not accounting, so i wrote just what i was remembering from f9.:/

Equity settled so revaluation not required

I could not do factoring in q1b as I forgot the knowledge from f9 already. It is really unfair tobtestvthus again in p2.

Does anyone know how to get the question for this exam. Pls tell me the link. Thanks.

Write to acca survey about factoring :)

@sokty said: Does anyone know how to get the question for this exam. Pls tell me the link. Thanks.

the exam paper has been released on acca exam past papers https://www.accaglobal.com/lk/en/student/exam-support-resources/professional-exams-study-resources/p2/past-exam-papers/international-stream.html

Thanks Joash. Hope u all pass.

Hi did anyone find their balance sheet balance in q1? If so do you remember the total assets? I remember that I balanced but trying to recal the figure for total assets or equity plus liability . . Many thanks

not easy