*** ACCA P2 June 2018 Exam was.. Instant Poll and comments ***

Hi..off topic
I by mistake shaded a wrong desk number and then cancelled corrected it!
Its fine right.as in my results wont be mixed up with the one whose number i shaded right? Although i corrected it

@seannyd said:
Hi all

How did we find it?

I thought the question 1 was kinda straight forward – I had two subs to consolidate (80% for alston and 70% reduced to 60% for Plymouth).I got a negative GW for Alston(28m)I believe. Impairment was tested a lot, I had the PPE as impaired by 14m. The only thing that stumped me was the NCI movement of the disposal and finance instrument. I showed the instrumerment at FV at 49m with the gain to OCI?

Q3 was okay – more essay than numbers.

I didn’t like the look of Q2 so picked Q4..interested to know other thoughts?

Sean

Yes u r correct impairemt was 14
The financial instr yes it had to be 49

However hw was ur adjusting entry for investment properties?

@mumbaikar said:
Hi..off topic
I by mistake shaded a wrong desk number and then cancelled corrected it!
Its fine right.as in my results wont be mixed up with the one whose number i shaded right? Although i corrected it

Yes I’m sure it’s fine

I found the whole of section A quite good and straightforward, I was so happy to get a SOFP. I have not sat this exam since December 2013, so 4.5 years ago due to doing other papers and having 2 breaks from studying. However, I am now off to revise for tomorrow’s P5 exam.

I found section B difficult, but that is my fault as I had 2 deaths in my family in the last 6 or 7 weeks plus work commitment, financial year end etc so it was quite difficult to study for 2 papers like this. I will keep studying until the results come out. No idea how I will prepare for the strategic version from September, I hope it will still have decent amount of calculations, although I know it will be less numerical than it was under P2 advanced corporate reporting.

Impairment was 14 which went to RE.
I got a Partial disposal gain of 1.6.
I put it at amortised cost of 41.6 8% rental 12% effective because it was collecting cash flow and eventually sell asset. Think you are correct though.

Section B was a write off, waffled on about standards but nothing flowed! Roll on Strategic paper!

Q2 looked horrible so I picked up Q3 and Q4,

For Q1 a) impairment on PPE 14m, Financial instrument at 49, Share consideration for sale of 10% stake in Financial assets, goodwill (bargain purchase) negative but 23m (I deducted the whole adjustment for contingent liability of 10m).

Q1 b) I am not sure anymore what it was about :S

Q1 c) Loans not disclosed: I mentioned outstanding balances disclosures under IAS 24 related parties, and potential conflicts of interests in case the loans were moved from one company to another affecting results and bonuses of the Parent.

Q4 a(i) and (ii) for 15 marks: I generated few valid points for Historic vs fair value measures but dunno know how many of the 17 marks available you can reasonably get there.
Q4 b for 8 marks: I discussed the Highest and best use available under IFRS 13 for Non-financial assets to get to the 4.8 m evaluation of new Land

Despite my initial choice Q3 was challenging:

Q3 a: I assumed it was a finance lease so the company should have recognized the asset at the NIL value.

Q3 b: for the Patent dispute I first started with the PIRATE Criteria for recognition of the new potential intangible under IAS 38. The A (Ability to sell use) is doubtful because of the claim (and it’s not clear from the paper who is there is any ground for the claim); however considering the attempt for settlement the company realize that there is an obligation therefore a provision should have created for 15m and the asset not recognized.

Q3 c: the 2 non refundable payments done and received to be classified as Deferred asset and deferred income (IAS 20 doesn’t apply)

All I can say is that I’m glad I had an early night! It will be Strategic Business Reporting for me in September or December …

why financial instrument in 1a has to be at 49 ? i thought it had to be at amortised cost ? it was kept for the cash flow so it kept until maturity and then sell ? it passed the business model test surely.

i did that as well. i think it has to be at amortised cost right ? no ? because it was kept for cash flow.

For question 1
the disposal of 10% by share for share exchange, how is it suppose to be dealt? Normally it is cash..

I did credit equity(new shares at fv) and credit nci. Both these amounts added to other componenta of equity
Correct ir wrong?

And for the net asset computation.
The contingent liability was nt shown so we include at the date of acquisition which was 5 million. The question said the contingent liability was settled at the reporting Dat for 10.5 mill or something.

My doubt is do we put 10.5 million in net asset computation at the reporting date?

what it did was i did not do anything to the share capital because it did not involve the parent share whatsoever.

you use the share to work out the consideration and stick the gain into the OCE.

that what i thought also about the contingent liabilities but i dont think anyone agreed with me yet.

I thought the question stated 3 of Devons shares for 2 in the other company thus reducing SC?