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

@jmmyjimmy said:
I think that we don’t need to additionally adjust the goodwill, if no impairment occur.

IFRS 3 states that any adjustment within 12 months of the acquisition date that relates to facts at the point of acquisition (ie: using provisional figure for PPE, then 6 months down the line, it’s confirmed by a specialist to be 60m more) then you adjust goodwill for that amount

I ageee there was no
Impairment of goodwill as the question stated, but in my mind, since the liability was settled still within 12 months, it should affect goodwill

Hello all, please can any student that sat p2 uk version, what were the UK parts in Q1. b) and The UK bit in Q2/or Q3, many thanks, much appreciated to any reply,

@miraji said:
Hello all, please can any student that sat p2 uk version, what were the UK parts in Q1. b) and The UK bit in Q2/or Q3, many thanks, much appreciated to any reply,

Hi there there of course, the questions were:

Q1 (b) (9 marks):
Advise how associates are accounted where the investor is not the parent under IFRS SME’s and FRS 102 And explain what is meant by “significant influence”

Q2 (c) (8 marks):

Explain if a deferred tax asset should be recognised and how the recognition criteria of a deferred tax asset would be different under FRS 102 (the only aspect of the UK variant here was simply asking difference between timing and temporary tax difference)

Yes you can cancel the wrong shaded bubble and mark the correct bubble. It was also shown along side on the face of the answer sheet as an example.

@aown123 said:
We acquired the company on 1st April 2017 and the liability was paid off on 31 May 2018. It is more than 12 months so we are not gonna make any adjustment. Since they have recognised the contingent liability before acquisation at 10 m and at acquisation it was 5 m so we will take 5m gain while calculating net assets at acquisation and at year end . For IAS 37 question i wrote that since the lawyers believe that the claim will not be successful and the amount was not reliably measureable we will just give thr disclosure in financial statements. Forgot to adjust the part sold at year end. Hope to get pass because paper was straight forward. In sha Allah

This is correct. It is a disclosure only any no current obligation

Hi Guys can I get Materials for P2 I am going to take on Sep2018, I will Really appreciate your help.

But guys, the disposal was at the end of the year. how then did it affect NCI

@vind1994 said:
I never showed any journal entries. Will that be a problem?

There is no need to show journal entries in the exam, as long as your workings are clear and you allocate them to the right balance sheet accounts. It’s useful to think of adjustments in terms of journals though as this helps you ensure you make all the necessary entries, and it’s also useful when explaining to others, as we are doing.

@akortower said:
But guys, the disposal was at the end of the year. how then did it affect NCI

The NCI increases by the share of net assets acquired, which I calculated as 390 x 10% = 39m. The consideration received was 48m, so there was a 9m credit to OCE.

The NCI still received a 70% share of the change in retained earnings and OCE as the disposal was only on the last day of the year

Well that’s a mark lost for me then!

Yes, the idea is they apply the own figure rule. You should only be penalised once for one mistake.

i want to talk about my answer on q3 in details and wanna hear your comment on how u did.
For (a) Finance lease
i wrote the finance lease defination, followed by the 6 indicators for a finance lease. then i pointed out about the lease term being covered the major part of the UL and total lease payment being more than 90% of the FV of the asset as the RV being zero as they disposed them as clinical waste. ( now i see that they also mentioned about the instrument as a specialised item, i didnt notice in exam, i was nervous )
then i subhead the accounting treatment
to recognise the PV of total lease payment as lease receivable and sale revenue. then when they transfer the instrument to hospital, to recoginse out from the inventories and COS respectively. As the lease is FOC, i stated to calculate the lease payment on the basis of Stand alone price, under IFRS 15.
I didnt answer for part (c) as i didnt have enough time.
but for part (b) development exp, i wrote the DE’s defination and the 6 factors that entity must demonstrate and applied to the Medsupply having the commercial and technical feasibility for use or sale. so i stated to capitalise the know how $3m but to recognise the cost of $50,000 each for equipment in the inventories costs.
As for the provision part, I stated the provision defination followed by the lawer’s comment and i said to disclose it in the notes to the FSs as contingent liability, it’s defination also. but I forgot to mention about the amount to disclose. (i regret that i forgot ) i have a very slow handwriting and the translation of my logic to english is not that fast. so couldnt touch part(c). i also couldnt finish SOFP in Q1 (only finished workings i m worried sick and trying to count my marks. T T how did u find my answer? do u think i could gain, may be 15 marks from Q3?

@abdulwahab2018 said:
salam every one if someone tell me what question 3 was all about and i have done question 1 section B related to 60% and 40% equity interest of Plaston and i have treated and calculated through effective interest and in both scenarios i have come up 48% and 32% and should be accounted in financial statement of group as associate and also what about the liability of subsidiary in section c of ques 1. so i need ur kind comments.

In 1b, although the effective interest was 48% for the 60% purchase option, the group still controlled it via the 80% and 60% holdings, therefore it should be accounted for as a subsidiary despite the effective interest being less than 50%. You needed to talk about the definition of control as well.

Part 2 questions have been uploaded on the acca oficial website:

https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p2/exampapers/int/p2int-2018-marjun-q.pdf

I am confused that so many scores are given for the deferred tax asset question. What did you manage to write there except the DTA recognition criteria and the relevant applicability?