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what’s your take on the exam guys? For me, I didn’t finish as usual. section b was tough for me. if I pass, that will be a 50%.
The questions in Section B were weird. Not the usual questions I practiced. Alot of it, I felt, was based around the topic of change in accounting policies and estimates? I don’t know. I found it really difficult.
There was a lot in the exam about IFRS 5. Several questions touched this subject.
I am happy there was not too much about IFRS 9.
Now just wait and see. I chose question 3 and 4.
That was a pretty tough exam.
I messed up the HFS part in question 1 as I couldn’t remember whether to consolidate or not so just showed net assets held for sale on SOFP.
Hopefully that won’t lose me too many marks as feel the rest went okay.Hi guys
Couple of questions:
1. Was the subsidiary BU impaired? For me the CV of the subsidiary was lower than the recoverable amount?
2. What are the assets that ar not leased out recognised as? Should they be dpereciated?
3. Was it incorrect to take an average of the expected operating profit for the revenue question rather than the most porbable outcome?
4. What did you say about the exchange rate question? Should he use the bank or the goverbment rate? And is he allowed to use the average exchange rate for p/l.
5. Dis ur geaeing also only go up by 0.08% due to change of new lease policy??
Thanks@sarahm1497 said:
The questions in Section B were weird. Not the usual questions I practiced. Alot of it, I felt, was based around the topic of change in accounting policies and estimates? I don’t know. I found it really difficult.I felt exactly the same!! Really really discursive rather than doing calculations and applying the standards. Barely answered any of Q2!!
1. I had a lower recoverable amount compared to carrying amount, think it was about 80 M in impairment. You first have to do a fair value adjustment, then you apply ifrs 5 and compare fair value with fair value minus cost to sell.
2. dont rememeber this part
3. I took the weighted average
4. did not chose this question
5. Gearing went up more than that . think it went from 30 to 33 % or similar. Liabilities went up with 12 million
Could someone please talk me through what needed to happen with the Held for sale in Q1?
Also, the revenue from the retail park question – anyone remember what they put for that?
The question regarding the exchange rates (government vs official rate) – I’m looking through a Kaplan textbook and googling the IAS 21 but still can’t see what I’d write for this. Any ideas?
Very tough exam I felt. I’d been smashing all the practice questions with not much of a problem and put in 140+ hours. More hours than for any other exam. I know I’ve failed sadly!! So gutted its untrue.
Q1 consolidate SOFP I didn’t balance, total asset was 6392m, equity and liability was 6329m, but not much different, I think my problem I should not add Jam goodwill 20m in calculation. Anyone get similar figure?
Hey,
Could you explain to me why the gearing actually went up please?
Much appreciated.
Government rate and official rate is just the scenario given in the question, the testing point is not here, just testing the monetary term as cash following closing rate, non Monetary follow transaction historical rate, everage rate is not used.
@hollyqian said:
Government rate and official rate is just the scenario given in the question, the testing point is not here, just testing the monetary term as cash following closing rate, non Monetary follow transaction historical rate, everage rate is not used.That was the testing point though…The question said “are they allowed to use govt rate rather than official rate, and are they allowed to use a govt rate average for p&l”?
The 80m impairment was for the J one that was 100 percent owned
But it mentioned the recoverable amount of the BU subsidiary that was owned 80 percent..was it impaired?
Regarding the gearing: it said Net liabilities are blabla. So i dedudcted the right of of use asset from the net liability but added the liability for the lease payments…not sureAlso it was from a subsidiary so all is translated using the closing rate anyways
I have exactly the same questions and could not find anything about government rate! It is really unfair to get such questions.
Gearing can be calculated as Total Liabilities / Total Equity
In the question we only got total equity and net debt..
Since the liabilities goes up with putting the lease on the balance sheet, this will increase the gearing
It’s a resit for me as I scored low in December. The examiner tested almost all standards . So the difficulty was that we should cover the whole syllabus. Part B I agree was too dry and somebody should study not only the basics of each standard but the small details e.g in q1b the sale of asset beyond 2018, the standard (ifrs5) permit sale above 12 months if circumstances arose that excuse it etc. I hope I have done enough to get at least 50 %
got my balance sheet to balance, spent an hour and a half on it though…. Didn’t leave enough time to finish all of question 2 and 3.
With regards to the sub held for sale, there was a revaluation gain before it was classified as held for sale (I think the amount was 42??) which I put to retained earnings. Then when it was classified as held for sale I put it as the fair value less cost to sell (as it was lower) and there was a loss compared to the carrying value which I put to retained earnings. I think this is the correct treatment??
Section 2 and 3 had some nasty questions: Did anyone else conclude that the property valuation would actually be classed as a level two valuation? Not a level one valuation? As it wasn’t identical to the property they were attempting to value (it was more prestigious and had a car park)??
Also the gearing/present value stuff wasn’t bad. The gearing went from 0.3 to 0.33? Because you add the new present value of the liabilities to the total debt. Then with the equity add the lease asset 12 (less depreciation 1.2 – 10 yrs lease term?) and take away the closing lease liability which was 12 + 0.48 (4% interest) less the cash payment of 1.5 which was 10.98. The addition of the asset and liability to the equity pretty much cancelled each other out anyway.
Hard exam though, if I’ve passed it’s marginally
have never seen a section B like this ever before…!!!
2 exchange rate in a same country where in the world do wee have this ..?
section B was a disaster
i wasnt able to calculate gearing for
ifrs 16 i just wrote gearing would likely to increase
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