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

Everybody keeps asking questions nobody has answers to.. P2 was a disaster!

wasn’t the non current asset held for sale just supposed to be a one line item in current assets?

Should the 100% sub held for sale have been consolidated? Think I messed up by not consolidating it.
Regarding the lease vehicles in part B, my tutor did a very similar question and the answer was that lease cars should be held as PPE and depreciated if they are ready for use even if they are not being leased.

Hey Steven,
Please don’t give up. It’s okay to be disappointed especially if we’ve put in so much work but I have failed so many of my papers in the past (and very likely to fail this P2 too) but in my lowest moments my family and friends gave me strength. So here I am as a distant friend and fellow ACCA student that Pls Don’t Give Up…it will all pay off in the end.
And knowledge you acquired thru your learning is never a waste even if you don’t pass this time. Stay encouraged!

So much hard the Exam was.
How come There is a Business Model remeasurements and IFRS 16 leases.
I have never found regarding these ini any of the past papers ….
So much disheartening, hoping only to pass ini April…

@elliereza said:
SOME WHAT I REMEMBER
Q1) a) CSFP- Sub 80% (name Butter) impairment (net assets recoverable amount)
FVA adjustment of Unrecognized Intangible at Acq’n
second sub (name jam) was 100%, GW cal, then IFRS 5 HFS, which also impaired
Pensions and SBP
Joint ventures and Operations

b) IFRS 5 HFS and regulator approval and buyer commitment for second sub jam
c) recalculating NCI of all previous subs and economic vs substance form and ethics

Q2) ADVICES
Forex and associate, national bank rate or Government rate
lease rental cars and no depreciation, only dep’n when it given to customers
investment property and assets different measurements, business models

Q3) IFRS 16 leases and complex calculations
IFRS 13 FV level 1 advice
IFRS 15 revenue and complex calculations

Q4) Discuss
Assets and liabilities and Uncertainty, with framework
Provisions recognition, and uncertainty
Materiality
IFRS 5 and investment property

For NCI recalculation for past consolidation, is this allowed? I thought goodwill cannot be changed unless impairment or disposal….for future consolidation I guess OK?

How does uncertainty affect contingent liabilities, provisions and contingent assets including materiality?

I just mumbled somethings on the criteria for measurement in IAS39 on virtually certain, probable, remote and possible.. hopefully that picks up one or two marks.. I think I’ve failed though

What did anyone put?

@fuzzywuzzy said:
Hi guys, I’ll post what I’ve answered here and hopefully someone gets the same answer.
[…]

Hi fuzzywuzzy
regarding 3b (valuation of propoerty) and 3c (leasing) I have the same answers.
For subsidiary held for sale I included separate lines for assets and liabilities from disposal group but I did not separate equity part.

3a (revenue) I considered conditions to recognize reve and concluded that reve should be recognized as base fee (41m) plus lower conditional payment i.e. 0.3m (3m*10%). I did not mention anything about discounting but conditional payment is within a year and potential financing benefit is immaterial. On reporting date I made no adjustments to recognized reve as 0.3m payment was still most probable (60% probability).

Question 2 was very weird.
In 2a (translation of a sub) I assumed that government rate is right as all business entities inlcuding this mentioned in the case may remit CF at this rate only. In part with average rate for P&L i wrote that as a rule FX rate from date of a transaction should be used but ifrs leaves some space and average rate may be used as approximation. However given the fact that FX rate changed only once it might be appropriate to transalte P&L based on this two separate rates as average may be poor approximation. In the end I noted that sub has only 2% of net assets of the group and is immaterial and average vs actual is a matter of usefulness vs additional cost of accurate calculation.

In 2b (leasing of commercial vehicles) I messed up. Now I think that depreciation period may be different from operating lease period and asset should be depreciated regardless if leased or not. One expection will be if after lease period asset is intended to sale and in such a case should be presented at net realisable value and not depreciated.

I 1c (NCI method) I assumed that NCI valuation may be changed retrospectively but now I am not sure. As somebody above mentioned perhaps goodwill should not be recalculated unless impaired.

3a (revenue) Real Property year end is the 28th of Feb 2018 whereas the sale took place on July 2017. The variable part of the revenue cannot be recognized for the whole year rather from Aug 17 till Feb 18 as you cannot recognize “future” revenue until it is earned. The advise which i gave to the directors is to account for the variable part of the revenue as of Feb 2018 and the remaining 5 months of revenue will be accounted for on a monthly basis as it is earned.

@fuzzywuzzy said:
Sorry to burst your bubble, but I’m pretty sure you will get only a few marks (if not none) for the definitions. The question wasn’t asking you for the definition and recognition criteria for said items, but how uncertainty affects the said items. Attempting Question 4 requires knowledge of current issues which is why most people do not attempt it. I’m surprised even at the professional level you’d still expect marks by just listing out the definitions without any analysis of the question.

I cannot pass this section by without providing my input:) as Fuzzywuzzy made some pretty funny statements. I am very amazed to see that at P2 Level one would think IAS37 is a current issue (hahhah) but I guess we do not have the same definition of a current issue. Just an FYI Fuzzywuzzy IAS37 was operational in 1999. It was very wise of you not to attempt this question as over analysis would have been to your detriment.
I can confirm that question 4aii did ask for the definition of provisions, contingent liabilities and contingent assets – and just by writing out the definition of these you are making reference to uncertainty as this is the fundamental, underlying concept of the IAS37.
@Damjan
I agree question 4, all of it, was Christmas in March!

Best of luck! to you Fuzzywuzzy 🙂

section a there was a SFP it had adjustments for assets Held for sale, share options,pensions.

@fuzzywuzzy I would say you are right, but we are not talking about P3,P4,P5,P7 here. In P2 definitions score marks. I’m not sure if you attempted Q4 but a i) and ii) were not related to scenario at all. I would agree with @Beata examiner is not expecting rocket science out of 20 years old IAS.

The issue is that you have crossed out Q4 in your preparations to the exam in the very beginning thinking that only the IASB members can answer it. @fuzzywuzzy do you really think you now nothing about materiality? I’m pretty sure that this sitting Q4, everyone working in finance/accounting would be able to score at least 15 marks.

Hello everyone
For me p2 looked like a disaster in the begining when I saw the disscusion parts in sec B. I was happy no financial instruments no deffered tax .
I got imp 56 m in sec a. Held for sale at recoverable amt
Did 4 question full but in Q2 run out of time and left out 18 marks.