*** ACCA P2 September 2016 Exam was.. Instant Poll and comments ***

Was not easy, time pressured

Can any kind soul share what are the IFRS/IAS that came out & what is question 4 about,and Q1 is on SOFP or P/L?Thanks.

really?good for you.I found Basil`s NCI weird .I t was a full good will .Pepper had assesed the fv based on P/E ratio which would need to fall by 25% in order to make inmarketable shares on Basil marketable.the earnins were given.was it supposedto be calculated via business valuations (0.75 * 20)=p/e then * 40% in order to get NCI @ FV??

I alsolost it on restructuring.Instead I found IFRSs fair an exact opposite of you

@tinaboy said:
really?good for you.I found Basil`s NCI weird .I t was a full good will .Pepper had assesed the fv based on P/E ratio which would need to fall by 25% in order to make inmarketable shares on Basil marketable.the earnins were given.was it supposedto be calculated via business valuations (0.75 * 20)=p/e then * 40% in order to get NCI @ FV??

I alsolost it on restructuring.Instead I found IFRSs fair an exact opposite of you

The calculation of the Nci in Basil was very similar to question 06/15 Kutchen (which is also available as revision lecture here on OT).
I don’t remember the figures but you simply had to adjust the P/E ratio by reducing it by the percentage given.
Earnings, which were given, x the adjusted ratio = P, which is the total value of the sub. Since you want to determine the NCI you multiply that by 40%.

So it seems to me that what you have done is right!

oh yes.thats what i did

Does anyone remember the ifrs/ias for 2nd & 3rd question?

Consolidation structure was fine, but notes in that question were tricky.
1- which costs have u incl in restructuring provision?
2- how u deal with joint arrangement?

I messed up my calculations and working, finally had aroun 100m difference in balance sheet

For the restructuring I provided for the redundancy costs, 3million for the onerous contract (there is a legal obligation as it is a contract) and the restructuring costs.

@wesbyss said:
I have
Q1 – ias36, ias37, ifrs11, ias17
Q2 – ias21, a bit ias16 and ifrs9, ias12, ifrs15
Q3 – ifrs2, ifrs5, ifrs3
Q4 was about ias 8 i think.

For question 3 i wrote about ifrs 9( for the 2 options) because the first one had equity instrument but the second option had financial liability as there was an obligation to repay.

have you remember the total of soft?

Here is my two pennies worth;

Q1 Seemed OK, although I may have messed up the NCI for Basil.
For restructuring calculation I only took 9 (redundancy payment of 4 and 3 onerous contract) thus excluding operating loss, gain on disposal and relocation cost. Hoping I got it right.

1.b going back to restructure, can’t remember exactly what I wrote but said it’s a non adjusting event unless additional cost relates to prior period.

1.c where director created a company to get loan. Basically taked about how the subsidiary wasn’t a ‘business’ as defined by business combination and taked little bit on ethics.

2.a was based on purchase of foreign PPE with foreign loan. Basically taked about how monetary and non monetary item translated and interest expense translated using average rate. Then done some calculation and then 31/Aug there was a revaluation which I translated to show imparirment which should go to p/l

2.b was deferred tax, was bit tricky as I didn’t spend too much time on DT but done a calculation to show goodwill of 5 with DT liability of 1 on it. Tried to talk little bit on temporary difference but nothing significant. Also done calculation to show DTL/DTA for each assets and liabilities using subs tax rate this time.

2.c was revenue recognition, this was a question from past paper where you had to state 5 requirements under identify a contract and the other company does not meet the last criteria of “entity will probably collect the consideration”. One mistake I did on this was I supposed to write non-refundable payment was a deposit liability but I said it was prepayment.

3.a I talked about how it is important to separate debt and equity. Defined both and mentioned “Fixed test” as an option to identify equity. Then said how the entity need to calculate it.

3.b talked about what qualifies as held for sale and the entity should recognise it as held for sale. Also quickly mentioned how it should show as one line item on SOPL and SPFP.

3.c Simply ran out of time!

@ish123 said:
Here is my two pennies worth;

Q1 Seemed OK, although I may have messed up the NCI for Basil.
For restructuring calculation I only took 9 (redundancy payment of 4 and 3 onerous contract) thus excluding operating loss, gain on disposal and relocation cost. Hoping I got it right.

1.b going back to restructure, can’t remember exactly what I wrote but said it’s a non adjusting event unless additional cost relates to prior period.

1.c where director created a company to get loan. Basically taked about how the subsidiary wasn’t a ‘business’ as defined by business combination and taked little bit on ethics.

2.a was based on purchase of foreign PPE with foreign loan. Basically takes about how monetary and non monetary item translated and interest expense translated using average rate. Then done some calculation and then 31/Aug there was a revaluation which I translated to show imparirment which should go to p/l

2.b was deferred tax, was bit tricky as I didn’t spend too much time on DT but done a calculation to show goodwill of 5 with DT liability of 1 on it. Tried to talk little bit on temporary difference but nothing significant. Also done calculation to show DTL/DTA for each assets and liabilities using subs tax rate this time.

2.c was revenue recognition, this was a question from past paper where you had to state 5 requirement under identify a contract and the other company does not meet the last criteria of “entity will probably collect the consideration”. One mistake I did on this was I supposed to write non-refundable was a deposit liability but I said it was prepayment.

3.a I talked about how it is important to separate debt and equity. Defined both and mentioned “Fixed test” as an option to identify equity. Then said how the entity need to calculate it.

3.b talked about what qualifies as held for sale and the entity should recognise it as held for sale. Also quickly mentioned how it should show as one line item on SOPL and SPFP.

3.c Simply ran out of time!

Theory was similar I got an impairment of 0.85 in 2A. Thought was a detailed but nice question.

2C I mentioned the steps and said how it’s a Performance obligation at conception as that’s when R and R transfer. Howver if they can’t pay and they knew that shouldn’t take revenue at all. Something along those lines.

Tax, meh. Mentioned the theory, temporary and permenant. There was a difference of about 3m or Soemthing, deferred tax liability?

3C was hard, fudged about trying to explain about business combinations.
Agree on held for sale too.

About 1B, I said how the company may have a future impact from the decision not to restructure. It was also after the audit opinion, therefore is that bad? Said could be misleading if they’ve decided to not to do it etc. Also they incurred dismantling costs, therefore more expenses.

Did mention how they may get a credit in the next year though and additional revenue. But leaned on the more negative side.

I focuses more on ethics. Lack of professional behaviour, competence, integrity not disclosing. Mentioned about fraud, disqualification etc etc. Standard ethical things

Hopefully done enough! Made silly little mistakes which I hope don’t cost me.