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

1a) -Purchase consideration for Thyme should be discounted for 3 years right?
-FV NCI of Basil is somewhere around 37m. Got the price per share according to the PE ratio given and then reduce it by 25%.
-Goodwill impairment of 10, split between parent and NCI.
-Joint operation but forgot how to deal with the cash contribution. Added 50% share of NCA, CA and CL to the SOFP. Share of losses taken to RE too.
-Overall net assets of group decreased. I got 1.7m only for RE :/
-Provision for restructuring 4m. This is wrong, I forgot the onerous contracts.
-Sale and leaseback as operating lease. Gave an additional gain of 3m because CA is 15 while FV is 12 and sale proceeds is 20.

1b) Left it blank.

1c) Simply wrote what i can about integrity and professional behaviour.

2a) Talked a bit about IAS 21 on translating retail outlet and loan at spot rate at spot rate, depreciation and finance cost for 6 months(or 5 i don’t remember) at average rate, retranslate them at closing rate. Retail outlet has an exchange loss on retranslation while loan has exchange gain. Exchange gain and loss taken to profit or loss. Don’t remember imparing anything as i thought the CA of loan/retail outlet is lower than RA.

2b) Tough for me. Got a goodwill of 2m and provided DTL for it. Didn’t bother completing the other stuff.

2c) Simply do not understand what the question is asking for.

3a) Talked only about the second option. Touched on disclosing the second option as contingent liability as cost cannot be reliably estimated. Then about adjusting event too.

3b) Just churned out what I remember for IFRS 5. Said the reasons for entity to not recognise NCAHFS is invalid.

3c) Question talked about investment property at cost model and capitalizing tax expense. I didn’t write anything related to the IAS, just said the tax expense shouldn’t be capitalized.

Overall a tough paper for me. 🙁

@ish123 said:
Tell me about it…felt the same about the tax.

1.c Yea I remember mentioning that directors are not being transparent and it’s not a faithful representation of FS.

1.b I thought this was bit of an open ended question too….I remember taking about how the provision needs to be reversed, if there was a legal/constructive obligation for already stating the redundancy thus seek legal advice and should provide for it as requires. Then when on to talk about how the company gearing is already high and they already spent money on restructuring thus if there is a problem with debt covenant (probably went off topic a bit). And also as mentioned before whether it is a adjusting period or not.

Yeah, sounds good. Written I thought was okay! Just realised I forgot to spilt impairment between nci and parent, unbelievable. Annoying!

I felt good about most of the written parts and did every part of the sfp, just not all fully correct.

I accrued for half the loss on joint venture to profit and put half the assets in the sfp. Hopefully get couple marks for that sort of thing. Restricting I got 12m? 4 + 3m for onerous and then redundancy of the rest?

Impairment I did the nci wrong but just ended up impairing goodwill only.

With the balance sheet only other things were remembering to do journals for all the differences to FV.

With the deferred consideration I just discounted to pv. I think you had to do something with finance costs and build it back up but ran out of time.

Lots to pick at!

@affan2k1 said:
I write that ASSET should not be considered as ASSET HELD FOR SALE in Q 3 B.

I thought it was?
Readily available, for sale, likely with 12months and also close to sale. Sale price close to fair value too

for PPE i meant:
Group PPE
P+B+T——– ****
land ———– ***
plant —- — — **
total ———- ………

@gt0707 said:
for PPE i meant:
Group PPE
P+B+T——– ****
land ———– ***
plant —- — — **
total ———- ………

i have not this total here, but for each item in SoFP, i mentioned the working number, like say for PPE item in sofp i mentioned (w1)

I believe you should be fine as you have referenced your working.

The paper was okay for those who read and had done alot of practice. My main problem was time as I ended up not finishing the paper. Question one was not so bad compared to other past papers. The part for nci was a little bit tricky I didn’t know how to calculate it. A question 2 was quite fair as I was able to tackle it. Question 3 was a disaster especially the part involving investment property. I had set my mind to avoid question 4 and that’s actually what I did. I hope for the best and wish all who did this sort the very best.

Hi. Were the below two issues in two different questions? Or as a part of one question?

– the one related HFS and Discontinued Operations (with binding offer)

– the one related to FX operations – purchase of retail outlet with loan.

Was it a joint operation or joint venture in Q 1? I did workings for a joint op, so added the share of assets, liabilities & so on. But now I feel their was a legal entity created which would mean it was a joint venture. Perhaps I am mixing the facts up!

@wfengyi said:
1a) -Purchase consideration for Thyme should be discounted for 3 years right?
-FV NCI of Basil is somewhere around 37m. Got the price per share according to the PE ratio given and then reduce it by 25%.
-Goodwill impairment of 10, split between parent and NCI.
-Joint operation but forgot how to deal with the cash contribution. Added 50% share of NCA, CA and CL to the SOFP. Share of losses taken to RE too.
-Overall net assets of group decreased. I got 1.7m only for RE :/
-Provision for restructuring 4m. This is wrong, I forgot the onerous contracts.

-Sale and leaseback as operating lease. Gave an additional gain of 3m because CA is 15 while FV is 12 and sale proceeds is 20.

1b) Left it blank.

1c) Simply wrote what i can about integrity and professional behaviour.

2a) Talked a bit about IAS 21 on translating retail outlet and loan at spot rate at spot rate, depreciation and finance cost for 6 months(or 5 i don’t remember) at average rate, retranslate them at closing rate. Retail outlet has an exchange loss on retranslation while loan has exchange gain. Exchange gain and loss taken to profit or loss. Don’t remember imparing anything as i thought the CA of loan/retail outlet is lower than RA.

2b) Tough for me. Got a goodwill of 2m and provided DTL for it. Didn’t bother completing the other stuff.

2c) Simply do not understand what the question is asking for.

3a) Talked only about the second option. Touched on disclosing the second option as contingent liability as cost cannot be reliably estimated. Then about adjusting event too.

3b) Just churned out what I remember for IFRS 5. Said the reasons for entity to not recognise NCAHFS is invalid.

3c) Question talked about investment property at cost model and capitalizing tax expense. I didn’t write anything related to the IAS, just said the tax expense shouldn’t be capitalized.

Overall a tough paper for me. 🙁

Amanda you nailed it. i got impairment of 10 . yayyy … gave FV of nci 39.. yayyyy … high five .. and in section b i did what u exactly did.. 🙂 chill

@james1114563 said:

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

Tell me about it…felt the same.

@james1114563 said:
I focuses more on ethics. Lack of professional behaviour, competence, integrity not disclosing. Mentioned about fraud, disqualification etc etc. Standard ethical things

Yea I remember mentioning that directors are not being transparent and it’s not a faithful representation of FS.

@james1114563 said:
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.

.

I thought this was bit of an open ended question too….I remember taking about how the provision needs to be reversed, if there was a legal/constructive obligation for already stating the redundancy thus seek legal advice and should provide for it as requires. Then when on to talk about how the company gearing is already high and they already spent money on restructuring thus if there is a problem with debt covenant (probably went off topic a bit). And also as mentioned before whether it is a adjusting period or not.

Weird! Posted the above comment yesterday and it’s showing up today…..won’t even let me delete it.

Hi all

for question 2A,B,C and 3A,B,C

How many side of paper did you write for each i.e 1 side or half a side etc.

Regards,