FRACCA Paper FR December 2020 Exam was.. Instant Poll and comments

yea.. minus it from cost of sales

Lol, same thing happened to me. I got really confused as to why there was so much typing until l realised its the SBR students ?????

Jovita885 wrote:and for the 9m included in cost of sales for agency sales, did you minus it from cost of sales?(for the last question which included agency sales)

I subtracted it from cost of sales

@Jovitha885 I reduced it from cogs and i got profit of 3.9 mn for disposal how much you got

@ruby67 i multiple the fx, but im not sure with my answer for that question it was time consuming so i didnt work out answer for that question properly

@jovitha885 for govt grand question i think the answer is, dr other income 56,000 Cr deferred income 56,000 as we need to show only 4000 in other income, so we need to reduce 56k from other income and increase that in deferred income.

Jovita885 wrote:i got this question about grant related to ‘other income’ i selected the answer as<br> dr. accrued income 56000<br> cr. other income 56000<br> what did y’all write?

Initially Bank DR 60000 Other income CR 60000 Grant is for 5 years plan and for current year only 4 months relevant. So you need to make adjustment journal Other income DR 56000 Deferred income - CR 56000

@Pjashu1995 I had the same exam version as you and I have loss from the disposal 600(Sale proceeds-Goodwill-Net asset at date+NCI). In the next question you had to respond to the questions of CEO, why the profit for the year was so low despite the fact of the subsidiary sale. I think it is somehow connected. Concerning the previous question(31) with the SOPL at the end of the exam I have noticed that proceeds from the rights of share issues(share premium) were allocated to the Revenue and it has to be deducted.I think that question was one of the toughest one on the F7 exam from couple of years.

@Pjashu1995 I mistakenly divided the 500,000EUR by fx for the second one.. time had gone before I realized the rate was 1EUR=$$ got same question for section C.. got loss on disposal of 0.6m, found it difficult on the CEO's comment cause there was reduction in profit and revenue while Gross profit margin increased.. it was difficult connecting together I computed 1,500 for the share premium which I deducted from revenue, there was 1 for 4 rights issue correctly included in the share capital.. in SOCE, used 12,000 for opening share capital, 3000*$1 for share issues in share capital and 3000*$0.5 for share issues in share premium.. wrongly included dividend paid in SOCE instead of finance cost

I took 15000 as opening balance equity and calculated the rest of question, i was wrong. And just on NCI for disposal do we have to take the NCI value as at disposal date or the NCI at aqusition, because in question they have given profit figures of scooter, for 2 years then after 2 years 20% of that profit figures will be added back to NCI right? Have you guys done that adjustment or did i just over adjusted it? @ruby67 @qwert443

In the question there was information that the disposal was in 30 March 20x9 and the reporting date was on 30 June 20x9. Also there was information that since acquisition till 30 June 2018 the profit of subsidiary was 3,000 and for the 2019 was 2,000. You had to calculate it as: NCI at acquisition + 20% * 3,000+20%*9/12*2000 - 20% on adjustment on PUP. @ruby67 I was wondering if these dividend refers to the preference share or maybe to the all shares. I have also included it in the SOCE. Have you maybe capitalized borrowing costs for 6 months in relation to the construction of plant(additional depreciation on other expense) ? Also I did the adjustment for the first two months of loan interest as the loan was taken on 1st March 2019 and in the TB the interest were calculated for the full year(2,000 * 9%). I do not know if it is correct.....

I got the same question i guess in the single entity they gave us dividend paid and implicit rate of interest . what i did was i took the 6% and reduced it from the retained earnings and the excess i took in finance cost. I guess i am wrong

Hi Pjashu1995 My calculation is gain 440, I saw somebody above said that they get loss. Very confused ;((

YK2017 Im confused too may be im wrong i got profit of 3.9mn. i thought what i did was right but i cant recall exactly what i did in exam.

@qwert443 the note was specific about the dividend, it's for the preference shares.. so it should be finance cost.. I was so confused about it in the exam.. settled for SOCE I can only recall it was mentioned somewhere in the note that depreciation has been correctly included in operating expenses, why I didn't do extra depreciation.. might be wrong I can't recall the note on loan, I must have missed the interest being for the whole year.. used 1800 in finance cost.. but my finance cost is wrong already cause I didn't include the dividend @pjashu1995 the proceeds from sale was $6m; FV of NCI @ acqn $1.2m; post acqn profit as at disposal date (3m+2m*9/12)=4.5m; SC and retained earning at acqn 1m and 1.3m i.e. Net asset @ acqn is $2.3m; FV of consideration 3m I did Proceeds + NCI @ disposal - Net Assets @ disposal - Goodwill @ acqn (no impairment) =6m+(1.2m+20%*4.5m)-(2.3m+4.5m)-(3m+1.2m-2.3m) = -0.6m (loss on disposal)

Yes you are right

Ok i forgot to add 4.5mn in net assets @ disposal, thats the reason i got gain :(

Hi Sarah, I got 0.74 for that one, my answer was like 0.7425 and question said to two decimal place, not sure if I worked it correctly tho

@qwert443 @pjashu1995 did you do transfer of excess depreciation to retained earnings in SOCE/OCI??

Ruby67 are you referring to the revaluation ? Also in the question I think you had to also add the additional depreciation for the two months of borrowing capitalization, which was 8 if I remember correctly. It is funny that this question checked wider spectrum of knowledge about FR syllabus than whole section A or B. In the section B did you have a question with the calculation of the depreciation of aircraft ? I had calculated it as 1280 and I assume it is incorrect.....

The paper was really difficult for me and due to technical issues i had to revoke it and i attempting it again this week on 17th , is it going to be the same paper for me ?

@Sarah1306 do you remember the question in section A in which they asked both profit or loss on disposal for group and individual Financial statements?

@qwert443 yes, I'm referring to the revaluation.. did you do the transfer?? I didn't make any adjustment in operating expenses, thought I read depreciation expenses had been correctly included.. felt weird tho, might be wrong I think the exam generally is tough and it felt like bait was set everywhere I got 1280 in the aircraft question too, thought I was wrong in the exam but didn't recompute cause of time pressure

I found the exam difficult. I felt like every question was covering some remote aspect of the syllabus, there were almost none questions, that I could answer quickly just based on what I was studying. I mostly had to exclude answers that were "rather wrong" than choosing a correct answer being confident. On top of that I sat the exam remotely and found it extra difficult to sit the exam without any single sheet of paper allowed to summarize my thoughts. The scratch-pad within the exam is a joke, not useful at all. I hope they will change the rules for remote exams. If we are allowed to have a calculator, we should be allowed to have 2 A4 sheets of blank paper as well. That was the case for the very first remote exams offered (FA for example).

Same !! I didn't attempt 2 /3 questions,other than that managed to do it all But I feel like all the answers that I wrote is gonna be wrong .Argh I just hope I pass that's all I need ?

All these comments make me more nervous .This was my first time and I feel like I totally messed up this exam .I definitely know that my CSPL is gonna be wrong But can someone tell me if I will atleast get some marks from workings ?? This my first time I don't know how they give marks !!

i divided it

Anybody remember the first MCQ on Relevance and Faithful representations. What are the options were there? The entry for impairment of goodwill in group accounts? My only hope is part A and B as I overspent time on part A and B. Many questions are confusing and requires extra time. If Anybody knows any other part A answers please drop here.

Hi sarah, I got the same question too

Hi pateladam, lets hope its 0.74.