ACCA Paper FR exam was – March 2021 Exam – Instant Poll and comments

Thank you Open tuition, your revision lectures really helped me to lay out the information in section C, fingers crossed for a pass!

There were alot of questions from the smaller areas of the syllabus like revaluation and impairment

1)When an Investment property that is held at cost model is switched to FV model where does the gain go? To the PnL or OCI?

2) When the Recoverable amount is “higher” than the carrying amount will there be a gain on the asset? I know when the Recoverable amount is less than the carrying amount there is an impairment loss but is there a gain when it’s other way around.

3)When a previously impaired asset the revalued amount is let say 16Mil and due to good market conditions let’s say the recoverable amount has increased to 20Mil but the carrying amount if there was no impairment initially would be 19Mil. What amount will the reversal of impairment loss be? Options were
3Mil (19-16), 4Mil (20-16) or 0 (No reversal)

Didn’t come across any revenue or leases questions at all which was abit surprising given that they are quite important

Section B was
Non current assets (impairment, IAS 38)
Financial instruments
Earnings per share

Section C was
Calculate goodwill and CSPL

Dough Co and Cook Co Financial interpretations Q with adjustments to be made and calculate restated ratios

Did anyone get a negative goodwill?

What will happen to goodwill if liability is overstated?

Any one got the single entity incm statement? What was the profit ?
Depreciation related to leas was 5000 and related finance cost was 1400 ?
How was the contract asset supposed to be accounted for ?

How much profit or loss did anyone got in sec c Related to disposal

Hello, I had the same question as well as interpretation and single entity financial statements

Would you like to discuss?

@maisam813

What have you taken the net assets amount?

I forgot to take the post aq profits .

Did anyone get the CSPL regarding Gold Co and silver Co?

I think the answer would be 1mil. the asset had a carrying value of 19m before impairment. After impairment and then revalued to the amount less than the initial value of the asset, we are still reporting impairments because the “revaluation gain’ is not enough to absorb the previous impairment recorded in the OCI. Now that the recoverable amount exceeds carrying value and the previous value of the asset before impairment then, the net gain will be (20-19)=1m.

I’m preparing for this exam June sitting. I don’t know if this approach is right.

@abdullahi312 this is regarding a reversal of an impairment which had already occurred. Your explanation is correct if it was a first time impairment.

The post impairment carrying value was 16Mil and due to good market conditions the value has since increased therefore the impairment required to be reversed. Asked this question in the ask the tutor forum and their reply was that the reversal of the impairment can’t exceed the carrying value had there been no impairment at all. The asset should be valued at the lower of the carrying value or recoverable amount. Therefore it’s 3Mil apparently.

It’s abit tricky and easy to miss out on during the exam due to pressure. Good luck for your exams