FRACCA Paper FR exam was - March 2021 Exam - Instant Poll and comments

opentuition_team wrote:How was your ACCA Paper FR March 2021 Exam exam?

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

Thank You for your lectures. The exam was good

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

There was quite a variety of questions. Section C was a single entity statement of financial position, SOCIE & adjusted profit and an analysis of a new group using sections of statements & goodwill on acquisition & choosing most suitable ratios to calculate with limitations of this. My exam cut off suddenly so threw me a bit and my nerves so not feeling too confident. Section B was intangible assets, revenue & earnings per share. Section A was varied but several questions on consolidated statement calculations, impairment, if an entity is to be classed as a sub, framework theory, development/research costs. Fingers crossed can scrape a pass on good section A and B answers...

Did anyone get a negative goodwill?

I heard there was a bargain purchase , but be aware that there were many types of exams . Just try to not think about it in the next few weeks. Best of luck

What will happen to goodwill if liability is overstated?

I think if liability is overstated net asset will reduce overstatingvthe goodwill.

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 ?

Yes I got that question , exam was going fairly smooth up until that question . I got 1400 for the FC but last night I realised I should of split the lease on the sofp in NCL and CL sections . Think that lease was really confusing wording , shame because in all the mocks my nca calc were spot on . Wish I had a consolidated FS question ! Wish everyone luck for the results!!

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

For me section b qstn was from impairment, earning per share, financial instruments which I find easy to gain marks in section b But I got one reversal impairment qstn in Sec b which I am not able to answer it did anyone know what is the answer?? Section c I got SOPL conso qstn which was similar to past exam Qstn And other qstn was ratios which I find challenging for calculation purpose Section A was ok for me like 50-50 Hope to pass FR How was ur paper guys?

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

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

Would you like to discuss?

i got single entity which was challenging.. and also the comments ratio.. i didn't get enough time to complete the paper..struggled..i wish i had a consolidation question in section C

@maisam813

I am very grateful to Professor Chris, your lectures were invaluable. We are waiting for the result. ISA, success.

What have you taken the net assets amount?

At disposal it was 92000

I forgot to take the post aq profits .

How much did you get the balance sheet answer?

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

@chadhakan Hey, Was the reversal of impairment regarding the recoverable amount increasing question? The one which had answers 4Mil 0Mil 3Mil 1Mil If that is the one I put 3Mil Cause as far as I remember any reversal of impairment should not increase the carrying value if the impairment had not occurred. So as far as I remember the carrying value would have been 19Mil therefore (19 - 16 Mil) = 3Mil reversal was what I put. I'm not sure though

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.

Hello did anyone get the government grant of 60.000 question for training staff that the grant was already included in other income? What did you debit and credit?

@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

663980. you?

StefanosG wrote:Hello did anyone get the government grant of 60.000 question for training staff that the grant was already included in other income? What did you debit and credit?

Hey, yes I got this question. I debited 56,000 to Other income and Credit 56,000 to deferred income. I assumed it will be released over the years. 60 months out of which 4 months should be included in the current year. They have credited other income with the whole 60,000 What did you get?