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

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

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?

This was my first question and I got stuck. I knew well about the treatment of asset grants. But I knew next to nothing about income grants. During the exam I just couldn’t figure out what they are asking for. As I see now there are 2 types of income grants. First refer to past expenses. In this case they debit bank, credit spl. So for me this seems to be our case. So what was then required, if the whole amount was already credited to Other income?
Or we had to select this? debit bank 60000, credit other income 60000. I actually, don’t remember the options given.

The second option is income grants referring to future expenses. But not the case here.

Yeah, Indeed, there was no 60000. Thank you! This question really once again shows, that ACCA is all about the whole syllabus, all those details and not always the most widely spread things. I just hope i pass! If not- I’ll just know, what to learn better.

@ranganaherath. Ya I think I also put 3 million as I can’t remember perfectly. But this qstn makes me confused so I just flag it. And for Govt grant I put amount 4000$ but think my answer was wrong.

Hope can pass
How about Sec c qstn relating to ratios are u able to calculate restate figures I am not able to understand regarding revenue. Do you remember that qstn??

@cadhakan was the ratios about the catering companies Dough and Cook co?

ranganaherath wrote:cadhakan wrote:
ranganaherath wrote:Did anyone get a question regarding a 6Mil loan note issued which they incurred issue costs of 0.2Mil which had a coupon rate of 5% and an effective rate of 8% and the requirement asked what was charged to the PnL

I think u r correct but m not too sure are u sure in that qstn?? Ur answer is correct?? I think I made careless mistake this qstn was in section b right?

ranganaherath wrote:

cadhakan wrote:

ranganaherath wrote: @cadhakan was the ratios about the catering companies Dough and Cook co?

Yes u r correct I also put same figure in revenue I mean no changes that only I want to confirm from u.

Wish you good luck for results

@ranganaherath

Wlc ?. Which paper u will give in June 2021

@Sankwww

Ya I also put 464 but I think we should also charge 200transaction cost in p/l.