ACCA Paper SBR December 2020 Exam was.. Instant Poll and comments

Q1
• Pension obligation-With curtailment/settlement
• Goodwill, it says that Fair Value of Net Asset of the Subsidiary excludes Pension Obligation???. Treatment of Legal Fees (this include issue cost for the shares)
• Land and Building Acquisition using shares (Should be treated as IFRS 2 Share based payment?? the asset as Investment Property)
• Derecognition of Financial Assets (not sure, it says sale of 100% right but the seller guarantees the loss)

Q2
• Ethics
• Intangible Asset
• One day or 36 months Credit Losses???
• Computation of Credit Loss: 12month and Expected lifetime credit Loss

Q3
• Joint Operations
• Decommissioning cost – Provision and IAS 16
• Inventory and Adjusting Event
• Restructuring/ Redundancy? (It says that the employees are self employed and they are not entitled for redundancy pay) /Prior period Adjustment (as in the next year it technically feasible)

Q4
• Sustainability Report and Integrated Reporting (Differences)
• Sustainability report
• Government Grants / Intangible Assets
• Effect of foreign Exchange and Adjusting event (There is a significant fall on the value of dollars?)

jefreyabanilla wrote:Q1
• Pension obligation-With curtailment/settlement<br>• Goodwill, it says that Fair Value of Net Asset of the Subsidiary excludes Pension Obligation???. Treatment of Legal Fees (this include issue cost for the shares)<br>• Land and Building Acquisition using shares (Should be treated as IFRS 2 Share based payment?? the asset as Investment Property)<br>• Derecognition of Financial Assets (not sure, it says sale of 100% right but the seller guarantees the loss)

It should be non adjusting because economic downturn occurd in jan. As of december nothing like that was existing

Encaladeus wrote:Allowance emission grant is a very complicated. Anyone knowa the correct answer? I recognised income as in government grant for agricultural products

The standard allows two approachs. Reduce asset value or setup deferred income to reduce associated cost.

I put the same.

Is it fair to say the December webinar for Sbr wasnt helpful?

ikenna24 wrote:Is it fair to say the December webinar for Sbr wasnt helpful?

The webinar I watched spent two days on group accounts.

No matter the amount of study or pastpapers you did, this paper you could not prepare for. There were some very strange questions. Overall I felt this was a very unfair exam.

This paper completely threw me off. i felt like the information provided were hard to interpret unlike other exams ive taken. as soon as i saw defined benefit question, i knew it was going to be a tough one. i blabbed for most part

Peter wrote:No matter the amount of study or pastpapers you did, this paper you could not prepare for. There were some very strange questions. Overall I felt this was a very unfair exam.

Think the only really horrible question was the sustainable reporting vs integrated reporting.
I have nothing in my notes about it, anyone come across sustainable reporting before?

Q1 had something to do with issuing shares to purchase land and buildings (if i’m not mistaken). Does anyone think the shares issued as financial instruments are held at FVTPL as it is to finance the purchase to eliminate the accounting mismatch?

This part and the recognition of investment property is worth 10 marks in Q1 which totally screwed me up as I always thought Q1 is always based on group F/S or cash flows.

The question structure has changed in my opinion. Q1 relating to group accounts is only worth 5 marks which is goodwill calculations. Who knew that other standards will take such a big portion of marks in Q1.

Overall, this paper was a disaster. Ethics question even had a small part of calculation and IFRS 9 (If I am not mistaken again) and the ethical implications only worth 10 marks without even any related IFRSs.

Pretty sure gonna prepare to re-sit for this paper

kenttan4320 wrote:Q1 had something to do with issuing shares to purchase land and buildings (if i’m not mistaken). Does anyone think the shares issued as financial instruments are held at FVTPL as it is to finance the purchase to eliminate the accounting mismatch?

With the Land purchase using shares, i debited PPE and credited Share Capital and Premium.
You was given the share price beforehand for the company which was the fair value of the land.

Thanks for the insight! I simply wrote shares were issued to finance the purchase without any journal entries so I did not include any amounts as well which I think could be wrong as I probably missed out on the share price of the company.

Can only say that all tutors and ACCA should inform there is a change in the question structure on Q1 of SBR.

Even the official ACCA video on SBR stated Q1 is based on financial statements of group entities and a minor part based on financial reporting issues which this sitting paper does not follow at all which only 5 marks for goodwill for acquisition. Others are basically based on other standards and a small part on asset acquisition and not business combination.

I even practiced almost all the SBR past year papers and can see a huge difference on Q1 with past year papers where past years are mostly focused on business combination or cash flows. This sitting basically proves Q1 is more than just merely group statements lol.

same here!