*** ACCA Paper SBR September 2019 Exam was.. Instant Poll and comments ***

OMG!!!!

What the hell was that.

Q1: remeasurement to FV (most effective use), Goodwill and impairment based on partial and full goodwill. More or less ok.
Don’t remember other part)

Q2: receivable to loan (?), preferred shares is FL, deferred tax – no evidence for the future profits. Ethical issues as usual 🙂

Q3: disaster with revenue recognition.
Pension – no idea. Cryptocurrency is FA rather than int asset (?)

Q4: question is more applicable for P4 paper. ROE – to calculate as it is and to add corrections.

Very strange exam, untypical for SBR(P2). At least, 30 points are not covered in books (hardly achievable) imho.

The first two were fair,cryptocurecy,is it an intangible or financial asset?I completely forgot the definition of a financial asset as per IFRS 9,so I used the regular definition. Last two were so hard,but I tried to write what I could.I did the simple return on equity and got 38% then 17% for 2016,after doing adjustments,i got 37.5% for 2016.anyone else found this?
Q.1 share based payment threw me off,I just calculated the liabikiti for parents company only .
Changes in conceptual framework for pensions,totally blank.

Are impairments of 30.5 (partial) and 30 (full) correct?

@arm2250 said:
One of me lectures stated need 30 out of 50 for part a but after looking at part b probably need 50 out of 50

I had no idea the framework changed for pensions

I’m the exact same. However I might get away with getting 48 out of 50 for section A!

I had 49.5 for partial impairment,and 50 for fair value impairment.

Q1) Fv of the non current asset, was it to do with highest and bestvalue use? should it Inc dismantling costs?

The recoverable amount, was given but it didn’t account for the 4 million worth of building that was destroyed. Did anyone take this in account to calculate the impairment?

Share based payment is that contingent consideration?

Q2) Pensions was in the current issues. It requires the net interest and service costs to be remeasured after curtailment but there nothing in the books on how the calculations should be done. So pretty much messed up there

preference share, it should be debt and not equity? I said it should be debt as directors have option to redeem at par

Q3) Revenue recognition was very hard. Did you guys say it should be recognised over time or point in time?
There was some sort of conceptual framework related question here. How did u answer this?

Regarding cryptocurrency- there was an article on acca website that detailed on how it should be recognised and measured.

There was one more question on how entities have option to use different accounting policies. Again, this was generic but not sure what sort of points should he covered here. Not sure if I had enough to write here.

Q4) was part a as simple as to take numbers and plugging into the formula? Seems too good to be true

The entitity had purchased new entity and transferred asset. But entity didn’t meet the definition of business. Nor did it meet criteria of sale. Should remain in the company’s assets.

Misc adjustments were also there. Didn’t have enough time to address them properly.

Let me know your thoughts

God knows what was the examiner upto did he intentionaly want kids to fail or what half of the paper was something I never ever read about in any of the published and ACCA approved books . And if the amendment was done one night before would they still include it in the paper I never knew that net interest had to be calculated so big I never knew crypto currency was included I guess paper was set with the intension to kill the students and plz do update your books according to the standards and current issues …

i was only able to complete for 50 out of 100. so sad, will need to resit.

Same here, i want to book AAA and SBR. I will ensure this time i study everything.

Q1) I did same for NCA value.

Did not deduct the RA by 4 I though 4 is already adjusted in it, but I restricted the allocation of goodwill for current assets because they were already at RA.
Got 30 and 30.5 impairments and explained how goodwill allocation in full goodwill method will be distributed between parent and nci (nominal) and in partial method fully goes to parent.
The CAs of other assets after impairment allocation was coming same in both methods.

For the other part I included shares exchange at FV in consideration and the sbp replacement at incremental FV (that is 180m – 150m of old, so 30m).
The sbp expense was adjusted for 4% employees change only GD fair value of options was locked and expense booked regardless of market condition being met or not.

Q2)
Advance to consumer = liability
Pref shares as convertible instuemnets, i.e part liab part equity because it had fixed # of shares options.. I suppose this is correct
Def tax asset not to be booked coz of future tax profits

Q3)
For revenue recognition I said over a period of time for license because needs to update it. Royalties also to be recorded in year of sales.

Part b I said it is joint venture because of right on net assets and profit sharing, and treated cryptos as intangibles and not FA.

Q4)
Accounting policy question was subjective.

For ROE I could only calculate it for both years and shortly explained its use. It was 17% and 38% at first.
For adjusted ROE I made some corrections and ended up with around 21% for 20X6.

Overall section B was exceptionally hard compared to the trend so far. I hope the checking would be lenient on that basis.

Feel free to mention if anyone thinks I did something wrong.

@queen1234 said:
Q1) Fv of the non current asset, was it to do with highest and bestvalue use? should it Inc dismantling costs?

The recoverable amount, was given but it didn’t account for the 4 million worth of building that was destroyed. Did anyone take this in account to calculate the impairment?

Share based payment is that contingent consideration?

Q2) Pensions was in the current issues. It requires the net interest and service costs to be remeasured after curtailment but there nothing in the books on how the calculations should be done. So pretty much messed up there

preference share, it should be debt and not equity? I said it should be debt as directors have option to redeem at par

Q3) Revenue recognition was very hard. Did you guys say it should be recognised over time or point in time?
There was some sort of conceptual framework related question here. How did u answer this?

Regarding cryptocurrency- there was an article on acca website that detailed on how it should be recognised and measured.

There was one more question on how entities have option to use different accounting policies. Again, this was generic but not sure what sort of points should he covered here. Not sure if I had enough to write here.

Q4) was part a as simple as to take numbers and plugging into the formula? Seems too good to be true

The entitity had purchased new entity and transferred asset. But entity didn’t meet the definition of business. Nor did it meet criteria of sale. Should remain in the company’s assets.

Misc adjustments were also there. Didn’t have enough time to address them properly.

Let me know your thoughts