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

Hi all, did any candidate sit the UK sbr paper??? if so, please can you remember what Q 3 UK parts were, many thanks in advance for your efforts, to any reply.

To be honest, there were questions which I have never came across in Study Text, Mock Exams, Revision Kit and Past Papers(mainly Question 1 and Question 3) Q1: I calculated assest value to and adjusted to fair value of USD 24 mln +1mln site preparation for residential area. The concept was that highest and best use, aslo legally permissible. I including whole 25 mln in goodwill calculation as it was said that "fair value of net identifiable assets excluding the following asset". Then calculated goodwill fir both NCI versions. Share based payment part of this question was a question that I have not seen before. So I did not figure out how to calculate consideration with SBP. Only thing that I did, Consideration+15 mln+5 mln(additional due SBP change) Q2: It was easiest part. Advance payment is deferred revenue so it is liablility. Preference shares with the option to convert to equity is Compount instrument so liability(asset) and equity part should be separated and recognized in Financial Statements. Deferred tax asset should be recognized when there is evidence for future gains, to whch against these tax assets could be utilized. There was no sign of future profit. So it is not deferred tax asset. Ethich part talked about, self interest and intimidation threat as link to professional ethics Q3: This question was also difficult. For license I said that, it is single performance obligagtion as technical support and update side cannot be sold as separate performance obligation. It is linked to the license. I recongnized shares as financial assets in customers interets as it gives voting rights also(do not exactly whether correspondent Liability part should be recognized). For royalty, I said that it is perfromance obligation satisfied over time, so royalty should be recognized when the customer sells music to open public. There was a joint arrangement. I treated it as Joint Venture as each company has equal shares and contribution to the Joint Venture. About the derecognition of assets I wrote that, it such sale of an asset to other company at fair value, so gain should be recognized(not sure whether it is correct). Unfortunately, I recognized cryptocurrency as Financial Asset(but it is intangible asset), and said further recogniion will depend on business model of the company(whether at amortized cost or fv through profit or loss) I have no idea about the amendment to Defined Benefit Plan. I wrote common sense, why calculation of net interest cost and current service cost is important. I calculated current cost at adjusted value 6 million and net interest cost at year end value x discount rate. Q4: It was about ROE measure. The first part was about accounting policy and I wrorte here common sense why some companies choose different accounting policies. Calculated ROE measure as Net Profit/Equity as all other figures eliminates itself in the formula. I only adjusted Net Profit figure by subtracting share of profit of associate and equity part by adding back shares which company has bought back. All in all it was difficult exam. Past Papers were much morer easier. Hope will not fail

@geologist81 said: Question 1: 7pts, why is the replacement cost of 17 mil not a good fv for the building ? This is IFRS3 FV measurements, non-financial assets FV are based on highest and best use if the conditions, that it must be financially and legally feasable, are met, which it is. The market value of the building, for residential use, was 24 mil and also demolition plus permit costs of 1 mil. I did include this to come to a FV of 25 mil, but I was not fully sure if I had to include the 1 mil in the FV ??

I had calculated the FV of the building as 23 mil - do you not deduct the demolition costs of 1mil from the market value of 24mil to get the net amount? This is the cost to bring the asset to it's highest and best use (residential use). I may have misread the question though!!

For the license I stated that the revenue should be recognised over time as the customer simultaneously received and consumed the benefits

@jessicafraser said: I had calculated the FV of the building as 23 mil - do you not deduct the demolition costs of 1mil from the market value of 24mil to get the net amount? This is the cost to bring the asset to it's highest and best use (residential use). I may have misread the question though!!

Ditto - i also got $23m. IFRS 3 explicitly states to expense any acquisition costs to the SPL.

Does anyone know the correct treatment of share based payment replacement awards as consideration for acquisition?

This right here is how I felt in the exam room!! Graham Holt what was that??

I’m eagerly awaiting these results to see how badly I failed... Or just maybe squeezed 50 marks. Who knows!? One thing I’ve learnt about ACCA is you can never be sure whether it’s a pass or fail. The exam was brutal so will be amazed if I’ve passed - by the looks of it everyone is of the same opinion... I doubt the average pass rate will be 50 / 49 % this time round!