September 10, 2020 at 11:30 am #584644opentuition_teamKeymaster
September 10, 2020 at 12:28 pm #584675gulnarsamadParticipant
What topics were tested?
September 10, 2020 at 12:31 pm #584676adelinelingParticipant
Q2 ifrs 5 and ethics
Q3 ias 38
Q4 ifrs for sme, integrated reporting and ias 19 employee beenfits
September 11, 2020 at 11:35 am #584955maitreyi003Participant
Do you know what the answer for part b for IAS 19 should be , they mentioned if the service period changes or employee leaving the company changes
September 11, 2020 at 3:33 pm #585066faisal1711Participant
what was the difficulty level of paper?
September 11, 2020 at 3:35 pm #585068faisal1711Participant
and what about cash flows question? was it difficult or not?
September 10, 2020 at 12:59 pm #584684
diasterous for me i had to rewrite my answers at last 60 mins as i couldnt find questions basically i clicked at (required at 1 hour left)
left paper like 15-20 marks other was okaish wish i knew it earlier
September 10, 2020 at 12:59 pm #584685porkerParticipant
No time to finish. Surprised the sme standard came out caught unprepared. Anyone knows if the perfume question had IFRS 8 operating segment involved for the last section regarding the internet business ?
September 10, 2020 at 1:03 pm #584690
no it was only ifrs5 cgu
September 10, 2020 at 1:06 pm #584693
No IFRS 8 for me too.
Yeah agree on the time given… really not enough.
September 11, 2020 at 8:24 am #584928
I think just follow the requirement as it asked whether the brand should be subsumed in within goodwill or be separate accounted for. IAS38 states that if the IA is not separable it should be subsumed in within goodwill. It has to be legally or contractually separated either to sell it or use it.
The last part was about indefinite life / definite life of the two new acquisition brand. The directors intended to recognised the brand as indefinite useful life. My opinion was, the first one have long track records, it has good past experience to produce economic benefit for the entity. It should be alright be treated as indefinite useful life. However, assessment would be made each year for the if there is any indication of declining future cash in flow from the continuing use of the asset. Impairment test each year is required by comparing the carrying amount against the recoverable amount.
In respect of the 2nd brand i think not acceptable to be treated as indefinite useful life because it is new.
September 10, 2020 at 1:00 pm #584686jainwandererParticipant
question 1 was disposal and acquisition of subsy
September 10, 2020 at 1:03 pm #584691
I left the whole cash flow question undone, no time.
I was so confused by all the brand questions, could you recognise it?
September 10, 2020 at 1:08 pm #584695
The first brand should be indefinite life and the second brand has definite life. Not sure if am correct.
The acquire of Jengi Co should be accounted separately from Goodwill and also separate CGU.
September 10, 2020 at 1:14 pm #584702
Eek I thought the question was more general how do you determine whether to use definite or Indefinite or the economic useful life of an asset.
I said the directors decide ?
September 10, 2020 at 1:14 pm #584704bea1991Participant
I dont think under frs102 an intangible asset can have indefinate life can it? I thought there was a max 10 years
September 10, 2020 at 1:19 pm #584713
I do remember seeing 10 years. In my notes and thinking about in in the hall.
September 10, 2020 at 1:24 pm #584720
10 years is for SME
September 10, 2020 at 1:34 pm #584728arsdinaParticipant
10 years was for goodwill
September 10, 2020 at 2:15 pm #584747
Goodwill and Intangible Assets is a maximum 10 years unfortunately Arsdina.
September 10, 2020 at 1:17 pm #584711
i dont think it was the right call because trends do change customers tastes change over the time and impairment occur thats why i wrote management should keep an eye on how things are going and review anually for impairment charges
September 10, 2020 at 1:44 pm #584734
FRS102 maximum is 10 years, can’t have an indefinite life
September 11, 2020 at 4:06 pm #585082markfairmanParticipant
The brand questions were IAS 38 Intangible assets. An intangible with an indefinite life is not amortised buy tested for impairment at the end of each period with gains/loss going to profit and loss
September 10, 2020 at 1:10 pm #584697
Also how do you allocate the cash flow from internet sales is it to stores and distribution centre?
September 10, 2020 at 1:13 pm #584700bea1991Participant
I found it quite tricky!
The goodwill calculation i worked backwards to figure out the cash paid but i think i forgot to revalue the associate to the fair value before including that in.
I selected to treat the contract over two years and defer half of it which im now kicking myself over as the control of asset hadn’t passed so i dont think thats right!
I didnt know much what to put about the intangible life i said something like using data from subs, competitors or from the competitors but for six points this was very hard and i wasnt sure id ever seen anything about how to decide that!
Sme was a suprise aswell as integrated reports – the paper was heavily written and not many calculations!
September 10, 2020 at 1:17 pm #584709
Basically just wrote what had happened, step acquisition, associate to sub, control etc etc no time to calculate
September 10, 2020 at 1:19 pm #584712
did exactly the same wrote something in cash flows too and about last 4 marks question i wrote using indirect method would reduce cash flows againist the receipts
September 10, 2020 at 2:07 pm #584745adelinelingParticipant
I used T accounts to solve the cashflows. Pluck in debit and credit. B/f and c/f. Then, balancing figure is the one added or deducted from cashflows.
September 11, 2020 at 8:30 am #584929
I did the same as yours. T account is the most efficient way as we dont have much time to drag there.
September 10, 2020 at 1:21 pm #584716
The cashflows for financing and investing question for 16 marks was very out of the left field I though. I don’t recall seeing any past exam or sample questions like this.
I’ll need to have gathered some attempt marks on this question to get as far as the passmark but I was guessing for the most part so not hopeful.
The rest of the exam was fair I thought.
September 10, 2020 at 1:24 pm #584719
I agree if you revised those topics it’s an ok exam, just that questions were from More obscure areas of the syllabus
September 10, 2020 at 1:30 pm #584725
Yes the question 1 requires a lot of time to complete!
The revenue part is to defer the cash advance if customer paid it (cannot recognise it as revenue first) and the payable amount has to unwind it every year
September 11, 2020 at 4:22 am #584921lukaylParticipant
I had a hunch that cash flow might come up, as I thought I recalled Opentuitiion Tutor here warned us in his video. I did two cash flow questions during my revision, one from Kaplan textbook, one from Kaplan revision kit. Hope I gained enough marks on that question. But I still hadn’t enough time to even comtemplating this final question. 25 marks. I am crying.
September 10, 2020 at 1:31 pm #584726leannemallonxParticipant
Can anyone remember how to account for the construction . 9.55 and the Early payment 8.5
I said it would be at the end when completion is done. IFRS5
Think I done cash 8.5 deferred rev 9.55 finance cost the difference I had a mind blank.
The ethic question was pretty tricky.. I found I just wrote a a lot of honesty and conflict interest etc:
Think I got cash consideration of 3m for q1
Cash flow question will be lucky to scrape 4-5 marks: i just couldn’t think how to start and layout.
Impairment of stores I said should he held for sale for the 6 stores.
The primary should be tested for impair and couldn’t use internet sales through it.
September 10, 2020 at 1:41 pm #584733
Think you are correct on the revenue question, I did similar.
I can’t remember what I for the cash consideration but I was confident enough that my workings were good on that.
For the last question on employee benefits, I had very little time left but completely blanked on that. I said it should be kept at pv of the liability taking the %of employees leaving into account and unwound into the pl over the 5 years. How did people answer that?
September 10, 2020 at 1:47 pm #584737
for this I did
DR: Cash 8.5
CR liability 8.5
Then added the finance charge to increase the liability over 2 years so it ended as 9.55 before being transferred to the customer.
DR liability 9.55
CR Revenue 9.55
September 10, 2020 at 2:41 pm #584754
I said that revenue would be recognised overtime and that $8.5 was incorrectly recorded in revenue.
I discounted the 9.55 back to PV and dr bank and credited deferred income.
September 10, 2020 at 3:37 pm #584784
Yeah same as me I believe.
As at the start I was increasing cash and also increasing the liability (deferred income) by 8.5.
Then unwound so by the end the liability of deferred income was 9.55 due to the finance costs over 2 years and then got debited and then revenue credited 9.55 when control passed to the customer.
September 11, 2020 at 8:41 am #584932
I think those self interest, advocacy is applicable and can bring in for discussion. As i remember, the scenario did mentioned that the customer is approaching the chief accountant and offer him a good employment post. I think from practical view, he actually has two option either to accept the offer, or to consult with someone like his superior/management. Since it is not good to turn down the offer from business point of view, but assessment of the customer credit risk would be needed since the scenario did tell customer are in bad credit rating ie cash flow tight.
Another issue is something like block chain technology that the company are promoting. I think technical competence and due care, professional behavior, integrity might be relevent as the chief accountant aware himself do not have the knowledge yet he promise the management that he can handle the project. He should have been be honest, not to discretion the profession. He is recently qualified as ACCA member.
But most importantly is what action he could do as the requirement specifically asked for that. So might need conclude with that to gain the professional marks. I guess…
September 11, 2020 at 1:49 pm #585027
I answered same as you. Literally the same. So we must be both correct!
September 10, 2020 at 1:36 pm #584730leannemallonxParticipant
For the pension q – increase in salary and decrease of people leaviNg both mean that the pension libialoty will become more did anyone else right that?
And the cash flow pension w I said the re measurement won’t effect cash flow only the payment of 2m:
September 10, 2020 at 1:48 pm #584739
Ya I did regarding the pension. Did you unwind it over the 5 years?
Fo the cashflows statement, because the actual payment was after year end for the pension, I said it should be added back into the cashflows statement as a payable should have been booked. Unsure on it thought
September 10, 2020 at 1:38 pm #584731
Only the contribution and benefit paid will affect cash flow I think was all I could scrape for the question
September 10, 2020 at 1:46 pm #584736
September 10, 2020 at 3:35 pm #584781
The benefit paid will not affect cash flow because it is not a cash flow from the entity but from the pension company. The remeasurement will not affect cash flow. The net interest component and the service cost will need to be added back as it decreased the operating profits.
September 10, 2020 at 1:48 pm #584738karonline81Participant
Cashflow question threw me completely, i’d be lucky if i i get 5 marks for it. Overall tricky questions with not enough time to answer, it will be a resit for me i guess
September 10, 2020 at 2:14 pm #584746drenibaParticipant
The first question was split into 1) step acquisition 2) cash flows from investing and financing activities and 3) defined benefit obligation/pension and the impact it will have on cash flows.
First part was fine, got a cash paid figure of $5 or 3mn, cant remeber by working backward from goodwill. Anyone else got the same figure?
The second part was a nightmare. Spent so much time on the first part was rushing the second part. Skipped the qs with the intention of coming back to it later but didnt have the time.
Last part was a simple expanation of the impact on defined benefit obl on cashflows.
2nd qs – 20 marks – relatively easy. Got slightly confused with the recognition – decided it was at a point in time (2yrs from then) so cant recognise anything until then. Borrowing costs can be capitalised for qualifying assets etc if certain conditions are met.
Ethics – simple – apply the 5 codes
3rd qs – OK-ish regurgitating intangibles knoweldge. First qs was generic – discussing why its hard to recognise intangibles – active markets, costs measurements, seperability etc Focused on FRS102 and intangibles.
Remember one was about assets held for sale so regurgitated under FRS discontinued ops are shown in more detail etc vs IFRS and continue to be depreciated
One of the eprfumes can be recognised on the acquisition, the other brand cant (Clara) – estimates must be made of useful life
Last qs was a load of crap – SME’s skiped this chapter in my revision. Managed to blag a little bit about integrated reporting and the rmeasurement component part.
All in all, way too little time for these papers. 3 hrs is just not enough.
September 10, 2020 at 2:18 pm #584748
I got a cash figure of 4 when it balanced, with a profit on revaluation of the previously held interest of 0.4.
This includes the upwards revaluation of land at 0.6 added to the NA of the sub.
September 10, 2020 at 3:40 pm #584785
Agree. The exam itself wasn’t hard to be honest, found it easier than F7. However all the ACCA exams are too time intensive. I don’t lack knowledge, only fail on time management as I didn’t get to reach the last 25mark question. Spent like 1.45hours doing question 1.
September 11, 2020 at 8:55 am #584936
My opinion about that question is IFRS 5 and IAS36 and IAS 37 can be relevant.
IFRS 5 apply because the store is already closed during the financial year. Despite the director is unwilling to classify for that nor he is willing to disclose. But the standard still requires the company to reclassify as per IFRS5 and disclose as discontinued operation.
Before reclassification, it needs to conduct impairment test and recognise at the lower of CV and FVLCTS (more relevant as no more operation means no future economic benefit, VIU less relevant) because uncertainties surrounding the situation.
IAS37 provision should be consider if there’s any constructive / legal obligation arising from those closure ie compensation to those affected employees/other cost incurred (but not future cost).
September 10, 2020 at 2:23 pm #584749
For the shares, I calculated as 1500 shares multiplied by the mv per share at day of acquisition, then added the fv of associate at date of acquisition and nci to get the total consideration before cash.
Then adjusted the fvna for land.
Then worked backwards to get the cash figure. Have a blank now as to what figure I got thought.
September 10, 2020 at 4:03 pm #584804
Yes that was what I did. The cash was 3million which was the balancing figure.
I think the fair value trading investment with all the dividend included threw me off as I didn’t bother calculating the cash amount as was too time pressured.
September 10, 2020 at 2:23 pm #584750
For the cash flows question, my 5 workings were PPE, Investment in Associate, Investment Income, NCI and Intangible Assets. Then just got the b/f and c/f figures from the SOFP and added all the figures in from the SOPL and also the dialogue of the question. Then the balancing figures were cash inflows or outfows.
Then the acquisition of the sub was the answer for cash paid from question 1 minus the cash the subsidiary held already.
There was also an increase in share capital of 3000 (cash inflow)
Sale of the investment asset (4500 outflow)
Purchase of associate (5000 outflow)
Anyone else with similar workings?
September 10, 2020 at 3:02 pm #584766porkerParticipant
bruh I think its more than 3k looking at the share premium
September 10, 2020 at 5:25 pm #584825
That’s not right. The cash received from the sale of shares should take into account the share premium.
September 11, 2020 at 4:39 am #584922lukaylParticipant
I completely forgot now: there purchase of associate happened in the year? I can’t recall.
September 10, 2020 at 2:38 pm #584753reeyaParticipant
Was it a self generated brand?
September 10, 2020 at 2:49 pm #584759
Q1 was a disaster and completely caught me off guard. I don’t I’ve ever seen a CF question where I had to calculate from investing and financing activities. If I get 4/5 I’d be lucky.
I thought the rest of the paper was ok. No hidden standards where you had to try and figure out which standard they asked.
Was surprised that ethics question was 12 marks (10+2 for relating to scenario).
6 stores I said met HFS but the remaining didn’t as they didn’t meet the criteria set it under IFRS 5.
SMEs was surprising also and glad I revised that last night before exam just said it’s not based on size but accountability and then took IAS 38/IFRS 8/IAS 34 and compared IFRS’s for SME’s to IFRS full standards.
Integrated reporting is always a hot topic and APMs in relation to investor decisions so I just yapped on about those but not sure if it’s what they wanted.
I said the current service cost should hit the P&L but the my calc was rubbish! It asked if the 3% increase was above what they predicted and I mentioned the asset plan would hit the asset ceiling and there would surplus and they’d have to think about their recoverability but that could be pure rubbish ahaha and the decrease in probability would increase the pension liability and they’d have to put more money into the fund also.
Not sure but if I do pass it’ll be from Q2-4 and nothing to do with Q1.
September 10, 2020 at 2:58 pm #584765nighteyesParticipant
I’m seriously annoyed with the ACCA over this exam. However I didn’t feel it was a disaster, it was just very bloody difficult. My main issue is that all the talk in the run up to the exam was about this being a discursive exam requiring us to read around the subject, with far more marks for the discussion than any calculations.
So what do the ACCA do? They throw in a SIXTEEN mark question all on calculations with “No discussion required”.
MAKE YOUR BLOODY MIND UP, ACCA!
I’ll be lucky if I got 6 out of the 16 there.
The SME topic threw me as well, glad I’m not the only one. Overall I reckon I failed this, probably with a score in the low to mid 30s.
September 10, 2020 at 3:16 pm #584767mania87Participant
There is no chance to complete such exam in the time given. Question one worth 30 marks was more than disaster. Revised for this exam since 6 months and I have no doubt I failed it. Unfortunately I think that ACCA is not about qualification and etc, it is all about money! It is done in the way that there is not enough time to ensure that most of the people will fail and pay for another exam. And this is not only my opinion, everybody says so :/
September 11, 2020 at 4:13 pm #585087markfairmanParticipant
Its certainly a strange way to test people under such time constraints. I suppose the are thinking the knowledge should be so crystal clear it should just flow out without the need to much consideration.
However in reality its not a realistic scenario for accountants to work in. You would not hand over a rushed piece of work to anyone unless you had time to review, think about it and check it.
September 10, 2020 at 3:26 pm #584775zzzongParticipant
:sold associate and purchased sub
And backward calculation for cash consideration from goodwill
Calculate balance figure for ppe intangible financial asset equity and associate..
Db – mislead the user as this would add it back so showing cash is in entity …
Dont know what i done..
Revenue recognised over period /discount should be applied + unwind (but i use 8.5 and thinking now 9.5 should be used..)
And captialised under borrowing cost
Self interest professional competence …etc for ethic
Intangible : No active market difficult to identify..seperately…
acquistion of ??- should be separately account from goodwill…
Clara not indefinite life other indefinte..
Not held for sale as difficult to find active buyer even if it met requirement.. not highly probable maybe…dont know why i wrote this…
Dont know internet something..
Sme is okay to compare full ifrs
No idea about information
No idea about calculation for db
Increase liabiliy due to salary and logevity risk and entity should bear.. even if it does not have sufficient asset in the plan
I will prepare next exam for SBR…….
hate defined benefit… hope i just got 50%…
September 10, 2020 at 3:35 pm #584782chaliasifParticipant
The paper was overall okayish for me
Q1) i got 3m cash and the res 9m shares had to work backward by adding the revalued net assets and all
B)it totally threw me off i just did t accounts and the balancing figures i got i put em in the investing and financing was just the increase in shares and premium
C) i said service and interest cost need to be added back thus will increase the cash generated from operating activities since cotribution had not been paid.
Q2) control was passed at the end so deffered income to be recorded now and revenue at the end of 2nd yesr and borrowing cost to be capitalized
B) i just calculted the pv of 9.5m and wrote the entries but opposite entries by mistake(ik such a dumb mistake to be loosing marks) i credited the cash and debited the deffered income plus the borrowing cost which needed to be capitalized :/
C) was okayish the accountant is looking to secure a permanent job so self interest
And not having skills but going to provide service professional behaviour not in compliance and should take legal advice if in violation of local regulations
3) first part was theory
No active market
Hard to comapre with other brands due to being brands of such nature
B) i wrote a mixture of ias 38 provions for restructuring and ifrs 5 (it wasnt saleable in its current condition so not meeting the ifrs 5 criteria)
ii)first brand can be recognized as its well established
Second brand can not as once the actor goes poof the brand will too so definite life
iii) internet sales to be recorded seperately as theyre a different cash generating unit not working anyhow in relation with that specific store
4) luckily i read one question about ifrs for smes so just stated that its made for smes so they can apply those critiera and dont need the heavy disclorues and all which the public entities do and just gave example for no revaluation for certain assets in sme ifrs and all intagibles to be anortized over 10 years if uncertain usefull life
B) it will help investors to make decisions based on those ifrs for smes since if not followed management can be biased to show optimistic position and investors won’t have enough confidence without smes following a certain framework
C) just rubbish about how the intellcual human and natural capital will help them to create value can be reported in IR and how other relevant information which some investors look for will be available to those investors and will help the entity to follow a reporting layout so can be comapred this boosts shareholders confidence
B) almost blank (left for the end) just pv of the increase due to the salary didnt even have time to think about calculating the probability too ?
C) both will increase the pension cost as more employees will stay in employment and if salaries increase then higher future value thus more cost
I just hope i pass this attempt can’t even think about re studying and taking the exam pressure again wish me luck
September 10, 2020 at 5:36 pm #584829
Your answers are pretty much same as mine except that didn’t reach the last question for the 25 mark! Also I made a silly mistake free reading up here about the cash flow question as I didn’t read the question properly and included the cash flows from operating activities. Wasted so much time there, otherwise I would have had a good crack at the SME and benefits as I studied well for those topics!
So gutted as all these ACCA exams are so time intensive which I think 3 hours is not a realistic time to complete the exams confidently.
September 10, 2020 at 3:53 pm #584795fagbkennyParticipant
Q1 – 16 WHOLE MARKS ON CALCULATIONS ONLY IS SOMETHING ELSE…discussion would have been fair
Q2 – ETHICS WAS FAIR ENOUGH
Q3 – MIX OF INTANGIBLES/IMPAIRMENT/DISCONTINUED OPERATION…..GOOD MIX
Q4 – SMEs…garnished with INFORMATION ASYMMETRY (like are you kidding me?) and INTEGRATED REPORTING…fought for part of the 20 marks
Hoping to cross the line in 6 weeks.
September 10, 2020 at 4:10 pm #584807taimemalickParticipant
I gave remote CBE. My question paper was a little different and easy!
Q1 – It was acquisition and disposal of subsidiary (Goodwill calculation/Land fair value within 12 months/consideration to be used for another subsidiary acquired)
This was pretty straight forward question. A bit confusing wordings of the question but okayish.
Q2 – Research and development cost/ Ethical issues regarding consolidation and change of year end of a subsidiary
Not sure about research and development cost but it was a good mix.
Q3 – Mixture of intangible assets(brands) and Ifrs-5
This was a pretty good question on ias38 and ifrs5
Q4 – IFRS for SME / Integrated reporting / Employee benefits
This was a good question if you had studied SMEs. Didnt require too much knowledge. I say it was a not too tricky not too easy.
September 10, 2020 at 6:45 pm #584859
Mine had property with a useful life of 20 left anyone else got that?
September 12, 2020 at 3:33 pm #585340
I had that one in question, revalued with 12month measurement period, it should have been adjusted to accounts and depreciated over remaining useful life. I also mentioned that “lack of information for the remaining life, I would use 20years as previously and adjusted back to accounts)
September 12, 2020 at 3:34 pm #585341
I think me and you had same paper, I did not see cash flow question at all. No revenue neither.
September 10, 2020 at 4:12 pm #584811kimayaParticipant
Consolidated Cash flows -_- financing and operating activities .
Investment in Associates
Held for sale / discontinued operation
Employee Benefits in dept -_-
SME’s + Intergrated reporting in depth -_-
It was partially depressing .
September 10, 2020 at 6:43 pm #584857
Land? Mine was properly and something about a report which came in after period end . Anyone else got something like that ?
September 10, 2020 at 5:02 pm #584820midharahulParticipant
Depressing paper… never thought such difficult questions would appear in the exam.
September 10, 2020 at 5:06 pm #584821IevaParticipant
Anyone else think that CBE exams should have printouts of the scenarios and questions? I found that it was sooo time consuming and inefficient when you need to have many screens open to put one answer together…
September 10, 2020 at 5:16 pm #584824
Would make life so much easier
September 10, 2020 at 5:33 pm #584827mania87Participant
Agree!!! This would be so much better!
September 10, 2020 at 5:41 pm #584833
That’s for all the computer based exams I think. Too much time spent fiddling with multiples exhibits windows. Not fair to allocate same exam time as paper based as working on the computer is more time consuming with all the windows and clicking to find the right one and refer to it moving it around so it doesn’t obscure the view of the spreadsheet to answer.
September 10, 2020 at 5:51 pm #584838nighteyesParticipant
Absolutely! The issue with multiple windows open for me was exacerbated by the computer I was allocated at the test centre. The monitor was a tiny 14″ widescreen monitor that was really low to the desk. I’m 6’2″, my neck was aching from hunching over the desk to look at the bloody screen. I’ll be mentioning this when the ACCA ask for feedback on the test centre.
Printed sheets of all questions to refer to would have been very helpful.
September 11, 2020 at 1:09 am #584915
I really think that with these exams there should be two monitors in order to work efficiently otherwise a lot of time is wasted clicking back and forward on multiple windows in order to refer to the figures and scenarios.
These exams were previously paper based exams which eventually changed to computer in order to mimic real world workplace environment. Arguably these cbe exams is still early days so if enough people give feedback on the insufficient time allotted for each exams and the damn issues with the windows, it would help future candidates.
September 12, 2020 at 3:35 pm #585343
I prefer paper too, I kept mis typing and correcting my wording. Sometimes I lost in the middle and difficult to trace back to change my wording.
September 10, 2020 at 5:47 pm #584836
anyone who feels like dicussing the paper?im really confused right now if anyone wants please do tell me (if not allowed delete)
September 10, 2020 at 5:55 pm #584841sxhawtyParticipant
This paper was so horrible… i’m sure im gonna have to resit it
September 10, 2020 at 6:04 pm #584844
Huh how come the exam questions are different for everyone?
Mine was CBE at a centre and it was
Q1 Goodwill, Step disposal – couldn’t figure out the carrying value of the NCI
I thought it was ok but never know!
September 10, 2020 at 6:20 pm #584847
Q1 Goodwill – Bargain goodwill I calculated at $30m I think – to be expensed to P&L, Step disposal – explained the steps but couldn’t figure out the carrying value of the NCI
Q2 Ethics – Familitary, self interest and intimidation threat, KPM, sell of shares and then the usual spew of get advice from ACCA etc.
Q3 Intangibles life – i said the first one was indefinite as they have a secure brand, the newer one i said might be linked to the actress who might die lol so its not indefinite
Properties I explained the criteria for held for sale but it didn’t really meet the requirements i feel as it wasn’t on the market.
The other 6 properties I explained about provisions and there has been no management plans and told to those affected etc.
Impairment on new store didn’t need to happen as in line with management expectations
Q4 SME – I explained that they didn’t have to include assets held for sale, interim reporting etc, then i explained certain things they can’t do e.g. revalue intangible assets and then things that are simplified for them e.g. borrowing costs to P&L etc.
I couldn’t think of why having no information would defer investors except that they don’t have enough info to make economic decisions
The share stuff – i said PV of salaries * 1% * 75% over 5 year vesting period equals like $0.0014m
The rest should be recognised in liabilities
And then if salaries rises by more than 3% then work out things retrospectively and recognise remaining amount in P&L in YR2 after deducting YR1
September 10, 2020 at 6:37 pm #584851
For the first question how would the gain of bargain purchase and goodwill consolidate in financial statements?i explained about provisions. Is that correct ?
September 10, 2020 at 7:00 pm #584865
gain on bargain purchase happens when the consideration paid is less than the net assets of the company – should be expensed to P&L not recognised as negative goodwill – I think…
September 13, 2020 at 7:48 am #585405hussainalalawiParticipant
profit not expense in P&L.
September 10, 2020 at 6:50 pm #584862
Mine was property with a useful life of 20. I was asked to compute the gain on disposal .
Was was left as an associate and not a step disposal I got a bargain purchase of 32 though. Had to adjust for a 2 m liability which a provision was made for
September 10, 2020 at 7:03 pm #584866
I had the property question too I think that was the step disposal – the one i couldn’t work out the carrying value of NCI one
They had 15% of shares remaining if I remember I said to account for that as a financial instrument I think as it’s not enough stake to be an associate
I adjusted for the $2m provision as well I think – don’t remember what my number for gain on disposal was
September 10, 2020 at 7:22 pm #584872
hello if u would like to discuss this paper abit more please do let me know i have some differences from your answers.
September 10, 2020 at 9:24 pm #584899
I allocated the dividend percentage to the dividends to the Nci , calculated post acquisition change accounted for the depreciation and got a loss on disposal . I wasn’t sure what the 1 m loss had to do with.
September 12, 2020 at 3:43 pm #585347
Bargain purchase will go to profit and loss.
September 10, 2020 at 7:18 pm #584870
This paper wasn’t bad but I spent some time trying to get the excel spreadsheet to work
September 11, 2020 at 3:39 am #584919wigjiminParticipant
the question said with an increase in the salary of 3% every year so in calculating the pv arent you supposed to increase by 3% every year and then consider the leavers and discount it idk i might be wrong
September 11, 2020 at 10:10 am #584942
Yep did the 3% increase first and discounted to PV 🙂 Hopefully its right
September 11, 2020 at 9:20 am #584937
The closure of 6 stores should take into account for impairment because the scenario did states that many other stores similar to the the entity operate were closed. Means there are uncertainties surrounding and should conduct impairment test as there are indication (from externally ie market).
The scenario also mention that the stores was closed , essentially it should be classify and non current asset held for sale and discontinued operation. IFRS 5 requires reclassification and disclosure if its happened in the financial year.
September 11, 2020 at 10:11 am #584943
Yeah I agree just didn’t manage to figure it out in the exam :'(
Hopefully I still get enough marks for my held for sale and provision explanations
September 11, 2020 at 9:41 am #584940
Somehow i feel like in the question 4 bi, is related to IAS 19 and IAS 37. Firstly, It says define benefit liability arising due to the current cost expected to be deliver as per the promised term and condition if the employees remain with the company.
IAS 37 says there are 3 criteria for recognition, cost, probable outflow and past event and these three criteria have actually met. It was probable 75% of the employees will be remain with the company, 3% increase in remuneration each year from 2013. As such, the cost can be reliably measured.
Therefore, 1% should be taken up as a current cost to PL and the other corresponding entry by increase each respective years defined obligations these cost meet the liabilities/provision as per IAS37.
September 11, 2020 at 10:25 am #584944
Wow how do you remember all the standards names!
Did you not discount the 3% raises to PV then?
There were some notes saying gains were to be reclassified to OCI though so I think they were getting at if the closing balance was higher than the actuarial estimate then it should go to OCI instead of asset ceiling? I don’t think i wrote that in the exam though
September 12, 2020 at 3:37 pm #585344
NCI is given in the question, use the retained earnings to adjust NCI for disposal calculation.
September 10, 2020 at 6:41 pm #584855
Mine was was a disposal not even a step disposal . Mine was only left with 15% I was starting to panic
September 10, 2020 at 7:25 pm #584873huydgkuwehParticipant
I did the UK version.
Q1 – disaster for me. I revised the operating activities, but they test financing and investing activities.
Q2 – I feel okay
Q3 – FRS 102 does not deal with assets held for sale
Q4 – another disaster
September 10, 2020 at 7:32 pm #584874
Ques2. it mmet the criteria of NCFS as they are closed held for sale actively looking for a buyer determined to sale within 3 months what else u need my man
September 10, 2020 at 7:44 pm #584881
I don’t think it said it would be sold in 3 months it said it was going to be put up for sale in 3 months after the liquidation sales so it wasn’t on the market yet
September 10, 2020 at 7:59 pm #584884
it said it was to be sold in 3 months(1 year is maximum time and 3 months is quiet a time to find buyers) they are actively looking for a buyer while its closed no longer functions andd u had to tell how they will accounted for i.e no deprecation in the year valued at lower or value in use/fv less costs to sell stuff plus the management have announced and have an active plan to sell it.
September 10, 2020 at 7:55 pm #584883huydgkuwehParticipant
If you did the SBR (INT) you are correct. But the UK FRS 102 does not have ‘held for sale’, the manager’s intent to sell the asset is an impairment indicator
September 10, 2020 at 8:03 pm #584886
Ahh you are right it was an impairment as the market is gearing towards internet sales, did not clock that at all 🙁
September 10, 2020 at 8:23 pm #584889
so u had the UK variant or INT? for INT it was a NCHFS i believe all the indications were giving us a sign u can read them in INT notes aswell
September 10, 2020 at 8:33 pm #584890
I had INT variant but I disagree that the held for sale criteria was met.. although I said the criteria wasn’t met I did go on to explain what would happen if the asset was held for sale instead of stating that it should been accounted for as an impairment
September 10, 2020 at 8:51 pm #584896
In general, the following conditions must be met for an asset (or ‘disposal group’) to be classified as held for sale: [IFRS 5.6-8]
management is committed to a plan to sell the asset is available for immediate sale an active programme to locate a buyer is initiated the sale is highly probable, within 12 months of classification as held for sale (subject to limited exceptions) the asset is being actively marketed for sale at a sales price reasonable in relation to its fair value actions required to complete the plan indicate that it is unlikely that plan will be significantly changed or withdrawn
The assets need to be disposed of through sale. Therefore, operations that are expected to be wound down or abandoned would not meet the definition (but may be classified as discontinued once abandoned). [IFRS 5.13]
if you see this you would know that the shops were abandoned which meant they are closed because of switching to internet sales
September 10, 2020 at 8:42 pm #584893
Yes I had the INT variant and said it met the criteria as HFS as mgmt are committed to the sale, they actively were looking for a buyer and the sale would occur within 12 months, the liquidation part threw me off so the only thing I mentioned (not sure if I was right on this though) was the reasonable price wasn’t mentioned but you wouldn’t know a reasonable price until liquidation was finalised.
I see a couple of people say they didn’t met HFS but nice to see someone else treat it as NCAHFS.
Good luck to you both next month
September 10, 2020 at 8:57 pm #584897
yah and in kaplan kit i read somewhere that if management has formal and detailed plan ready to close them and sale and are looking for buyer it clearly over rides other requirements idk maybe i read it wrong
September 10, 2020 at 9:19 pm #584898
Also, the 12 month rule can be extended if it’s beyond the control of mgmt and I would assume if liquidation was to longer than 12 months that would be out of mgmts control.
Fingers crossed for everyone. We all deserve to pass after sitting that horrible paper. You’d think ACCA would be a little bit nicer considering what we’ve all been through the past 6/7 months.
They are all about money now it’s sad to say!
September 10, 2020 at 10:28 pm #584903
agreed man it was horrible experience i hope they consider it aswell
September 12, 2020 at 3:49 pm #585350
Held for sale, I think most of the the conditions are met, I did originally define it as held for sale, however there is no information about the sales price which is reasonable to fair value in the market, without the sales price, how to locate a buyer?
September 12, 2020 at 3:39 pm #585345
I had same with 15%left, changed from consolidated accounting to IFRS 9. From control obtained to control lost, remove goodwill and NCI from accounts and treat 15% by applying IFRS 9.
September 10, 2020 at 8:34 pm #584891alexsteel1Participant
On question one, did anyone else get thrown by the fact it said to value the NCI and original investment at the share price $3.80?
I got a strange number for the cash paid, so was probably wrong.
Don’t think I picked up many marks on the cash flows question either.
Feel like they tested some obscure topics on my exam, that weren’t really covered before.
September 10, 2020 at 8:36 pm #584892rochellevParticipant
Q1 cash flows – 10 marks for calculating the cash paid to acquire additional shares in associate (holding is now subsidiary). Part payment was also made via share issue.
Several workings needed for this (FV existing holding, FV NCI, FV uplift land etc, work out FV of shares transferred). OK, fair enough. If it stopped there.
I also arrived at the 3million cash paid as several others. You also had to describe the effects of the changes in consolidated statements in general.
Was then required, for an additional 16 marks, to prepare statement of cash flows from investing and financing activities with possibly the largest amount of supplementary notes for adjustments I have seen in a question, on TOP of the work undertaken to obtain the figure in the first 10 mark question.
No employer would expect you to prepare all of that, with any level of accuracy or completeness, in one hour, which is roughly the time you have if you stand any chance of completely the other questions, so I am unsure why ACCA expect us to do so, let alone in exam conditions.
September 10, 2020 at 10:29 pm #584904
For the selling and closure of the properties I spoke about the restructuring of the properties that it applies when there a closure of a line of business or the business is location to a different location. Furthermore if they is a sale or closure they need to generate a contract that states the reasons behind the closure of the business and the objectives of it. Moreover The employees needs to be aware about the closure of the business before this happens and needs to be stated in the contract. Is this correct ?
September 10, 2020 at 11:05 pm #584907
1. readily available
2. management is determined and has a formal plan
3. buyer is actively located
4. done within 12 months of classifying
5. is closed or disposed
September 10, 2020 at 11:09 pm #584908
I’m assuming you are talking about the IFRS 5 question on the INT variant? Not too sure, it sounds like you are talking about a discontinued operation. A discontinued operation is an operation that has ceased during the period or a disposal group held for sale and is a separate major line of business or geographical area. I can’t really remember the question now but I don’t remember them giving too much information about that, they focused more on the IFRS 5 within the question but this is what ACCA make us do, doubt ourselves haha
September 10, 2020 at 11:38 pm #584910
its non current assets held for sale and that was all of their 6 shops in italy thats a geographical line of theirs thats closed my man.
September 10, 2020 at 11:16 pm #584909
Hmm and for IR I wrote that integrating reporting is used to help build relationship with other investors and stakeholders, it help to ensure that employees are working in a safe environment and the top level management are working with integrity and are independent, it evaluates the financial position of the company and let’s builts confidence in companies to invest in order companies. All these factors are possible if the investor evaluates the integrating report. Is this correct ?
September 10, 2020 at 11:39 pm #584911
IR basic purpose is to give insights of how a business will create wealth for the owners using capitals and resources while giving info about future as well as past using APM too
September 11, 2020 at 8:31 am #584930melwyn69Participant
The SBR remotely held CBE exam was a disaster. It took more than an hour to connect to Onvue after which it took more than 20 minutes to check credentials and photos. This added to stress which was multiplied by the exam format with several windows to be opened on a laptop, which couldn’t be resized to fit the laptop making it difficult to read without closing and opening them several times and toggling between the windows. Further, to worsen the situation, the tab key did not work in the word processor to input figures at a distance. Had to use the space key multiple times to input the figures in an orderly fashion. All this took considerable amount of time and ultimately resulted in insufficient time to complete the exam. As a result, I didn’t have time to answer the 2nd question of the B Section.
ACCA should have checked the word processor and should have considered extending the exam time knowing that the students would neither be having a paper based exam nor a sufficiently large screen to fit all windows so as to enable read and write at the same time.
September 11, 2020 at 10:26 am #584945nazmul2015Participant
Great exam! tailored to keep the pass rate down as the June 20 exam was cancelled. Pretty shameful!
September 11, 2020 at 11:33 am #584954maitreyi003Participant
Hi Guys, do you remember on Q1 reverse goodwill, did it ask for just the calculation or did it also asked us to explain ? I am not sure if i explained it , i only calculated.
September 11, 2020 at 1:53 pm #585028
For the question how will goodwill and gain on purchase consolidate in financial statement? I wrote according to ias38 intangible will be measured at cost and revaluation model and if the revaluation increases the asset it will be recorded in oci with revalution surplus within oce and if revaluation decreases the asset it needs to be recorded within p&l this is how goodwill will be recorded. Hope this is correct ?
September 11, 2020 at 7:48 pm #585179aditya7Participant
it was a horrible paper, didn’t expect hard questions on cash flows it was just too much information and also 16 marks or so for only calculation. Didn’t expect IFRS for SMEs as well.
September 12, 2020 at 3:05 am #585223rafiullahParticipant
it was computer based??
September 13, 2020 at 9:34 am #585423ajithsak1030Participant
OMG such a lot of information to go through ..level of hardness ok but time pressure made me just basically run through Except EBP question.
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