SBRACCA Paper SBR September 2020 Exam was.. Instant Poll and comments

What topics were tested?

Q1 Cashflows Q2 ifrs 5 and ethics Q3 ias 38 Q4 ifrs for sme, integrated reporting and ias 19 employee beenfits

Q2: ifrs 15 / borrowing cost Q3 : intangible asset / ifrs 5

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

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 ?

question 1 was disposal and acquisition of subsy

anyone wants to discuss im quiet worried

no it was only ifrs5 cgu

I left the whole cash flow question undone, no time. I was so confused by all the brand questions, could you recognise it?

No IFRS 8 for me too. Yeah agree on the time given... really not enough.

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.

Also how do you allocate the cash flow from internet sales is it to stores and distribution centre?

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!

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 ?

I dont think under frs102 an intangible asset can have indefinate life can it? I thought there was a max 10 years

Basically just wrote what had happened, step acquisition, associate to sub, control etc etc no time to calculate

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

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

I do remember seeing 10 years. In my notes and thinking about in in the hall.

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.

I agree if you revised those topics it’s an ok exam, just that questions were from More obscure areas of the syllabus

10 years is for SME

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

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.

10 years was for goodwill

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:

Only the contribution and benefit paid will affect cash flow I think was all I could scrape for the question

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?

FRS102 maximum is 10 years, can't have an indefinite life

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