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

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.

This paper was so horrible... i'm sure im gonna have to resit it

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 Q2 Ethics Q3 Intangibles Q4 SME I thought it was ok but never know!

More details: 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

Sure thing hmu @ chaliasif instagram

For the first question how would the gain of bargain purchase and goodwill consolidate in financial statements?i explained about provisions. Is that correct ?

Mine was was a disposal not even a step disposal . Mine was only left with 15% I was starting to panic

Land? Mine was properly and something about a report which came in after period end . Anyone else got something like that ?

Mine had property with a useful life of 20 left anyone else got that?

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

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...

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

This paper wasn’t bad but I spent some time trying to get the excel spreadsheet to work

hello if u would like to discuss this paper abit more please do let me know i have some differences from your answers.

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

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

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

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

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.

Ahh you are right it was an impairment as the market is gearing towards internet sales, did not clock that at all :(

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

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

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.

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.

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

Held-for-sale classification 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

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

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!

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.

agreed man it was horrible experience i hope they consider it aswell