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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.
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 ?
certain conditions
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 disposedI’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
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 ?
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.
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
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