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

yes you aint wrong either hopefully we all make it im not sure about myself tho 🙁

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

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.

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.

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.

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).

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.

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

Great exam! tailored to keep the pass rate down as the June 20 exam was cancelled. Pretty shameful!

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

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 ?

and what about cash flows question? was it difficult or not?

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.