*** December 2024 ACCA SBR exam – Instant Poll and comments ***

Does anyone remember what was the morning session question 2? The first part was Mr Admir and ethics, but what was the second part of question 2??

These are the questions that I recall. Which ones am I missing?

1) Consol – Impairment of Goodwill, Disposal of Sub to Associate, Research & Dev costs treatment & Deferred tax
2) Mr Admir Ethics and Professionalism.
3) Wind farms expected useful life, Wind farms additional disassembly and lower scrap value, Inventory to NRV,
4) Scooters, Trains, Taxis – Segment reporting
5) APM Adjusted Earnings, Operating Profit
6) Provision & contingent liability
7) Sale & Leaseback
8) Sustainability

Mine was okay. Wanted to ask the treatment of pay or get contract in Q3, was that onerous contract ?

I had stated it was onerous.

This was my exam:

Q.1 acquisition of subsidiary.
How to treat an equity instruments – (JV) in the individual and consolidated books.
Q2. Ethical implications of govt grants.
Treatment of govt grant.
Q3. Leases consideration – finance or operating lease and contract testing as part of definition of lease
Treatment of dta
Q4. IFRS15 , Key judgement disclosures – IFRS15 and investor analysis
And a basic question on subsidiary

Found it okay really. Anyone else got this?

Had the same exam as you and answered that similarly. Said that because it was a patent that was legal protection of a very specific thing that couldn’t be sold in an active market
Pension question i wrote about how the things that happened affected the balance on the SOFP and how the pension asset will be subject to deferred tax and the acid ceiling test

Was it finance or operating lease guys?

I had Operating Lease because of the fact that the lessor could have substituted the asset and compensate the lessee for losses. But it seems like the correct answer was finance lease.

what pension question actually asked for ?

I don’t think you had to calculate goodwill a year later, just had to state that if you received the valuation after the 12 months then you couldn’t use it. Then the original carrying amount should have been used not the fair value adjustment

I wrote finance lease, cause lease was for 30 years from 40, most of useful life, and lessee had option to purchase the building. And in past experience it did it every time.

What you did with research and dev cost on artificial cells? and in Q1 their was deff tax liability but the tax relief year and expense incurring year was the same so I thought that their would be no need to put deff tax liab but instead it was a relief , however no temporary difference. What you did with that ?

I said that the research and dev costs could not be capitalised since there is no expectation of future economic benefits since the safety trials are in the early stages.

Deferred tax had to be reversed since tax base and accounting treatment was the same (i.e. both allowed in the year of payment).