*** F7 December 2012 Exam *** Instant Poll and comments***

WAS ANYBODY ABLE TO BALANCE ASSET AND TOTAL EQUITY AND LIABILITIES IN THE BALANCE SHEET STATEMENT IN QUESTION 2 AS THE ADJUSTMENTS WERE MUCH?

@mansari 171400 u also got dat….sign of relief…transfer of revaluation was treated in a past question,Q5 was tough 4 mi may be cos i had lyk 2minutes to read n answer d question.Q3 did anyone comment about the development cost(an asset in the SOFP) for the examiner to put a note on dat item i guess it must be relevant

do we need to take contingent liability in goodwill calculation at acquisition?

I did at least 25 practice examples for consolidation, and none of them had that cont. liab. stuff, one had a decrease, the rest increase, so I messed up….., I got 5 550 k usd, I showed it separately before and after impairment, so they can pick whatever they like

not so great idea to put a finance exam on to the 3rd working day of the month, I was closing until 9 pm the day before…

The question asked for goodwill to be calculated at the date of acquisition. Therefore the impairment charge did not require deducting in this part of the question. I got £8000 for my answer for this part.
The contingent liability I used when calculating the value of subsidiary net assets at acquisition, ie a fair value adjustment just as you would if plant etc had increased in value from what was stated in subsidiary’s balance sheet. Except because its a liability you deduct it instead of adding.

Answers usually come out a month or so before results so you’re looking at early to mid January

How did you guys account for Retained Earnings in goodwill calculation..was it R/earnings b/f of 35000 and time apportion the sub profit by 3/12? and what was the intra group profits deducted from revenue and cos of sales? was it 800* 9 months?

@petrieann ya, i guess retained earnings is $ 35000 and no time apportionment is required as it was told R.E on 1 Oct 2011.. so i think we have to take it directly…. anyone did the same… and yes, URP is 800*9….

@atahenrii. Got the same.

Can someone tell me if in question 2 the loan note was a liability or an asset? details please

was though calculated as normaly? meaning that there was a finache charge in the comprehensive income and then the an amount that was split to current liability and non-current liability? was the loan note issued or invested (as written in the note in the question) since I can’t remember..

so i was defintely a liability right? do you remmebmet if me mentioned in the note as ‘issued’ loan note or ‘invested’ a loan note?