*** F7 December 2014 Exam was.. Instant Poll and comments ***

Answer for MCQ 5 is C. Deferred tax on revaluation of PPE is debited to OCI but still credited to liabilities.

hi guys
if u dont tick the questions answered on top of the answer booklet is it an automatic fail please assist

Agree, 11 should be A, 5 must be C

examiner answers came? i couldnot find it except question paper?

@nikaacca said:
where is December questions published?i saw f5 but not f7

https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/exampapers/int/f7_2014_dec_q.pdf

thank you

18 Which of the following is NOT an indicator of impairment under IAS 36 Impairment of Assets?

A Advances in the technological environment in which an asset is employed have an adverse impact on its future
use
B An increase in interest rates which increases the discount rate an entity uses
C The carrying amount of an entity’s net assets is lower than the entity’s number of shares in issue multiplied by
its share price
D The estimated net realisable value of inventory has been reduced due to fire damage although this value is greater
than its carrying amount

answer?

@fishgo said:
https://www.iasplus.com/en/standards/ias/ias36

Hmm. So mcq 18 is B
Got it wrong!

@arslan14 said:
18 Which of the following is NOT an indicator of impairment under IAS 36 Impairment of Assets?

A Advances in the technological environment in which an asset is employed have an adverse impact on its future
use
B An increase in interest rates which increases the discount rate an entity uses
C The carrying amount of an entity’s net assets is lower than the entity’s number of shares in issue multiplied by
its share price
D The estimated net realisable value of inventory has been reduced due to fire damage although this value is greater
than its carrying amount

answer?

The answer is C

Opentuition team, could you share answers of MCQ’s at least, please???

Hi guys,
I dont understand the C or B as answers to Q18, I chose D, which says that the NRV has been reduced but it is still higher than its carrying value, that to me means that there is no impairment to speak of, so it is not an indication. I do not know where my thinking is wrong.

I think D is the right answer to Q20, because whatever policy we apply to something new we do not have anything to compare it with, as it is the first time we get engaged in that type of transaction

@nadia2105 said:
riskyguy,

Here are my answers to the MCQs (quite a lot of matches :))
1-a
2-c – options 1 and 4 will be included in the calculation of basic EPS anyways
3-a
4-c
5-c
6-b
7-d – a secured loan?
8-d
9-a
10-d
11-a
12-a
13-b (not sure though)
14-c
15-a
16-a (bargain purchase)
17-b
18-d
19-b
20-d

good luck all 🙂

I had the exact same answers except for Q3, since then I realised that for Q19 the correct answer is C,
As for Q3, I dont know the correct treatment for CCA (I never saw it in the book), but it would be logical to deduct depreciation for 2 years from 600K, because for 600K you could get a brand new asset and it would make more sense to find a replacement price for a 2 year old asset, which we actually have in our question, therefore I chose B