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Post your comments about June 2012 F7 exam.
?How did you do? What came up? How did this paper compare to previous exams?
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[polldaddy poll="6303347"]Q1 balance sheet and income statement of subsidiary and associate
Q2 balance sheet of two companies 12 and 13 marks each
Q3 Cash flow statement of 25 marks 🙂
Q4 IAS 2 inventories 🙂
Q5 IAS 17 🙂
Thats all i rememberQuestion 1 Consolidated SOFP 25%
Question 2 SOFP, SOCIE and SOCI 25%
Question 3: Cashflows and interpretation (11%, 14%)
Question 4: Impairment loss
Question 5: Rule based vs Principle based, Advantages of using iFRS instead of local accounting standards.In general, the paper is a little but time pressurised, however it constitutes a fair paper for student who study the syllabus throughoutly.
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Was quite hard exam and short time- as usual.
Did you reach to bargain purchase (intead of GW) in Q1?
Did you impair to 477 th in Q4 part 1?Eve, did anything come up which we had covered?
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Can anyone please tell me the overall impression of this paper?
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Halwa paper so easy inshallah pass ho jaon ga
@evek said:
Was quite hard exam and short time- as usual.
Did you reach to bargain purchase (intead of GW) in Q1?
Did you impair to 477 th in Q4 part 1?Don’t remember. But I think i did not get negative goodwill, maybe i am wrong.
For impairment, I really have no idea whether to include disposal value in value in use or not. If yes, then the answer should not be $477. If no need to include, the ans is $477.- Topics: 0
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Gr8 gud luck 🙂
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@jm84 said:
Don’t remember. But I think i did not get negative goodwill, maybe i am wrong.
For impairment, I really have no idea whether to include disposal value in value in use or not. If yes, then the answer should not be $477. If no need to include, the ans is $477.I didn’t include loan note to cost of investment in Q1 and treated this separately. May be this is the difference.
For imp you should take (I think so) higher: value in use or NRV. I used value in use.@donmanz123 said:
Can anyone please tell me the overall impression of this paper?Won’t say the paper as easy as December 2011. Some surprising elements in Consolidated Questions to adjust pre-acquisition retained earning. And the bloody complex intercompany transaction, with good in transit and cash in transit together. Question 2 The loss in retained earning how to account? The rest are just normal F7 questions.
@evek said:
I didn’t include loan note to cost of investment in Q1 and treated this separately. May be this is the difference.
For imp you should take (I think so) higher: value in use or NRV. I used value in use.Carrying amount is $500,000.
Value in use is recoverable amount. so if recoverable amount is higher, no impairment has actually occured.@evek said:
I didn’t include loan note to cost of investment in Q1 and treated this separately. May be this is the difference.
For imp you should take (I think so) higher: value in use or NRV. I used value in use.Loan note is not required as it is not the consideration.
It is deferred consideration which have to be adjusted for time value of money.
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Do you know when the answers to the exam questions will be published by ACCA?
Do anyone know how to deal with the deferred tax element in question 1? I treat it as a pre-acquisition adjust, to lower the pre-retained earning by 1000.
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Eve, did ANYTHING come up which we had covered?
evek said 5 minutes ago:
Do you know when the answers to the exam questions will be published by ACCA?- Topics: 0
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@mikelittle said:
Eve, did ANYTHING come up which we had covered?
Yes, of course. But the wording in some parts was quite strange, and some things I had already forgotten by the exam time…and time was short ;).evek said 5 minutes ago:
Do you know when the answers to the exam questions will be published by ACCA?@mikelittle said:
Eve, did ANYTHING come up which we had covered?Hi MikeLittle
Can I ask if the retained earning become negative after adding this year losses, how should we adjust it? Against share premium? I really stuck in this today, but strange I manage to balance the SOFP by including a negative balance in the retained earning.
evek said 5 minutes ago:
Do you know when the answers to the exam questions will be published by ACCA?- Topics: 0
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Paper was fair although question two was a bit more I could handle in a time pressure:
On questions 4 b (if i am not wrong) in the impairment loss the Goodwill had to be impaired to zero and the Patent to 1m as it could not go below fair value. Also the AR was not to be touched because it was at fair value. Then take out 500k from the plant and the rest of the loss had to be proportioned between the factory and the plant.
Goodwill was positive, the deferred consideration had to be included in the goodwill calculation discounted at present value (the the payable should have been 8000*.88) and a charge to RE of the difference between 8000*.88/1.10 and 8000*.88 (the unwinding of one deferred consideration).
There was a dividend paid in the cash flow problem (you had to look at ending r/e from last year add the profit for the year and subtract this from the ending r/e.
What did you guys do with the finance lease in question two?
I got negative goodwill , but really have no idea why would be the case!! know for sure it is wrong tho !!
Q4 was a surprise to me, especially part b where you have to allocate the impairment loss..@ivan99999896 said:
Paper was fair although question two was a bit more I could handle in a time pressure:On questions 4 b (if i am not wrong) in the impairment loss the Goodwill had to be impaired to zero and the Patent to 1m as it could not go below fair value. Also the AR was not to be touched because it was at fair value. Then take out 500k from the plant and the rest of the loss had to be proportioned between the factory and the plant.
Goodwill was positive, the deferred consideration had to be included in the goodwill calculation discounted at present value (the the payable should have been 8000*.88) and a charge to RE of the difference between 8000*.88/1.10 and 8000*.88 (the unwinding of one deferred consideration).
There was a dividend paid in the cash flow problem (you had to look at ending r/e from last year add the profit for the year and subtract this from the ending r/e.
What did you guys do with the finance lease in question two?
Yeah. I calculate dividend paid for the year is $55m, did you get the same as well?
For goodwill, I also got positive goodwill. How about the deferred tax? how do you adjust it?@ivan99999896 said:
Paper was fair although question two was a bit more I could handle in a time pressure:On questions 4 b (if i am not wrong) in the impairment loss the Goodwill had to be impaired to zero and the Patent to 1m as it could not go below fair value. Also the AR was not to be touched because it was at fair value. Then take out 500k from the plant and the rest of the loss had to be proportioned between the factory and the plant.
Goodwill was positive, the deferred consideration had to be included in the goodwill calculation discounted at present value (the the payable should have been 8000*.88) and a charge to RE of the difference between 8000*.88/1.10 and 8000*.88 (the unwinding of one deferred consideration).
There was a dividend paid in the cash flow problem (you had to look at ending r/e from last year add the profit for the year and subtract this from the ending r/e.
What did you guys do with the finance lease in question two?
For finance lease, is it a five year lease? then i minus the deposit from $25000, and starts with $23000 to calculate the NCL and CL part.
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Yes I think the dividend paid came to this number. I included the deferred tax as a decrease in the net assets acquired in the goodwill calculation and then as credit to deferred taxes in the Balance sheet. I was not so sure about this one – how did you handle it?
@ivan99999896 said:
Yes I think the dividend paid came to this number. I included the deferred tax as a decrease in the net assets acquired in the goodwill calculation and then as credit to deferred taxes in the Balance sheet. I was not so sure about this one – how did you handle it?Yeah, if dividend correct. My 11 marks sure secured already in Question 3.
For Question 1, I also credit deferred tax, and deduct it from pre-acquisition earning. (a Pre-adjustment).
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