*** F7 June 2013 Exam was… Post your comments ***

<cite>@danf1981 said:</cite>
The only hard one was adjustment nr 1 for the consignment inventory

DR Revenue 10000
CR NC liabitilies 10000
DR Finance Costs 10% of 10000 = 1000
CR NC Liabilities 1000

Consignment inventory is tricky as I oroginally took it out of inventory but as the inventory stays in the warehouse there is no need

Finance cost just 500 because the company do the contract in the middle of the year not from the beginning, so finance cost just 1/2 and will be 500 😀

HOPE I COULD GET ABOVE 50 ITS ALL MY TARGET NOW

@nauman786ahsan soot for dt! Dt alone can get you upset for the exams!! Best of luck.

<cite>@danf1981 said:</cite>
Wow well spotted thank you for pointing that out!!!

got dt adjustment as well.

<cite> @tandi said:</cite>
The paper was fair. I managed to do all questions. Questions 4 and 5 were bonus marks. I enjoyed these questions.

Wish you good luck!!

Makes me feel very dull.

<cite>@danf1981 said:</cite>
Anyone doing F8 tomorrow?? God only knows whats going to turn up on there as all predictions for papers so far have been totally wrong

Yes doing F8 tomorrow. I should be studying really but I am so tired. Best thing is to study everything and not rely on prediction. I have learnt the hard way.

<cite> @donizback said:</cite>

@kriselda
bro it is 20000×75%x2/5*2( the share price of the parent) it comes to 12000 and the loan notes were 20000*75%*100/1000 comes to 1500, and this is correct 🙂 and NCI yea it was 6000

it says that for every share 1000 shares it acquired issued 100 loan note he has acq. 20000×75% x 2/5 as it stated in the beginning that for every 2 shares it acq from subs he issued 5. anyway wish you good luck

<cite> @kriselda said:</cite>
it says that for every share 1000 shares it acquired issued 100 loan note he has acq. 20000×75% x 2/5 as it stated in the beginning that for every 2 shares it acq from subs he issued 5. anyway wish you good luck

I see where you’re coming from, however do we not acquire 15,000 of the subsidiary shares as we acquired 75%? Therefore would the calculation not be based on the 15,000 shares we have acquired? I think the 2 shares for every 5 is referring to how much we give to the subsidiary in return for the 15k shares…

Wasn’t the fair value BELOW it’s carrying value (3000)? Is this still taken as positive figure like above? If it is then got it wrong.

I can’t believe I am doing this. I will see the result in August, lol.

Guys there are some weird adjustments going on here! The only adjustments you had to do were the depreciation post acq and the fair value adjustment for plant 3000 and 500. The investment revaluations were done in the reserves of the parent as they were revalued on consolidation not on acquisition so one was a credit and the other a debit.
They are not supposed to be spread out over the profits as they only occured on the consolidation day

No enough time