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And for Q2 my ratio show a drop in profit margin. And increase for roce and asset turnover. Anyone had similar results?
The time pressure was massive!!!
For the consolidation question, was it 9 months or 8 months post acquisition?for good will i got 19 something if I’m not mistaken – not sure cause so many number in my head right now – but we had deferred consideration – it wasn’t an easy paper – yet i believe i passed
@chris1975z said:
Hi James
I agree on investment. Most of it for cash flows.Yeah, I wouldn’t get too struck up on it anyway, the 30 marker was a lot of little things, made more complicated with wording.
I got stuck on the lease premium and lease deposit for operating but again perhaps 1/2-1 mark.
Got 5000 and 3000 for the share capital and share premium rights issue.
I thought q3 was fair and mirrored BPP and previous questions. Q2 a disaster and not confident on mcq’s. Seems I messed up q3 depn charge though as just took NBv b/fwd and took off the depn off. That aside at least it balanced!! Spent way too much time on it at cost of q2 though but q1 very easy. Seemed vastly different from last papers and like everyone else v.disappointed that cash flows were only 4 marks!!! Messed up comparative on q2 completely so just hoping enough mcq’s, q3 and q1 enough to get me through!!
@afuyegallas said:
The time pressure was massive!!!
For the consolidation question, was it 9 months or 8 months post acquisition?9mths July -March.
i did the same as you james – divide by 5 the fin lease and new plant – divide by 4 the rest
I have never spent so long trying to decipher what they were on about in a question. That Q3 was awful. How many percentages are needed in one question? Loan notes and repayment / provision for future dismantling costs / leased assets / operating lease… I found reading it really confusing. I also seemed to spend a long time on Q1 too, considering it was only 15 marks for a consolidated P&L. I think it was because of the Goodwill calcs that needed to be added. I hated that paper. Really hated it.
@fernandomer said:
for good will i got 19 something if I’m not mistaken – not sure cause so many number in my head right now – but we had deferred consideration – it wasn’t an easy paper – yet i believe i passedGoodwill from memory
Share exchange 80% of ? X 2/3 x $3
Deferred Consideration 1.54 x No. Of shares x 1/1.1 power 1
NCI was 20% of share cap x 2.5 I think
Less net assets (retained earnings at ACQ had to work backwards there, plus FV on revaluation and share cap.
Then less the impairment of 500,000Q1 was pretty sensible. Revenue had to knock out IC sales.
Cost of Sales, was Impairment, Profit in Stock, InterCo Sales,
Finance cost was the unwinding of discount and the 100,000@jamesuk19 said:
9mths July -March.Wow…i think i can rest now…i got scared when someone posted 8 months on the first page..
Any luck remembering the figure for goodwill? I want to believe i scored full marks in that question
@nicolaoneill said:
I’m with Danny1984 …… That paper was soul destroying …… I put in so many hours studying and yet question 3 made me feel like I’m too stupid to be studying accountancy ……. I left Croke Park with a heavy heart but after reading your comments I don’t feel so bad now …… Not happy about the paper but happy I’m not the only 1 who struggled today …. Defo resitting …….This makes me feel a little better, I left Croke Park today thinking about a change of career! Question 3 was horrible, my heart sank when I read it. Glad I’m not the only one feeling like this
@alexanderrobert1989 said:
I just presumed the 4000 provision hadnt been added yet to the carrying amount on the PPE because you have to add the provision then apply the depreciation.For the PPE remaining, you deducted the accumulated depreciation and then applied the 5 years to remaining amount, wouldnt that be reducing balance method? I just thought it with being 5 years I applied straight line on the total. The question was definitely not explained well, saying presume assets have 5 years remaining.
Possibly correct, I’m not 100% but in hindsight it’s probably 1 mark max for the remaining plant and equipment depreciation.
James
I’m with you on goodwill calcs. Finance costs I can’t recall end figure I got but remember that I took the 100k and did 9/12 as this when parent was in control. Q3 I recall tons of adjustments to finance charge though, lease,
Loan and unwinding of discount from memory at leastYup, I got same as Chris above, 4 odd adjustments to finance cost. And adjusted interest for period post acquisition.
on Q3 I also convinced myself that cash flow was only investing but was it financing too? Can’t believe I missed that!
Anyone know how was the uncapitalised interest cost was dealt with in the goodwill calculation?
I recognised 3 months at acquisition (about 25k) then remove 9 months from finance costs for rest of year – due to now being capitalised@chris1975z said:
JamesI’m with you on goodwill calcs. Finance costs I can’t recall end figure I got but remember that I took the 100k and did 9/12 as this when parent was in control. Q3 I recall tons of adjustments to finance charge though, lease,
Loan and unwinding of discount from memory at leastWith Q3 finance costs I had
The 800 out of the tb
800 from suspense
The unwinding of the enviromental provision
The lease finance cost
One more perhaps, can’t remember fully.I think I made a few mistakes on each question but each had a solid attempt. Maybe 12/15 13/15 and 25/30 with hopefully 26+ on MCQ’s…
@alexanderrobert1989 said:
Chris,I got the same for revenue and pretty much COS but goodwill impairment isn’t taken through the COS, usually admin expense? I cant remember if it said to take it through COS?
For finance costs, I apportioned the 100,000 finance expense by 9/12 and then the same for the deferred consideration 9/12, then added the remaining finance costs plus the 9/12 of the new purchase.
I thought it said, can’t remember haha.
Did anybody remember the associates question in MCQ’s?
Couldn’t get near any of those figures so went for the lowest which was 1300 as 1200 investment plus profit and I wasn’t near any of them still.@gdjay said:
Yup, I got same as Chris above, 4 odd adjustments to finance cost. And adjusted interest for period post acquisition.on Q3 I also convinced myself that cash flow was only investing but was it financing too? Can’t believe I missed that!
It was financing too. From memory I had 2/3 for investing and about 4 for financing
Investing: purchase of assets
Finance lease
Sale of investmentFinancing
Share Cap
share Premium
Loan note interest (possibly operating?
Loan note repayment
Dividends paidDid anyone else find it odd in q2 they sold for 1m profit when the division was making 5.8m pre tax profit from memory!? I was useless on revised ratios and commentary left a lot to be desired. Admin expenses shot up 182% like for like? Possibly one off costs for legal expenses for sale? Working capital cycle increase and decrease in debtor days, inventory days and increase in payables days!? Increase in asset turnover in 2015 but decrease in gp margin?
@alexanderrobert1989 said:
I just presumed the 4000 provision hadnt been added yet to the carrying amount on the PPE because you have to add the provision then apply the depreciation.For the PPE remaining, you deducted the accumulated depreciation and then applied the 5 years to remaining amount, wouldnt that be reducing balance method? I just thought it with being 5 years I applied straight line on the total. The question was definitely not explained well, saying presume assets have 5 years remaining.
The question said the provision had been correctly accounted for. We only needed to calculate the unwinding part of the provision. I got 59,000 (85,000-18,000-8,000) and divided it by 5. I arrived at a total depn of 17,000. Anyone with me?
I messed up and didn’t do deferred consideration for finance charge!! Made a note of it and never adjusted!! Doh!!!
Yer I noticed that, on my restated figures and comparatives everything went down. ROCE dropped due to the huge hike in Admin Expenses (I put down possibly restructuring costs) driving down PBIT. Gross margin dropped even though Revenue increased from restated comparative, possibly due to intensifying price competition. Asset Turnover also fell marginally, Operating margin dropped aswell due to the reduction in Pbit caused by the increased admin expense in addition to the increased revenue in the denominator of the calc.
@chris1975z said:
Did anyone else find it odd in q2 they sold for 1m profit when the division was making 5.8m pre tax profit from memory!? I was useless on revised ratios and commentary left a lot to be desired. Admin expenses shot up 182% like for like? Possibly one off costs for legal expenses for sale? Working capital cycle increase and decrease in debtor days, inventory days and increase in payables days!? Increase in asset turnover in 2015 but decrease in gp margin?Who else remembered to apportion thw unwinding finance charge in question 1? I almost forgot though
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