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Thank you both olanrewaju and Guy
It seems that less than 24 hours is not fast enough for you guys (no play on your name intended)
Thank you Mike
We’re keen to forecast our result!
I believe Q10 also needs amending to A.
ACCA global states the following re IAS 41:
“IAS 41 does not apply to:
Agricultural produce after the point of harvest, for example: wool, meat, fruit, rubber, logs that are processed subsequently (IAS 2, Inventories, applies)”Therefore only i) applies. What do you think?
Just shows how difficult these MCQs are with our debate.
Now that’s also tricky. Does this mean that wool isn’t whereas sheep’s fleeces are. Is it the “subsequent process” that converts if from agricultural produce into inventory.
Is treated wool different from untreated wool? I can understand that, when “subsequent processing” begins, then the nature of the matter also changes from being agricultural produce into being processed goods
But to apply the principle that all harvested goods cease to be covered by IAS 41 would imply that there is no situation where felled timber or shorn (the?) sheep’s fleeces are agricultural produce.
What about milk held in storage until collected by the milk lorry?
Here’s another quote from the link that you sent:
“….. and which are expected to eventually result in agricultural produce (the harvested product of biological assets)”
IAS 41 covers the two types of asset – biological assets and agricultural produce. And the quote above tells me that agricultural produce is “the harvested product of biological assets”
Where does that leave us? Applying the above principle that IAS 41 does not cover harvested produce, then that makes a nonsense of
“…..and which are expected to eventually result in agricultural produce (the harvested product of biological assets)”
What do you think? to turn the question back on you!
Yes I see, you have raised some valid points and good pun on Shaun/shorn 🙂
However, I think it is as simple as IAS 41 applies when the produce is still ‘living’, whereas IAS 2 applies subsequently. Which I also think is simpler in terms of providing a true and fair view:
So milk held in storage is inventory, only produce when still in the cow.
Logs are only produce when the tree is still standing.
Fleece only produce when still connected to the sheep.
This is backed up by point 2 on the application criteria:-
“Agricultural produce at the point of harvest.”
Logs held in a yard have been harvested, I would argue, so IAS2 applies.
How do you measure the value / volume of milk in a cow? And if you leave the assessment for another couple of hours, it will no longer be in the cow!
So a flock of sheep held for their milk (from which to make sheep milk cheese) has got three elements in its value? The animal, its coat and the milk within it? No way!
When a tree is standing, it’s a biological asset
Here’s a definition of “harvesting”
“Harvesting in general usage includes an immediate post-harvest handling, all of the actions taken immediately after removing the crop—cooling, sorting, cleaning, packing—up to the point of further on-farm processing, or shipping to the wholesale or consumer market.”
I rest my case! 🙂
Hi Mike,
Can you assist me with two MCQs?
Question 2:
Why is this answer not B? Can’t the development of a new process still be recognized even though it does not generate sales? Can’t it reduce your cost and therefore still be recognized?
Question 7:
I read this question and figured ACCA was trying to trick us so I did not pick D. The question reads ” Which of the following transactions would increase Jasmin’s gearing compared to what it would have been had the transaction not happen.”
I chose A because if the revaluation did not happen, that would increase Jasmin’s gearing because the company would have less equity. ( i.e no revaluation surplus).
I figured if the answer was D they could simply ask which of the transactions increased Jasmin’s gearing?
Question 2 is tricky – I want to leave any further discussion on this until after ACCA has told us their answer!
Question 7 – I believe that you’ve made it too complicated!
Okay thank you sir
I am really unhappy about overthinking that question because I know what gearing is.
Don’t worry about it! Lesson learned, no chance of changing your answer, what’s done is done so ……. move on!
sir, acca f7paper june 2015 section b question no 2 was easiest but i had made a huge mistake didnt read the question carefully and ignore that excluding profit of 2015and contribution of 2014 ??? hoow many
marks i will get or no marks out of 5???One, maybe two
But now ask yourself, why are you worried? There’s nothing you can do to change the result so why continue to beat yourself up about it?
Hi Mike,
I have read the thread and appreciate that you have been bombarded by requests already.
In any case, can you advise when section B suggested solutions might be available?
I know it wont change the answers however I’m quite anxious as this was quite a difficult exam I found!
Apologies for bothering you with the same questions.
Regards,
AlexNoneed to apologies. Ian now, and have been since February, away from any recording facilities.
When I get back to them, en I can start to record.
Meanwhile, if you have any particular questions, please do post again
sir, section b in question no 2 part a i had not read the requirement carefully and ignored that excluding profit of 2015 and contribution of 2104 in calculating ratios . Will i got some marks out of 5 or no marks?
I have already answered this question!
My reply was “one, maybe two” but my response then continued “Why are you so concerned? There’s nothing you can do now about it and, no matter how much you worry, the result will not change” Just relax and see where you’re up to on August 8
Dear sir do we need to add up the income statement or balance sheet figures.i mean do we need to add up the totals of a balance sheet.i only put the figures to the income statement and balnce sheet from the relevant workings.i hope you got my questions.please reply.thanks in advance
Sorry sir i did total the income statementbut i did not total the SOFP.thank you.
I’ve just answered this question too – was it on the general forum?
There are NO MARKS for proving that you are capable of using a calculator!
There is a school of thought that says positively DO NOT ADD UP YOUR BALANCE SHEET!
Personally, I don’t subscribe to that but only because I am a compulsive adder. I add anything and everything! I add the number of letters in a typed line in a novel. I add the number of lines on a page in a James Patterson novel (average 25) and compare that with the “standard” number of lines in a novel (normally 33) and realise that James Patterson has already reduced the amount of effort he needs to put in by 25%
I add up anything and everything ….. so, personally, I would add up the financial statements. It will not gain you any marks and, on the contrary, if you let it, it could worry you because it doesn’t balance.
I would add it up because it will show me by how much I don’t balance and, so long as I have made only one mistake, it could point me towards that error by quantifying the amount by which I am out of balance
It’s very much a personal thing but, fundamentally, IT’S NOT GOING TO SCORE YOU ANY MARKS
Ok?
Sir i am going to ask something out of topic.its killing me to know about OBU.Few days back i heard that if i fail inOBU first time and than i pass OBU than i would always get third class as my bachelor degree regardless of my average acca part 2 mark.for eg if my average mark is 62 in part 2 and i fail OBU first time and than pass i would get third class which is really demotivating me but i badly need a bachelor degree in our country for good jobs but third class is not going to enhance my CV.please help me regard this.Thanks im advance.
Sir is not that suppose to be that if my average mark is 60-65 and whatever grade i get in my RAP i would get upper second class.please help me kindly regard this.Thank you again.
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