Forums › ACCA Forums › ACCA FR Financial Reporting Forums › *** F7 June 2016 Exam was.. Instant Poll and comments ***
- This topic has 456 replies, 63 voices, and was last updated 8 years ago by accastudent1986.
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- June 8, 2016 at 7:59 pm #321090
@accastudent1986 said:
Just revisited the textbook and this one might be open for debate;“Subsidiary held for resale
If on acquisition a subsidiary meets the criteria to be classified as ‘held for sale’ in accordance with IFRS 5, then it must still be included in the consolidation but accounted for in accordance with that standard. The parent’s interest will be presented separately as a single figure on the face of the consolidated statement of financial position, rather than being consolidated like any other subsidiary.”
Even here it says that it must still be included in the consolidation
June 8, 2016 at 8:01 pm #321092@emo777 said:
Yes, but it was pre acquisiton, so removed by multyplying subsidiary revenue by 6/12I think with 7/12 🙂
June 8, 2016 at 8:01 pm #321093@abatesi said:
am saying that because i think the deferred tax asset was relating the parent and not the subsidiary,…….Cmon. It related to subsidiary
June 8, 2016 at 8:02 pm #321097@cene89 said:
I think with 7/12 🙂Yeah, maybe, dont remember exactly, but dtill got the answer. It was either B or C
June 8, 2016 at 8:03 pm #321098Mcq question….equity holder question: The equity holder is the Parent?or Nci?
June 8, 2016 at 8:04 pm #321101@cene89 said:
Mcq question….equity holder question: The equity holder is the Parent?or Nci?There were two questions. One for parent, the last one (20) for nci, where I got D.
June 8, 2016 at 8:06 pm #321103I think i remember the one with revenue: 352000 plus 7/12 multiplied by 312000 gives u 534000
June 8, 2016 at 8:08 pm #321104Yes…534000..I also remember this! But there was something 93.400
June 8, 2016 at 8:11 pm #321105@cene89 said:
Yes…534000..I also remember this! But there was something 93.400It was the one in consolidated profit for parent, i suppose
June 8, 2016 at 8:12 pm #321109@accastudent1986 said:
Yep seems like i dropped the ball on that one!I’m just re-doing the Q3 using the hybrid paper that ACCA uploaded to see whether i can get the same answer as before then try to get the SOFP to balance ha
U can share it with me 🙂
June 8, 2016 at 8:14 pm #321112@emo777 said:
U can share it with me 🙂Yep i’m nearly done lol i know i messed up the transfer to retained earnings for difference in dep on reval asset and i completely stuffed the bit about contract asset
June 8, 2016 at 8:16 pm #321114gvt we had talked about no. 9 mcq. i was almost sure there was a contingent asset on the winning case. was that the question?
June 8, 2016 at 8:18 pm #321115@accastudent1986 said:
Yep i’m nearly done lol i know i messed up the transfer to retained earnings for difference in dep on reval asset and i completely stuffed the bit about contract assetTransfer should be 400
June 8, 2016 at 8:19 pm #321116@faizsaid said:
gvt we had talked about no. 9 mcq. i was almost sure there was a contingent asset on the winning case. was that the question?Yes, contingent asset is not recognized as asset, be ause it was not virtually certain. So, only warranty claims as liability
June 8, 2016 at 8:24 pm #321117available for sale “immediately” in its present condition. i remember they included “after some period” so that option did not meet the held for sale criteria.
June 8, 2016 at 8:25 pm #321119Here’s everything i came up with (annoyingly i’m closer to balancing than i was in the exam);
(W1) Loan Note:
Cashflow Discount Factor Present Value
1,500 0.93 1,395
1,500 0.86 1,290
31,500 0.79 24,885
Debt 27,570
Equity 2,430
30,000Year Balance b/f Finance Interest (8%) Interest Paid (5%) Balance c/f
1 27,570 2,206 -1,500 28,276
2 28,276 2,262 -1,500 29,038
3 29,038 2,323 -1,500 29,861(W2) Revenue:
Revenue per TB 267,900
Add 2,500
270,400(W3) Cost of sales:
Cost of sales per TB 166,600
Depreciation (plant) 6,900
Depreciation (property) 2,900
Amortisation (Patent) 1,100
Cost of sales 177,500Statement of Profit or Loss:
Revenue 270,400
Cost of sales -177,500
Gross profit 92,900
Distribution costs -20,000
Administrative expense -22,000
Profit from operations 50,900
Finance cost (150 + 2,206) -2,356
Investment Income 300
Profit before tax 48,844
Income tax -9,850
Profit for the year 38,994
Other Comprehensive Income:
Revaluation gain 9,200
Decrease in deferred tax provision 1,100
Total comprehensive income 49,294Statement of Financial Position:
Non-current assets:
Property, Plant & Equipment 104,400
Patent 3,400
107,800
Current assets:
Inventory 32,100
Trade receivables 38,500
Contract asset 5,000
75,600
Total Assets: 183,400Equity:
Share capital 25,000
Retained earnings 46,994
Other equity 11,800
Equity option 2,430
Revaluation reserve 9,200
95,424
Non-current liabilities:
Loan note 28,276Current liabilities:
Trade payables 46,400
Income tax 11,400
Deferred tax 3,700
Bank Overdraft 2,700
64,200
Total equity & liabilities 187,900Reconciling difference 4,500
June 8, 2016 at 8:26 pm #321121@faizsaid said:
available for sale “immediately” in its present condition. i remember they included “after some period” so that option did not meet the held for sale criteria.No, it were two other options, that failed. But there were two with immediately and probable
June 8, 2016 at 8:35 pm #321125@accastudent1986 said:
Here’s everything i came up with (annoyingly i’m closer to balancing than i was in the exam);(W1) Loan Note:
Cashflow Discount Factor Present Value
1,500 0.93 1,395
1,500 0.86 1,290
31,500 0.79 24,885
Debt 27,570
Equity 2,430
30,000Year Balance b/f Finance Interest (8%) Interest Paid (5%) Balance c/f
1 27,570 2,206 -1,500 28,276
2 28,276 2,262 -1,500 29,038
3 29,038 2,323 -1,500 29,861(W2) Revenue:
Revenue per TB 267,900
Add 2,500
270,400(W3) Cost of sales:
Cost of sales per TB 166,600
Depreciation (plant) 6,900
Depreciation (property) 2,900
Amortisation (Patent) 1,100
Cost of sales 177,500Statement of Profit or Loss:
Revenue 270,400
Cost of sales -177,500
Gross profit 92,900
Distribution costs -20,000
Administrative expense -22,000
Profit from operations 50,900
Finance cost (150 + 2,206) -2,356
Investment Income 300
Profit before tax 48,844
Income tax -9,850
Profit for the year 38,994
Other Comprehensive Income:
Revaluation gain 9,200
Decrease in deferred tax provision 1,100
Total comprehensive income 49,294Statement of Financial Position:
Non-current assets:
Property, Plant & Equipment 104,400
Patent 3,400
107,800
Current assets:
Inventory 32,100
Trade receivables 38,500
Contract asset 5,000
75,600
Total Assets: 183,400Equity:
Share capital 25,000
Retained earnings 46,994
Other equity 11,800
Equity option 2,430
Revaluation reserve 9,200
95,424
Non-current liabilities:
Loan note 28,276Current liabilities:
Trade payables 46,400
Income tax 11,400
Deferred tax 3,700
Bank Overdraft 2,700
64,200
Total equity & liabilities 187,900Reconciling difference 4,500
Wow bro! U messed up seriously in some parts!
June 8, 2016 at 8:37 pm #321127@accastudent1986 said:
Here’s everything i came up with (annoyingly i’m closer to balancing than i was in the exam);(W1) Loan Note:
Cashflow Discount Factor Present Value
1,500 0.93 1,395
1,500 0.86 1,290
31,500 0.79 24,885
Debt 27,570
Equity 2,430
30,000Year Balance b/f Finance Interest (8%) Interest Paid (5%) Balance c/f
1 27,570 2,206 -1,500 28,276
2 28,276 2,262 -1,500 29,038
3 29,038 2,323 -1,500 29,861(W2) Revenue:
Revenue per TB 267,900
Add 2,500
270,400(W3) Cost of sales:
Cost of sales per TB 166,600
Depreciation (plant) 6,900
Depreciation (property) 2,900
Amortisation (Patent) 1,100
Cost of sales 177,500Statement of Profit or Loss:
Revenue 270,400
Cost of sales -177,500
Gross profit 92,900
Distribution costs -20,000
Administrative expense -22,000
Profit from operations 50,900
Finance cost (150 + 2,206) -2,356
Investment Income 300
Profit before tax 48,844
Income tax -9,850
Profit for the year 38,994
Other Comprehensive Income:
Revaluation gain 9,200
Decrease in deferred tax provision 1,100
Total comprehensive income 49,294Statement of Financial Position:
Non-current assets:
Property, Plant & Equipment 104,400
Patent 3,400
107,800
Current assets:
Inventory 32,100
Trade receivables 38,500
Contract asset 5,000
75,600
Total Assets: 183,400Equity:
Share capital 25,000
Retained earnings 46,994
Other equity 11,800
Equity option 2,430
Revaluation reserve 9,200
95,424
Non-current liabilities:
Loan note 28,276Current liabilities:
Trade payables 46,400
Income tax 11,400
Deferred tax 3,700
Bank Overdraft 2,700
64,200
Total equity & liabilities 187,900Reconciling difference 4,500
Patent depreciation is just 7500/10=750
why deverred tax in other comprehensive income???
June 8, 2016 at 8:38 pm #321128@emo777 said:
Wow bro! U messed up seriously in some parts!I know that i got the contract asset completely wrong and the transfer from surplus to ret earnings but other than that it’s all good right?
June 8, 2016 at 8:39 pm #321130although a contingent asset is not recognised but only disclosed as an asset in the statements, it nevertheless is still an ‘asset’. the question asked for any asset/liability; not current/non current or even contingent. Refer to Ias 37 defining a contingent asset as ” a possible asset that will be confirmed by occurrence of an uncertain future event not within the control of the entity”.
the Ias goes ahead to give an example of a contingent asset as when a company expects to probably receive damages.
in the question, the lawyers advised the co. that they will ‘probably’ win the case and thus be entitled to damages. case closed.
June 8, 2016 at 8:40 pm #321132@accastudent1986 said:
I know that i got the contract asset completely wrong and the transfer from surplus to ret earnings but other than that it’s all good right?I think there are some small mistakes, but will take too long to discuss!
June 8, 2016 at 8:40 pm #321133@emo777 said:
Patent depreciation is just 7500/10=750why deverred tax in other comprehensive income???
Study text says that any decrease in deferred tax provision is presented in OCI and any increase reduces retained earnings
June 8, 2016 at 8:42 pm #321135@faizsaid said:
although a contingent asset is not recognised but only disclosed as an asset in the statements, it nevertheless is still an ‘asset’. the question asked for any asset/liability; not current/non current or even contingent. Refer to Ias 37 defining a contingent asset as ” a possible asset that will be confirmed by occurrence of an uncertain future event not within the control of the entity”.the Ias goes ahead to give an example of a contingent asset as when a company expects to probably receive damages.
in the question, the lawyers advised the co. that they will ‘probably’ win the case and thus be entitled to damages. case closed.
No. You are wrong. It asked for specific recognition of asset or liability. So, contingent asset is not an asset. Good luck.
June 8, 2016 at 8:44 pm #321137@accastudent1986 said:
Study text says that any decrease in deferred tax provision is presented in OCI and any increase reduces retained earningsNo, change in deferred tax is recognized in provision of tax for current year, not in oci
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