*** F7 June 2016 Exam was.. Instant Poll and comments ***

Wasn’t talking to you Adam

Here’s what the study text says;

“In relation to a bundled sale, any discount should generally be allocated across each component in the transaction. A discount should only be allocated to a specific component of the transaction if that component is regularly sold separately at a discount.”

Here’s what the question says;

“Revenue includes an amount of $16 million for a sale made on 1 April 2015. The sale relates to a single product
and includes ongoing servicing from Downing Co for four years. The normal selling price of the product and the
servicing would be $18 million and $500,000 per annum ($2 million in total) respectively”

So without question the scenario described is a ‘bundle’ sold at a discount (as in sold for less than the usual sale price)

@gavin23 said:
Don’t see how middle one gives control

Revisit IFRS 10

@emo777 said:
Yeah bro, in goodwill calculation, what was your pre acquisition? They had opening retained earnings of 8600 and 3000 loss for the year

I can’t remember now i forget the other information in the question but i think it ended up that 1,500 of the loss occurred after acquisition and there were no other adjustments? so 8600-1500

@emo777 said:
No, there is no such a requirement.

@accastudent1986 said:
No that’s right it was the correct answer as parent can be exempt from preparing consolidated statements if the subsidiary is held for resale (regarded as investment property effectively). I selected that, the parent produces and the shares not publicly traded

Read this chapter in BPP book, this has been excluded

@accastudent1986 said:
Here’s what the study text says;

“In relation to a bundled sale, any discount should generally be allocated across each component in the transaction. A discount should only be allocated to a specific component of the transaction if that component is regularly sold separately at a discount.”

Here’s what the question says;

“Revenue includes an amount of $16 million for a sale made on 1 April 2015. The sale relates to a single product
and includes ongoing servicing from Downing Co for four years. The normal selling price of the product and the
servicing would be $18 million and $500,000 per annum ($2 million in total) respectively”

So without question the scenario described is a ‘bundle’ sold at a discount (as in sold for less than the usual sale price)

I did the revenue recognition the same way as accastudent1986. I read it as the total sale was 16M so credits to revenue and deferred income have to total 16M, not 20M. Revenue = 16M * 18/20 + 16M * .5/20. Deferred = 16M * 1.5/20.

I am getting confused since it seems people are jumping between 1 n 3 so fast..someone mentioned the increase in the fv instruments for the parent went to oci. Then the revaluations at acquisition also went to oci. I was saying only post acq revaluations go to oci.. But even if… Based on the question the financial instrument was fv through Pn L

Guys, does someone remember there was one mcq and the forst option there was that gain on revaluation is recognized at the disposal of asset or smth like that. I chose it to be incorrect, who remembers?

@accastudent1986 said:
Was that the one about a previously revalued asset?

I dont remember exaxtly, but this statemrnt was in option A of that mcq, and i chose it wrong. There were four in toral and i chose two correct options

MCQs were hard and confusing. There was even one on absorption costing :S

I think the 30 mark question should be faced out from f3.

Hello there, anyone could help pls? It would be great to see asap the official solutions for the question before the next exam session…

How does everyone remember *exactly* what the questions were and exactly what their answers were?! I had forgotten everything the minute I walked out of the exam room!

Lets discuss question 2 for who did it.

First question for 3 marks .

I did pbit + ( equity + non current – 9 million) for both 2015 n 2016. *ROCE

I continued on with gpm opm asset turnover. Didn’t get to do a 4th. I attempted this in the last 10 min

I analysed from the roce question and noted the differences. Mentioned revenue declined slightly when comparing the periods. I think I also mentioned that this fall was due to the disc op . Since those assets generated revenue. Commented on the differences.I wonder how much marks was allocated to the ratios alone