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

Not enough time. Too many notes for question 3.Too much calculation for the MC. Question 2 was confusing. Question 1 was perfect. Lucky to get 50%.

35 on vost is mar up

@christa316 said:
But it said it was 35% of cost

Didnt it say that the markup was 35% of cost… and wasn’t the cost listed as the cost to the Parent?

Oh thats why I had the difference then. I swore that was the cost to the parent so I calculated the markup to find the profit and that was the PURP

35 on cost is mark up

@christa316 said:
If we both ended up with the cumulative acquisition profit of -1200 it is evident that we both had the same beginning.

Your -1200 included the post aquksition decrease of -200

I can not remember all the beg figures. but i remember parts. I normally spit Retained earnings b/f into B/F Retained earnings and then the Profit

I know for the profit for the year the time apportioned B/F was -1500 with the post also equaling to -1500

the FV amounts was the decrease in FV with an add back of 500

Then the intangible asset adjustment with an adjustment being made for the amortization costs

Plus the FV addition as an asset.

What was your answer for the convertible loan notes. I think my issue here was too much rounding

Christa, about which amortization you are talking about? As far as zi remember, there were no any intangibles

@gavin23 said:
You had 45% and no other SH had greater than 1% .. I said that didn’t signify control, hence not a Subsid. Could be wrong though.

It seems i got caught on this one!

yup i remember very well..and you would have missed if you included the 1% shareholding of everyone else as giving control to the 45% ownership. still the 45% can be outvoted in an agm. no control whatsoever and thus not a subsidiary

@faizsaid said:
yup i remember very well..and you would have missed if you included the 1% shareholding of everyone else as giving control to the 45% ownership. still the 45% can be outvoted in an agm. no control whatsoever and thus not a subsidiary

Any other tricky mcqs?

@emo777 said:
Is there someone who remembers the mcq about 45% subsidiary control criteria?

Yes there were 3 out of 4 options to select;
55% ordinary shares
45% ordinary shares with remainder owned by small unconnected parties
45% where the company would control operating policy

@accastudent1986 said:
Yes there were 3 out of 4 options to select;
55% ordinary shares
45% ordinary shares with remainder owned by small unconnected parties
45% where the company would control operating policy

I got the same, but are you sure? Other guys say the opposite

@emo777 said:
What was your pre acquistion in Q1?

Q1 on section A? What was question?

@faizsaid said:
I also think you missed the one where we were to state if an asset/liability exists. its not only the warranty claims that give rise to a provision(present obligation), but also the case where it was likely to receive compensation. this gives rise to a contingent asset (which is still an asset anyway).

Contingent asset is only mentioned in notes and not capitalised – only if virtually certain

@accastudent1986 said:
Q1 on section A? What was question?

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

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

As it was mentiined, IFRS 10 states control exists when;
“holding less than 50% of the voting shares, with all other equity interests held by a numerically large, dispersed and unconnected group;”

Also, they gave two optiins with 45%. That seemed fishy to me.

@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 think it ended up as 8600-1500 as 1500 of the loss occurred post-aquisition