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They mentioned fall in interest rate and fall in rate means higher value in use
@abdulbasit16 said:
They mentioned fall in interest rate and fall in rate means higher value in useI agree with you. Does anyone remember all the options and the answer they have given so we can come up to a consensus regarding this Q?
@dipatil said:
what about the the writing question from question 3 regarding the NCI?It was just that goodwill won’t include any part of NCI and the impairment would wholly be allocated to group retained earnings. With the amounts mentioned for NCI share of net assets, what goodwill would have been, and what nci will be using this rule
Dipatil,Could you please give the answer of Mcq 5thq its regarding to reduce gearing
Options were revaluation,taking loan to repay the loan and selling the carrying amount of asset and changing it as operating lease
In Mcq something overstatement of profit
Is the answer is 1st and 4th option
The balance of Retained earnings adjusting in the statement of changes in equity and second option was comparative so and so …
Does anybody got like this
@pinkyjovin123 said:
Dipatil,Could you please give the answer of Mcq 5thq its regarding to reduce gearingOptions were revaluation,taking loan to repay the loan and selling the carrying amount of asset and changing it as operating lease
Can you give me more details about the MCQ because I don’t remember that question very good :/
@yentam said:
there was also the question about what would increase equity at the time. there were a load of options. was it just the rights issue? the other options were the bonus issue, preference shares, etc. I think I selected only option no. 5Yes I chose option 5
@dipatil said:
Can you give me more details about the MCQ because I don’t remember that question very good :/It was 5th q.Which of the following will reduce gearing
1,revaluation of non current asset
2,taking another loan to repay the existing loan
3,selling carrying value of the NCA and treated as operating lease…@yentam said:
there was also the question about what would increase equity at the time. there were a load of options. was it just the rights issue? the other options were the bonus issue, preference shares, etc. I think I selected only option no. 55 was the certain one…
But I also chose another one, I think it was 2, so the option with 2 and 5
The other one referred to a convertible loan, which is a compound instrument and has an equity element in it (I think anyway)… any opinions?@essien13 said:
5 was the certain one…But I also chose another one, I think it was 2, so the option with 2 and 5
The other one referred to a convertible loan, which is a compound instrument and has an equity element in it (I think anyway)… any opinions?Yeah it was 2 and 5 as convertible koan notes will divided into equity and debt element and thus increase equity
@pinkyjovin123 said:
Yes I chose option 5Yes the options but they were together with other thing right? I think it was a loan note? So what was the answer there?
@dskinner83 said:
I put 2 and 5, because one of the options was a convertible loan note which would have had an equity element to it. I think I originally put 5 but changed it when I was checking through my answers at the end.Yes i think it was that one ,,,,because the number 5 was not alone in any option I think
guys what about the situation with the inventory that was having problems the company to sell and in January 2016 it was sold? I didnt do anything with that ? Was it required any adjustment?
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113 was the cash cycle
yah! Everything was perfect for g/will calc: However, I think You gotta take this yr’s profit and apportion that for 3/12 months…cos the RET”D EARS given was for Ist jan and accq date was I guess 1st April…….So, RET’D EARS b/f +RET’d EARS FOR 3/12………
@michaeljkenny80 said:
Anyone have a clue how to deal with that Goodwill Q? The deferred cash payment stumped me. Hadn’t seen one like that beforeAccording to IFRS 3 the contingent consideration should be included in the acquisition consideration:
Share Issue + Contingent consideration+ non controlling interest – (share capital of the subsidiary at acquisition + pre-acquisition earnings+ fair value adjustment, including the provision for the liability) will give you the goodwill on acquisition, which is then impaired to come up with the goodwill to be shown in the statement of financial position.
hope that answers your question
@abdulbasit16 said:
Yeah it was 2 and 5 as convertible koan notes will divided into equity and debt element and thus increase equityabdelbasit all your answers and replies are genuine and wright. hope you all the best.
operating cycle its 113 days simple one here, if u make a mistake in this question, it shows how well u have studied.
Question 3, the dividends from the subsidiary are eliminated on consolidation, hence not included, just checked my notes and textbook….
@essien13 said:
Question 1, requirement a (If I remember correctly)Depreciation of plant…….3000
Expensed development..6000
Decrease of Inventory……..700
Amortisation of lease…. can’t remember the figureIf I remember correctly, this requirement asked for a schedule of events affecting the profit before tax… so I didn’t include taxes adjustments and OCI revaluations…
I couldn’t agree the Financial Position (pretty sure it was due to taxes), but both Assets and Equity&Liabilities sections were in the 60,000s. I do recall the Assets being somewhere in the 69.000 region.
This is my 3rd attempt at F7 and it’s the first time I completed the 30marks Q and I feel confident that I passed. And I always pass when I feel confident after the exam, as F7 is the only paper I failed so far.
MCQ 01: Chose D
MCQ XX: This was probably the #2 question. It asked for the valuation of WIP at year end, giving info about the estimated costs to complete and sell. I think this was a trap question, as the WIP was given at year end, so I didn’t include any future completion costs and selling costs and went with the given WIP as year end valuation. But can’t remember the exact figures.
MCQ XX: This was probably the #3 question, regarding provision, contingent liabilities and assets. I chose the legal case with 55% probability of losing and the outstanding environmental cleaning.
MCQ XX: This was probably the #6 question, regarding parent and sub. I was between 3&4 and ended up choosing the option which had both 3&4 as answers, as they compliment each other and just make sense.
MCQ XX: About what characteristics are associated with materiality (or something like that), I choose Nature and Magnitude.
MCQ 20: I was between “Dividend paid” and “employees/directors” but I chose the latter in the end. Surely they do care about the acquired Co’s profitability (dividends)? After all, if they acquire 100% of the Co, they can replace all employees and directors if they wish to…
Consolidated I/S Q… Share Capital 28000, Share Premium 3200
Adjusted the Investment Income by removing the dividends of associates and putting them in the OCI section instead. Also put the additional FV increase (400k?) of the Sub at year end to OCI. Anyone remember the figure they got as Profit after tax and Comprehensive Income?When are the results out?
I thought you weren’t supposed to include the inventory note for that part of the question? You were only supposed to look at notes ‘ii’ and ‘iv’?
Government grant question I also put 8 million is that right?
9 marks for analysing the ratios seems a hell of a lot when you get just six for working them all out. Was struggling to write enough to merit many marks so gross profit is lower than the sector average so what can I scribble to merit 1.5 of the 9 marks which isn’t obvious.
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