SBRJune 2021 ACCA SBR exam was - Instant Poll and comments

Missed 12 marks questions since was not able to understand the requirement and time management was poor Worst thing is when u r not sure of result, it's even difficult to start for next paper.. I'm really confused right now ?

What questions came up please

Omg. Guys. What was it in q1. This bloody deferred tax and share base payment in Mosaic killed me off. And then make the net asset adjustment. Just made up the figures. Very weird question 2. About cryptocurrency. Not a typical question on ethics and other issues. And why why nearly in every question there were Leases! Are they joking to have so many lease questions? Did not have enough of time just to check at the end. Time pressured. The last question was about differences in IFRS between entertainment and manufacturing. Just gave you 3 sentences in the task and make up the whole story about the difference. Just switched my imagination... this small and big project and capitalisation of researches. I just decided not to capitalise the costs on small project as there were very vague future economic benefits.

Regarding the sale and lease back question: Did anyone recognized that it wasnt a “sale” and the next question to demonstrate the sale and lease back?

Share based payment purchase consideration would be the fair value of the original scheme right? 10m

Very time pressured, there is not enough time to think of the question and to understand the requirements.

Very time pressured, there is not enough time to think of the question and to understand the requirements.

I have mixed feelings about this exam... Some questions were fair but some were bizzare.. the last 2 parts on Q1 very weird, unsure what was expected of me! Lots of different standards were tested and the timings were tight. I could of done with an extra 20 minutes on this paper!

Same situation dude!

I

i-acca wrote:Share based payment purchase consideration would be the fair value of the original scheme right? 10m

Omg I did also think it could be not sale and lease back and the next question also put me under weir position. If it is not sale why they ask about the figures on sale and leas back and also gave all details to calculate it. I have got a gain of 2 and something millions. Share based just do not remember. Remember there would be future payment as well discounted and I have got 16 millions.

I couldn't even understand the requirements of that sale and lease back!!! Even revision kit doesn't have such questions!!!

Inzayn wrote:I couldn’t even understand the requirements of that sale and lease back!!! Even revision kit doesn’t have such questions!!!

The revision does not have even this type of question for adjusting net asset based on deferred tax and share based. ACCA was able to make a bit surprise this time.

Yes got that 16 as well, there was cash, deferred cash and share base payment. And yes, it was indeed strange the question with the sale and lease back but the first option i came to a conclusion that it wasnt a sale and the next question 2 m gain.

Do you remember the question with the revenue? There were 2 performance obligations international and domestic: i said recognize separately and dont recognize that 10 m as revenue?

I calculated it as a sale given that the risk and rewards was transferred. But I could be wrong. Time pressured exam indeed

In Q2 a section, what is the component recognition? I messed up on that question ?

i-acca wrote:Do you remember the question with the revenue? There were 2 performance obligations international and domestic: i said recognize separately and dont recognize that 10 m as revenue?

Also recognised seperately using cost allocation to the 10M

It was sale and lease back. the question has asked you to explain why IFRS 15 performance and obligation was satisfied ( so hint was actually given i thought) ...then next question, goes on asked you to give the relevant IFRS 16's accounting treatment. it is operating lease, because the lessor obtain the risk( insurance and maint) and rewards ( collect the lease payment), 20 years lease out of 40 yrs useful life... in addition, the repurchase was unlikely, as the contract was unfav. after 20 yrs repurchase at + 50% premium.. so, to me, it's sale and lease back... I thought the sales proceed greater than the NPV of lease payment, should be treated as prepayment on the lease.

i-acca wrote:Do you remember the question with the revenue? There were 2 performance obligations international and domestic: i said recognize separately and dont recognize that 10 m as revenue?

Yes remember. I recognised the performance obligation over the period of time of 5 years. So recognised as deferred liability for each year. 10 millions decided by 5 years The international and domestic broadcast started only in the 4 year. So I did the allocation of 2m from deferred liaiiblty between two of them on proportion basis.

For the sale and leaseback I took the lease liability (PV of the lease payments) / fair value of the asset x carrying amount to get the right of use asset. Did anyone do something like that?

vivacca wrote:It was sale and lease back. the question has asked you to explain why IFRS 15 performance and obligation was satisfied ( so hint was actually given i thought) …then next question, goes on asked you to give the relevant IFRS 16’s accounting treatment.

I totally messed up with it now. As I understand. Well I cannot change anything now.

The exam was not that bad but time flew by.....i skipped some few marks and but attempted all the four questions...SBR being CBE is just adding the difficulty to the exams.

the question you have mentioned about ' differences in IFRS between entertainment and manufacturing' if i remembers right , it was actually asking you to explain the integrated reporting. because it has mentioned about create value for primary users ( investor and shareholders) integrated reporting is all about value creation, the digital sector and the manufacturing sector has very diff. business characteristic.. i just explained different focus and performance measures should be considered. and integrated reporting specifically states the different capitals, such as human capital, financing capital, social relationship capital, manufacturing capital, intellectual capital etc... Deferred tax one triggered me too, i didn't revise any question has deferred tax on acquisition, so, I just used my imagination.

vivacca wrote:the question you have mentioned about ‘ differences in IFRS between entertainment and manufacturing’ if i remembers right , it was actually asking you to explain the integrated reporting. because it has mentioned about create value for primary users ( investor and shareholders)

Yes. I omitted that word about values. So just created general outcomes and why there is a difference. I boo booed again lol ?

Yes I think it was like 8/12 x 6= 4m

i-acca wrote:Yes I think it was like 8/12 x 6= 4m

Something like that. Yes.

Very time pressured exam didn't have time to even think through an answer or even try understanding the requirements Got CSPL Goodwill cal Joint venture Discontinued Op Q2 Ethics had IFR15 and IFRS 9 Hedge accounting (hard) Q3 and 4 had a mix of accounting standards and took time to identify what each one related to

I did this with the tech company because question was to compare the traditional manufacturing financial reporting and digital. So outlined the differences between the tech companies and normal companies as share holders will need more information and traditional financial reporting is not enough. Hopefully we all get some points ??

Just wish everyone to pass. It was a weird exam.

i-acca wrote:In Q2 a section, what is the component recognition? I messed up on that question ?

I think it had something to do with depreciating the computer parts differently from the purchase of new components. Not too sure if it’s the correct approach. Spent too much time on it that I could have spent on Q3