SBR*** June 2022 ACCA SBR exam – Instant Poll and comments ***

Who got negative goodwill?

pls share question who are completed exam today..'

did anyone get 'hold to collect' and 'hold to collect and sell' question?

Yes I got this question

The most difficult was the time allocation. I spent too much time on Q1. I've not practiced full exam environment at home. This might fail me. I didn't miss knowledge, I missed the time. I had 1h for Q3 and Q4. I couldn't even proper read the scenarios on these 2Q, trying to type as much as I can, didn't do any calculations. Q1 PPE foreign purchase before YE, at YE part paid PPE purchase and disposal, how to account in cash flow from investing activities Step acquisition 6% + 64%. Goodwill calculation. Contingent consideration and PPE revaluation after the acquisition Q2 Gov grants, employee retention scheme, interest free loan if condition met. The condition was not met for any. Q3 Lease of a floor 5y, then additional floor 3y, contract extention. I put this is rent rather than lease as short term. No info was provided to help identify lease financial or operating, only says lease Q4 Revenue recognition about phone service. They had free minutes in the contract and used only 70%

did you get a gain on translation in terms of the amount paid for the ppe?

Not me, positive 714m

Brutal exam. I reckon I got 40 marks at best!

For the first question right? Even I got negetive goodwill There was an inventory with fv of 1.1 and ca was 0.8 (1m *80% (20% discount was there so)) so there was a fb adjustment of 0.3m Also there was a bldg whose fv was either 5.2m or 5.5m (open market value)

I got a negative goodwill

For Q1 goodwill I included the provision as I thought it was an adjusting event that should have been in included in net assets. Not sure if anyone else did this?

That does look like a decent enough set of questions. I've a got a nasty set of obscure questions: Q1 - goodwill calculation (pretty standard, few tricky FV stuff) theory behind goodwill, shares measured at FVTOCI, contingent liability, disposal of associate Q2 - pretty standard ethics stuff, some discourse around prudence, materiality, and relevance. Q3 - Hedge accounting with entries (!), deferred taxes, FRS 102 goodwill (I did UK variant) Q4 - restructuring stuff and termination benefits My brain was fried towards Q4, I wrote a lot but wasn't structured properly and I nearly ran out of time. I feel I've unloaded all my knowledge but wasn't particularly confident in my answers. Fingers crossed...

I got negative goodwill originally, but as the conditions for $4.3 million and $200k existed at the acquisition date, the goodwill was revised within 12 months. This gave a positive goodwill on acquisition

Reading some of these comments is making me feel like i may have failed. Lol Oh well. A possible resit in September 2022 at the worst right now. The syllabus is too broad. Time is always an issue, however compared to the previous exams on the ACCA website the format of the exam was easier to follow and the question did indicate which specimen to look at, if the question was general, etc. I’m not sure how to feel after the exam. I’m just happy to get it over and done with, for now!

@GeorgeB169, I got the same questions as you. I felt it was a narrow range of questions and I got no questions on anything I felt really confident about. I definitely haven't passed. How do you feel about it?

Hi GeorgeB169, was your exam in the afternoon or morning paper????

It sounds like most people got slightly different questions (of course UK variant will be diff) From memory my paper consisted of the following: Q1 a) 30 marks Acquisition of Subsidiary (Sarda Co) 60% with consideration paid part cash and part contingent consideration (shares of parent with payment due in a few years after acquisition) - this was deemed to be 55% probable that no shares would be due to be transferred. First part of question asked for explanation of contingent consideration amount. https://www.accaglobal.com/gb/en/student/exam-support-resources/dipifr-study-resources/technical-articles/ifrs3.html Calculation of goodwill required along with discussion of the calculation and treatment of a few adjustments required - these were city property Fair values and Inventory which was marked up incorrectly in the subs own accounts (inc 20% discount). £1m carrying amount in books and £1.1m Fair value at acquisition date. NCI was based on proportionate method. Q1 b) Disposal of Associate. 20 marks Q2 20marks - Prudence more important than Relevance (discuss) - this of course is making a reference to the Conceptual framework - Impairment of Music venues and Value in Use model / Government Grants (accepting of and not paying money due back to government putting towards general overheads) in Pandemic backdrop for economic environment - Ethics generally (fairly standard) various threats - Chief exec asking FD not to impair music venues using 20 year forecasts (5 max usually per IFRS and then extrapolate - e.g. see Value in Use model for decommisioning provisions) and questionable inputs such as growth rate above inflation etc and also forecasts showing much higher capacity versus historical actuals resulting in higher VIU amount so no impairment due Q3 (25 marks) (i) Intangible Assets - customer lists / contracts ...as part of acquisition (IAS 38 / IFRS 3 / Fair value) - touch on definition of asset, capitalised in books with indefinite useful life - comment on fair values - can also touch on control of intangible asset for recognition etc See article below for discussion on this https://www.cpdbox.com/009-capitalize-customer-list-ifrs/ (ii) Deferred Tax Liability - trees planted 17 years ago ..have 3 years left to maturity, 0% tax due for first 5 years, company not recognising deferred tax liability because liability would be reversed / offset in first 5 years -- suggesting deferred tax asset..comment on correct accounting treatment (iii) Cash flow hedges and double entry in books (13 marks I think) Q4 a) Restructure of Hotel / leisure group - Comment on restructure provision for 3 marks and then IAS 37 provisions etc with reference to dates (treatment in accounts) - planned restructure , communication to public for general comment - can't remember rest b) Termination Employee Benefits (5 marks) Principle of termination benefits - not much calculation required ...restaurant business (I think from memory) going to cease trading so willing to give say $5000 to each employee if leave company before termination date or $11,000 to staff who stay until the termination date. Probabilities given to each scenario with likely no of employees doing each option. Payment for either would be on termination date. Relevant points here (extract from iasplus) - second part in particular: (i) termination benefits to encourage employees to leave service voluntarily (voluntary termination benefits) should be recognised when employees accept the entity's offer of those benefits. (ii) termination benefits provided as a result of an entity terminating employment (involuntary termination benefits) should be recognised when the entity has communicated its plan of termination to the affected employees and the plan meets specified criteria, unless the involuntary termination benefits are provided in exchange for employees' future services (i.e. in substance they are a 'stay bonus'). In such cases, the liability for those benefits should be recognised over the period of the future service.

same questions as kris1502. Frustrating exam.

Yes I got gain on the retranslation of amount payable in respect of purchase of PPE

Did you attempted full paper

Had the same paper as @kristinaivanova. Question 1 was the toughest for me. Didn't finish it. I always stick to the time allocation per question. The rest of the paper wasn't too bad but I've written enough exams to know that you can never be sure how you performed until the marks come out. #justneed50

I got the same paper as @george. Very frustrating only few standards asked after all the hard work put on the subject! Also they were difficult (cash flow edging) and lots of tax requirements. One full question on restructuring is crazy. Leaving out about 15/20 marks I'm not confident I'll pass. But the big problem is if every exam will be like this one only the word "luck " will help to pass it!

what is this question about?

This is the one I've got. Apart from the cash flow hedge I managed to pull of an answer for all, I'm just uncertain if I wrote out my answers up to their expectation. It'll be a marginal pass in the best possible scenario. However, if I'm prudent ( ;-) ) I'd say its a fail :-D

Q1 part B, I found it difficult to understand what exact response the question required. All exams are challenging, this was no different

I too think this was an unfair exam. I hsve done loads of past papers and not one I have done was anything like how they set up question one. I then felt the rest of the exam was very bitty. Even the ethics question didn't seem to floe how past exam papers have. Not helped by technical issues throughout the exam (I did remote) this one will be a fail for me, very frustrating as I only have the strategic exams to go and I've passed the others first time :(

anyone know how to account interest income for deferred tax purpose..??

Afternoon paper. I also spent far too long on Q1. My main problem is I can't speed read and take in information and with the questions being so wordy and not being able to write in the margins (the highlight tool is very clunky) I have to keep re-reading stuff. Think I got carried away with the amount I wrote on the ethics question about music venues as its something I can relate to and am interested in. Like some others who have commented I find it frustrating that the syllabus is so broad so you have to spread yourself quite thin and then most of it doesn't get tested. I was under the impression a current issue would be tested so had read quite a bit about the changes to IFRS proposed and sustainability/corporate responsibility and cryptocurrencies etc. Annoying.

You could always copy text from requirements / extracts and then paste them into the scratchpad and then insert your comments/notes using a different size or bold font to kind of replicate writing on a paper question sheet. I find copying and pasting requirements into my answer Word document quite useful as I am always trying to make sure that I answer what was actually asked and not what I wanted to be asked. I bold and italicise the pasted text and then delete them once I am happy that I have answered that part of the question. It saves from having to repeatedly switch between the requirement, extract, and answer windows, or trying to resize them to all be visible on the one screen.

Hey there, may I ask whether the PPE for question 1 should be restated at closing rate? The question has stated that certain PPE will be measured at cost model while the others will be measured at revaluation model... However, if I'm not mistaken, I didnt notice that the question provided us with year end fair value of PPE in dinars... May I ask how do y'all treat the foreign purchased PPE?