*** P2 December 2012 Exam *** Instant Poll and comments***

will did my best i hope for 5o

thanks

all

Feeling bad….cannot believe no Reconstruction, no Share based payment, no Employee benefits, no Financial Instruments….didn’t manage to understand the impairment part of Q1……

What about the 30m costs in Q1, related to the discontinued operations. I treated them as a restructuring provision as per IAS 37. Not sure if it satisfies all criteria.

nevyana

thank you.

@nevyana said:
What about the 30m costs in Q1, related to the discontinued operations. I treated them as a restructuring provision as per IAS 37. Not sure if it satisfies all criteria.

Im pretty sure the question said they satisfied all the HFS criteria. so they had to be classied as such? As in revalued/no deprec and set as HFS assets and liabilities?

@chunky

I got negative goodwill of 30 for the sub-sub, which I then adjusted in reserves (retained earnings)

guysss!! impairment of 50 for the sub sub was indeed the case IF liabilities were deducted from Recov. Value.
This means that all of you have correctly calculated goodwill at the first place since NBV= Net assets (year end) + goodwill !!!
But, the thing is that in this case, impairment of 50 is greater that actual goodwill which cannot be true at any case.

Also, Recoverable value= higher of NRV (NSP) and Value in use. Where does the standard say that liabilities must be excluded from the calculation of Recoverable value?? I think this was just to cinfuse us.

This is why I didn;t impair either of the subs……………………

Greeting to all (is my first post on this site)

No impairment of subs is this the correct treatment??

Question 1 – associate – moved dividend received into calculation
Goodwill also 190 – so glad I thought I had done it wrong !!
Didn’t understand about the impairment so ignored that – thought it would only be a couple of marks
Q2-dreadful didn’t know anything about certificates so didn’t do this one
Q3- library impairment of £2.7m
Q4-fair value ok and markets but absolutely no idea about the decommissioning just guessed it as labour & materials plus overheads plus inflation ????

Thanks Seth, if this is correct I may have got lucky…

@seth1 said:
impairment tests are intended to test!! if REc value < NBV , u never impair anything

hi seth, is rec v < nbv or cv then you need to impair. impairment was required in q1, i would agree on the 50m. on its allocation is where the confusion arose, looking at each sub as a single CGU then first goodwill then proportionate to the rest of the remaining NCA and intangibles, however, some people seem to have taken it to intangibles for the remainder. i was doubtful at this point as to taking the entire impairment to total goodwill ( both subs). not sure on what the correct treatment is, however in any case the total RE calc of the parent would have been reduced by its share of the imp = 56, the remainder to nci

@benitez said:
Not sure of the treatment of the inv to associate.

I added the org cost (not FV) plus new consideration plus profits. Thinks the profits were 30% x 18m??

hi benitez, agreed on most, the existing initial holding at the remeasured fv on additional acquisition, then new consideration plus share of associate profits with time proportion of 6 months. finally to deduct the dividend paid as this was paid after the inv becomes associate.