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

Hi All
I didn’t impair the subs at all in q1. Got 190 & -22 for goodwill.
Q2 & Q3 advised to treat green certs as financial instruments per IFRS9 as active market.
Finance lease on the waste vehicles.
Spoke about joint arrangements, JV’s, JO’s and determined that it was a JO as control had been lost.
Tax adj-said it should have been disclosed in prior year that there was an issue and adj should not have been a prior year adj as no error or change of policy had occurred.
Foreign currency-brain dumped rules for translation and gain loss (!!)
Land-said one should be FV thru p&l or Oci.
Empty land held at FV thru Oci as not part of general ops
Land held as inventory to be re-classified and held at Am cost as revenue generating.
Environmental damage-said Cont Liability exists under old and new IAS/IFRS as stated almost certain that legislation would be passed, and company had begun clean up on other sites so created expectation. Need to assess cost and provide. Need to Disclose aswell.
School-$5m cost 12 years dep = $2.4 nbv. Need to impair down to $2.1m as value in use is unrealistic.

Hope I wrote enough. B/S didn’t balance so def screwed something up there.
Was surprised as everyone about Cashflow and had just about nailed those in revision 🙁
Fingers crossed for everyone xx

Overall i think the paper was a fair paper was expected a tougher one but i really messed it up….messed up quiet a bit for ques 1, balance sheet didnt tally by $501m, and yes i remember, just had a nightmare 🙂
-i got only bower impaired, cant remember by how much (however from what i remember directors believed intangibles were impaired, so I impaired the goodwill and then forgot to combine it together with the other intangibles on the face of SoFP) i also forget to compute goodwill on puttin associate..only computed the increase in investment, i messed up on IFRS5, didnt adjust to carrying value and i put it as two line on face of SoFP instead of one…was so looking forward for a SoCF, esp given its been several SoFP over the exam sittings. I didnt even know which 1s to add back…oh my god i really messed up.
b)Discussed criterias for IFRS5 and some make up reason why regulators would be skeptical
c)I discussed a little bit on ethics but really didnt knw how the accounting issues would arise

-i went over the hardcore standards for P2 such as IFRS2,IAS19,etc, just briefed through the other standards which came up, so i plainly got confused bout most accounting treatments which i attempted in q2 & q3

q2)Briefly described the standards without much consideration of accounting treatment:
-IAS 20-grants for the green certificate (but messed up on explaining the treatments)
-IAS21-foreign currency+treatment in cashflow
-left third one
-IAS 8-prior year errors not to be made (not sure bout that)

q3)also briefly discussed standards
-IAS40 for capital appreciation, got confused bout others and left it out
-IAS17-finance lease for lessor
-IAS37-provisions, i said no provision because i felt that there was no present obligation at year end, and no reasonable estimate of cashflow (but there are mixed views so really not sure)
-IAS36-impairment, I also got a little calculation to write down to $2.1m however, ran out of time to further explain

@cazza99 said:
Hi All
I didn’t impair the subs at all in q1. Got 190 & -22 for goodwill.
Q2 & Q3 advised to treat green certs as financial instruments per IFRS9 as active market.
Finance lease on the waste vehicles.
Spoke about joint arrangements, JV’s, JO’s and determined that it was a JO as control had been lost.
Tax adj-said it should have been disclosed in prior year that there was an issue and adj should not have been a prior year adj as no error or change of policy had occurred.
Foreign currency-brain dumped rules for translation and gain loss (!!)
Land-said one should be FV thru p&l or Oci.
Empty land held at FV thru Oci as not part of general ops
Land held as inventory to be re-classified and held at Am cost as revenue generating.
Environmental damage-said Cont Liability exists under old and new IAS/IFRS as stated almost certain that legislation would be passed, and company had begun clean up on other sites so created expectation. Need to assess cost and provide. Need to Disclose aswell.
School-$5m cost 12 years dep = $2.4 nbv. Need to impair down to $2.1m as value in use is unrealistic.

Hope I wrote enough. B/S didn’t balance so def screwed something up there.
Was surprised as everyone about Cashflow and had just about nailed those in revision 🙁
Fingers crossed for everyone xx

Amazing! My answers are almost the same as yours! Lol! I thought I screwed up and now not sure I it is good that someone thinks like me, haha. Maybe I’ll get some marks! Good luck!

I had a terrible time cos I had morlar tooth decay and ached through the morning till almost exam over, even though after taking the medicine from pharmacy without prescription. Hell to me this exam is worst nightmare. Could not see or hear things clearly, and worst of blur and giddly headache, wondered why it was happened like that. Questions were tricky, but if not sick, I think I could still mmanage. Oh goosh! don’t blame anything for it could not be saved. Try again.
next sitting.

I feel the paper was quite OK compared with other recent p2 questions. Qs 3 and 4 were quite good for me. I had a strong hunch for IFRS 13, fair value – and I guessed right. Q1 on vertical group was loaded with adjustments. Had a go at most of the adjustments and showed my workings but could not complete the consolidated SFP. Q1 (b) and (c) on asset held for sale and discontinued operations/ ethical issues on a planned disposal were generally fair as well. Sure of a pass in this. Best wishes to everybody.

And oh, some IAS 37 was there too in Ques 2, c) and provision was for lessor.

easy paper as i think so
for q1: after finding out goodwill for both sub and sub subs, i calculated impairment for both subsidiary and sub subs as well, similarly calculated inivestment in associate by taking reseves at acq amount i,e deducting 18 from 21 and reserves at closing date and then multiplied by relevant holding percentage in order to get shares in post reserves and then added it in cost of investment of associate in order to obtain investment in associate;s amount. similarly calculated nci for both bower and henny as well. then move towards consolidated reserves for minny and then finally consolidated SOFP . it didnt telly by only 200 😀

question 2 went really well for me, ias 2& 20 for the green certificates, qualify for grants ias 20 & certificates not sold by end of accounting period ias 2 inventories.
ias 7 translation of foreign exchange rates.ias 8 and ias 12, ajustments arising from tax audits, prior period error rather than as achange in estimate under ias 8, amount arising from impact of derecognising a deferred tax asset ,in respect of the release of corporation tax accrual from tax settlement represents tax expense separately disclosed with ias 12.
think the other bit was ias 27 control of subsidiary.
q1 attempted all but balnce sheet was out loads!!!!!!!!
q4 first part was fine ifrs 13, but second part was not good, hoping for apass!!

I just downloaded the question paper and re did vertical group! could not resist it!! 🙂
Soooooo, goodwill is 190 for B and 23 for H i can verify it. I did it correctly and I am 99% sure that these are the numbers!!! best luck to all

Impairment: I am almost quite certain that only H is impaired and this is the adjusting entry (which I sadly did’t do……. it was quite tricky given the time pressure……..):

DR NCI (44%) 28
DR RE (56%) 22
CR goodwill 23
CR intangibles 27 (?)

[? is a greek letter by the way!!! looooll (obviously I am greek) ]

Congrats to those of you who did it right……. cause I didn’t 🙁
I am not worried though… the impairment of the sub sub goodwil cannot worth more than 4 marks so its ok..

Associate:

I just did this journal, I don’t know if it is correct:

DR other equity 2
DR Investment in assiciate 7 (?)
CR RE 9 (30*30%)

Capitilised expenses:

I only derecognised prototype cost of 4 :

DR I/S (RE) 4
CR intangibles 4

I messed up in the last one….

overall a very passable paper I suppose….
best luck to all
Seth

when are the answers to the paper on the acca website guys?

can someone tell me hoe 23 goodwill for H was derived?
Thanks and wishes for good luck

W1 group structure

Minny – 70% bower – 80% heeny
NCI 30%. NCI 44 %