SBR*** P2 December 2014 Exam was.. Instant Poll and comments ***

Was really highly technical paper toughness level was extremely high in section b

HARD

Went a lot better then expected, Hopeful for a pass.

Umair mine didnt balance but it was definitely around that figure :D

It was very hard. I'm expecting that the pass rates would be lower than usual. Such a pity.

First 2 questions were fair but what was question 3 about? Had I done the 3rd properly a pass would have been guarnteed

Why NEGATIVE GOODWILL??? Why ??? T_T

q1 the adjustment for JCP threw me a little. i did q2 and q4. Not sure i got it all for impairment though.

@chanpiseth said: Why NEGATIVE GOODWILL??? Why ??? T_T

i got that too! it was a bargain purchase i think. Thats why it was negative.

Yeah! most of my friends got the negative figure as well... But I don't know if we did it right or not :(

Yup I got a bargain purchase (negative goodwill) of $10m or so can't remember for Hulty and so I added this up to group retained earnings.

I got negative 10 as well! Forgot that it goes to RE though!

How many parts were there to Q2 i cant remember. also was part b) a contingent liability or not

Lets just wish us all good luck. BTW, I still got one more to go. P1 T_T

@andrewfox80 said: How many parts were there to Q2 i cant remember. also was part b) a contingent liability or not

At the end I said no but disclose it as it wasn't guaranteed that they could pay the final payment.

Q1 Sofp with 2 subsidiaries; 1 acquired at the begining of the period Hulty 80% and Margy acquired some years ago as an associate 30% then at the begining of the period bought 40% (70%). No foreign sub or transactions and there was adjustments to the identiafiable net assets of Margy previously included contingent liability of $6m now $5m provision. After valuation was received months later there was decrease in the fv of ppe by $40m. There was only 2 notes on accounting treatments with regard to Joey (parent) one is joint venture and the other is property held for sale. q1 b) share options ifrs 2 q2 had hedges and I knew I had no choice but to do q3 and q4 lol q3 was long and somehow wierd involved IFRS 3&10. I remember discussing about going concern issues may lead to using breakup approach. and the 2 second scenarios had bit a pieaces of ppe ias16. IFRS 5 too when some assests were sold at 10 years when uselife was 30 years. Discussed some basics on ifrs 5 and how gains recognised to reserves earlier (oce) when it was ppe should not be recycled to p+l when it is sold as current asset. The profit to p+l would be the difference between carrying value of the asset held at sale and the proceeds. And the wrong assumptions used in estimating the residual value which could lead to creative accounting when assets were sold at 10 years leading to a higher gain higher profits. q4 was full on impairment this was what I could remember, hoping to get >50% fingers crossed

Yeah I dont think it was an easy paper either. It was actually highly technical in some areas. I'd say it was a fair doable paper but very time contraint as with all p papers. There were straightforward questions too especially ethics where the ethical dilemma was related to integrity. Q1b was IFRS 2 and only explanation was needed. Impairments to me was striaghtforward especially the q4 a but the scenerios given would always be tricky. Question 3 was hard I agree but can get easy marks with the knowledge of certain standards. I actually think q2 was the hardest. Its focused with hedges whereas in q3 there was room to explain knowledge on IFRS 3&10, PPE IAS 16, IFRS 5, fair value IFRS 13, disclosure issues and going concern issues and its effects; made some applications here and there but was more to discussing as they were less figures. Perhaps they were more that I couldnt pick up. Like my lecturer said its easier to go astray with q3 sorts of long scenario questions. You never know.

Stupid exam too much hard . I get negative GW in H but there is GW M I recognized by 50 . Any body with me

I found this paper very hard, but then I was very ill prepared. What threw me in question 1 was that they gave the fair value of the NCI for only the 30% acquired. How did people deal with that?

@neilsolaris said: I found this paper very hard, but then I was very ill prepared. What threw me in question 1 was that they gave the fair value of the NCI for only the 30% acquired. How did people deal with that?

That was okay as the Parent owned 70%.

Oops, I can't believe that one confused me!

Heyyy every body two GW one negative and another 50 recognize?

yep thats what i got, how did you deal with JV/JOP issue and the held for sale

I got 49 for one as the FV of the liability changed within a year? Probably wrong. My consolidation didn't balance either.

did any of you guys adjust the net assets for FV before doing the g/w calcs

Thanks to all who have replied to my query about Q1. I am unwell and could not go for the paper. Looks like a majority thought it was hard. All the best for anyone who attended it.

nas was as they supplied, no need to adjust , the cost of the GW was the Fv of the 30% + cost of 40% + FV NCI less NAs at acquisation ... I think

what did people get for the Investments of the group ? did you take the FV or the cost proce from the Investment figures in the BS

I think I got like 90 for the goodwill of the first sub as the 40 impairment of property was not included in the fair value of net assets and therefore would of reduced the Less@ FV of net assets part. (otherwise i would have got 50) Does this sound correct?

@lunip said: I think I got like 90 for the goodwill of the first sub as the 40 impairment of property was not included in the fair value of net assets and therefore would of reduced the Less@ FV of net assets part. (otherwise i would have got 50) Does this sound correct?

You needed to include the 40 impairment as part of the GW calculation.