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@COOLYAR186 said:
Any remb part d of q2 50m and 5 creditworthiness ?Yep the entity had bond liabilities, and during the year had a 50m gain on these liabilities. Of the 50m, 45 was a fair value gain and 5 was due to a weakening of the entities own credit rating.
I wrote that an entity cannot recognise a gain through profit or loss if it’s as a result of a decrease in it’s own credit rating.
So the 45 is through P&L and the 5 is through OCI
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Thanks AJS90
What did peeps get for cost of investment for margin?
I thought it’s the cash consideration at 2013 after the associate period
Then was you meant to add the equit interests which I think was 705m which would have given the total cash consideration?
Also there was U apportioned profits so I think these should have been allocated so 40% of the profit before the 80% subside ty should also been added to cash consideration?
Will u loose a lot if marks for incorrect numbers even though the approach was somewhat correct
I have been told by ACCA that I will need to prove to the ACCA that I was unwell in order to get a refund, i.e. sick certificate etc.
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I had 89 GW for one sub and negative 10 for the other.
FV adjustment for land was 266? Anyone get this number?
If I remember correctly I had €84 Goodwill for Margy
And the FV for land was similar, maybe €260??
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@mercury241 said:
I had 89 GW for one sub and negative 10 for the other.FV adjustment for land was 266? Anyone get this number?
Yes I have the same figures as you mercury241
The Paper P2 this time round focused on same subject questions I think.
Nothing on leases, employee benefits, foreign exchange subsidiaries, Agriculture IAS41 (new), Integrated Reporting………. Maybe next time?
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Other numbers I remember are to do with the IFRS sale…I had a profit on disposal of 0.5?…I took FV gain and cost to sell to OCE.
I also took the FV loss of 40m of the other building to OCE?…should this have been R.E?
Q4 (b) I think it was to do with Impairment of Assets IAS 36 and Cash Generating Units (CGU’s)……
@dublin10 said:
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@tallaghthoop said:
Part b really tough….q2 was doable…q3 i did….but not very well….consolidation goodwill 50 and Negative goodwill 10 taken to gain reserves….ethics was nice….Also got fair value gain from associate to sub….think it was 5 or 10 milion…head wrecking exam hated the essay layout of q3 / q4..I too got fairvalue gain on 30% investment of $5. which was taken to OCE.
balance sheet had investment of $1675. which does not include the FV gain of 5.
30% investment made was $600.00 + $90 profits earned since investment up to 1-12-2013 + $10 for increase in Fv up to 1-12-2013.
($600+90+10=700) for value of 30% at 1-12-2013 but question said additional 40% investment was $975.00 which was the total in the balance sheet. But fair of $30% on 1-12-2013 was given as $705.00
Hence fair value gain not in balance was $5
First, Mercury, the $40m impairment of building in the fair value shall not be recognised in OCI or R/E. It is deducted from the fair value of net assets of the acquiree, thus increasing the goodwill.
I feel that I will fail; I didn’t include profit on disposal of associate and revalued the asset held for sale
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Yes. But you also have to reflect this in the RE or OCE at acq in order to get the correct post acq numbers. – I put it in OCE.
The fair value adjustments aren’t reflected in the subsidiary’s books. Thus, only the effect of the impairment will affect the GW:
Dr. Goodwill $40m
Cr. FV of building $40m- Topics: 0
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Ok. I assumed that if the given FV of NA at acq is overstated by 40…the given RE/OCE at acq is also overstated by 40. But guess I’m wrong?
The land’s value was $266m and the contingent liability not recognised in Margy’s books was $6m. Those didn’t affect R/E, Only fair value if net assets of acquiree.
But I hope everything else is fine. I made terrible mistakes also- Topics: 0
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I got $89m goodwill for the first sub and negative $10m for the second sub. How are you guys getting $50m?
The provisional identifiable net assets was $2250
Months later the valuer reported that there should have been a decrease in Fv of PPE of 40
so you deduct this. And for the warranty claims it was included in the provisional figure of $6m nad then later to be recognised as provision for warranty of $5m so infact theres a reduce in liability of $1m so you add this back to the $2250 instead of deducting it. (And in the b/s I added this provision of $5m under under liablilites)$2250-$40+$1m= $2211
I got the Fv-adjustment as 254I cant remember how question was phrased..my recollection that you didnt have to adjust the net assets figure but adjustments had to be made ti the cost at acquisition to include fair value. I got FVA land balancing figure was 106, 160 was FVA for plant at acquisition and 144 at year end.
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