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

@dublin10 said:
yep thats what i got, how did you deal with JV/JOP issue and the held for sale

Same treatment as Associates (Equity Accounting)

Can someone confirm if the 40m adjustment for the building and the 1m adj for the contingent liability were within 12 months of acq?

Also did anyone get OCE of 10 for the sub split 70% and 30%?

before exam ends..I did manage to copy my answers for consolidation

my balance sheet balanced by $8822.6
Group R.Earnings $3447.6
Group OCE $257
NCI-margy $647.9
NCI-hulty $258.4
Goodwill-Margy $56
NCI-Hulty ($10)

NOTE 5-CP
I split the profit in to half and calculated CP’s share of sales and gross profit
I deducted them from group R.E and added to payables $0.7 ($0.45+$0.25)

NOTE 6-ASSET HFS
comparing carrying value($14) to Recoverable cost($15.9)

disposal proceeds – 15.6
carrying value – (14)
disposal gain = 1.6

I credited $1.6 to group R.E and debited $1.6 to receivables

Anyone did same..????

My balances amount was $8812.4m if I am not mistaken.
My retained earning was $3441.6m
Goodwill for Margy was $45(forget to included the $5m for the 30%)

Note 6.
I think it should be depreciated for 4months as before classified as IFRS 5.

Note 5.
I done what you did, but I credit cash as question mentioned it due with cash (if I am not mistaken)

I took out also half year profit after the became JCP. I view JCP as another company it’s profit should not included!
Dr retained earning $1.5m
Cr cash $1.5m

Fazoul, I think that you should charge depreciation for 3 months, and then compare the carrying amount with the FV less cost to sell as it was said that since March it was accounted under IFRS 5

I may be completely wrong but I though full depreciation in the year of acquisition and none in the year of sale, .. so I didn’t depreciate the PPE before revising the carrying value when the decision to sell was made? .. Got 50 gw for Margy and -10 for Hulty which I put to oce, .. Hey ho, wait and see but I feel June may be in my future! .. JV 6/12 equity accounting with the 10% and 30% – 6/12 JV with trade payables, receivables and adj to RE …

Hong….

Note 5…u r rite….there a depn which i forgot to charge….

Note 6….i credited payables because i saw the words “payment to cp were still accrued!!!”

oh yh mate i got -10 GW and 50!! i thought -10 goes in P&L but no harm in adding this in RE as marks will not be deducted but wasnt sure how to reflect this on the BS. i must have done something right but took time to understand the paragraphs……

wasnt too sure of the adjustments though, only 2 and was really long. i just put the reduction of working 6 in -160 in OCI as it was a PPE FV reduction, not sure though.

Since in the document it was saying that they were in a hurry to sell the Company (subsidiary) you should expect Forced sale = Negative Goodwill.

I tink fr d contingent liabbilty,it shud be $6m wich is d fair value of contigent laibilty on. D date of acqn…bcos contingent liabilty ws later adjusted to $5m after acqn…so I tink $6m shud b used

which question needed application or was about IAS 41 Agriculture?

Whats dissapointing in this exam is that no matter how much work you do to prepare you spend more time trying to understand the question than trying to answer the question in a reasonable way…some of the questions are so vague you dont know where to start…the ias questions were extremely difficult.