*** P2 December 2015 Exam was.. Instant Poll and comments ***

So, the lease on Q2, although it was a lease of land, I went with finance lease. Anyone else agree??

Time management was a serious issue in this paper

Time management is the challenge. I just hope I pass.

What a bout Q3 4 is it joint operation ?

Q3 a

What did people get for foreign subsidiary translation post acquisition retained earnings?

I got 1.45 post aq reserves for the foreign sub.

I thought question 1 was fair but a lot of adjustments on the foreign PPE removal of staff costs, depreciation, profit on land disposal, revaluation gain.

Question 3a) was a joint operation should of equity accounted for it.
E.g take ur share of profit after deducting your share of expenses
Make a provision for the decommission costs at pv then unwind the provision each period. The decommission costs should have been depreciated .

3b) I thought was a financial instrument that should be measured at amortised value. As the payments that are usually for cash was replaced by gas. The payments of gas was of interest and principal. Thoughts?

3c) was strange the first part I wrote a provision should be made for parts but not for labour

The second part I wrote that the expenses should be expensed and not amortised as they are just research costs and no economic benefit is probable.

4a) the five step model for revenue for 13 marks which was great.
Part b)

I said the revenue should be deferred until control of the printer is transferred as the company pays in advanced but the asset transfers after two years.

B) was a weird one. I said the company should recognise 65% of revenue and costs but the change of the contract gave rise to an adjusting event as it would change the amounts recording in the financial statement as the percentage has now changed.

That was tricky.

He gave a net obligation.
Which had an interest rate attached I used the start period interest rate and not year end. The net expense I took to retained earning.
The pensions paid to employees would have an entry of dr pension liability cr pension liability so it would have a NIL effect on the NET obligation.
There was a 3m gain on previous conditions that I dr obligation and cr retains earning.
Then there was an actuarial comment that stated that the pension was measured net at 17m the company only had recorded 15m in current liabilities I cr current liabilities 2 and took the remeassured amount to OCOE.

Please not I am not saying I am correct but this is what I did.

Rav – how did u get dr ocoe 6.5 can I ask?

It was an operating lease. Remember, the asset was of a specialised nature but there will be no more capacity upon completion of its leased life therefore it will not be able to be employed for use. Also, the lessor (Government) is benefitting from the proceeds on any sale of the lease. The reward arising is therefore retained by the Lessor

Well the opening obligation moves by Dr past service cost for curtailment, Cr current service cost, Dr contributions paid into pension, and Cr for interest based on bond rate.

That gave me a closing liability which was assessed to be 17 by the actuarists… 6.5 was the re-measurement component. Not saying that’s correct but it’s what I did.

I don’t remember the exact numbers tbh.

The foreign loan was I/C so needed to be removed at it’s closing liability from the net assets at reporting date.

That’s how I treated it but again, probably wrong.