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

But remember it is a “specialised asset”. It cannot be used in any other way

Question 1 confident on computation part all the fiddly bits I got tied up in and just made assumptions and moved on.
Part b struggled on this question. Part c was OK regarding ethics hoping to get half marks

I did question 2 about the licenses I wrote about intangible assets warranty provisions expected values etc, leases which I said was operating lease.

Question 4 reasonable section a should pick up some marks. B can’t quite remember put about deferred income over 2 years. Second part I wrote about construction contracts and a little on ias10.

Very time pressured but first go at it doing self study in 3 hours managed to attempt everything. Feel like it was reasonable effort hope I do enough to pass if not back to the grind

@modernaire said:
Can anyone specify whether consideration for goodwill is translated at the current rate or historical rate? I forgot this important fact before taking the test and used historical, since it resulted in a prettier number 🙁

Q1 — Time-consuming. Dealing with a net pension liability instead of a separate liability/asset threw me as I wasn’t sure how to deal with contributions/payouts. The foreign exchange made things needlessly complicated and I kind of wish we’d gotten a sub-subsidiary or D-shaped group instead.

Q2 — Avoided. Seemed like a classic technicality trap.

Q3 — Joint operation. Could not remember for the life of me which IFRS governed that, so I hope I didn’t lose a point. Wrote that nothing should be provided for as management’s intent alone is not enough to constitute an obligation to transfer resources (it needs a legal or constructive obligation). I’ve seen this get fudged in the study materials, but for god’s sake, that’s what the flashcard says. BPP absolutely hammers home that major repairs are not to be provided for, so I’m going to absolutely enraged if the examiner finds some stupid excuse for it.

Q4 — Easy points on the 4 remaining steps, but the part about what qualifies someting for IFRS 15 treatment — I don’t remember this in BPP at all, so I waxed poetic on what doesn’t qualify for IFRS 15 treatment (financial instrument stuff, sale of PP&E, etc.) and hoped for the best. I wrote that the copier sale required a contract liability per IFRS 15 terminology (deferred revenue) as title wouldn’t transfer. I was confused on whether the 2-year intervening period constituted a lease, or if I needed to discount anything, or what. For the percentage of completion job, I recalculated the POC to 60% or somewhere around there (ugly number) due to the revised estimates, and then I messed up the balance sheet in epic fashion by taking cost less profit to arrive at some kind of contract asset. Sigh…

It’s too much to memorize. I’ve dumped 250 hours into studying P2 and it’s still too much to bear while working with a Big Four firm that’s unsympathetic and refuses to give me any study time. It’s my bad luck, too, that the test dates all sync up with year-end busy seasons. Sometimes I think I need to quit working for a year to pass this stupid test.

Colleague – here you’ve it. We MUST practice to read the technical articles before we enter the exam on the final day.

You may have loose some easy marks, but the markers should have mercy – all the way!!!

https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p2/technical-articles/revenue-revisited1.html

P2 needs more time or reduction in question parts . We should have the time to think and apply standard properly. Always in a hurry makes it impossible to attempt exam properly

I wanted to know.. Is p2 marking a lineant one? Do they panelize you for a mistake once? Or is it that you get the whole answer incorrect if you have done a mistake in the calculations at the begining?

I think 3a was a joint operations too. But it should be investment accounting and not equity accounting.

to me it was an operating lease because some important criteria for a finance type wasn’t on the side of the lessee, eg the gvt had rights to the proceeds of the sale, the lessee had no option of buying the land after the lease term, though the lease period was 30 years and 89% of pv of initial payt

@anjujoseph said:
What about the treatment on contingent liability on fairvalue of asset in qtn 1??

i think its a trap. it is ‘possible’, so it should only be disclosed. i think.

nope because it was land and according to ias 17 land can be only classify as finance lease if title is passed to leasee,

i just got -1.5 after adjusting ex loss,

That is exactly what I did as well…

Fair Value Adjustment for Contingent Liability $1m (minus) which is included both at acquisition and reporting dates.

The question said it was disclosed at $5m (disclosed i.e. – not accounted…) but the fair value was $1m which I think had to be included, by including it with the FV of Net Asset (hence the minus).

I have been attempting the UK version – am resident in the UK as well.

The UK version is very similar to the INTERNATIONAL, except for the new FRSs 101-102-103 which came in force on 01Jan15. There are not much differences, and questions in the UK variant normally relates to explain/identify differences between IFRSs for SME and FRS 102.
Hope this helps.

I think there is also explanations given on the ACCA portal about this.