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I also did not fill in the cover page for questions done, but i dont think that ACCA will not mark them
I am not convinced you are correct about the treatment of the “contingent liability”…..
I feel the fair value of $1m liability has to be included both at the acquisition date and the reporting date – irrespective of the probability.
Guys, did everyone calculate the Goodwill for the first $ nominated subsidiary? There was no cost given. Only a carrying value…
Of course there was Goodwill to be calculated…..
THE COST OF THE INVESTMENT IS SHOWN IN THE SoFP !!!!! –
Investment in Salt $110 as shown in the SoFPBut then the cost of the investment of the foreign subsidiary was given in the question as Dinhars 368 which should be converted at rate of exchange 8 (01Nov14) = $46, which was also shown and reconcile to the amount shown in the SoFP.
@elenadodita2000 said:
Guys, did everyone calculate the Goodwill for the first $ nominated subsidiary? There was no cost given. Only a carrying value…Did you read the the financial statements and its notes before this information – cost of the investment is $110m and therefore, Goodwill is calculated to be $15M – no impairment nil.
It will be good to rework the questions and identifies the error you made under the pressure of exams. Please share the information with the team.
Regards,
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@joevassallo said:
I am not convinced you are correct about the treatment of the “contingent liability”…..I feel the fair value of $1m liability has to be included both at the acquisition date and the reporting date – irrespective of the probability.
I agree with you. I read where it said all the net assets, liabilities and contingent liabilities should be taken into consideration at acquisition even if it is only included in note of the subsidiary.
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I used the cost of investment per the Parent SOFP.
I just went through the examiner’s article again and it state in paragraph 11 that a lease will not be classified has finance lease simply because of it position in a chain of lease agreement but the exception to the rule according to the paragraph is that the lease agreement will be classified has a finance lease if it involve a specialised asset and substantial remaining economic life of the asset. Example of specialise assets are land, farm, resort e.t.c. pls verify.
This was my attempt at question 1a earlier. It balances slightly different to what I did in the exam. I am also unsure whether some of it is right? what do you think?
@chrisdawson451 said:
This was my attempt at question 1a earlier. It balances slightly different to what I did in the exam. I am also unsure whether some of it is right? what do you think?Christopher Dawson – I MUST share with you and say: everything EXCEPT the contingent amount are correctly accounted for. Look at the wording of the adjustment – possible and not probable. It still not settled at reporting date and there was no information to move it from possible to where it should be recognize – PROBABLE!!!
The contingent liability should be only reported by notes to the financial statements – not required for this exam. It was correctly stated at acquisition and reporting date. Read the standard – provision and contingency – IAS 37, also IAS 10 post BS events.
We should pay attention to key word(s) – this is was through off most of the candidates. Good work, and with this – you hit the 33/35 putting you into the driver seat – passing with a mark of 58% or more. Most of us will correctly present the answers to the question the examiner are looking for outside of the pressure; but flustered in the HALL.
We must support each other to handle this – exam pressure in the HALL – D Day!!! It is a disease we MUST fight together!!!!!!! grade. Please see you message private box.
Regards,
I would like to refer you to pg 366 section 3.4.4 the contingent liability according to the bpp manual should be included. Therefore 16 is the correct answer.
@kilmovee said:
I would like to refer you to pg 366 section 3.4.4 the contingent liability according to the bpp manual should be included. Therefore 16 is the correct answer.I do not have that information and what I read – important, standards and students accountant. ACCA site have the information, which is stress for us to read.
The treatment of contingent liability ONLY value 1 mark – big different between pass and fail; so we ether pass or fail. We’ll wait for the grades – February 1, 2016.
Regards,
I already replied saying that the contingent liability should be included at fair value of €1
I worked Goodwill at €16m too… so your assertions and stating that Goodwill is $15 I believe are all wrong.
And if I may ask- how do you know it is worth just 1 mark?
Also the exam results will be published 16Jan16 (NOT 01Feb)
I wish that correct information is posted here, otherwise it confuses everybody.
I agree, you can’t make 100% certain statements on this forum but it is a great platform to gauge how other students felt about the questions and attempted the exam.
Question 1 was a little bit too long. I attempt Q2&3. Didn’t read the article for Q4. I really messed up the lease question…smh. Hope I can still scrape through.
I didn’t fill out the front page for questions done too…smh. Hope that’s not a problem.
@kilmovee said:
I would like to refer you to pg 366 section 3.4.4 the contingent liability according to the bpp manual should be included. Therefore 16 is the correct answer.It’s good when we can give reference; but the basic for contingent is disclosed – not recognized. Once it becomes probable it’s a provision and no longer contingent. The answer will assist us – do not believe – the possibility is out for typro errors.
When we share something like this – it enhance learning if we participate with the intention to learn – not to be a winner. There are three basic points in the questions – indicating the transactions status and we should not be confused with the actions that was done prior; but do whatever proper accounting principles permits.
I hope everyone – even through you may have pass the paper, take the requisite steps to improve knowledge – constant reading is important. We must recite the standards – the next job interview or appraisal my just test how sharp you’re. Do not underestimate anyone. This makes it even more – USA is agreeing with ACCA, the world is coming together as a village.
The competition with some certifying body will soon be over; so we must be up-to-date with information – sharing same with others. The result date – January 18, 2016 you can further share – green_452@yahoo.com
Regards,
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I think you are missing the point. Those who disagree with you are doing so on the basis of exception. The exception is that when consolidating, for the purposes of calculating goodwill… it is included in the net assets calculation…(deducted from net assets).
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