SBR*** P2 June 2012 Exam was … Comments and Instant Poll ***

I think the exam was a disater :( I was well prepared... so I tought. For the first question the Joint operation totally confused me and I have no clue if I did it correct.
The second question killed me when it came to the share based payment for the managers... I have no idea what to do with it.
At Q3 I was totally confused so I really donßt know what they wanted to hear, I just hope the examiner is a fair marker so that I hopefully can get the 50%... this would make me happy!
How was it for you???

@akte1337 said:
I think the exam was a disater :( I was well prepared... so I tought. For the first question the Joint operation totally confused me and I have no clue if I did it correct.
The second question killed me when it came to the share based payment for the managers... I have no idea what to do with it.
At Q3 I was totally confused so I really donßt know what they wanted to hear, I just hope the examiner is a fair marker so that I hopefully can get the 50%... this would make me happy!
How was it for you???

in Q2 the share-based payment was a very simple question so maybe you were not se well prepared :)

Did anyone write about IFRS 3 in Q2 part d), regarding contingent liability?
IFRS 3 permits to recognise it on consolidation - this is the only possibility to recognize a contingent liability in the books.

And in my opinion the fair value adjustment should've been icluded in goodwill, so GW was 6 at the end. The measurement correction was within 12 months after acquisition.

Quick Quetion. For question 4 part B how much should the company put in the provision for??

@denny09 said:
Quick Quetion. For question 4 part B how much should the company put in the provision for??

Probable values my friend;
129m * 40% + 140m * 60%.
I even added 5% cuz i thought it would be right to reflect the uncertainty and risk of cost increase since the proposed amendments are aimed to reflect this in the new IAS 37.
Hope that answers your question. I hope to score like 3-4 marks on that part!

@ernstaugust said:
Did anyone write about IFRS 3 in Q2 part d), regarding contingent liability?
IFRS 3 permits to recognise it on consolidation - this is the only possibility to recognize a contingent liability in the books.

And in my opinion the fair value adjustment should've been icluded in goodwill, so GW was 6 at the end. The measurement correction was within 12 months after acquisition.

IFRS 10 is consolidated no IFRS 3

i duno what Q3 is talking about,so i tried Q4.
i started my answer in Q2 n 4 first..
end up i am rushing for Q1,part a SOFP cnnt balance and not enough time to do part b n c
i m so regretting now :(

anybody please tell me how u brought $10.4m to Recoverable amount of $7.8m

carrying amount depreciated for 2 years,then revalued it..after that new revalued amount is depreciated based on remaining useful life,then the the figure is impaired to recoverable amount
i am doing it tis way..is it wat u want?i cnnt rmbr all the figured given

I had 6 Gwill, did not do Joint operation and sale and purchase of the property in Q1. In 2nd Q Finance lease and saleback, IFRS2 SBP vestin over two years but calculated liability for third year because not all managers have exercised the options. IAS19 actuarial G/L recognised in a year in P&L not allowed to spread over vesting period. Past service cost re enhancement of benefits recognised in c/y not allowed to spread and also part of the benefits have been accelerated in a year with no payment to employees so Dr Obligation Cr Profit & loss. Part d) in single entity contingent liability (to be confirmed by future event, outcome of suing), in consolidated take out from FV of NA, increase Gwill. Q4 IAS37 Provisions only asked for, so definition of provision, recognition and measurment. Also, I have said that IAS 37 permits capitalising provision in some cases. Second part, more difficult, dont remmember what I have waffled. Hope to get 50 %.

Damn !!!

It seems evryone found it ok, or easy, this means it will be marked very tough !!

I also can't believe that almost everybody found it easy. Maybe they didnt see the real issues;)
By the way, the easiest P2 exam ever was Dec 2011. That was a gift. Its a pity that I didnt attempt that time.

@nagdam said:
IFRS 10 is consolidated no IFRS 3

IFRS 3 = Business combinations.
IFRS 10 had nothing to do with this question.

Just did d basics as I dint practice enough past paper. I hope dis takes me across 50 though.

I think there were a lot of tiny references to adjustments that were hard to pick up, and no study material really cover that. Ie:
Q1 - classifyng the sub through OCI. That was sg new... Is it an wquity instrument? - If the parent says to deliver cash the sub will have to. Also it could have been paid for in cash. Therefore is it a debt instument? Those can be measured FVTPL or amortised cost. Definately not the latter this case. And that was my 15 minutes gone from the exam.
Q1 - Then the IC dividend
Q1 - Have you made a ST provision for the 3% on the 16m repayable the day after year end for the sale & repurchase? Was it a one day loan?
Q1 - Joint operation... not too common in the workbooks either.
Q3 a) - 1 page full of matters to consider - HORROR for 11 marks. Had to skip that bit completely, otherwise would have taken me an hour to struggle through.
Q2? The contingent liability was unlikely to result in any outflow, the amount could not be reliably measured - why even disclosing it?
All in all I found the exam quite tricky, although the basics were not too bad. To start with Graham was cunning to chuck in another Q1 on SOFP - as EVERYBODY were expecting P/L or C/F...
Typical.
Probably see you in Dec.

Q1 the sub is classified as FVTOCI in parent's separate sofp, there is no problem as investment can be classifed at cost or other methods defined in IFRS 9.
The inter-group dividend should be eliminate, just dr retained earning cr other component of equity, as the dividend is from sub's RE and to parent's OCI.
The jonit operation is not a jiont venture, there is great difference between them.
For a jiont operation just recognise what belongs to you,what you owe and what others owe you in your group account.
For a jiont venture, as it is a entity, you have to use equity method to account for it.

Thats all good, but thinking about these minute parts of the syllabus burns down the time you have for the exam as a whole.

BTW - was the 40% interest in the Joint op the contractual or the ownership interest? Can't remember, but this equally makes a big difference.

Greetings fellow students.

I found that ok. My strategy going into the exam was to really swot up on IAS's and gain the most marks in this area and have the group question take me over the finishing line and I glad I did.

I was expecting a SOCI as the group question but was glad of a SOFP.

Like a few others here I was surprised at how relatively straight forward the exam was.

The consolidation was fairly straightforward with such issues as goodwill, piecemeal acq, profit on disposal of previous interest, PPE impairment, Joint operation, trade receivables factoring and some other stuff that I since cannot remember.

Overall I thought this question was in terms of previous technical issues was fairly straight forward.

The other two parts to question one were ok, I had read the technical article about FA a couple of times so was glad when the explaination and de-class of FA's came up.

The ethical question was ok as well. Mentioned that accountants were in a position of trust with the gen public. Put some emphasis on that fact that Robby was a Plc so therefore accounts could affect economic decisions being made.

Said it is not upto to us to determine what a business can or cannot ''do'' in it's course of business but it is up to us to make sure that this information is presented in a true and fair view to the users.

The optional questions that I done were 2 and 4.

Question 4 was a gift for those who had looked at IAS 37, the standard itself is fairly straightforward so this was some easy marks.

Done the 'mixed bag' question as well.

IAS 19 was easy enough, said because of the revised standard you are now no longer allowed to realise act gains over the course of the vesting period and that these must be recognised immediately in OCI. Went through the various financial statments saying what should be put in what.

The provision was easy enough.

IFRS 2 question was ok, no real dramas there.

I think there was one other standard as well, but I can't remember it.

The above is what I put and is by no means ''correct''.

Good luck come the 8/8.

Gosh....i really have messed up. I suspected when i finished the exams on time with all questions answered, i couldnt believe that P2 could be that easy....imagine my shock when i got my SOFP balanced at 309++!! Now reading all the comments here, looks like the questions were tricky and not easy at all!!!

I pray hard that i cross the 50% mark!!

moiez89:

the PPE impairment is as such:- (amounts all in $m)

Value bought 10
LIfe of asset: 20 years
Dep'n charge 10/20=0.5 pa

Carrying value two years later is 10-(0.5+0.5) =9

Revalued to 11
therefore
dr asset 2
cr rev surplus 2

new dep'n charge = 11/18=x

next year take 11-x=y

difference between y and the impaired amount is the impairment.

cr asset impairment value
dr rev surplus 2
dr retained earnings the difference.

My apologie for the use of algebra, I have not got calculator to hand.

@Lee.

After the revaluation dep, the plant was at $10.4 and we had to bring it to recoverable amount of 7.8.

I was confused to whether to first find a adjusted C.A or simply bring the plant to recoverable amount.

What did people actually put as their answer for the Joint operation calculations?

Thanks

Just for people informantion.

The Q.1 bit about the land(I think) being sold just before year end was what actually happened in real life with Anglo Irish bank, and Irish Life(I think)

Anyway, I probably didnt get a mark for that, but mentioned it in the exam.

Exam was fair... i made some simple mistakes... like the excess revaluation i charge to OCI (other component of equity) instead of Retain earnings...

P2 is never easy. It seemed straightforward but I have the feeling I probably got many adjustments wrong or missed them completely. As for the comment about wasting time by going to the toilet, I could imagine the exam would be just that much more difficult with wet underwear.

hay..q1 n q2 its ok for me...but q4 my lecture never teach exposure draft ifrs37,so i just do q3...i hope my general explanation about particular ias in q2n 3 can gain some mark,and can cover my calcalation which is my weakness..hope can get 50..

as having been exempted from f7, i personally found it difficult doing p2 the first time q1 was ok. q2 was bit tricky for the amount of marks they were asking for but q4 was all about ias37 and i didn't have any clue bout the exposure draft at all. Pray God willing I will pass

Hi!Somebody please email P2 revision kit and study text(if you have) to my email [email protected]

P2 exam was not easy as some have commented. It was not fair either. Q1 had just too many tricks , to make You Sweat, unneccessarily. Q2 was tough. Q3 the same. Qn on D/Tax was not straight forward. Q4 was checking on draft paper on IAS 37 for which one have to start from yr 2005 and end in 2010/11. Was it an English Test or Re - arrange the Jumbled (calculations) words , I don't know.
Prfessional exams must TEST application of knowledge rather than TRICKING students.

Could some one check if the Qn paper has been removed from Online.
I can't see it now.
Weird things happen.