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Q1 – what was the divident part about- what did you have to do?
Also the joint operation- how did you account for this?
@gwen2000ie said:
did any get a negative fv adjustment on the second sub? I had bk value of
osc plus 15m ret e at acq =25
fvna of 26m and another 3m fv adj on land to add on as it was within 12 months. but to 29mbut obviously when i went to take 25-29 i was getting a negative fv adj even though they said excess, i was trying to see what id done wrong but i dont know, i had to stick in a figure in to make a positive figure but lost buckets of time on it, and q2!! i had one full 25 mark question and written on q one to do with 15 mins to go 🙁
You were not supposed to add the provisional valuation of $3m. It should have been taken to R.E (the depreciation of 6 months from 5 years) and the final value of 2.7m shuda been added to the SOFP. Also, did you add the fair value of equity interest already purchased in 09?
@gwen2000ie
You had to add the fair value of the previously held equity interest, which was $5m. That would have given you a positive goodwill of $1m.
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close enough.. i did at 300..:D,…. and was the goodwill 6 or 9?
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I think it was a fair paper
But the weighting of most marks for many of us will probably come from section A
Q2 was ok – it had mixed pensions and Share based payments
Q3 was the mix
Q4 was about IAS 37heres to the next 2 months of living hell!!!!!!!
Enjoy the summer
Heres to the next 2 months being absolute hell!!!!!!!
@mafazkhan said:
close enough.. i did at 300..:D,…. and was the goodwill 6 or 9?Definitely 9. The results of the PPE valuation of second sub. were not to be included.
The depreciation instead should’ve been charged to P&L and the final value of 2.7m taken to SOFPbecause the FV adjustment existed at the date of acquisition and was pending the final sign off it should have been included as part of the fair value of the net assets at acquisition giving you 6 goodwill.
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i too got 9 but people were saying that u had to do something with the fairvalue increase of 3 m.. I wasnt sure about it…
what did people do with the joint venture???
i completely messed up the paper back again in dec i think 🙁
because the FV adjustment existed at the date of acquisition and was pending the final sign off it should have been included as part of the fair value of the net assets at acquisition giving you 6 goodwill.
Lol nope. There’s a question in the BPP kit with the same adjustment. You may wish to pick it up and see for yourself.
P2 June 2012
I think it was a fair exam…. I have dealt with much worse exercises during my handmade revision stage.
Q1 a nice balance sheet with two subs, the second one becoming sub half way. There was a PPI revalued first and impaired the year later, some trade receivables being franchised to a bank and some adjustment to a joint venture participation. What else? the sale of a FA bought back immediately after year end (i.e not a real sale then). No goodwill impairment, no PUP, just some FVA. All pretty easy. Part B focused on the de recognition of a financial asset (i.e trade receivables) and discussion of the sale of the land to cover up some liquidity troubles.
Part B Q4 was about provision and contingencies – recognition and measurement and and the other was… God, my brain is going blank!! I am too exhausted, sigh!
Q2Treatments for Employ benefits, share payments…
Again no much about deferred tax apart from Q3 which indeed I found quite challenging and skipped almost immediately. No cash flow as hoped either but no foreign currency sub either as afraid.
I expect to see a higher pass rate in this session. In my hall there were a lot of students who looked around and who I think gave up before starting. I have sat a couple of exams two or three times (such as F7 and F8) not really because I did not the answers but because I was too scared to READ it!! my best advice: do your best, write as much as you know and do the calculations that you know as far as you can because even a simple sum across a group can earn marks!!
Good luck you all!!
Barbarai also included the 3m in the fair value of net asets at acquisition as there is a past exam q with this adjustment in it and was treated in this manner so i went with that!!!
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@mafazkhan said:
close enough.. i did at 300..:D,…. and was the goodwill 6 or 9?GW was 6
Balance 305.9thank you. which question was it that you saw with this adjustment?
The rationale is that if the fair value of the assets at acquisition were understated then the fair value of the net assets would be understated as well, i.e. dr PPE, cr revaluation reserve and therefore increase FVNA.
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I got it to balance at 315 i think it was
But dont worry – we will get marks for our method
I didnt do one of the adjustments though
December 2009 Q1 Grange its on pg 3 yea i would be in agreement its more or less the same as grange and they adjusted for it so i dont see why it would be any different!!
tough paper i think a pass may be a miracle made silly mistakes 🙁
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When i was getting the cost of the investment for the second sub
I took 5% at FV which i thought was 5m
plus 55% consideration.
plus value for NCI at fair value.I then got the profit of the disposal of the 5% by taking 5m less 2 million cost in 09.
oh feck i made a mess of this. I then brought financial asset up to 5m fv and then took it off the equity financial assets on the sopf and put the profit to the consol reserves.i made a mess didnt i.
with the dividends i also not sure, i didnt think they should go through OCI, never seen this, so i took out of OCI and put into Ret earnging on consolodated reserves.
i didnt think it was a bad question but i thought it could have been worded better!
RAGING!!!! as i was hopeing for a simple or complex group 🙁you would have gotten marks for the 5m consideration plus NCI at FV plus consideration for the 55%. i wouldnt worry about the other bit, you wont get marked down for it but i dont think the financial assets should have been adjusted as the cost of the investments were held separately.
the dividends were an intergroup transaction and so it needed to be removed completely. my reversal was dr OCE cr Cash.
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guys
q3 – was this all basically deferred tax?
i was in a rush and had to read the question quickly before i could answer.
and part b of this was holding the financial instruments thru fair value – i mentioned about holding via amortised cost and considered hedging to offset interest rate risk?
and part c i thought was again deferred tax about the sub paying dividend – all about timing differences? creating a DT liability?
Q4. i did not have much time!!!!!
so i just wrote 1 page outlining main points of provision of contingent liabilities!!!!
and for (b) i just outlined the proposed changes by E.D that was use of expected value, Obligation for service related that was to include profit margin and onerous contrrac will be accounted for as current ias 37……
missed the last easy 7 marks!!! hope to PASSany suggestions pleaseee????
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I spent too much time on Q1, so was in a real hurry to do Q2 and Q4. Although skipped part b in both Q2 and Q4.
It seemed strange for me that 80% subsidiary was held at FV through OCI, haven’ t seen such measurement. So I put it back at cost of 50 and also deducted 2 from dividends. Not sure if it was correct, but at the same time don’ t think it should have stayed at FVtOCI.
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also part d Q2 was that a contingent liability?
10m lawyer costs but company thought only 4?
i said put 10m down as contigent and discount it
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