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q3a was a range of issues, from the properties not being held at the correct fair value. there was an active market to obtain a fair value from in accordance with IFRS13.
goodwill was being impaired because of events after acquisition which is incorrect as they were not related to the carrying value of the of the investment, and it was also valued using the incorrevt FVNA as this was based on the DCF model rather than the IFRS13 basis.
this had a knock-on effect on deferred tax because the carrying value was incorrect meaning the temporary diff was wrong and so the deferred tax.
there was also a going concern issue which means IFRS 5 may have to be adopted for preparation of the FS.- Topics: 0
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@jwarrick6 said:
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.
dividends intro group, of course…. dam!!!!!
i also got the sbp payments mixed up, i showed the cost over vesting period posting only movement in 2nd year 2010 2011, but the third year i should have stopped and it was only the deferred tax implication in 2012 as DT ocurrs until the options are excersised and cf occurs so i should have used the last share price to compare to the year before to say that thats what the dt implication would be on, copped when i left the exam hall. made total mess. 🙁- Topics: 0
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@jwarrick6 said:
q3a was a range of issues, from the properties not being held at the correct fair value. there was an active market to obtain a fair value from in accordance with IFRS13.
goodwill was being impaired because of events after acquisition which is incorrect as they were not related to the carrying value of the of the investment, and it was also valued using the incorrevt FVNA as this was based on the DCF model rather than the IFRS13 basis.
this had a knock-on effect on deferred tax because the carrying value was incorrect meaning the temporary diff was wrong and so the deferred tax.
there was also a going concern issue which means IFRS 5 may have to be adopted for preparation of the FS.sounds right in hindsight – i mentioned about not allowed to carry fwd tax losses unless you can offset against future taxable profits. i also stated that the reval of properties cause dt liabilites and assets and that a DTL would be a debit to goodwill?
for the finance instruments one i was kind of going on about defered tax again ( dont know why) but also mentioned that loans should be held at amortised cost and to use hedging to offset against interest rate moves.
did not mentioneanything re ifrs 5, or fvtpl
last part it was a sub paying a dividend i think – i put down defered tax issue ( again!) and how the timing of payment was crucial in order to avoid a defered tax liability.
i sofp was about 260 i think.
q 2 wasnt so bad – how did everyone treat the amendment in employee benefit plan?
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@gwen2000ie said:
dividends intro group, of course…. dam!!!!!
i also got the sbp payments mixed up, i showed the cost over vesting period posting only movement in 2nd year 2010 2011, but the third year i should have stopped and it was only the deferred tax implication in 2012 as DT ocurrs until the options are excersised and cf occurs so i should have used the last share price to compare to the year before to say that thats what the dt implication would be on, copped when i left the exam hall. made total mess. 🙁yeh i mentioned the DT Asset at the end of 2012 – hopefully that gets me a couple of marks for workings
#praying
lol
actuarial gains and losses are recognised in OCI and should be recognised immediately with no deferral allowed. that’s what i put anyway.
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@annasrei said:
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.
Anyone had same doubts?yes i did, it shouldnt have been but, i wrote no on the question paper and then forgot about it..sigh
an investment in an equity instrument can be held at FV through OCI if the irrevocable election is made under IFRS 9, so its correct.
although investments in subsidiaries are not shown as a separate asset in a business combination.- Topics: 0
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@jwarrick6 said:
actuarial gains and losses are recognised in OCI and should be recognised immediately with no deferral allowed. that’s what i put anyway.yup me too ( with the new ias 19 rule)
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investment sfp 55 commprising cash 50m
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Exam was reasonable. For my first try I was expecting it to be bombarded with information but at the end, a very fair paper.
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.
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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 🙁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 givenI 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 %.
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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.- Topics: 0
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Just did d basics as I dint practice enough past paper. I hope dis takes me across 50 though.
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