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- This topic has 86 replies, 48 voices, and was last updated 10 years ago by madalitso liyawo.
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- June 10, 2014 at 6:01 pm #175777
I got Profit after tax was 92.8 …. anybody also got this??
June 10, 2014 at 6:19 pm #175786AnonymousInactive- Topics: 0
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Q1 Subsidiary 1
Calculated FV adjustment for land and used this for my calculation of net assets at reporting which I calculated by simply adding current years profit.I used this information in reference to the 8% sale. I needed the net assets at disposal and goodwill. Therefore I had to calculate goodwill at this stage and apply 8% that the NCI would I erase by. Compare that to the consideration received.
I applied NCI% at year end * sub1 pat and put this figure in profit attributable to NCI
Sub2
60% sub becomes 20% associate 6/12months
Had to calculate goodwill and impairment and put this to COS and then calculated gain or loss on disposal. Most of the figures were given except goodwill ie Net assets at disposal, FV of NCI at disposalConsolidate 6 month as a subsidiary. And PAT Associate *20% *6/12
Also share of NCI profit attributable: 40%*PAT * 6//12
Intercoy trading- reduce revenue and COS 12
PURP : (8/12)*2 but I can’t remember if I added when I should have subtracted as the PURP was actually lossPension- current and past cost added to admin
Options- long but April 13 treated as 1/3 years and 4/7 directors
April 14 treated as 2/3 yrs and 3/7 there difference between equity of the two yrs treated as expense and added to admin.Add cash flow hedge back to finance cost and show loss in OCI
Finally talked about FV definition and level and then talked about uses of FV in standards eg financial assets and impairment review
FC if correct then operating lease is form of off-balance sheet finance and explained why FD wants to show as operating ie reduces gearing etc then talked about ethics and fair view etc
June 10, 2014 at 6:36 pm #175789AnonymousInactive- Topics: 0
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As per what I understand (also read it in the lsbf kit) is that when it comes to Cons. Income Statement, the markers are very generous, even if your working is around halfway there, you get half of the allocated marks for that.
This is what Martin wrote about marking the working of the Impairment & reversal of PPE in Ashanti, which had a working worth 4 marks :
Close 4/4
Not Bad 3/4
Had a go 2/4So if you have done all the workings and put your numbers in here and there, you can expect to score good in the first 35.
June 10, 2014 at 6:37 pm #175790AnonymousInactive- Topics: 0
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“As per what I understand (also read it in the lsbf kit) is that when it comes to Cons. Income Statement, the markers are very generous, even if your working is around halfway there, you get half of the allocated marks for that.
This is what Martin wrote about marking the working of the Impairment & reversal of PPE in Ashanti, which had a working worth 4 marks :
Close 4/4
Not Bad 3/4
Had a go 2/4So if you have done all the workings and put your numbers in here and there, you can expect to score good in the first 35.”
I hope you are right Martin….
June 10, 2014 at 6:40 pm #175792In all honesty, the paper was soft compared to some of the horrific past questions I was attempting before the exam. I spent so much time dealing with complex questions I got to question 1 and forgot a lot of basic consolidation skills, so many points I made on my question paper but ran out of time to write in answer booklet.
Hopefully did enough
June 10, 2014 at 6:45 pm #175794AnonymousInactive- Topics: 0
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I did Q2 and Q3
Q2A) functional currency is….
But noted that the subsidiary is not autonomous and it’s operation cost was dollars. The parent dictates investment decision and there concluded the subs functional currency is actually dollars… Anybody disagree???
B) goodwill calculated in dinar but had to convert p cost of investment into dinars. Calculate fx in goodwill and NCI and group exch diff and mentioned this can be recycled.
C) talk about DT = all TD except goodwill
TD: CV – Tax base
Convert the PPE at historical rate and then charge depn which differed to the capital allowance due to difference in uel for tax purpose. I got a taxable difference * tax rate
D) foreign loan- this was tough but translated the loan at historical rate less the payment of interest at average. Balance due in dinar converted at closing and the difference in USD put to FX gain in P&L
Q3) A) talk about investment property and inventory because housing is sold in normal course of business and then talk about impairment. Finally talk about revenue recognition
B) was abit quick in thinking intangibles was being tested so definition of intangible and recognition criteria. Said it did not meet recognition requirements and should expense. On second thought perhaps provision/contingent liability was being tested???
C) head office- what is a lease, indicator of FL accounting for FL and OP l . Concluded that the contract looks like a finance lease
D) talk about held for sale and calculated carrying value but could not Finnish in comparing to what the item was being sold for etc and wanted to see if there were events after reporting aspect but not enough time
What’s your thoughts folks?
June 10, 2014 at 7:15 pm #175804AnonymousInactive- Topics: 0
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In 3 A i wrote a totally different angle !
I wrote some stuff about lease (which minco gives to general public) for occupying the house. Then I focused Minco & Housing Association as being related parties and rules of transfer price… ?!
June 10, 2014 at 7:28 pm #175806Oh my God, I went out of the classroom and thought “that was easy”, but now when I read your comments I am not so sure about it 🙁
I did sth totally different in 1b) – I wrote sth about the options given in different standards to measire assets in FV or not, but then I wrote sth about the difference between the financial value, which I interpreted as the consideration someone would like to pay for the company, and the FV of net assets, which is goodwill and about the fact that goodwill created internally cannot be recognised, so that’s why there’s a difference between the financial and fair value… :-/
And in 2a) I chose dinar to be the functional currency as the main current operation of the sub was to held a dinar valued bond.
Hope I’ll get sufficient points on consolidation.
June 10, 2014 at 7:41 pm #175807Time constrain , Q4 was from tec article .
June 10, 2014 at 7:45 pm #175808AnonymousInactive- Topics: 0
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Was reasonably happy with Q3 before i read comments on here.
3a – didnt even suss anything other than revenue recorded early and then inventory (wip) being affected at the reporting date. Probably more standards for the 7 marks available tho.
3b – talked about provisions – said record her payments equally across the year and include a disclose for her bonus structure as theres no way to know what she may win. Didnt talk about intangibles. But im sure ias 38 is relevant because they are building their brand. 🙁
3c – the lease – said was operating lease because wont have it for all its life etc
3d – i discussed ifrs5 but also ias 10 as there was a major change in the way the disposal was reported between the financial statements and the reporting date. Asked the question if maybe conditions existed at the year end.
Like i say i was happy before but now im now sure. Id suddenly take 12-13/25 on that!
June 10, 2014 at 7:53 pm #175809AnonymousInactive- Topics: 0
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Anyone remember whether Ethics 1c was about Financial controller or Finance Director?
June 10, 2014 at 7:54 pm #1758101b Fair Value vs Financial Value – I wrote that internally generated intangible assets can not be capitalised so their value is not reflected in financial statements.
Also, where active market does not exist the valuation involve estimations and may vary between different valuers.June 10, 2014 at 7:59 pm #175811AnonymousInactive- Topics: 0
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Both FC and FD
FD showing a finance lease as operating lease is unethical. Give reasons ie usual ethics response
June 10, 2014 at 8:01 pm #175812Very tricky paper…
June 10, 2014 at 8:01 pm #175814AnonymousInactive- Topics: 0
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I got profit after tax 90, because I reversed (eliminated) the reversal of impairment on goodwill. I think goodwill impairment cannot be reversed as it is an increase not in purchased goowill but in the internally generated goowill.
June 10, 2014 at 8:15 pm #175817Ethics was about financial controller and his ethical dilemmas. Financial director was not agreening with the financial controller regarding the treatment of the lease.
June 10, 2014 at 8:17 pm #175818oh Lord, i will start to study now for December’s exam.
June 10, 2014 at 8:24 pm #175819hi there
how’s the paper looks easy but when started took longer time to finish.
plz someone tell me about q2June 10, 2014 at 8:26 pm #175821what you done it with q1 paragraph 2nd equity 8% sale
June 10, 2014 at 8:30 pm #175822i am not sure but if goodwthisill impair not recover i think so no treatment required for
June 10, 2014 at 8:35 pm #175824AnonymousInactive- Topics: 0
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I don’ t remember exactly if he included the reversal of goodwill in his statements or not. Anyone does?
As for the 8% gain on sale I didn’t included in the p&l as it should be considered transfer between equity holders.June 10, 2014 at 9:04 pm #175829I kind of accidentally forgot to copy the calculation of sub no. 2’s calculation onto my answer sheet (I had done that calculation in reading and planning time)! Thus no entry in IS..how many marks can I loose? 5?
June 10, 2014 at 9:08 pm #175832paper was not bad at all , que 1 i may have scored good marks there but i rambled for the rest of the paper . i hope its enough for a pass
fingers crossedJune 10, 2014 at 10:13 pm #175839How about question 4 debt/equity.
Did you classify both types of B shares as equity?
That was my conclusion, I am curious how others did.June 10, 2014 at 10:19 pm #175840I concluded the the first one Cavor was debt since it invest variable amt of equity to be issued
The second one is equity since a fixed amt of equity will be issued to redeem the bond
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