*** P2 June 2015 Exam was.. Instant Poll and comments ***

3.b. I talked about how it was akin to research expenditure and should be expensed

3.c. I talked about how future economic benefits are likely, technology feasible, and there are resources to take advantage of the drug in development. Therefore should capitalise development costs.

Rgarding $10 fee for drug payable to other company I just said this was going to be a normal costs. I think I was wrong

The biological asset with its cashflows and discounting screwed me up. i know hoe to value a biological asset = FV less costs to sell but the inflow/outflow of cash threw me

also what did people write for finding a FV for 150 vehicles?

@reshou said:
The P/E ratio was 19— it was adjusted to Fair Value. They have mentioned a profit of 3,6 Mil if you divide that by the number of shares if i remember well was 26 mil it gives you an amount. Then the formula will look like this :

Price/Earnings per share (computed above)=19.

You can find in here the Price for a share. We know that the controlling was 80% which means NCI was 20% of the shares. Then i have multiplied 20%* number of shares* price per share and i have the NCI fair Value. It seems to make sense what i did. Anyway this will not be enough to pass the exam. It was my first attempt but it had no similarities with previous ones.

Colleague – you’re excellent to remember ALL of this. This exam is telling me I should l should quit – The paper was extremely DIFFICULT!!!!!!!!!!!

I tried to start with the mandatory questions and it just block me out. ACCA know how to make money!!!!!!!!!!! I managed to work some aspect and fill the answer without completing – hope they have mercy and favour me with the requisite grade to PASS.

There is a miracle for everyone of us who attempted this paper – give thanks!!!!!!

On a whole, I dont feel too confident. I know I did the best I could have done.
I studied a lot across the whole syllabus.
I mean I do not get some of the intricacies of the questions. If someone knows the knowledge …. why make it so difficult.
And why throw people on Q1 . I made up the NCI. Dwelled on it for 3 mins at most and said no, to hell with it. I am making it up. Took me awhile , Spent one hour on it and moved on. Felt I could make a good stab at the last few workings but moved on as my time was up for Q1. Didnt want to spend time on something that may just be a few marks.
I started the exam with Q1 parts b and c so it was good to be able to move on to Section B after I had gained a few grey hairs over the consolidation 🙁
Overall, not expecting a pass. Be lucky to get in the high 40s.

Yeah it was definitely cash settled, realized it after the fact. Which sucks! Probably get a mere one mark attempt for that.
It was a very technically challenging time pressured paper.
My heart breaks at the thought of a re-sit. considering I put SO MUCH EFFORT into it.
Endless amounts of time into this paper.

Thanks Sean. I definitely did all the basic workings. And finished them off an slotted them in. Actually did that in the last 5 minutes because ‘thought’ I may have time to go back to Q1 , didnt so went back to it and finished off the workings. Put in the %’s and all that sort of stuff.
I really do not know. 50 marks is a lot to lose but its looking that way. How about you?

My first attempt , found the going to be very rough nothing similar to any of the previous past papers…

Does anyone remember if it was a deductible tax asset in question 1.i think the question hinted that future profits would be available??

@carrolj said:
Does anyone remember if it was a deductible tax asset in question 1.i think the question hinted that future profits would be available??

I got a tax asset as well… was too tired at that point to wonder if it was a red herring or not so I just took that as a hint .. think it was 25% x 7 (the difference between the two values) or something?

sorry that this is a PERMANENT not temporary difference 🙂

@sovuthyoum said:
Cannt imagine how the hell examiner think of such tough questions.

I personally think the examiners are not humans,maybe some robotic scientific creature or an alien

GOOD LUCK TO EVERYONE THIS WAS NOT AN EASY PAPER. First time at doing p2 and it won’t be my last!!! A frustrating exam many parts were not hard just confusing, I’m sure many people lost confidence as I did and there are MANY parts that under different circumstances could be answered. The examiner wanted to catch us out and he succeeded it seems. there are many marks avaliable though, just writing out the pro for a balance sheet in q1, marks are avaliable just for trying every question in q2 and/or 3 so as long as you tried ever part you get a mark!

Q1 I only answered half. Oestensibly many parts were not hard. Establishing the value of the nci from a P/E ratio is neither hard nor unintuitive and was covered in f7. However, given that the past 14 exams did not cover it at p2 it was unexpected. I myself took about 5 minutes to figure out what I was doing. The examiner threw me off my game by presenting a lot of necessary information that was unexpected. I got confused by the disposal of the interest in niche, the partial,goodwill method was used I couldn’t remember if I needed to include goodwill when calculating the investment.

Was the lease a sales type lease? I stated the residual value shouldn’t have been included in the revenue and costs of good sold as this was not going to be realised, but I paniced and forgot how to account for a sales type lease so again, not a topic that is hard, but one that was certainly unexpected.

I messed up with the foreign property, I started treating it as a translation of a financial statement, trying to translate the impairment at the rate at the end of the period when everything should have used the historical rate. Was it a permenant difference? I got confused so much. What was the deal with the restricting of the pension arrangement? I saw the word restructuring and ignored it.

B on the UK stream was difficult, difference between frs102 and ifrs smes for when subsidiaries do not need consolidated accounts prepared. Wrote bout 2 lines.

C also challenging, I was hoping to critique ethical performance but there was no opportunity to do so.

Q2. No obvious principal market, Asia was most active but the entity had used Europe the most. All 3 markets had been used in the past. Assume Europe as most favourable market.

No idea on the discounted cash flows. Stated it was a level 3 input on the heirarchy, that ias41 requires argiculture to be measured at fv-cts and after harvest the assets are treated under ias2 but didn’t write much more. Said the nominal rents shouldn’t be included, don’t know if that’s true or not.

Cash settled share based payment, fairly straight forward.

Ifrs13 states use highest and best use, land couldn’t be valued on basis of use for construction as there is no planning permission (legally permissible is a criteria for highest and best use etc) so treat as farmland.

Q4 ias1 requires soci to feature profit and lloss and oci under seperate headings and PCI should be separated into that which will be and won’t be recycled.

Discussed cash flow hedges and Ppe revaluations and basics of recycling, nothing much. A line on the iasb dp.

About 5 minutes left… Objective of financial reporting, qualitative characteristics of useful information, the other headings of the conceptual framework. Didn’t actually say what the cf is so marks lost there. Didn’t really say why it wasn’t any good, just that it isn’t targeted at non investing stakeholders.

Gains on cash flow hedge should be recycled when inventory hits the income statement. Mentioned the change of basis approach but not sure if relevent. Ias2 lower of cost and nrv. Made some stuff up.

Last part was straight forward, excess depreiation from reserves to retained earnings, impairment loss first taken out of reval reaerve then retained earnings.

That exam was something else!…I know my consols so well and I got floored with calcalating simple nci’s and panic!……..I started to forget everything after that really frustrating experience…….did question 2 and 4…..question 4 was ok….hoping for the best!…but all in all the paper was a complete disaster!

looks like we have mutual feeling about this paper.. this is my first attempt for p2 and i was really stunned by the questions. never thought it would be this difficult as the past questions look doable. hopefully i wont need to resit for this paper, but the chances of passing for me is slim 🙁