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Question 1: Group cashflow was tricky and there was no much adjustment regarding financing activities. que 3 was a disaster….couldnt think through on 3b that has to do with football contract..3a was on ias 23 borrowing cost..still nt bad que for was lease..exposure draft Ifrs cldnt really explain the shortfalls of ias 17 & but d treatment of the 2 lease taken by Anan under the Exposure draft..seems both lease are to be treated the same way. …looking unto Allah for the best
Ok here are my 2 cents
question one on cash flow and there was a disposal. the goodwill on disposal was 9 after impairment and this was required to be deducted from the opening goodwill in order to calculate the current years impairment
there were lots of other issues such as acquiring of associates and disposal impacts on working capital nci etc
overall i did 17 workings for question 1 and my cash answer was -18. the correct answer was -23 because that was the total decrease in cash over the year
question 1b was a very subject answer. i mentioned that cash flow gives the users more information regarding the actual figure because profit is a subjective and estimated figure and cash flow statements enable users to analyse how the entity is capable of managing its short term debts. i also mentioned how integrated reporting can enhance usefulness of information and more disclosure and transparency is kind of preferred by investors
1c was inter company balance. it was a clear ethical issue because the loan by the parent basically was used to hide the overdraft
question 4 on leases. i was prepared for this. so wrote as much as i could for the first 16 marks. i think i messed up in calculations though because i just recognized both of them as finance leases at their present value which was given in the question
question 3. i did borrowing costs. part b was horrible and in part c there was related party issue but actually there was no issue because director in common is not a related party issue if the director does not have control and significant influence
good luck guys 🙂
A complete disaster, Q1 cashflows I’m guessing most of you, like me briefly overviewed this topic not expecting it to come out, yes there are marks to pick up here and there but hard to get a good mark if you guys get my drift, to easy to get things wrong or leave out things.
Q2 Horrible restructuring – but had no choice as hadn’t read the article relating to the revised ED Leases…….. Nice one!
Question from me “what happens when you own 100% of two subs and decide to sell one sub to the other sub with a loan interest free”, we could make a sketch out of this question, I mean you’ll still own 100% as an indirect holding but how do you treat all the transactions?Q3 Required knowledge of revenue recognition and cost recognition, and another random question, you receive 3M to let an airplane line advertise their name on your stadium, how does that affect revaluation? Should this not be simply “Other income” 1 M each year? Must be missing something.
Very disappointed with my performance on this exam and the examiners questions, Re sit in September here for sure.
Cashflow screwed me over also, oh well fingers crossed that most people did something to get them over the line!
I dont know how do they set paper,they should have some common sence that student can answer or not.i think no use of doing hard work.its suggested for examiner please think about student first before doing any question.
It was possible to answer taking lot of time to think but not during exam condition.the paper was too tricky and some people they didnt attemp even since they diditnt understood part b.
If this is continuous for future,i think acca will lost their big market.This paper was very hard!!! I never came across such questions in both kaplan and bpp kit!!! I wonder if they got a team over there to check the setting of the paper. Question 3 was a complete mess specially part b. Why would examiner test us so much on ias when in nowadays accountant seek help from ias plus.
Wat da f… was question 3 all about. After part a borrowing cost i had no clue wat the rest were i just wrote wat ever came to my head hoping 1 or 2 of the numerous tinz i wrote would b right.
Cashflow jst ok.
Question 3 disaster.
Question 4 great.Exam result no clue.
For someone like me who a month ago used to break up in a cold sweat at the thought of P2, this wasn’t as bad as I thought it would be.
As at last month, I had already planned to just attend June sitting, knowing I was no where near passing it, but I’m slightly hopeful.
I was prepared for cashflows… I had ranked them 1. Cashflows 2. SOFP 3. PnL and to be honest, PnL would have been a disaster for me as I never got round to mastering it.
Already planned not to do number 4, so didn’t even look at it.
2 and 3 … you just had to get past all the waffle… and make some sense out of the nonsense.
Time pressure is crazy… all that answer plan stuff just goes out of the window! I attempted all questions and I just hope I have done enough to get 50 marks as this was my last paper.
@abulhasan said:
I dont know how do they set paper,they should have some common sence that student can answer or not.i think no use of doing hard work.its suggested for examiner please think about student first before doing any question.
It was possible to answer taking lot of time to think but not during exam condition.the paper was too tricky and some people they didnt attemp even since they diditnt understood part b.
If this is continuous for future,i think acca will lost their big market.Hassan, I hate to tell you this, but the whole exam was on the P2 syllabus content. It’s not supposed to be easy to pass.
Q1 was ok. I think we could pick up a lot of marks on simple staff, but there was also tricky parts -DTL, DBO, impairment.
Q2 – dark side ))) restructuring, DTL.
Q3 – mix, but not very comlex. IA, borrowing, RP – agree that non RP issue
Q4 – ok, current standart bad, future good, capitalise both assetsQ1- cash flow I was ready for this and secretly hoped it could come out
Did Q4 next as again I was ready for this but thing I picked up the wrong number for my asset part of the journal
Really couldn’t decide between Q2 or Q3 in the end I went with Q2 = disaster!! I read it over and over then panicked and I found it difficult to put pen to paper!! I wasn’t even time pressured at this point!! Expecting no more than 5 marks on this questions so my pass relies on good answers to Q1 and Q4!!
@markgibbons said:
A complete disaster, Q1 cashflows I’m guessing most of you, like me briefly overviewed this topic not expecting it to come out, yes there are marks to pick up here and there but hard to get a good mark if you guys get my drift, to easy to get things wrong or leave out things.Q2 Horrible restructuring – but had no choice as hadn’t read the article relating to the revised ED Leases…….. Nice one!
Question from me “what happens when you own 100% of two subs and decide to sell one sub to the other sub with a loan interest free”, we could make a sketch out of this question, I mean you’ll still own 100% as an indirect holding but how do you treat all the transactions?Q3 Required knowledge of revenue recognition and cost recognition, and another random question, you receive 3M to let an airplane line advertise their name on your stadium, how does that affect revaluation? Should this not be simply “Other income” 1 M each year? Must be missing something.
Very disappointed with my performance on this exam and the examiners questions, Re sit in September here for sure.
I’m with you on the cash flow – did loads of consol SoFPs, one cash flow weeks ago. Just – you’ll get marks for the bits you did do.
On Q3, I went with something along the lines of:
– this is IAS16, PPE
– you are allowed to revalue
– carrying value can’t be greater than recoverable amount
– rec amount is higher of FV less costs to sell and value in use
– what’s value in use? – well I guess there must be a floor on that of $100m if someone’s willing to give you that much to put a couple of stickers on it
– get a market valuation and do a DCF of future net inflows attributable to the stadiums
– if the results of both of those are lower than $100m, then you can probably revalue it to $100m?I’ve no idea if this is a load of baloney or not.
I guess if they did go on to do the deal with the airline, then they’d debit cash $100m, credit the asset valuation $100m because you’d then be unable to let anyone else put their sticker on it for however long…
The other bit wasn’t nice either – the footballer contracts. I went with application of IAS 38. I thought it might be something to do with financial instruments but I’ve never understood how the theory of that stuff relates to reality so chose to ignore it.
I chose to scrub Leases en masse from my prep – too time consuming – so def hadn’t read the ED and was pleased in a way that it was a big question I could rule out straight away, rather than a little bit of one.
Good luck everyone.
Didn’t expect cashflow. Tricky question. Disposal very tangled and tricky. Proceeds from disposal not clear plus the discontinued operations element. However there were some easy picks. 1b was about advantage of cashflow and benefits of IR. That’s wasn’t so bad. 1c was much about window dressing of finstats. Ethical dilemma was clear.
2a. Business reconstruction quite tricky. Selling 100% sub to 100% sub permitted but no IFRS guidance. Consolidation not affected.
2b. Deferred tax on disposal of sub and recognition of deferred tax asset. Fairly easy.
2c. Criteria of classifying joint operation. Basically though it had a separate vehicle the substance was a joint operation.3a. Borrowing costs in a non specific borrowing environment. Straight forward.
3b. Treatment of signing contracts of players. IAS 38 and IAS36 on intangible assets and impairment. Assessment and materializing of contingent liability when players scores more than 20 goals. You could smuggle IFRS15 on revenue from selling those contracts.
3c. Was so non routine. Very funny. Masking the grant to avoid penalties maybe. Treating it as deferred income then charging the airline for branding bill board. Such income realized via amortization of the deferred income??4. I didn’t even attempt kikiki
Hopefully second time lucky for me. Large parts of the exam were educated guesses.
Personally, the SCF wasn’t too bad – there were maybe 10-15 marks available within the question itself.
IMO you had to revise SCF and leases as they were tipped last time and didn’t show (but if you hadn’t have known – then it’s hard to predict).
How Kaplan can tip something for almost certain in March (SCF), and then go with P+L in June after a no-show, is beyond me!
And in my opinion, you cannot ignore the current issue questions. I hear people saying that they didn’t even bother to revise as its too much and they’d prefer to concentrate on just the standards … that’s just crazy as the EASY marks are in the current issues for sure!!! If you have to re-sit (like I did) – read the technical articles that haven’t been examined and just have knowledge of them. I’ve not looked at leases for 2 weeks and it was pretty easy to regurgitate.
Here’s my breakdown:
Q1) CSF with disposal of sub, tax, financial instrument and a Goodwill aspect. I’ve forgotten the rest. Working capital took a few minutes to work out with the disposal too. :-/Q3) registration of football players (ias 16 – pretty sure that’s wrong) & registration fees / variable bonus (ias 37?) etc, naming rights (ias 38?) of a stadium and Borrowing Costs (ias 23) for the purchase of a stadium in respect of interest.
However, the borrowing costs were not directly attributable to the stadium and had arisen due to other borrowing costs. It did also say that the entity would not have required additional borrowings if not for the construction?
Q4) Leases IAS17, Leases IFRS 16 (right of use / > 12 months / non-material exempt such as printers), Application of IFRS 16 to the scenario.
The other question looked really confusing. I’m guessing between 44-60 so fingers crossed.
Oh and the UK Variant has about 2 sides of A4 that compares maybe a dozen features of differences between IFRS SMEs and the U.K. GAAP equivalent. It’s guaranteed 15 marks and you can literally revise it in a few hours. There’s only FOUR practice questions in the Kaplan revision book and 2 of them are 8 marks.
If you’re struggling, I HUGELY advise doing the UK variant. It’s a guaranteed 15 marks that is probably easier than the ethics.
Good luck everyone, here’s hoping as many of us pass as possible. It’s a truly disgusting exam!
I was gave the wrong exam variant in my sitting today by the invigilator and wasn’t told until an hour and a half through through the exam when they realised they gave me the wrong one (so it was too late to change to the correct one). I should have been sitting p2 UK and instead sat the international version. It completely threw me off and now dont have much hope in passing anyway.
Tip: double check your paper!
@lynnecart said:
I’m with you on the cash flow – did loads of consol SoFPs, one cash flow weeks ago. Just – you’ll get marks for the bits you did do.On Q3, I went with something along the lines of:
– this is IAS16, PPE
– you are allowed to revalue
– carrying value can’t be greater than recoverable amount
– rec amount is higher of FV less costs to sell and value in use
– what’s value in use? – well I guess there must be a floor on that of $100m if someone’s willing to give you that much to put a couple of stickers on it
– get a market valuation and do a DCF of future net inflows attributable to the stadiums
– if the results of both of those are lower than $100m, then you can probably revalue it to $100m?I’ve no idea if this is a load of baloney or not.
I guess if they did go on to do the deal with the airline, then they’d debit cash $100m, credit the asset valuation $100m because you’d then be unable to let anyone else put their sticker on it for however long…
The other bit wasn’t nice either – the footballer contracts. I went with application of IAS 38. I thought it might be something to do with financial instruments but I’ve never understood how the theory of that stuff relates to reality so chose to ignore it.
I chose to scrub Leases en masse from my prep – too time consuming – so def hadn’t read the ED and was pleased in a way that it was a big question I could rule out straight away, rather than a little bit of one.
Good luck everyone.
IAS 38 is not Financial Instruments. IAS 38 is Intangible Assets – IFRS 9 is Financial Instruments.
@maisamzaidi said:
IAS 38 is not Financial Instruments. IAS 38 is Intangible Assets – IFRS 9 is Financial Instruments.I know. I went with IAS 38. I ignored Financial Instruments. That’s what I meant.
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