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If you studied you would have passed. This exam was not a difficult one. If i fail i would be very upset as i knew what to do but its the difficulty in relating it on paper. I did question 2 and 4 for the option sections. However, question two gave a bit of a struggle like Ratim just could not make up his mind as to what he really wanted to do with his accounting life.
For question 1,I not sure whether want to ignore profit before tax,loss on disposal and the income tax for discontinued group or not..
Overall,time pressure..only able to finish 75%..hope can get at least 50marks with a pass..(pray)
Awful, i did look at cash flows as I thought it would come up, but never saw anything with a disposal to see how it was dealt with, so could only guess, way too many adjustments for tax.
Question 4 was good as I knew about leases. Question 3b I did as Ifrs 15 separating the performance obligation agent and player. There was something very similar in the bpp study guide, and contingent liability.
I said that they were related parties in 3c but think I got that wrong now looking at the standard.
3a just a basic description of borrowing cost as I was running out of time.
I think definite retake for me in September, I never had time to add my cash flow up but did everything else but a lot of it was a guess on how to adjust for the tax and disposal.
I think it was an ok paper if you knew cash flows inside out -unfortunately I did not.
Good luck everyone !
Paper was horrible, even examinar also don’t know what he has made for us….
He want us to got qualified or become examinar…Can‘t agree more, I did the past paper for cash flow statement scored 30+, but this one, maybe 10+. There must be something going wrong with the examiner. It is the first time I want to quit ACCA eventhough I only have two couses left.
Hi all,
I have sat P2 paper for the first time, but I agree with most of you that it was disaster.
I’m really thinking about quitting ACCA. There is no reason for destroying myself only because examiner had bad day when preparing Qs – I’m sending my greetings to him/her.I don’t understand if in BPP PRK (I don’t know how much in Kaplan) are only 4 CFs questions solved, why exam Q1 was so difficult? No one from PRK questions was so difficult. I spent lot of time on it and then lack of time for the other again tricky questions.
I can see/have feeling that questions are going to be more difficult than they were in the past.
Cross the fingers for those of you who have good feeling.
Danielle, if by chance you read this, take my advice and write to ACCA immediately to tell them what has happened. Do not leave it until after the results are announced – do it now
Thanks Mike. I have now spoke to ACCA and they have told me to submit a mitigating circumstances form.
I have done this now not sure though what the outcome will be.
Thanks
.Danielle- Topics: 0
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I have to agree with to the above comments too. Question 1 (a) and Question 3 (b) and (c) were disaster. Thank God, I managed to practice 1 CFS question from the last exam papers. However, only 1 question from the past exam papers from 2010 till now is available.
In general circumstances, most of us can CSF correctly, but this particular question was very ambiguous.
The aim of ACCA should be to prepare qualified accountants / consultants who can deal with most challenging and common circumstances, but it is impossible to know and remember everything. All consultants and accountants re-read standards and other explanatory papers. I don’t think that more than 3% of ACCA students prepare CFS manually or work for football companies. I really don’t understand the benefits of such vague questions.
It seems that the examiner had a bad mood and he/she is keenly interested in the upcoming Europe football championship.- Topics: 0
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hi people, is that your first time for P2? I failed in December. Now I have very bad filling for this exam. Anyone in my situation? I have to say, I was good prepared.. not for 100% but to pass for sure 🙁
1) I was happy with any consolidation so the cashflow didn’t bother me. There were a few complicated adjustments but I think there was enough there to get 20+ considering all the practice ones i did were 27+.
I completely missed the pension adjustment but i managed to spot that profit before tax needed adjusting and also there was an unwinding of the payable discount. The disposal got me because i couldn’t see the consideration or the NCI so i knew you had to work it out but couldn’t figure out how, in the end i did a best guess and hopefully will pick up some method marks.
2) Looked at this and didn’t even understand what i was being asked so skipped
3) a) Borrowing costs – fairly straight forward, capitalise using weighted average as it is general borrowings. Stop capitalising if construction stops. Then for the cal just work out the interest each month and total it up
b) Player contracts was just Intangibles. Initially measure at cost plus all the fees, depreciate over the term of the contract. Fair value is hard to measure as each asset is unique. Contract extension was a change in accounting estimate (useful life) so capitlise any costs associated with this and depreciate over the new useful life. Selling is just recognising a gain/loss on carrying value. Injuries/removed from squad is impairment so i talked about impairment, again stated that FV may be difficult to reliably measure.
c) Struggled with this one. I said that the naming rights were internall generated intangibles and therefore couldn’t be recognised despite there being a valuation. I said that it could only be recognised if a sale took place. Mentioned that this was a related party. Not sure how much of it is right though
4) a) i) Explained the current treatment of leases and what makes it a finance lease. Criticised because operating leases meet the definition of an asset and liability and also it encourages manipulation as directors try and claim a finance lease is an operating lease aka off balance sheet financing
a) ii) type a and type b leases. Type A is boradly a finance lease and Type B is broadly an operating lease. Recognise a right to buy asset and corresponding lease liabiltiy for both. Leases less than 12 months can still be expenses as per an operating lease. I also said that it addresses many of the criticisms of IAS 17. I didn’t know much about the new system in too much detail so must have only picked up half marks.
b) Struggled with the claissification of these as unsure on the new standard in great detail so just threw some calcualtions down for the lease liability using the amortised cos thing – only worth 7 marks so hopefully picked up a couple of method marks to bump my grade up.
Fingers crossed i passed, I’m hoping that because this is generall viewed as a difficult paper that the marking may be a tad more generous.
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I liked your answers, clever 🙂 I wish I had answered like you
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@dd92 said:
1) … there was an unwinding of the payable discount…b) Player contracts was just Intangibles. …
I don’t remember that the question gave a discount rate for the pension plan. So I assumed that the net interest component was zero. But now it seems that in pension related questions finance costs must always be deducted from service costs.
Why account for player contracts as intangibles, rather than inventories as the main business of the entity of question 2 were football teams (buy and sell players) and sports events?
the unwinding of the discount was for contingent consideration that had been discounted. The PV of the payable was 10million and you needed to unwind this one year so the payable was 11 million but they eventually only paid 7million so 4 million reduction in payables was non-cash.
The pension adjustment you were suppose to rework it and take into account the pension benefit paid out but i completely missed this.
The main business is not buying and selling players, the main business is putting on sporting events and earning revenue from crowds/competitions. To do this you buy assets, the asset is not the player but the contract for them to play for you and therefore intangible. I think i lost marks because i didn’t explain why it was an intangible i just said that it was one and told them how to account for it.
edit: I suppose you could argue that some players are inventory because you buy them young, train them up and then sell them on for a profit but as long as you can apply a standard to this and justify the answer i see no reason why you wouldn’t get some credit for it.
PART 3c was related to related parties. the two directors were in common and there was an issue of receiving funds. however i said it was not related party issue because having directors in common doesn’t constitute that. however i recommended disclosures of that transaction
goodwill of disposal required calculation in cash flow statement. i calculated that and deducted it from opening goodwill to determine the current years impairment
as far as i can remember, i had large number of items under operating activities. then investing activities and then finally i had only 2 items under financing. one i was remember was the loan paid
34 voters mentioned that P2 was easy – can you please share with us how you study ?
Twisted figures, twisted wording, obscure reasoning questions and work to do for 4-5 hours instead of 3. Somebody might have great fun by humiliating students like this.
But for the other parties in the “game”, there is nothing fun to waste 120 frustrating hours over 3 months, by night and during weekends, to learn for such a disaster and to fail the exam in such a manner.
Not to much lesson to take from this, only a tough attack to students’ psychological health and self esteem. Poor those who must accept such a situation, for getting a license to work to earning their livings….
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Maybe you are right. I don’t remember its main business now. Question 3 was selected only because of time constraint and it looked like about revenue and borrowing costs. Question 2 was almost 2 pages long.
As I know pension plan payment outs have no influence on CF. Only contributions paid to the plan are accounted as explained by Dec 2013 exam paper notes.
How the proceeds from the subsidiary disposal are correctly calculated? (1) Initial consideration – disposal loss or (2) NA dod + goodwill – NCI dod – disposal loss?
As the goodwill impairement of the disposed subsidiary was not included in the consolidated P&L no adjustment was required in the operating part of CF, except the goodwill of the disposed subsidary without impairement (c/f -b/f – disposed goodwill)?
According to new suggested IFRS explanations a 5 year lease for building (useful life 30 or 35 years) isn’t booked as the asset by the lessee?
Danielle I advise you promptly write to ACCA and let them know of this debacle by the invigilator. You shouldn’t suffer for their mistake. ACCA might transfer your fees for next sitting.
@smichail said:
Twisted figures, twisted wording, obscure reasoning questions and work to do for 4-5 hours instead of 3. Somebody might have great fun by humiliating students like this.But for the other parties in the “game”, there is nothing fun to waste 120 frustrating hours over 3 months, by night and during weekends, to learn for such a disaster and to fail the exam in such a manner.
Not to much lesson to take from this, only a tough attack to students’ psychological health and self esteem. Poor those who must accept such a situation, for getting a license to work to earning their livings….
I completely agree. I’m a Big Four senior getting no help with my exams (they’re not even paying for my fees or giving me time off to study). These exams are an unforgivable cruelty. They don’t test your knowledge as much as they test your ability to take a test through extraordinary handwritten time-pressured situations. It’s as far from actual work as it gets. I’ve always wanted to, upon finishing the ACCA, pen an angry letter to the Examiner, but I’ve worried there might be repercussions.
@tashkent said:
Maybe you are right. I don’t remember its main business now. Question 3 was selected only because of time constraint and it looked like about revenue and borrowing costs. Question 2 was almost 2 pages long.As I know pension plan payment outs have no influence on CF. Only contributions paid to the plan are accounted as explained by Dec 2013 exam paper notes.
How the proceeds from the subsidiary disposal are correctly calculated? (1) Initial consideration – disposal loss or (2) NA dod + goodwill – NCI dod – disposal loss?
As the goodwill impairement of the disposed subsidiary was not included in the consolidated P&L no adjustment was required in the operating part of CF, except the goodwill of the disposed subsidary without impairement (c/f -b/f – disposed goodwill)?
According to new suggested IFRS explanations a 5 year lease for building (useful life 30 or 35 years) isn’t booked as the asset by the lessee?
agreed question 2 looked too long, i think it would have taken me too long to understand what the question was asking me. I had like 2 mins spare at the end of the exam so out of curiosity went to have a proper look at question 2 and still drew a blank.
I can’t remember what the pensions adjustment now but there’s something niggling me and i feel like i’ve missed a step. I ignored the bit that said the plan paid out £xmillion as i assumed it was a red herring but i feel like i was meant to do something with this.
@anakh said:
hi people, is that your first time for P2? I failed in December. Now I have very bad filling for this exam. Anyone in my situation? I have to say, I was good prepared.. not for 100% but to pass for sure 🙁Hi Anakh, I am in the same situation as you. I failed in Sept exam and this is my 2nd try. I spent lots of time on P2. That is why I feel so angry. By the way, I passed P7 in December which I spent 20% time of the time I spent on P2. Guess P2 examiner is intend to convert P2 to the most difficult paper of ACCA.
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Lily, what’s calms me a little bit, is that I am not alone … 🙂 disaster ! but I have a little hope, maybe we can pass this time , who knows 🙂
Ah really rubbish – 6th time or something – lost count!
Thought I was doing the Kaplan study kit question pretty okay. Thought I the knowledge okay maybe about 75%. But the paper always leaves me stumped..
Struggle to know what the question wants and it’s hard to commit to writing about anything if you think the topic might be something else.Felt like I maybe should have explained the obvious a bit more.
Does anyone know what remember what all the question 2 sections were?
a) Reorganisation
b)??
c)??
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