*** P2 March 2016 Exam was.. Instant Poll and comments ***

Didn’t think it was a particularly nice paper, as Marin says some nasty/strange adjustments in the consolidation.

I went for question 2 and 3, as I didn’t revise current standards. Current standards looked easier though if you knew your stuff on that.

Quite tough I thought! I’d estimate I got 40%-52%. Praying I will scrape a low pass!

Good luck everyone.I’m going to keep practicing in case I need to do it in June..

The only positive is I attempted everything but very confusing paper. 3rd time lucky in June I hope :((

It was really demanding especially with the adjustment in Q1. Too much time was wasted on Q1 and having little to do with my third question. I could only attempt 70% – 77%. Time management is very key in this exam. I pray I pass. God help us!

I put that deferred tax assets should only bever recognised if the subsequent year will have taxable profits to offer the deferred tax asset. I listed the indicators of impairment and indicated that regulators in these economic times are looking at fs being misshapen especially in the overstatement of assets. For the other part I put that you can’t change the useful life of the intangible assets to indefinite .. I know that is incorrect.

I put about intangible asset could change to infinite as under ias 8 change of estimate.

Ifrs sme practical I put about staff training cost benefit analysis. More comparable with other entities in the industry, limited disclosures and that its watered down version of full ifrs

ethics question I put about Acca code and spoke why it should be associate and mentioned other aspects of control such appointing temp staff being on the board etc.

Q3 operating leases recognised in p/l explained what finance lease was cr non curt lis and dr assets and Dep under ias 16

Ias10 on one part regarding something I can’t remember now in q3 I think

My statement was out by approx 300

Q4 operating segments in relation to the branches?

Did direct and indirect on group structure.

Cant think of owt else think I mentioned abit on ias 37 in question 1 and did journal entries to show.

Feel rubbish after this exam I really do and my writing was atrocious lol

This is my take on it please correct me if i’m wrong as i’m not 100% sure.

Part a) I got the SFP to balance at 4406.5.Had to write off the acquisition costs which they had included. Had to remove the Indirect holding adj and include FVA for PPE, Land and Provisions and depreciate the FVA PPE over 2 years in W2 Net Assets. Onerous contracts settlement in one of the notes. I included the Reval in PPE/OCI and then split the 5 floor building into 3 floors PPE and 2 floors Inv property. The partial goodwill impairment needed a notional goodwill gross up which gave a grp imp of apprx 60.
Part b)i) Was IAS 27 which i left till last and didnt do great on! ii) Was the considerations of Business model and Cashflows when dealing with Equity Investments (FV PNL or sometimes FVOCI if criteria met/election made)
Part c) Was the Ethics q relating to the director wanting to misrepresent a clear associate as an Investment, because it was making losses. They had 30% and 2 out of 8 directors, and due to lack of recent training was unsure and therefore wanted to keep losses off the SFP. Just spouted out ACCA Ethics buzzwords like Proff Comp/Behaviour/Integrity/Objectivity etc.

Q3) Part a) included 2 portfolios of receivables. 1 which was factored but with recourse, so needed to be treated as a loan. The other one needed an increased loss allowance (lifetime loss) based on the weighted averages and amounts given (approx 83k in total so an increase of 33k from the 50k that was previously recognised). Part b) related to construction costs and HFS. Possible IAS 10 event but i stated it was non-adjusting as the decision to sell was 3 months after year-end. Part c) involved 3 leases, 1 F and 2 OP and involved 3 deposits and how to account for them.

Q4) Part a) was adoption of IFRS (IFRS 1). I stated the need for a transition date,comparison year, recognise/derecognise items in accordance with IFRS and measure/reclassify items in accordance with IFRS. G/L to Ret Engs not PNL.
Part b) Involved The implications of Def Tax and Imp under economic downturn. I stated the additional importance for observing indicators of imp and stated the limits on DTA for losses carried forward in relation to likelihood of future profit (unlikely in Downturn).
Part c) Was a company who was incorrectly holding an intangible without reliably measuring/knowing its FEB/Economic life. Then the same company incorrectly selecting CGU’s without relevant data under IFRS 8.

It was not the easiest topics! And most of what i was expecting never showed!! Thoughts?

I pretty much did what you did with a few exceptions:

1 . Q1a – I didnt gross up the goodwill.. part c .. i used words like relevance and faithful representation. The issue in my opinion was they not wanting to put as no significance since there was only one other shareholder so i didnt bother mentioning the losses.

2. Q4 – a. Somehow I couldnt get my thoughts into words well about caparability, timing, restatements. I messed up part c because i said that they shouldnt change the useful life although it may be allowed, i think. the just needed to check impairment and that the indefinite useful life is still appropriate annual.

3. Q3. Expected credit losses went clean out of my head. So I rambled hoping to pick up a mark for trying.

Glad this paper is over…wrote last December… First attempt with 50… It’s a tough one…good luck guys…

Lambley Was prop of net assets. The one beginning with H was Full GW. Yeah the Ethics question seems a safe bet for at least 4/5 marks. I said that because he hadn’t attended a course for a long time, then they’re lacking on CPD. I really don’t like the writing style in thi exam. It needs a financial dictionary/thesaurus!

Was question 1 step acquisition or mixed group. I thought it was step acquisition that B acquired 60% of L and 25% of H. And the purchased 70% more in H on 1 July 2015. So from associate to sub.
And how were we to treat Q.3 c) leases?
And Q2 c) NCI? Preferred shares etc

Did you all time apportion from the date of acquisition? 6 months?

I did step acquisition as well but I can’t remember. There was so much going on