*** P7 December 2014 Exam was.. Instant Poll and comments ***

Tricky – q2 with GW and impairment for the damage with insurance claim was confusing.

Also the last bit about the inter group AP and AR seemed to obvious for 6 marks – also didn’t get how the inventory fit in .

Talked about materiality and attempted Fin treatment – hopefully can get some marks for this and evidence.

What did u guys get down for q2?

& how was it in general?

Q1 was nice. I didn’t have the mark breakdown but went 11,8,5,7 to get the 31.

Q2. Talked about goodwill. Ias 38 Ias 23. Ias 37 for natural disaster. Unrealised profit for last bit.

Q4. Through down some random points.

Q5 was ok I think bar the discussion with management part.

Not a hard paper. Just a lengthy paper. Time consuming in fact.

Q2; goodwill’s impairment should be done. fv Of net assets should be as per IFRS13.

Many more points like these.

@abdul.y.ali said:
Did you feel there was a lot of rote elements?

– tender document content
– Consideration that will affect fees
– S&E review difficulties
– Consideration before reliance on expert

The business risks seemed to jump out at you and the MM seemed obvious (i.e. GC, Provision law suit etc…..).

Lot of low hanging fruits………there must be sting in the tail

Hi, can you please tell me how many business risks we were required to identify and evaluate in question 1.

@abdullahzafar said:
Hi, can you please tell me how many business risks we were required to identify and evaluate in question 1.

I identified quite a few business risks (probably one per mark…so 11). RoMM I identified 4 as we were asked..

@atab said:
I identified quite a few business risks (probably one per mark…so 11). RoMM I identified 4 as we were asked..

I wrote 7/8 business risks. Is it sufficient enough to get me full marks?

@abdul.y.ali said:
If I remember correctly there were 12 marks up for grabs and found at least 8 (usually there is about 1-2 marks each)……some of the ones I found were (not saying there correct):

– Not meeting regulations (loosing licence)
– Fines
– gearing
– credit risk
-competition
– cashflow
– over trading
– new market
– high public interest (general health & human testing)
– Acquisition (due diligence not prop done)

I almost wrote all of points which you mentioned above.

There is a business risk of going concern as the company’s cash flows were in deficit and loans were increasing.

There was a business risk of brand acquisition that it would not generate sales or cash flows for the company leads to risk of more cash flow deficit.

New Control and accounting information implantation could require more funds which company would unlike to manage.

Many more points like these

@abdul.y.ali said:
MM – wot did u guys put down?

I went down the route of:

-GC
-Provision litigation
– Manipulation due Finance sought
– Intangible assets

abdullahzafar you get one mark per identification capped at about 3-4 thereafter you have to explain (7-8 is about right for full marks)

Same points bro :D.

Thank you brother for releasing my tension.

Just add a one more point of new accounting and control system would lead to error or misappropriation of opening balances which will brought forward from previous year.

Tricky paper massively time constrained as usual but plenty of opportunities to score points to be fair.

Q1 not bad but a lot on intangible assets which wouldn’t be strongest area.

Most of the key business risks mentioned above plus the fact they are a listed company. Always an easy point to pick up.

Was there a section on evidence expect to find in respect of New brand? There I have the usual board minutes and mgt rep on basis for useful life duration. Oh also wanted to see the sales projections for products sold under the brand.

Moved on to time and left behind 5 marks on the last part (got down the managememt threat)

Q2

Bit of a blur but felt I scored ok, the bit on contingent asset was disturbing, I discussed the likelihood that the claim would not be fully settled as the assessors have nothing to go by. Just a bit of common sense here I guess, if my car gets crashed into and I decide to burn it out I think my insurance company might challenge the extent of my claim.

Q3 – what was this again? I think it was on social and environmental kpis. Did ok on this one but just like soc & env kpis it’s a subjective area…

Was use of audit expert in here? Ah SODIT (see what I did there? 😉

Skipped Q4

Q5 was ok but the implications to the AR were tricky. In all instances T&F, one except for, one completely Unmodified and one with a other matters paragraph (closure of plant)

I need a vacation… Good luck folks

There were 3 diff points in (a) quest 2 – goodwill, new loan and valuation so I assume the marks are spread either evenly or almost.

@abdul.y.ali said:
MM – wot did u guys put down?

I went down the route of:

-GC
-Provision litigation
– Manipulation due Finance sought
– Intangible assets

abdullahzafar you get one mark per identification capped at about 3-4 thereafter you have to explain (7-8 is about right for full marks)

Those are the exact ones I found too 🙂

@abdullahzafar said:
I almost wrote all of points which you mentioned above.

There is a business risk of going concern as the company’s cash flows were in deficit and loans were increasing.

There was a business risk of brand acquisition that it would not generate sales or cash flows for the company leads to risk of more cash flow deficit.

New Control and accounting information implantation could require more funds which company would unlike to manage.

Many more points like these

I also included the dependency on the revenue from the new animal products seeing as it consists of 15% revenue. If the company fails in this new market then the total revenue has declined from the previous year and there is a risk that it will continue to decrease.

Also there was a risk with regards to having to obtain the patents which are rigorously scrutinised so there is a risk of the company not being able to obtain the patent or being involved in further legal action.

There was also a risk of the company ending up with stock which it cannot sell due to the fast developing market and continuous product development.

Can’t remember what else I included…