*** September 2022 ACCA SBR exam – Instant Poll and comments ***

Anyone done the question which was split down to three, climate change impact on ppe, impairment and something else

I had that. Had no idea how to relate Intangibles to the question.

1. Step acquisition, how to account for it in financial statements, the last part of 1 I was sure was a joint venture as it was organised through a business with a contractual agreement so needed to be accounted for using the equity method ???

2. Revenue – service contract over time as she consumes it via the reports and presentations over time and the licence is part of the same performance obligation

Ethics straight forward.

3. Messed up first part of 3 I wrote about deferred tax but then put in about a provision for the tax claim as it wasn’t 100% certain to make a deferred tax claim

Interest gains you don’t use a single rate as it’s same as IAS21 the gains aren’t held in equity I think. OCI if gains are there profit and loss will only show trading gains.

The revenue last bit was best part of three as it was about garden centres and when control passes to the customer. Just needed to adapt the magazine question from the book.

4 Climate change was easiest question reconditioning machinery and repairs, development assets as tries to make its machinery less co2 producer

Impairment just said process and said why things will be impaired with the coal sales dropping and the Damage to machines

Provisions – reconditioning provision

In summary messed up first bit of three, rest I felt were straightforward.

Jessica1997w wrote:I said that climate change is material cause it has an impact on the decision of users of financial statements and should be disclosed in financial statements

Mentioned materiality IFRS note where they state about how to set out management xommentary. Also mentioned un charter 17 points esg reporting and inter grated reporting. Basically put there are other ways to express materiality of climate change if they can’t express it through IFRS standards.

There were contingent liabilities on the climate change question

Insurance and potential fines I believe

4 was climate change

5
6
6
6
2

On question one did everyone remember to use the fair value acquisition gain in the profit second part

Jessica1997w wrote:Does anyone remember the marks allocation let each question

De-recognition of PPE, capitalisation of additional spend on PPE, development cost for intangibles. Impairment of assets, provisions for re-org, fines. At the end I did say things about going concern. etc

Must’ve missed the deferred tax aspect.. where was that?

NBhinder wrote:

Jessica1997w wrote:Does anyone remember the marks allocation let each question

And provision for decontamination of land.

Jessica1997w wrote:Guys what was the question above the questions about ethics?

It was revenue from service and license. Are heae two separate obligations and second part I have forgotten

Joint venture, was a separate entity

NBhinder wrote:

ryanwilkes1985 wrote:Annoyed didn’t get reorganising provision but got decommissioning – can’t get them all