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

Morning I did the uk version so you may not see it as it was an frs102 question

Any other set of questions to anyone ?

did anyone get net identifiable assets AND liabilities, with retained earnings? What figure did people use for net assets for calculation of goodwill?

They asked for goodwill twice right? Wasn’t that strange

So were two separate performance obligations or not

One because you couldn’t consume one without the other. The licence was dependent on the service contract. Over time and you needed to apportion a value to both parts of the contract. The assets of the joint venture needed to be impaired. That’s why you needed to calculate goodwill

What about the question where you have to refer to the passage about there being sufficient disclosure on climate matters

NBhinder wrote:

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

I think this was a joint venture between the three of them as a unianimous vote was required.

usmn567 wrote:So were two separate performance obligations or not

It was a single performance obligation cause the data would be useless to the customers without a license. Obligation is satisfied once the licenses are granted.

ryanwilkes1985 wrote:One because you couldn’t consume one without the other. The licence was dependent on the service contract. Over time and you needed to apportion a value to both parts of the contract.

As a single performance obligation, revenue should be recognised at a single point, once control passes on to the customer. For the joint venture, there was no need to consolidate as it should be accounted for using equity accounting, so why would you be calculating goodwill at all?

The customer received the data over the time of the service contract with presentations and reports at specific times - it was one performance obligation but the control over the data was passed over time with the presentations You seem to have missed that bit The investment in joint venture can be impaired can it not - the question asked you to calculate goodwill ?

You still carry your share of net assets in the joint venture which can be impaired

Thinking back I don’t think it asked you to calculate goodwill - but the net assets of the joint venture were impaired the question gave you the amount needed for the impairment calulxation

ryanwilkes1985 wrote:The customer received the data over the time of the service contract with presentations and reports at specific times – it was one performance obligation but the control over the data was passed over time with the presentations

No, I did not miss it. That was deliberately added to the question for this reason lol. Revenue is recognised per performance obligation so the submission of data and reports does not amount to the performance of anything. How would you even quantify what portion of revenue to recognise for "time to time"? Equity accounting is the same accounting method for Investments in associates, so you don't consolidate. The question was to explain how the investment will be accounted for in the financial statement, which is to recognise the share of loss made and reduce the investment accordingly.

It’s a service that is simultaneously consumed as it is performed because the customer receives ongoing reports and data. If the customer got nothing it would be a point in time. That point is was v important. As per IFRS15 the single performance obligation for the service and licence is recognised over time not at a pint in time. Thought it was straight forward lol. The last part of question one I was sure asked for goodwill to be calculated as at 20x7 unless I’m remembering the wrong question.

The customer could make the decision to exit the service contract at any time if the data showed negative results

Apologies for my tone graceola, sincerely hope we all pass. I hate the pressure of these. I’m sure you have :-)

I think the point I was trying to make was the customer didn’t have to take the licence so the decision is made via the performance of the service contract. The information in the service contract is consumed over time as it is performed over the six months period. If it’s recognised on the granting of the licence how do you recognise revenue for customers who do not take a licence as nothing is performed? Happy if I’m wrong as if I’ve failed will help me to improve next time

it mentioned a license, so i think i mentioned that in relation to intangibles.

What was the question with the credit card company all about :-(

Guys how did you address below : Question 1. Part A : step acquisition: fair value of asset and liabilities were given not FV of net assets, how did you calculate FV of net assets? Question 1 Part 2: Along with capital contribution (cash payment), loan notes were also issued to the new entity by the investor, did you consider loan notes also in calculating investment in JV?

khandelwalmak@gmail.com wrote:Guys how did you address below :

Part 1: The FV of the assets and liabilities is the FV of the net assets, but you do have to figure out the FV of the asset not captured in the net assets. I used to value of the share capital and retained earnings as such: Share Capital = $10m Retained Earnings = $42.3m FV of Land (or PPE), bal. fig = $3m Sum: FV of Net Assets = $55.3m Part 2: Yes, you consider the loan notes when calculating the Investment in the joint venture. Since the FV of the loan notes was given, I didn't do any additional calculations and just used that.

Just completed a rescheduled exam for SBR, I felt that the first one I sat ( reschedules for tech issues) was way too easier than this one. I had cash flow, defined pension calculations, just a bit of revenue, lease, a grant for allowance emission which was for free. Question 2 for ethics was just for 9 marks including professionals skis marks It makes me think about threat of self-interest of ACCA wanting students to sit exams at centres to be honest. Who is reviewing this? Just a thought

Hi, I sat today as well due to the technical issue on last Thursday. It was very very hard exam. 1. It was about DB which was part through of the year, different service cost very hard to absorb the info. Good will for 5 marks Rest of the the first question didn't understand as it was all about Financial assets flying everywhere, very scary stuff. 2. Cash flow was everywhere in ethics and 3. About revenue Business combination with Investment and PPE on the lease somehow included as sold and the party has not agreed on the lease 4. Sustainability and environmental Sales tax, Deferred tax, Fx on purchase and sales Very difficult exam as compared to what I have seen on SBR another Sep settings. Feels like I will end up Rebooking this exam. Please don't book exam at home as this idiots Person Vue don't what they are doing. Took them 2 hours to find my details on exam day so could not give my exam on 8th Sep. Really upset with Person vue and didn't get enough support from Acca too when called.