P2 Corporate Reporting

noeleenred

Hi guys,

What did ye think of the P2 exam today? I though it was extremely hard. Got negative goodwill which I know is highly unlikely. Any ideas what FRS's were correct for Q2 and Q3?

mrfuncle

Hey,

Yeah u tought it was very difficult,

I tought q2 on financial intruments was fair but q1 was night mare i didnt get any of that finished!!

i dont thinkl i done enough to pass looks like ill be back in december again :mad::mad::mad:

noeleenred

What was the story with Q1? Did the company acquire all (100%) of the first company and was there a piecemeal acquisition on the second subsidiary?

patg

If I remember right I think the parent acquired 80% of the first subsid and I showed the second one as a piecmeal acquisition.

The one that got me was the associate - Clarity. I couldn't value the goodwill on the associate at all as I couldn't see where I was meant to get the value of the net assets from!

I made a good few notes on adjustments but wasn't able to include them all in the consolidated BS - any idea if credit will be given for points raised as notes rather than in the consolidated BS itself?

Other than that I liked the pension question although my answers were probably a bit too simplistic given the 6 - 8 marks available for different parts of the answer.

Also Carpart - clock running out syndrome - so my answer to this was verbal diarroehea. Hopefully the marker will be able to decipher something useful from it.

I felt that not I was not far off having a good understanding for all the parts, however in most instances the level of understanding wasn't quite enough.

Fingers crossed now and just hoping for the magic 50.

Best of luck to you.

LouOB

On a particular boring day in work I actually went into the ASB website and looked at FRS 5 - application notes. Yes I am that sad/bored/disillusioned with work.
Anyhow, that whole Carpart question was taken from the standard.
Now, knowing that question was from standard and writing down the correct answer are two different things.
Q1 was a nightmare - Clarity FV was the impaired value at year end. I got 4.5 (i think for its goodwill) but there were no reserve difference from 2008/2009 - hence couldnt add into consolidate. This part was v rushed i.e. last 5mins left - my paper was literally taken from underneath my pen. I didnt have enough time to work out Deferred Tax - and said so. As I left Q1 and came back to it at the end.

noeleenred

I did write about FRS5 for Q3 but there was only so much I knew about the standard, felt like I repeated myself a bit with it. Same with Q2, I talked about Financial Instruments but there was only so much I could say.

I didnt know what to do with the deferred tax in Q1 either.

Well fingers crossed, bring on the summer!

homer1916

When will the exam paper be available online? Was this sitting of the paper a second sitting for anybody?

The CCAinsider

Guys, why are you doing UK GAAP? FRS 5, what is that about, You should be talking about IAS 18. There is a discussion paper due in July from ASB suggesting that UK GAAP be abolished. You are doing consolidation under FRS 2, when the rest of the world is using IFRS 3 (revised). Even the US is heading for IFRS in 2011 to 2014, although I admit there are a few speed bumps on the road.

noeleenred

I think the paper usually goes online a couple of weeks before the results. It was my first time doing the paper.

homer1916

The CCAinsider wrote: »

Guys, why are you doing UK GAAP? FRS 5, what is that about, You should be talking about IAS 18. There is a discussion paper due in July from ASB suggesting that UK GAAP be abolished. You are doing consolidation under FRS 2, when the rest of the world is using IFRS 3 (revised). Even the US is heading for IFRS in 2011 to 2014, although I admit there are a few speed bumps on the road.

The differences between the 2 are very minor