Corporate Reporting November 2020 ICAEW Exam

Hey, how did everyone find this exam? I thought it was quite standard. I just didn't really get the hedge. FV or Cashflow? I felt like there wasn't enough information given for either and needed to be documented as one at inception.

What did people put for the sale and leaseback part? I seemed to suggest it wasn't a genuine sale per IFRS 15 but not entirely sure if that is correct (and starting to worry that I missed out on easy marks if it was a sale!)

I can't remember what they were leasing now. I never had any doubt it wasn't a sale and leaseback. I did it normally, looked at my notes, did the disposal journal for Proceeds = FV. Amortised, unwound and split non current and current. The asset wasn't depreciated either so a did so many months depreciation too.

Oh right, well thats at least 6 marks gone there then....
I also found skipped the cashflow/FV hedge part, hoping they give follow through marks for the revised FS.

What about R3? I thought the evaluation of the going concern assessment was a slightly strange question - I commented on issues with the loan and a lack of liquidity, and the fact that there was time pressure with a listing due the following week but otherwise I was struggling for points. What did you say?

I struggled too. I said that the cash balance of 1.8m (?) was not sufficient for the size of the company and that without the deposits of 1.5m and the loan of 2m they would be dependant on debt. The notes said no non current liabilities so I said this may mean a bad current ratio. I did waffle. I said the FD based his figures on two year period, should be over one year. And other info required: cashflow forecast for 12 months and test assumptions for reliability. Didn't comment on the revenue and profit increases which I'm annoyed at myself for.

Yeah I waffled too and really struggled to suggest other info required... I think I'm second guessing myself and just got to hope they give credit for simple points but I am concerned the more I think about it...

Was this your first sitting? I did the one in August too and found that one easier (missed the pass by 2%...)

I put it as a genuine sale for the sale and leaseback. I didn’t like all the intangibles on the first question but hopefully wrote enough to get some marks! I put the hedging one as a cash flow hedge because it was in the future but that was a weird one too. The third question I only had about 45m left so rushed through and waffled loads.

I treated it as a sale and leaseback too so sad if it wasn't, i thought my answer was spot on lol. Also managed the journals which i often struggle with!

Same 😂😂 I normally give up with the splitting between non-current and current but actually managed to do that this time and the depreciation. Hopefully some good marks there!

Well done! I’m sure there will be lots of marks there. Urgh this is really going to bug me now, despite not being able to do anything about it! I’m definitely going to look out for when the paper is posted on the website