studentber
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#1
Report Thread starter 1 month ago
#1
How did you all find the exams? I spent too much time on the first question lol. Also, he last question was a killer lol, I barely had things to write
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Jdavidson97
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#2
Report 1 month ago
#2
I'm doing it in an hour had to do afternoon sitting due to remote invig not working lol, hopefully the afternoon paper is nicer!
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Kujo Dio
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#3
Report 1 month ago
#3
(Original post by studentber)
How did you all find the exams? I spent too much time on the first question lol. Also, he last question was a killer lol, I barely had things to write
Hated it , nothing more to say.
Q1 was a crapshow with inflo, its not clear what they want
Q2 cant remember but didnt enjoy it as expected. Where was the group disposal/purchase scenario??? No pensions/hedging
Q3 was disgusting, wtf was the 2 offer scenario and impact on group / individual accounts

Exam around 1.50 hours was lagging hard, by the end couldnt scroll up or down

SBM is tomorrow also so "looking forward" to that .......
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andyw237
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#4
Report 4 weeks ago
#4
Personally I found the exam okay. The first question was a little annoying but lucky I didn’t t get bogged down didn’t even realise we had access to inflo until abs hour later so just added one transaction I believe.
Q3 was a little annoying but skipped the first part and did it last so ethics and audit part should be okay
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88078804
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#5
Report 4 weeks ago
#5
(Original post by andyw237)
Personally I found the exam okay. The first question was a little annoying but lucky I didn’t t get bogged down didn’t even realise we had access to inflo until abs hour later so just added one transaction I believe.
Q3 was a little annoying but skipped the first part and did it last so ethics and audit part should be okay
I think the Inflo stuff is only worth max 10-12 marks so not the end of the world if you didn't do a lot.

Thought it was a bit of an odd exam, thought there would be way more technical / tricky questions, but was quite tight for time.
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Kujo Dio
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#6
Report 4 weeks ago
#6
(Original post by andyw237)
Personally I found the exam okay. The first question was a little annoying but lucky I didn’t t get bogged down didn’t even realise we had access to inflo until abs hour later so just added one transaction I believe.
Q3 was a little annoying but skipped the first part and did it last so ethics and audit part should be okay
Howd you find Q1 the audit bit. The depreciation/additions to do with Inflo was nasty - what were the audit risks for depreciation. I was baffled, half the question was to do with that

Q2 I cant remember what they asked us to amend lol all i remember was a disposal of disontinued operation and the analysis bit of part 3 for Q2 was weird. There wasn't enough time to redo it as the junior had done analysis with the discontinued operation included.

Q3 I agree - ethics wasnt bad as it seemed self interest / misstating the accounts maybe for an easier sale as the CEO knows it profitable.

I think i disliked this exam as the exam most people harp on about BPT being "disgusting" but when i took it, it wasnt that bad.
This exam, it felt like all the revision i done wasnt helpful , like i could've done half the revision and I'd do the same lol
Last edited by Kujo Dio; 4 weeks ago
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Kujo Dio
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#7
Report 4 weeks ago
#7
(Original post by 88078804)
I think the Inflo stuff is only worth max 10-12 marks so not the end of the world if you didn't do a lot.

Thought it was a bit of an odd exam, thought there would be way more technical / tricky questions, but was quite tight for time.
Its 10-12 marks but isnt clear when we should be digging into it for the transactions and when we should just rely on the question scenario.
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andyw237
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#8
Report 4 weeks ago
#8
(Original post by Kujo Dio)
Howd you find Q1 the audit bit. The depreciation/additions to do with Inflo was nasty - what were the audit risks for depreciation. I was baffled, half the question was to do with that

Q2 I cant remember what they asked us to amend lol all i remember was a disposal of disontinued operation and the analysis bit of part 3 for Q2 was weird. There wasn't enough time to redo it as the junior had done analysis with the discontinued operation included.

Q3 I agree - ethics wasnt bad as it seemed self interest / misstating the accounts maybe for an easier sale as the CEO knows it profitable.

I think i disliked this exam as the exam most people harp on about BPT being "disgusting" but when i took it, it wasnt that bad.
This exam, it felt like all the revision i done wasnt helpful , like i could've done half the revision and I'd do the same lol
Yeah I thought the q1 depreciation stuff was a little tricky but I guess the risk was understatement can’t fully remember what I wrote but stuff like reperforming calcs and agreeing values to invoices etc looking back now we know there were missing leases that means depreciation was understated
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88078804
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#9
Report 4 weeks ago
#9
(Original post by Kujo Dio)
Its 10-12 marks but isnt clear when we should be digging into it for the transactions and when we should just rely on the question scenario.
Yeah I think Inflo is a stupid addition, it's a waste of time. I think it said use information from Inflo to justify key risks for additions / depreciation? I just ended selecting a few transactions and waffling. But there's so much stuff in Inflo, how are you supposed to know where to go within the short space of time?

Good luck with SBM!
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Kujo Dio
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#10
Report 4 weeks ago
#10
(Original post by 88078804)
Yeah I think Inflo is a stupid addition, it's a waste of time. I think it said use information from Inflo to justify key risks for additions / depreciation? I just ended selecting a few transactions and waffling. But there's so much stuff in Inflo, how are you supposed to know where to go within the short space of time?

Good luck with SBM!
Gl also for SBM
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studentber
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#11
Report Thread starter 4 weeks ago
#11
Just curious are most ppl taking all 3 advance papers at one go?
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A Rose for Epona
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#12
Report 4 weeks ago
#12
(Original post by Kujo Dio)
Howd you find Q1 the audit bit. The depreciation/additions to do with Inflo was nasty - what were the audit risks for depreciation. I was baffled, half the question was to do with that

Q2 I cant remember what they asked us to amend lol all i remember was a disposal of disontinued operation and the analysis bit of part 3 for Q2 was weird. There wasn't enough time to redo it as the junior had done analysis with the discontinued operation included.

Q3 I agree - ethics wasnt bad as it seemed self interest / misstating the accounts maybe for an easier sale as the CEO knows it profitable.

I think i disliked this exam as the exam most people harp on about BPT being "disgusting" but when i took it, it wasnt that bad.
This exam, it felt like all the revision i done wasnt helpful , like i could've done half the revision and I'd do the same lol
Q1 - For depreciation I didn't have time to go through Inflo, spent some time recalculating depreciation expense only to conclude that the audit assistant did it correctly so it was probably a waste of time. I said something along the lines of "the estimated useful life may not be accurate as Llama is motivated to increase its profits to secure the bank loan (per AI), so we need to inspect the lease agreement and obtain a business plan to support their decision for renewal."

With lease accounting, I calculated the ROU asset and lease liability (I treated the quarterly payments as annual and noted that in my workings), didn't have time to calculate depreciation on ROU asset so just wrote one sentence saying it should be depreciated and moved on...

Q2 - I didn't have time for the analysis but the rest of it was ok for me - the adjustments for discontinued operations should be a few easy marks.

Q3 - The ethics question was quite nice, there was lots to talk about re: the CEO. For the audit firm I said there's a threat of familiarity because the CEO is a friend of a friend of the audit manager and the sharing of this conversation violated the confidentiality principle. I also said that the CEO had the incentive to understate profits for the MBO, which explained trying to conceal the future deal and some other strange things he was doing in the P/L..
Calculating the revised net assets of T was tricky, I managed to do something semi-sensible and hoping for follow through marks for the rest of my workings. Consolidation questions tend to be my comfort zone so it was a bit demoralising to see such a vaguely worded question, although it clicked to me later that this is an audit-heavy question so it was meant to be that way.

Agree that the technical content in this exam is harder than BPT but I enjoyed revising for CR more as it ties into my day-to-day job more (work in audit).
Last edited by A Rose for Epona; 4 weeks ago
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PC199656
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#13
Report 4 weeks ago
#13
So I had issues with part 3 of Q2 (Evaluating the performance analysis) and Part 1 of question 3. For part 1 of question 3 I essentially did no calculations apart from a very basic p/l on disposal calculation (which is defo wrong) but put commentary for the following:



- That one was full disposal of sub and 2 was part disposal with control still retained

- That Development costs should be capitalised, thereby increasing the profit and increasing net assets, thereby increasing the consideration likely to be received

- Gave commentary around the fact that for the part disposed sub there would be no p/l and NCI would just be reduced to reflect lower ownership

- Mentioned how the investment would have been held in the individual financial statements (FVTOCI? probably wrong but just rushed and put it down) and that this would be impacted

- Just general waffle about control etc to try and scrape more marks



Just thought I'd throw this out there in case anyone did similar or it helps anyone... I feel like part 1 of q3 could only be worth 12 marks max as the audit section of it was heavy (likely 12 marks) and the ethics probably 6? Anyone agree disagree? Also how many marks do we thing the final part of Q2 was worth?
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Kujo Dio
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#14
Report 4 weeks ago
#14
(Original post by A Rose for Epona)
Q1 - For depreciation I didn't have time to go through Inflo, spent some time recalculating depreciation expense only to conclude that the audit assistant did it correctly so it was probably a waste of time. I said something along the lines of "the estimated useful life may not be accurate as Llama is motivated to increase its profits to secure the bank loan (per AI), so we need to inspect the lease agreement and obtain a business plan to support their decision for renewal."

With lease accounting, I calculated the ROU asset and lease liability (I treated the quarterly payments as annual and noted that in my workings), didn't have time to calculate depreciation on ROU asset so just wrote one sentence saying it should be depreciated and moved on...

Q2 - I didn't have time for the analysis but the rest of it was ok for me - the adjustments for discontinued operations should be a few easy marks.

Q3 - The ethics question was quite nice, there was lots to talk about re: the CEO. For the audit firm I said there's a threat of familiarity because the CEO is a friend of a friend of the audit manager and the sharing of this conversation violated the confidentiality principle. I also said that the CEO had the incentive to understate profits for the MBO, which explained trying to conceal the future deal and some other strange things he was doing in the P/L..
Calculating the revised net assets of T was tricky, I managed to do something semi-sensible and hoping for follow through marks for the rest of my workings. Consolidation questions tend to be my comfort zone so it was a bit demoralising to see such a vaguely worded question, although it clicked to me later that this is an audit-heavy question so it was meant to be that way.

Agree that the technical content in this exam is harder than BPT but I enjoyed revising for CR more as it ties into my day-to-day job more (work in audit).
Think i enjoyed BPT way more than CR lol. CR is such a big syllabus and the stuff that comes up is so remote at times and the way they word it.

BPT was a joy - inheritance tax/ capital gains / vat .etc
I did the same as you for Q1, main risk is the over capitlisation of costs to increase P&L and alot of waffle lol
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Kujo Dio
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#15
Report 4 weeks ago
#15
(Original post by PC199656)
So I had issues with part 3 of Q2 (Evaluating the performance analysis) and Part 1 of question 3. For part 1 of question 3 I essentially did no calculations apart from a very basic p/l on disposal calculation (which is defo wrong) but put commentary for the following:



- That one was full disposal of sub and 2 was part disposal with control still retained

- That Development costs should be capitalised, thereby increasing the profit and increasing net assets, thereby increasing the consideration likely to be received

- Gave commentary around the fact that for the part disposed sub there would be no p/l and NCI would just be reduced to reflect lower ownership

- Mentioned how the investment would have been held in the individual financial statements (FVTOCI? probably wrong but just rushed and put it down) and that this would be impacted

- Just general waffle about control etc to try and scrape more marks



Just thought I'd throw this out there in case anyone did similar or it helps anyone... I feel like part 1 of q3 could only be worth 12 marks max as the audit section of it was heavy (likely 12 marks) and the ethics probably 6? Anyone agree disagree? Also how many marks do we thing the final part of Q2 was worth?
Your commentary is really nice and structured, hopefully you'll get lots of marks. I did same about investment and how we need further details to see how it was classified.

For part disposal i didnt mention NCI as they owned 100% but i think you're correct.

I did 8 marks for ethics so hope i get those haha

Final part for Q2 was weird. It wasnt clear what they wanted as the junior done the analysis wrong and didnt seperate out discontinued operations when doing the year on year analysis. I didnt have time to do this and then recalculate the variances and just noted the way the junior done the analysis was wrong and how they should've done it. Hope its low amount of marks as the FR stuff was quite heavy.
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PC199656
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#16
Report 4 weeks ago
#16
(Original post by Kujo Dio)
Your commentary is really nice and structured, hopefully you'll get lots of marks. I did same about investment and how we need further details to see how it was classified.

For part disposal i didnt mention NCI as they owned 100% but i think you're correct.

I did 8 marks for ethics so hope i get those haha

Final part for Q2 was weird. It wasnt clear what they wanted as the junior done the analysis wrong and didnt seperate out discontinued operations when doing the year on year analysis. I didnt have time to do this and then recalculate the variances and just noted the way the junior done the analysis was wrong and how they should've done it. Hope its low amount of marks as the FR stuff was quite heavy.
Thanks certainly doesn't feel very positive with producing basically no calculations for a question that seemed like it really needed it but maybe scrapped a few points.... fingers crossed.

Ah yea I feel like for Q2 the FR treatment must have been 20 marks, then reflecting adjustments in the updated statement of comprehensive income like 4-5 marks, meaning the last part was likely worth like 5-6 max in my opinion so not the end of the world by any means.

Do you recall what you did for the loan part of Q2? Did you compare the two present values and conclude whether it was 10% or more difference (i think i ended up getting more than 10% but purposely rushed my calc as i was running out of time so who know how wrong it is lol)
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Kujo Dio
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#17
Report 4 weeks ago
#17
(Original post by PC199656)
Thanks certainly doesn't feel very positive with producing basically no calculations for a question that seemed like it really needed it but maybe scrapped a few points.... fingers crossed.

Ah yea I feel like for Q2 the FR treatment must have been 20 marks, then reflecting adjustments in the updated statement of comprehensive income like 4-5 marks, meaning the last part was likely worth like 5-6 max in my opinion so not the end of the world by any means.

Do you recall what you did for the loan part of Q2? Did you compare the two present values and conclude whether it was 10% or more difference (i think i ended up getting more than 10% but purposely rushed my calc as i was running out of time so who know how wrong it is lol)
Yeah for the loan, it was so niche - cant remember if it came up ever. For the 10% difference calculation they already gave the fair values of the new one at 22.4m excluding transaction costs of 500k.

Wasnt sure if the 10% difference included transaction costs but i said it did so deducted it from 22.4 and therefore 19.9 m.
This was 10% less than old loan so i modified the existing one. Also the P&L finance cost of 500k i think it wasn't a P&L cost so i did

Cr P&L , Dr Loan

"Thanks certainly doesn't feel very positive with producing basically no calculations for a question that seemed like it really needed it but maybe scrapped a few points.... fingers crossed." youre not the only one who was shocked at that - i was also haha! sure most other people were.

Only way is to forget this one and focus on the remaining ones like SBM tomorrow lol
Last edited by Kujo Dio; 4 weeks ago
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A Rose for Epona
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#18
Report 4 weeks ago
#18
(Original post by Kujo Dio)
Yeah for the loan, it was so niche - cant remember if it came up ever. For the 10% difference calculation they already gave the fair values of the new one at 22.4m excluding transaction costs of 500k.

Wasnt sure if the 10% difference included transaction costs but i said it did so deducted it from 22.4 and therefore 19.9 m.
This was 10% less than old loan so i modified the existing one. Also the P&L finance cost of 500k i think it wasn't a P&L cost so i did

Cr P&L , Dr Loan

"Thanks certainly doesn't feel very positive with producing basically no calculations for a question that seemed like it really needed it but maybe scrapped a few points.... fingers crossed." youre not the only one who was shocked at that - i was also haha! sure most other people were.

Only way is to forget this one and focus on the remaining ones like SBM tomorrow lol
My memory is fuzzy atm but I remember that I concluded the the difference was >10% and the new loan was on less favourable terms. Not sure what I did with transaction costs, I must have accounted for it in SOME way as it was in my notes too lol. I think you get some marks for it either way as long as your logic is internally consistent.
Last edited by A Rose for Epona; 4 weeks ago
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PC199656
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#19
Report 4 weeks ago
#19
(Original post by A Rose for Epona)
My memory is fuzzy atm but I remember that I concluded the the difference was >10% and the new loan was on less favourable terms. Not sure what I did with transaction costs, I must have accounted for it in SOME way as it was in my notes too lol. I think you get some marks for it either way as long as your logic is internally consistent.
Yea from what I remember i had the PV given of the new loan and then you had to add the fees at PV (which was no adjustment as it happened in that year) and then I took the old loan and applied the DF to the loan repayment in principle in 5 years and then 5 year annuity for the interest payments... I then had the 2 PV's and concluded that they were more than 10% different so derecognised old, recognised new and the difference recognised as gain/loss in PL? I think they accounted for the fees correctly already by including it in p/l.... does this seem fairly in line with what you did? (Not that it's necessarily correct, in fact it probably isnt as i was so rushed lol)

But agreed, If you got either and then applied the correct treatment you would have got follow through marks for sure
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A Rose for Epona
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#20
Report 4 weeks ago
#20
(Original post by PC199656)
Yea from what I remember i had the PV given of the new loan and then you had to add the fees at PV (which was no adjustment as it happened in that year) and then I took the old loan and applied the DF to the loan repayment in principle in 5 years and then 5 year annuity for the interest payments... I then had the 2 PV's and concluded that they were more than 10% different so derecognised old, recognised new and the difference recognised as gain/loss in PL? I think they accounted for the fees correctly already by including it in p/l.... does this seem fairly in line with what you did? (Not that it's necessarily correct, in fact it probably isnt as i was so rushed lol)

But agreed, If you got either and then applied the correct treatment you would have got follow through marks for sure
Yeah I pretty much did the same thing as you - I said the inclusion of £500k in finance cost was correct because there was an overall loss in the derecognition of the loan so the difference between the old and new loans was going to go to P/L as a finance cost anyway. Then I calculated the remaining loss to be debited to finance cost. I may or may not have adjusted the PV for the finance cost when comparing the old and new loans, but I don’t think it would have changed my conclusion.
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