CAP2 Repeats 2012

srm23

is it when the company has a dominant position in an assocaite, you treat it as subsidary in the accounts? or is it always the same if ya have less than 50%?

national express

I think if it was a less than 50% sub they would have to make it really obvious (if that can even be done). Like say, have a 47% sub and mention that the parent makes all decisions in regard to operations and financing decisions or something.

Do I have it right in my head that the only possible consol type inclusions are: sub (full consol), associate (equity method), and joint venture (50% proportion)? I keep thinking I've left one out.

Also - in full consolidation, are the only parts of Equity that aren't consolidated the OSC and Share Premium? i.e. all other reserves are consolidated?

I'm feeling ok about question 1 if a consol comes up like the ones in the recent past at the minute. I'll never get it to balance, but I'm down to just silly mistakes along the way that are making that happen.

But if a cash flow or something came up for Q1 I'd be completely snookered. I'll have a look through cashflows tonight.

national express

QueenV wrote: »

What are the chances of us getting a trial balance kinda of question for question one?

I'd say it wouldn't be as unlikely as you'd think.

It would be in line with examining 'the basics'. And wasn't our mock preparing them from a trial balance?

rockman15

srm23 wrote: »

is it when the company has a dominant position in an assocaite, you treat it as subsidary in the accounts? or is it always the same if ya have less than 50%?

dominant position evidenced by para13 of IAS27:
1. power over more than 50% of OSC by virtue of an agreement with other investors (43%+8% with another entity "yeah we will back you"/coalition government sort of thing.

2. power to govern policies

3. power to appoint or remove majority of board members

4. power to cast majority of votes at board meeting

highly unlikley anything that complex would be asked IMO. it might be a 5 marker theory type at the end of Q1 but dont think you would have to make a judgement call on it to get your consol correct

myshirt

So what do we bring to this exam tomorrow?

Is there any point in even bringing any notes?

All I am bringing is that 76 page course summary document, that's pretty much it...

Am I foolish? What are others bringing?

srm23

myshirt wrote: »

So what do we bring to this exam tomorrow?

Is there any point in even bringing any notes?

All I am bringing is that 76 page course summary document, that's pretty much it...

Am I foolish? What are others bringing?

bringing the chartered grind school solutions to 2011/2010/2009
the solutions to all the ias questions on cai website
then whatever books i have, books usually useless in these situations anyway

national express

What's this 76 page course summary document?

I don't think I have that. Would be good instead of bringing in two lever arch files I'll never have a chance to look at.

srm23

how do you consol the general reserve, i cant figure out what they did in q1 summer 2011

myshirt

national express wrote: »

What's this 76 page course summary document?

I don't think I have that. Would be good instead of bringing in two lever arch files I'll never have a chance to look at.

You can get it off the student centre when you log in. It has the key templates and some key points incl disclosures.

It's not as thorough as you might like, I updated mine a bit with hand written notes. For me it's possibly the best item to have, because if I am going to look at notes at all then I want the one document.

Timing is such a killer here, I am hoping to do this blind.

Even to write out the template of a SOCI, SOFP and a SOCE takes me 12-15 mins... I am thinking that is slow, but it's the best I can do...

The Phantom Jipper

national express wrote: »

I think if it was a less than 50% sub they would have to make it really obvious (if that can even be done). Like say, have a 47% sub and mention that the parent makes all decisions in regard to operations and financing decisions or something.

Do I have it right in my head that the only possible consol type inclusions are: sub (full consol), associate (equity method), and joint venture (50% proportion)? I keep thinking I've left one out.

Also - in full consolidation, are the only parts of Equity that aren't consolidated the OSC and Share Premium? i.e. all other reserves are consolidated?

I'm feeling ok about question 1 if a consol comes up like the ones in the recent past at the minute. I'll never get it to balance, but I'm down to just silly mistakes along the way that are making that happen.

But if a cash flow or something came up for Q1 I'd be completely snookered. I'll have a look through cashflows tonight.

I don't think you consolidate preference shares either. Is there anything in Equity that you do consolidate other than the post acquisition element? Can't think of anything off the top of my head.

national express

srm23 wrote: »

how do you consol the general reserve, i cant figure out what they did in q1 summer 2011

I think for all reserves its Parents reserves + Parents share of post aqu reserves.

It's a bit confusing in summer 2011 because I think there's a typo about who's general reserves have changed. But I think it was 2000 at sofp date and 800 at acquisition. So 2000-800= 1200. Parents share = 60% which is 720. Added to the parents gen reserve is 5,720.

I haven't got it in front of me but was looking at that earlier today and was stuck on it, so think that's right.

national express

Does anyone know where to find the 2011 mock solution?

rockman15

national express wrote: »

I think for all reserves its Parents reserves + Parents share of post aqu reserves.

It's a bit confusing in summer 2011 because I think there's a typo about who's general reserves have changed. But I think it was 2000 at sofp date and 800 at acquisition. So 2000-800= 1200. Parents share = 60% which is 720. Added to the parents gen reserve is 5,720.

I haven't got it in front of me but was looking at that earlier today and was stuck on it, so think that's right.

Right; Parents 5,000 + NCI(Closing:2000- Opening:800) *60% = 5720 = share of post aqn general reserve
The 1280 in the adjustment column in the solution is 2000-720.

myshirt

Best of to everyone doing FR tomorrow, let's hope we get an accessible paper.

national express

What's the verdict?

I did it in the order 3 (the construction contract one) , 1, 4. I had barely any tune to do the last one but hopefully got a handful of marks out of 18. Based on the rest of the paper though I'd be really annoyed if I'd failed. Would be expecting to have passed.

The 22% investment was weird. Was that just to confuse us or what?

myshirt

It was a strange paper.

How did people deal with the revaluation reserve?

Overall, Q1 appeared too simple, but then my sofp didn't balance..

national express

myshirt wrote: »

It was a strange paper.

How did people deal with the revaluation reserve?

Overall, Q1 appeared too simple, but then my sofp didn't balance..

Same. I was looking at it for a while thinking I had missed something in reading it. And I couldn't get mine to balance either. Think I was out by around 300k. But I just moved on.

For the reval reserve I consoled the group share of post acqu reserve increase.

Just realised I didn't include it in the OCI though. I left out the OCI part because I thought there wasn't any. Forgot about that. D'oh.

Ahh well, overall I think it could have been much worse. I'll be very annoyed if I failed it.

The Phantom Jipper

Was the reval not done post acquisition, but pre this financial year? I didnt include it in the OCI in the SOCI on that basis...

Also did people get some wacky figure for the amount of shares to go into EPS calc? My TERP adjustment on the first 9 months of the year didnt look right at all :-(

Nermal

The Phantom Jipper wrote: »

Was the reval not done post acquisition, but pre this financial year? I didnt include it in the OCI in the SOCI on that basis...

Also did people get some wacky figure for the amount of shares to go into EPS calc? My TERP adjustment on the first 9 months of the year didnt look right at all :-(

Think I worked out during the SOCE that 15K shares were in issuance for 9 months, then 20K for three months after that, so it's the weighted average of that isn't it?

national express

Yes, I got a bit of an odd number for that. But I don't think it usually gives you a nice round number anyway.

That part was only worth 3 marks though.

national express

Can't believe what I just realised. I did question 1 as if it was acquired in April 2011.

I knew I read something wrong in the information

Just thinking though. That'll effect the SOCI, but it shouldn't effect the NCI or Retained Earning by too much. I still used the 2007 balance sheet to calculate post acq stuff etc.

How many marks do you think you're looking at losing for doing something like that?

The Phantom Jipper

Nermal wrote: »

Think I worked out during the SOCE that 15K shares were in issuance for 9 months, then 20K for three months after that, so it's the weighted average of that isn't it?

Exactly, plus you multiply the (15k * 9/12) part by 5.75 / whatever the TERP thing was?

The Phantom Jipper

national express wrote: »

Can't believe what I just realised. I did question 1 as if it was acquired in April 2011.

I knew I read something wrong in the information

Just thinking though. That'll effect the SOCI, but it shouldn't effect the NCI or Retained Earning by too much. I still used the 2007 balance sheet to calculate post acq stuff etc.

How many marks do you think you're looking at losing for doing something like that?

They'll trace your original mistake around the paper so you'll only lose a few here and there, wouldn't beat yourself up over it anyway.

Im gonna bung all the FR crap in a cupboard and just forget about for as long as possible. No point torturing ourselves over a few mistakes made in the heat of the moment.

srm23

The Phantom Jipper wrote: »

Exactly, plus you multiply the (15k * 9/12) part by 5.75 / whatever the TERP thing was?

i didnt do TERP, it asked for the basic EPS, TERP would be diluted EPS i think?

national express

I used TERP too. Anyone know if that's right or wrong?

HeinekenTicket

national express wrote: »

I used TERP too. Anyone know if that's right or wrong?

It's right. TERP required for basic EPS calculation.

Tricky1979

Hi folks - which company did people choose as the best investment option in Q4?

I can't remember the names but I went for the middle one as I felt the first and third were too highly geared.

ChartAccount

does anyone have audit notes for cap 2....The accounting grinds scool ones. I have interim exams soon. Thanks