[P2-D2]

Hi,

Thanks for the kind comments, just not too sure about King Charles’s thoughts on MBEs for us all.

I think there is a slight error in the calculations. It should be 5 years based on the dates.

Good luck with the rest of the studies.

Thanks

[P2-D2]

Per ACCA – There have been no additions, deletions or amendments to the syllabus for September 2026 to June 2027.

The class notes are therefore all OK. Thanks

[P2-D2]

Thanks for highlighting. We will get them updated.

[P2-D2]

Hi,

Which one do you think it is and why? Have a look through the video on basic EPS as the answer will be there. If you’re still unsure of the answer then please let me know.

Thanks

[P2-D2]

Hi,

The key is that they have already recognised the $2million when it should have recognised the $1,809,254. So they need to reduce the revenue and receivable by the difference between the two amounts.

Once that has been done then the discount on the outstanding receivable can be released as finance income.

Have a go at the journals based on the above and let me know how you get on.

Thanks

[P2-D2]

Hi,

I think the recording needs to be updated but the class notes are correct. Interest paid is included under financing activities.

Thanks

[P2-D2]

Hi,

We need to adjust the retained losses at the start of the year for the profit up to the acquisition date. The profit for the three months to 1 April is 30 (3/12 x 120). The adjusted retained losses are therefore (270) being the (300) being reduced by the 30.

Hope that clears it up.

Thanks

[P2-D2]

Hi,

Everything you need is in the class notes and videos. If there is then anything specific in there that you do not understand then please let me know.

Thanks

[P2-D2]

Yes, the syllabus doesn’t update until September. Good luck with the studies.

[P2-D2]

Hi,

Don’t over think the economic side but essentially we believe that by continuing with the lease we will still be getting economic benefit from using the asset. Otherwise, why would we bother paying to use.

Thanks

[P2-D2]

Hi,

A question like this is designed to deliberately catch students out. Your understanding of using the shorter of the lease period and useful life is correct to depreciate the ROU asset but there is a catch with the lease period.

As there is the option to extend the lease by 2 years for the nominal rental then we assume that we would do this as it makes economic sense. The lease period is therefore now 7 years (5 + 2) and so the shorter is the 6 year useful life.

Thanks.

[P2-D2]

You will if you plan out the studies and practice past exam papers. If you get stuck on anything then please ask on here.

Thanks.

[P2-D2]

Hi,

The syllabus hasn’t changed much in those years. The changes are to revenue, leases and presentation of financial statements.

Thanks.

[P2-D2]

Hi,

No the class notes and videos will give you everything that you need.

Thanks

[P2-D2]

Hi,

Under IFRS 16 we no longer have finance leases or operating lease for a lessee A contract that gives rise to a lease will recognise a right-of-use asset and lease liability. The lessee can opt to expense the rentals if short term or low value.

The specifics of what you mention in your scenario are beyond the scope of FR and more suited to SBR.

Thanks.

[P2-D2]

Hi,

I can only assume that the FV gain of 3,000 is an adjustment that has been processed from some other additional information in the question that I can’t see from what you’ve included above. We do not see the FV gain on acquisition included in the NCI calculations. Could it be that since the acquisition date there has been another gain in the FV of the asset? If so then this is what is being adjusted for.

Thanks

[P2-D2]

Hi,

Again, you are thinking of this from an audit perspective and this isn’t really relevant to the FR exam.

Thanks,

[P2-D2]

Hi,

This is more of an audit issue where we need to look at the use of judgement in the amounts included in the accounts. It might be that we have used an expert for the figure, or it might have been something that has been calculated based on experience and past costs incurred.

In the FR exam, we are just given the figure and then need to discount it.

Thanks

[P2-D2]

You need to include the numbers as required, which is usually in 000s in the exam so you should be fine.

[P2-D2]

Hi,

The adjustment for the intra-group interest is one done on consolidation, i.e. in the group accounts. Hence the information in BPP’s materials is correct. We do not adjust the individual accounts of the parent or subsidiary. This is done in a similar way to when we adjust for intra-group trading, where we adjust the revenue and cost of sales of the group.

As the adjustment is a group adjustment and no adjustment to the individual accounts, the NCI is 30% of the 1,300,000. We do not need to make any adjustment for the 400,000 intra-group interest.

Thanks.

[P2-D2]

Yes, the class notes reflect the current syllabus. Good luck with the studying. Thanks.

[P2-D2]

The class notes are but the videos still require some small bits of work. Thanks.

[P2-D2]

Hi,

The class notes are updated. There is still work to do on the videos but it wouldn’t cause you any major issues.

Thanks

[P2-D2]

Hi,

The gain/loss on disposal would likely be in other operating income/expenses and would need adjusting. It wouldn’t appear in the investing or financing section, where if it did then it would not require adjusting.

Thanks

[P2-D2]

Hi Edward,

When a financial asset is sold the gain/loss is recognised through profit or loss. It does not matter how it has been initially classified.

The previously recognised gains in OCI are not reclassified to the profit or loss but are transferred to retained earnings as a reserve transfer in the SOCIE.

Thanks

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