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DAY-1 P2P June 22-Consolidation Question - Columbia
DAY-1 P2P June 22-Consolidation Question - Columbia
June 2022
Zubair Saleem
Zubair Saleem-FCCA
▪ Zubair Saleem
▪ ACCA Member
▪ MS-Accounting & Finance
▪ Faculty member at
SKANS School of Accountancy (Platinum ALP)
▪ Experience
▪ 15 Year of teaching and Training IFRS
▪ Expertise
▪ Financial Reporting and SBR
Introduction ▪ IFRS
▪ Student Base
▪ More then 10,000 students
▪ International & international Clients
▪ Distinctions
▪ Contact details
▪ +923008806622
▪ Zubairsaleem.edu@gmail.com
Zubair Saleem-FCCA
Agenda
▪ Day-1
▪ Introduction to syllabus and Exam Structure
▪ Past Paper Analysis –Question 1
▪ Repetitive topics
▪ Passing Rates
▪ Reasons of Failure And Tips how to Ace your Exam
▪ Must Do’s in last 2-Weeks
▪ Question-1 style Practice
▪ Questions to be attempted at home
▪ Day-2
▪ Past Paper Analysis –Question -2
▪ Question 2 Practice and Revision of Related Topics
▪ Questions to be attempted at home
▪ Day-3
▪ Past Paper Analysis –Question 3
▪ Question 3 Practice and Revision of Related Topics
▪ Questions to be attempted at home
▪ Day-4
▪ Past Paper Analysis –Question 4
▪ Question 3 Practice and Revision of Related Topics
▪ Questions to be attempted at home
Zubair Saleem-FCCA
Exam structure
Zubair Saleem-FCCA
Section -A
Question 2
Question-1 • This will involve the consideration of the reporting and ethical
• Group accounts (consolidation) implications of some accounting issues presented in a specific
(IFRS 3,10,11,5 and IAS 27,28) scenario.
• Discussion of principles behind any calculations • Ethics will feature in every exam, and it is essential that candidates
(IFRS 3,10,11,5 and IAS 27,28) understand the implications of these ethical issues.
Zubair Saleem-FCCA
Section B will contain two compulsory 25-mark questions
Question -3 Question -4
• Multi standard question • Multi standard question
• Interpretation for range of stakeholders • Interpretation for range of stakeholders
• current issues • current issues
Zubair Saleem-FCCA
Question No: 1
Sep/Dec 21 Sep/Dec20 March/June-20 Dec-19 Sep-19
• a)Consolidation (Goodwill)
A-IFRS 10 Consolidation-IAS 28 • a) IAS-21 Foreign Currency • a) IFRs-10, Consolidated F/S • a) 1>IFRS-13 Fair value
Accounting for associate using • 1- cash flows (consolidated) measurement >2-
• b) Goodwill calculation
equity method & Revaluation of • 2- cash flows • b) IFRS-3 Business Calculation of goodwill both
land • c) IFRs-13 Fair Value fair value method and
Combinations
Proportionated method.
• c) Consolidation (Foreign
B- Step acquisition and control – subsidiary) • b) IAS-36 Impairment
de fecto control (impairment test on
• d) IFRS-9 Financial consolidated financial
C-IFRS 13 & IAS 12at acquisition
Instruments (Impairment statements both if F.V
test method or Proportionated
D-Goodwill calculation method is used.
Identifying the • a) Consolidation (Dividend, • a) 1-IAS-21 Foreign • a) Cashflows (statement • 1-Goodwill calculations
acquirer-means who investment and disposal of currency (foreign formation and (contingent consideration),
got control subsidiary subsidiary), 2-Foreign explanation) 2-2- piecemeal acquisition,
• b) IAS-12 Deferred Tax subsidiary goodwill 3-Partial disposal
calculation, 3- Explanation • b) IFRS-5 Asset held for
Goodwill calculation • c) IFRS-16 Leases • b) IFRS-3 Business
of foreign subsidiary sale (Discontinued
and fair value (Recognition and Combination+ IFRS-9
goodwill calculations. operations). Financial Instruments
determination measurement in holding
• b) Disposal of foreign • C) Why no consistency in (Derecognition)
company) probability criteria
Pension plans and subsidiary
assets ceiling test –
technical articles
Zubair Saleem-FCCA
Repetitive Topics
MOST COMMONLY TESTED TO LEAST COMMONLY TESTED.
Zubair Saleem-FCCA
Pass Rates
Zubair Saleem-FCCA
Reasons of Failure
▪ Lack of Knowledge
▪ Answer is General
▪ Presenting a rote-learned summary of accounting
standards
Zubair Saleem-FCCA
Must Do’s in last 2-Weeks
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Day-1 Topics
Zubair Saleem-FCCA
Question -1
• March /June 2021-Columbia
Question -1
• IFRS-10 definition of control
• IFRS-3
• IAS 28
• IFRS 13
Zubair Saleem-FCCA
Question -1
March /June 2021-Columbia
Zubair Saleem-FCCA
Zubair Saleem-FCCA
Zubair Saleem-FCCA
Zubair Saleem-FCCA
Zubair Saleem-FCCA
IFRS-3,10
Zubair Saleem-FCCA
IFRS 10
An investor controls an investee if and only if the investor • Power arises from rights. Such rights can be straightforward (e.g. through
has all of the following elements: voting rights) or be complex (e.g. embedded in contractual arrangements). An
investor that holds only protective rights cannot have power over an investee
• power over the investee, i.e. the investor has existing and so cannot control an investee
rights that give it the ability to direct the relevant
activities (the activities that significantly affect the • An investor must be exposed, or have rights, to variable returns from its
investee's returns) involvement with an investee to control the investee. Such returns must have
the potential to vary as a result of the investee's performance and can be
• exposure, or rights, to variable returns from its positive, negative, or both.
involvement with the investee
• A parent must not only have power over an investee and exposure or rights
• the ability to use its power over the investee to affect to variable returns from its involvement with the investee, a parent must also
the amount of the investor's returns. have the ability to use its power over the investee to affect its returns from its
involvement with the investee.
Zubair Saleem-FCCA
IFRS 3
If the guidance in IFRS 10 does not clearly indicate which of the combining entities is an acquirer,
IFRS 3 provides additional guidance which is then considered:
• The acquirer is usually the entity that transfers cash or other assets where the business combination is effected in this manner
• The acquirer is usually, but not always, the entity issuing equity interests where the transaction is effected in this manner, however the
entity also considers other pertinent facts and circumstances including:
• Relative voting rights in the combined entity after the business combination
• The existence of any large minority interest if no other owner or group of owners has a significant voting interest
• The composition of the governing body and senior management of the combined entity
• The terms on which equity interests are exchanged
• The acquirer is usually the entity with the largest relative size (assets, revenues or profit)
Zubair Saleem-FCCA
IFRS 13
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IFRS-13 Fair value Measurement
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Kaplan Book
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IAS-19
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Zubair Saleem-FCCA
Basic requirements
An entity is required to recognize the net defined benefit liability or asset in its
statement of financial position.
However, the measurement of a net defined benefit asset is the lower of any
surplus in the fund and the 'asset ceiling' (i.e. the present value of any economic
benefits available in the form of refunds from the plan or reductions in future
contributions to the plan).
Zubair Saleem-FCCA
Thank You so Much
Best Wishes for the Exam
Zubair Saleem-FCCA