Overall this paper was found to be fair, covering a wide range of topics. A comment was raised that several of the standards that are only examined at Paper P2, or only examined in detail at Paper P2, such as those on accounting for financial instruments, income taxes and employee benefits were not covered in this exam. The paper was however thought be achievable within the time allowed and free from ambiguity.
ACCA commented that financial instruments were covered in Question 1 and the new fair value standard in Question 4 was likely to be a regular feature and only examined in detail in Paper P2, so there was a reasonable weighting of key Paper P2 standards.
Question 1 required a consolidated statement of financial position and some comments were that this was a surprise as the last three consolidations have also featured the statement of financial position. ACCA commented that the underlying scenarios have all been very different, and that the other accounting treatments tested within the scenarios have also ranged widely over the syllabus. Part (c) on ethics was considered to be quite tricky.
Overall candidates seem to be performing very well in this question.
Question 2a was considered to be quite tough and challenging and covered relatively obscure topics that may have put candidates off. ACCA explained that credit was being given for any relevant application of principles. Even where the ‘grant’ treatment was been missed, but relevant issues relating to recognition of assets had been applied, marks could be gained.
Part b) was also considered to be difficult, but again there were some marks available for very basic points about foreign currency in the context of statements of cash flows.
Question 3 was considered to be fair although it was suggested that in Part (b) the term ‘lease’ may have caught some out. In Part (a) candidates were not picking up the clue in the first line and did not spot that the main issue here was to discuss investment properties. Good answers were being produced for Part (b).
Question 4 dealt with the recently issued standard on fair values, which should have been expected to appear and the examiner had written an article on this topic. It was suggested that Part (b) tested the new standard in a greater level of detail than would have been anticipated. ACCA pointed out that Part (b) of the current issues question will always be a practical application of the new or proposed rules.
64% of candidates felt there was enough time to complete the paper
61% felt the paper was set at the right level
73% found the questions clear
75% felt the core areas of the syllabus were covered well.
There were some comments about the imbalance between written requirements and calculations.