Many errors in the statement of financial position were 'knock on' errors from calculations made when preparing the statement of profit or loss and other comprehensive income and, as such, were not marked as being incorrect.

This particularly applied to the revaluation and additional depreciation of plant, URP in inventory, revaluation surplus, non-controlling interest and deferred consideration (although this item was often completely omitted).

The calculation of goodwill generally scored well, but errors were made in the calculation of the consideration mainly due to using incorrect share prices, and the previously mentioned determination of the pre-acquisition retained earnings.

There was some confusion over the cancellation of intra-group trading and cash in transit (CIT); the elimination of the payables/receivables was often reversed and the CIT added to inventory or receivables, also the bank balances were sometimes incorrectly netted off (which is not allowed as the parent and subsidiary are separate legal entities).

A significant number of candidates adjusted the subsidiary's bank balance for the CIT although the question stated that all cash timing differences should have been adjusted in the parent's financial statements (thus reducing the parent's reported bank overdraft).

Several candidates did not account correctly (or at all) for the share exchange increasing share capital and share premium. The non-controlling interest in the statement of financial position was often confused with the noncontrolling interest in total comprehensive income.

Many candidates missed marks on retained earnings by not deducting URP on inventory and/or the finance cost on the deferred consideration.