• Profile photo of MikeLittle says

      You don’t need to remember the standards. What you DO need to do is lots of practice from past exam questions 2 and all the mini exercises at the end of the free course notes.

      It’s how the standards are applied that is more important than trying to remember them

      • avatar says

        Do I need to refer the standards while answering the questions? Or just explain it and that’s enough? As I read some of the past paper answer, it will say like:
        “According to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, a constructive obligation to restructure arises
        only when an entity:
        (a) Has a detailed formal restructuring plan identifying at least:
        (i) the business activities, or part of the business activities, concerned;

        It is so detailed and exactly copied from the script. Do I need to answer like this?

      • Profile photo of MikeLittle says

        It’s tempting to lie to you here and get you totally wound up! But, so close to the exam, that would be grossly unfair!

        Many, many times on this site is the message “There are NO marks available for quoting IAS / IFRS / ISA numbers and / or titles”

        The suggested solution does this …… because it can! There’s no time pressure on the author, there’s the availability of the standards open in front of the author, there’s no adrenalin rush and no pressure to do well because promotion at work is dependent upon exam success, and the author can write as much as they want – could even write a book as the answer if they felt up to it

        No, it is NOT necessary to remember standard titles nor numbers – don’t even think about trying. It’s a waste of time and effort

  1. Profile photo of anisa786 says

    Please explain why reversal of impairment on goodwill is treated differently. I did not understand that part and why it’s new and internally generated. I know there are two types of goodwill….one is purchase (through acquisition of a business) and the other is like your brands and mastheads (created within the business)

    • Profile photo of kangmo says

      Exactly, and if I am not mistaken, internally generated goodwill can never be capitalized. This is in relation with the prudence principle. Also, measurement would be very difficult for an internally generated goodwill. For externally purchased goodwill, we at least know we spent a bunch of money on it, so this leads to the measured goodwill.

      The other treatment (recognizing internally generated GW) would make big bath accounting too easy and financial statements too unreliable.

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