[abdullah]

Hi, my company is usa based company and has a year end of 31 December 2023 , can i use the 10 k report ? I want to submit in may , and the annual report is still not published on the website

[abdullah]

but my question is not about which method to use,

I am asking about if ias 2 allows this:

can we as a company , measure

all iPhone 15 256 gb in our stock at fifo ?

all iPhone 15 pro max 256 gb in our stock at weighted average ?

all iPhone 15 pro max 500 gb in out stock at fifo ?

is the above allowed ??
——————————————-

I DO KNOW , that if were to measure all iPhone 15 256 gb at fifo , then we should stick with this method and be consistent with , we should NOT measure some iPhone 15 256 gb at exact cost , or fifo , or avco.

BUT IAS 2 talks about being consistent with the method of valuation with things of similar nature and economic charasterics , what does it mean briefly ? or just clarify by iPhones example above.

[abdullah]

so in year 4

OCI in (pNL) is Credited by 800 ( 300 from fair value gain , and 500 from from the sale coz of excess cash received)

dr cash of 2000

and the financial asset is credited by 1500 , which makes it value nil now.

so now then what happens now ? in the statement of changes in equity there is an OCI balance of 1000 ( 200 relates to year 2 gain , 300 relates to year 4 gain , and 500 is the excess cash received in year 4 as well )

what happens to this value of 1000 in OCI reserve in (SOCIE) At the end of year 4 and also beginning of year 5 ?

when the standard says its not classified to Pnl , …. but what happens to OCI reserve balance in year 5 ? does it stay there forever or what is to be done with it ?

[abdullah]

thanks, to be more clear to you , they are even refusing to give us photocopies of their sales invoices , and they say they dont want to give for confidentiality reasons

can we take photocopies or soft copies of their invoices ? They say we are only allowed to verify whatever we need at their office.

[abdullah]

the thing is we tried to physically verify the inventory during 2023 which is for the current period , and they are fairly stated right now as well BUT from assumptions and past experiences with client we can only assume that inventory was fairly stated at 31 december 2022

And for 31 decmeber 2022, we can only obtain a inventory list from management and they have done so , the only problem being we were not physicaly present to verify them

[abdullah]

Thank you for your replies , this is a client where we have been auditors for the past few years, and we have always issued unmodified reports as their accounts have always been fairly stated in all aspects including inventory as well.

So my question was not about opening inventory , it is about closing inventory at 31 december 2022

”WE were last years auditors as well for the year ended 31 December 2021 , and for 31 December 2021 we were physically present during the inventory count and verified it to be fairly stated , and an unmodified report was issued for 31 december 2021.”

We are CURRENTLY doing the audit for the year ended 31 december 2022 , BUT we have been appointed as auditors in June 2023, and so all the accounts and transactions balance we have audited are fairly stated , but now the issue is only for closing inventory.

From our past experience as auditors for this client , we know that their inventory has always been fairly stated and also we were always physically present at year end to do the inventory count for the past several years, but for the year ended 31 december 2022 , we started the audit in june 2023 , so we could not physically verify the inventory closing balances.

so my question was, if we do think that inventory was fairly stated at 31 december 2022 from past experience with the client , the only thing is that we were not able to physically verify it ,

can we just state anywhere in the report like in other matter or in the notes to the financial statements ? that the CLOSING inventory was physically verified by management for 2022? or do we have to qualify the report ?

[abdullah]

ok , can this be removed from other matter and be disclosed in the notes to the accounts of inventory ? will this be okay ?

and if NO , then what if we as auditors think that inventory is fairly stated even though we physically didnt verfify it at 31 decmber 2022 , because we were appointed as auditors in june 2023 , then what is to be done ?

Do we have to qualify the report stating that we were not physically present to verify the inventory ? or can there be any other solution to it ?

[abdullah]

so not accouting as long term career and also not science teacher….. so what do you ideally want to do ? do you think at this age its easier to change your career ? do you not think that you will be paid like a fresh graduate with no work experience in accounting ?

some accounting jobs are just data entry…… and do you currently wok in accoutng ? how is your work ? do you like it ?

[abdullah]

Great 🙂

i am a 23 year old and became an acca affiliate two years ago….. was forced into doing for some irrelevant reason to say here..

i want to go back studying science and will want to become an electrical enginner or computer science
i have done O levels in maths and bio chem phyiscs but do not have the A levels for university admission

i feel accountancy is very dry ….. like i dont even learn anything that useful… like its good for learning part time like how you did … i also didnt mind learning it … but i dont want a career in accountancy ..i worked for a year in it and hated it even more….and in more depression

didnt you enjoy your career in science ? if you would go back would you have chosen another science field ? or any other engineering field ?

[abdullah]

Thank you for replying

Yes i am only an affiliate……but i have asked other much older students and they said they got an orginal certificate from acca via mail when they became an affiliate and also as well as when they became a member ,

Did acca stop this ? Because they were asking me about my acca affiliate certificate and then they told me to email acca requesting about acca affiliate certificate

[abdullah]

i watched your lectures , but i just forgot to think that the gain is a reciept .

thank you very much

[abdullah]

sorry , i refreshed my page now and saw your answer after i posted another question regarding nci ,

these issues can make a student spent hours on a part of question , as we dont know what is correct and what isnt

and is my answer of 1.617 above be correct ?

and i also hope its the same regarding nci

thanks

[abdullah]

sir in chapter 8 of foreign currencies in ot notes….if you look at the answer at the back in w5

in example 3 ,it didnt convert dinars 80 % x 130 to dollars and so the answer at the back is wrong i guess, but in the lectures as i have mentioned above you divided by the closing rate of 4.3 and got 24.2 ,
but i read somewhere that the post acquisition profits of subsidiary , should be converted at the AVERAGE rate which is 4.0 in example 3 ….so did you make an error by converting at 4.3 instead of 4.0 in the video lectures ? if you did make an error ,then my above issue would be solved in bubble q1.

ANOTHER QUESTION REGARDING NCI

and also when calculatng the nci in ex 3…in your lectures , or if you look back in ot answers in the back , the nci at cost + its share of post acquisition profit which comes to 146 is divide by 4.3 which is the closing rate

but if you look in the model answer of w.14 nci in BUBBLES , the nci at cost is divided at the relevant date at date of acquisition (220 divide by 8) and then the post acquisition
of 26.5 divide by 8.5 and then the rest of the impairment and exchange loss…..BUT WHAT YOU DID IN EX 3 YOU DIVIDED THE WHOLE ANSWER OF 146 BY THE CLOSING RATE OF 4.3 INSTEAD OF BREAKING IT DOWN LIKE HOW THE MODEL ANSWER IS regarding the nci

please tell me which way is correct ,
thanks

[abdullah]

thank you very much ,

well i do have a revision kit from last year ,i didnt really know that, as these links appear on the first page of google search…any reason why they are copyright ? i dont know why acca removes earlier past papers from their websites …..any reason as they are not that old ? but these past papers were once on the acca websites and they are were for free

and the revision kit providers need to sell their material and so they have a copyright claim ,but these older past papers were once free of charge on the acca websites and what is the use of copyright claim ?,,,,as they were never meant to be sold and the websites that host older past papers are also not selling them….anyway whatever the reason maybe , i wont post any links further

i have another question

in dec 2013 q1 . the questions says a balancing adjustment will be required at the end when sold for 500 mp… and

in year 4 – cv – 750 – 500 = 250 , this 250(which i understood ) is then deducted from year 5 cash flows ,
but can i know what is the difference between balancing allowance and balancing charge? are these two words known as balancing adjustment ?or what do these three mean ?

i want to do tax workings separately like the dec 2011 and so the profit before tax for year 5 are as follows for tax workings

year 5
pbt 715.2
TAD (125)
balancing allowance (125) – these two are the the 250 split

which gives us taxable profits as 715.2 -125 -125=465.2

but what if the question said there is a balancing charge instead of balancing adjustment? i dont know what the words mean or does a balancing charge mean like the machinery was sold for 800 in year 5 instead of 500 ,this would then mean
750 – 800 =(100) loss , is the 100 loss called a balancing charge ?

and how would the loss of 100 be adjusted in the tax workings , would it be added to year 5 as 100 , which would then give taxable profits of 715.2 +100 =815.2

and also 250 is deducted in split of 125 and 125 ,so would the 100 split would be done ?

thanks

[abdullah]

i understood rest of the question , but this tax allowable deprecition of not being added back in the end is bothering me

[abdullah]

i have just realized 114 is the fv of net assets when acquired at 1 july 2014 , so is this the number used (154 -114 ) in calculating the share of post acquistion gains ?

but the fv of na was given as as 118 in at 1st of july ,which is the beginning of the year

so why do we not use 118 in calculating the share of post acquistion gains ….? as sfp are on yearly basis and so wouldnt 118 be the relevant figure instead of 114 in calculating share of post acquistion gains for the YEAR ?
🙁

your revision lectures helped a lot , and the way you do ,is more simple to understand than model answers ,but you have only solved 4 questions in your revision lectures

is there any paid site than you would recommend in which they solve more past exam questions in a similar style to you ? or any good one than you know of ? coz model answers confuse me sometimes…and doing past exam questions with a teacher helps a lot , otherwise i am stuck at a part for hours

[abdullah]

,the same for march 2018* exams ?

[abdullah]

nice ….:)
but what were your qualifications before you started acca ?

[abdullah]

what have you choosen?
you should enrol with f1 straight away , the lectures start from the beginning

[abdullah]

but the question states that the audit client has asked themselves to be sponsored in return for excessiving advertising of the the audit firm …?

is sponsoring like promoting …. ? which would constitute an advocacy threat???

[abdullah]

was marketing an advocacy threat ?

[abdullah]

any one know whether q10 mcq?

was marketing an advocacy threat ?

[abdullah]

thank you
can i know where the chat room is?

[abdullah]

what made you leave chhemistry?
is it a worthless degree in terms of job oppurtunities

[abdullah]

ok ,thANK YOU SIR ,
ThE lectures in f3 were basic ,i did few of them and it was very helpful

do you have lectures for fa1 and ma1 ?
if not , then do u advice me to go through the course notes for those subjects as i dont have accounting knowledge

i listened to the f3 lectures and it did teach me the basics
i just want to know what do we learn in fa1 and fa2 and ma1 and ma2
cause i am not doing them
i am confused why are those subjects there cause ur lectures in f3 were for easy to understand

[Author]

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