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Agree with John and also on the Statement of Changes in Equity. But to reiterate, ask your question on the relevant tutor forum.
49% shows you have the potential. Don’t give up.
ACCA has many people for various backgrounds even those from science backgrounds. I have a degree in Chemistry and was working on a higher Chemistry degree when I switched and decided to do ACCA. I have done it and so can you.
Take the papers one step at a time, managing what you can. Don’t rush as the race is not for the swift.
@tyjtht said:
HiJust to check, are there any disadvantage of not converting to ACCA member? Will employers question why we are not taking the membership?
I have become an affiliate and have no plan to pay my annual subscription anymore. Thanks in advance.
If you don’t pay subscription, you will eventually be kicked from the register.
Depends on where you will eventually settle and what you want to do.
If you intend to practice within the UK, then sitting the UK variant will be crucial for getting a practising certificate. Otherwise, it won’t matter.
I would suggest you post in the “Ask the tutor”, but as a guide, do them step wise and you shouldn’t have a problem.
Not a deferred tax question but deferred income…….
Step 1: Identify the contract – supply and support contract
Step 2: Performance obligations – two performance obligations (1) supply and install (2) service. Note the supply and install is one obligation as they offer it as a package. In this case, it does not appear that you can buy the equipment without having them install as well.
Step 3: Transaction price – this is $1,200
Step 4: Allocation of price to performance obligations – based on the relative stand alone price. The key term here is “relative standalone”. Standalone for supply and install is $1,000 and 2 year service is $500. Typically where a discount is given, you need to consider whether this relates to all or some of the performance obligations. In this case, it the absence of any additional information, this appears to relate to all performance obligations, so apportion the discount over both. As a consequence, the supply and install is $1,000/$1,500 = $800 and the service is $500/$1,500 = $400.
Step 5: Recognition of revenue – in year one, the company would recognise the supply and install (ie $1,000) and one year of the two year contract (ie $400/2 = $200). The remaining $200 for the second year of the service contract would be deferred.
No. You do not need audit experience to qualify. The vast majority of people qualify from industry and have no audit experience. Audit is just one of the streams to becoming qualified.
The format as outline by @nighteyes is completely acceptable for both IFRS and UK GAAP variants. Would refer you to IAS 1 in terms of the acceptable formats. UK GAAP refers you to Companies Act on the same.
While this is a P7 (AAA) technical article it’s content is relevant for the AA level and may answer your question.
@kamlesh.jashnani1 said:
the materiality level is as follows :1/2 – 1 % of Revenue
1 – 2% of Assets
5- 10% of Net Profit.When something is lets say 1.5 % of assets. will it be considered material or it is material when it crosses the above threshold ?
Those figures are ranges. The auditor will set the planning materiality at a % within the range, so say 0.8% of revenue. The materiality will not be over a range but will be a defined point based on the auditors knowledge and experience of the client, the industry and the needs of the users. From there, performance materiality is set, which is at a lower value than the planning materiality to further reduce the detection risk.
This is a vague question. You need to be a bit more specific. If you are after an understanding of assertions, I suggest you review the material online here and ask the tutor.
The suggested answer is lacking from a practical audit perspective. While written representation would indeed be required, additional audit work should also include verifying the ability of the CEO to provide the proposed funding, through obtaining bank statements in relation to the CEO accounts and possible confirmation that there are no liens on those balances. May also require to obtain a LOC to the benefit of the company and drawn on the CEO accounts.
A letter of representation is not in and of itself sufficient audit evidence. The letter is best used for those aspects of the business for which no additional work can be performed, such as the company entering into any other arrangements, result of directors fraud assessment, sufficiency of provisions (although in this case it is more the principles used to derive the provision rather than the provision itself which should be represented).
Not sure where you read this, but there are many persons who have received exemptions under ACCA who have become CPA Canada members.
I would be interested to know what would happen if someone in this situation were to report the member who refuses to sign off on the time to ACCA for breach of the bylaws in particular:
Section 110: Integrity – The principle of integrity imposes an obligation on all professional accountants to be straightforward and honest in all professional and business relationships. Integrity also implies fair dealing and truthfulness.
Section 150: Professional behaviour – The principle of professional behavior imposes an obligation on all professional accountants to comply with relevant laws and regulations and avoid any conduct that the professional accountant knows or should know may discredit the profession. This includes conduct that a reasonable and informed third party, weighing all the specific facts and circumstances available to the professional accountant at that time, would be likely to conclude adversely affects the good reputation of the profession.
I challenge someone to test the waters.
Once you have completed your exams, you are an affiliate until you apply for and are accepted to membership. Remember not to use the letters after you name during this period.
I assume you mean prepayment (ie payment in advance). If so then yes the correct entry is Dr bank and credit deferred income. You would be correct in saying both debtor and creditor balances are understated.
Whilst your question is not very clear, I will say that if a receivable balance is cleared after the reporting date and the amount is seen in the subsequent bank statement, it provides additional support in relation to the valuation of the receivable. Completeness, existence and accuracy would have already been established by review of invoice and goods dispatched notes (if it exists).
Between 8,164 and 45,000 p.a. the rate is 12%. Thus the monthly limit is 45,000/12 = 3,750 (NB 8,164/12 = 680 hence taxed on 3,750 – 680 = 3,070 @ 12%)
In the month she is paid 1,500 + 10,000 (bonus), her salary as an employee is 11,500. Thus 3,080 @ 12% and remainder (7,750) @ 2%.
Check the workings again and you will notice that for the other 11 months, since she earns less than the 3,750 limit, she is taxed at 12% on 1,500 ( which is 18,000/12).
As for your question on why this is the case even though the two are below 45,000 in total, you have to remember that the Class 1 NIC is calculated on an earnings period basis (weekly, fortnightly, monthly etc) and hence the limits are based on the total divided by the proportion relating to the payment period (1/52, 1/26, 1/12)
Hope this helps.
@ayotunde1 A question for you: What do you mean by the money had just dropped?
Adjustments are dependent of the concept of materiality, so you need to always bear that in mind when thinking about whether to adjust or not.
@frafiq81 If you look at the scenario, it says “10,000 shares can be acquired for £1.60 per share (= market value at grant of option).” In other words to actually acquire the shares, she will have to pay 16,000. The cost of the option represents the cost to be able to lock the price of the shares and not the actual cost of the shares to her.
If you look on page 68, the granting of the option has no tax effect and is not taken into account in any capital gains computation. As a result, the 5p per share (500) paid for the option has no effect on the computation.
Hope that helps answer the question, but if not, read through the solution again because it is all explained there.
@suleymanabuzerli said:
But revision kit means the opposite
?f you have ,look at 16.5(topic-bank rec)Chris is correct. When looking at books of bank, s customer accounted is a liability so a credit to the account increases it’s value.
If the management refuses to sign the letter, then that is a limitation of scope and generally, the only reasonable course is for the auditor to resign (don’t even think about offering no opinion).
Hi @Monku – your question is not very clear and as such an answer cannot be provided.
For clarity you need to provide the context (background and scenario).
Financial statement level means a risk pervasive to the financial statement as a whole and casts doubt on the true and fair view.
Assertion level risk is the risk that a director assertion over an FSA is inappropriate. It has two components, inherent risk and control risk.
E.g. PPE – existence (does it actually exist – asset verification), completeness (are all PPE accounted for and in the right period – subsequent bank review and review of minutes)From memory, there should be a number of posts on this topic here, so give it a search.
