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The first question asked about the problems with implementing the BSC in the company, why would you be given marks talking about the prism?
Hi all,
Interesting hearing people’s thoughts about the wording of the questions causing confusion. Is it possible the confusion is because you haven’t fully studied and understood the subject rather than the examiner’s grammar?
Sorry, Alkemist, I thought:
Dr Receivable Cr Stationery
750, 1000Loss on disposal would go to the I/S
250Is this wrong?
Go through the whole of opentuition’s lecture notes. Only use the study text for areas you are confused on, or need a little more information on. In my opinion, one of the worst things you can do is go through the study text word by word – way too much information. However, you must purchase a revision kit and do as many questions as possible – the whole of the revision kit if you can.
Hope this helps.
Cr NCA (stationary) 750
Dr receivable 750The double entry would relate to the SOFP. If there was profit or loss made on the sale, it would go to the I/S as well. If (A) sold all the stationary for £750, £250 would go to C.O.S as an expense. This would be reversed on consolidation (you will learn consolidation in F7).
Hope this helps.
Oh yes, I remember now: you have to complete F2 and F3 first, but you can claim you’re doing F1 by computer in order to do a Fundamental paper.
I don’t know whether you can still do this, but you can tick the box that you are doing the F3 exam by computer, and this will allow you to do three more exams in the Fundamentals level.
An “assertion” is a statement given as absolute fact.
So the “assertion level” is the level at which statements are presented as completely true.
E.G
Management tells the auditor the financial statements show a true valuation of inventory – management are formally “asserting” this statement as being correct, so we call this at the “assertion level”.
Just because management give a statement at the assertion level, doesn’t mean it is actually true – but I didn’t need to tell you that!
(Look up the definition of assertion.)
Hold your horses everyone!!! You only need to take the UK variant if you want to become an audit PARTNER. Do you think you will become an audit partner before we change over to IFRS? You can still become an auditor if you take the INT.
Quote:
“However, ACCA advises that if you wish to be a signatory audit partner in an
ACCA practice, you must have studied Paper P2 (UK).”https://www.accaglobal.org.uk/content/dam/acca/global/pdf/sa_aug11_p2uk.pdf
Study texts give you too much information. Go through the Opentuition notes and do all the questions in a revision kit. Practising questions is the key to passing exams – do as many as possible and try and do the mock exams under exam conditions. Only look through the study text for areas you are unsure about.
It says, on the answer paper, that it can be included in retained earnings or reported under a separate heading ie. exchange reserve; both are acceptable, but you must show your workings.
You do not show exchange rate differences on the SOFP. You convert all the subsidiary’s balances to the parent’s reporting currency. There is a reserve in the equity section that holds “gains on exchange rate movement.”
It’s awhile since I did P2, so I’m not 100% sure though.
You will take 100% of the company’s assets and liabilities to consolidate with the parent.
However, you will only take your share (75%) of the company’s profit and reserves.You have to complete all F papers, or are sitting the remainder, to take a professional paper. Why do you want to do a different combination than set out by ACCA? The ACCA have already set it out for you!
To enhance the usefulness of the financial statements. Comparability is in the enhancing section of the qualitative characteristics of useful financial statements.
If you’re working full time, be very careful not to do too many papers. Two papers is perfectly OK, four is ridiculous. F4 and F6 does not assume previous knowledge.
MA2 is exactly the same as F2, it’s just you entered the ACCA via the mature entry route – high levels of maturity is expected!
When costing a product you have:
Direct Labour
Direct Materials
OverheadsOverheads are the indirect expenses incurred ie. not direct labour or materials.
Imagine you are standing in a shop: the light above your head is an overhead, the rent is an overhead, water rates, delivery charges, council tax etc. The list goes on, try and use your imagination, and think of all the indirect expenses.
Absorption costing is the process of absorbing all these overheads into the product or service you sell.
E.g Overheads this month are £1000
We think we will sell 100 units.
£1000/100 = £10 we will charge for each product to cover our overheads.There are a few different ways to absorb the overheads, such as per labour hour. You will have to study these.
Until the tutor answers…
If you wanted to impair an asset, and it has been previously revalued, you must first DR the revaluation reserve account with the impairment charge; any remainder goes to the I/S as an expense.
e.g Building
2010 = NBV £100
2011 = Revalued to 150, thus creating a RR A/C of 50
2012 = Recoverable amount after a fire = 25So, first we deduct the impairment charge of 125 (150 – 125 = 25) from the RR A/C “reversing a previous gain.”
Once the RR A/C is closed, we send the remainder as a Dr to the I/S of 75 (125 – 50 = 75)All it is saying is, if a revaluation reserve exists for the asset, and the balance covers the impairment charge, no expense would be recognised in the I/S.
Hope this helps.
A revaluation of an asset, means it has INCREASED in value. An impairment, means the asset has DECREASED in value.
Your building has been damaged, so we will decrease the value i.e impair the value by £100,000.
However, if previously the building has been revalued, there must be a revaluation reserve account. So we deduct the impairment charge from the revaluation reserve account, and then the remainder goes to the I/S. If no revaluation account exists, the charge goes straight to the I/S.
I would suggest having a look at paper F3 again, as this is assumed knowledge from that paper.
If you are doing F7, the consolidation question will show you the layout. Go on to the ACCA website and look at the past papers.
Until the tutor answers…
An asset is impaired when its recoverable amount is lower than its net book value. When impairing the asset, you must Dr the revaluation reserve first, if the asset has been revalued prior, and then Dr the remainder to the I/S as an expense. When you say, “revaluation decrease” I think it is referring to the Dr of the revaluation reserve; and an impairment is the complete charge, albeit going to the RR and/or I/S account.
A CGU is a group of assets that you impair together; instead of deducting a single asset separately, you group assets together, and charge the impairment to the whole. The assets, which are grouped, should generate cash inflows independently.
e.g A pizza oven in a restaurant:
Does the oven generate cash inflow independently? Of course not I hear you say! Then you would group the oven with the restaurant because they are dependent on each other to generate cash, so this would be a CGU.
