[Ahmed Bashir Chaudhry]

If we were to receive euro 20m we would hedge that amount so that if euro depreciate or dollar appreciates we would have to face loss, that’s why we chose sell future and lock a rate so that uncertainty is beg dealt with and we would sell those euros at locked rate and also we would know today what proceeds in dollar we’ll get!

So for future => Sell Euro Future
Nd for options => Put Option

[Ahmed Bashir Chaudhry]

I chose put option as you need to see what are you selling or buying againt dollar
Every currency trades against dollar

But thn again im not too sure as contect size was given in dollars

[Ahmed Bashir Chaudhry]

Sorry i never replied to this, but what happened was i did appeared in UK variant without knowing any UK GAAP, luckily i pass @ 51!
i took around 2hrs to complete consolidation, part b of Q1 was on UK GAAP so left it, part c did it in like 10min!
so i attempted 42marks out of first 50marks!

in Part B of paper i found almost all question were half about IFRS (i actually didnt knw most of the IFRS that were in this paper too lol) nd the other half UK GAAP, just tried to find any numerical part nd solved them, nd did explain a standard i dont remeber which one it was!!

So for anyone who is an idiot like me and did something like this, dont loose hope, just go and sit in exam, try to allocate more time on what you actually know, think hard nd try to do it right!!

[Ahmed Bashir Chaudhry]

nope! but there might be a straight forward question for few marks on what are the changes!!

[Ahmed Bashir Chaudhry]

@wayhern said:
I thought the 4 marks is spread to the 4 issues, wasn’t?

4 marks = 4 points/impact on audit report
immaterial issue
no need to qualify
omp
omp position

[Ahmed Bashir Chaudhry]

Q5) the issue was immaterial, although i did add OMP (other matters paragraph) due to the Chairman’s statement who said they’ve grow substantially but when looking at F/S there was no growth!!
Did i do right?
for 4 mark i wrote
issues immaterial
no impact on opinion
OMP
OMP after opinion paragraph

[Ahmed Bashir Chaudhry]

Yes you are right! thanks for the help!!=))

[Ahmed Bashir Chaudhry]

i’ve compared some past papers, the only difference in UK variant is UK GAAP related questions!
can you guide me from where should i study or at least go through some notes for understanding UK GAAP!
Section A Q1 Part B is always on UK GAAP (8 Marks)

[Ahmed Bashir Chaudhry]

FVTPL is default category, if any investment doesn’t meet criteria of FVTOCI or At Amortized Cost it will fall under FVTPL!

FVTOCI – Investment in equity only, not for trading purpose
Plus the company has made an irrevocable election to recognise gain and losses to OCI
If any of these 2 criteria are not met the investment will be FVTPL

At Amortized Cost – Investment in debt only
Investment can make contractual inflows on regular intervals, both principle and interest
Assess Business management model, their intention should be to invest for long term purpose

If not fulfilled thn FVTPL

[Ahmed Bashir Chaudhry]

Bump!!!!!

[Ahmed Bashir Chaudhry]

the answer to my mcqs were 4 A, 4 B, 3 C nd 1 D!!
overall it was a pretty lenghty paper, idk how people are saying it was easy, not for me!!

[Ahmed Bashir Chaudhry]

So if the managment agree to give a disclosure => E.O.M.P
if not => Adverse opinion

[Ahmed Bashir Chaudhry]

Thanks Ina for pointing out the question of dec/11,
i’ve read the answer but still doesnt clear my confusion,
see if the year end is 31/12/2014 and the following happens on 25/01/2015

a) Customer went into liquidation (were not experiencing any problems that we should have known of) , Material amount, nothing recoverable
b) stock burned/damaged by fire or some other natural disaster, material amount, none of it were insured

shouldnt both the answers be not to adjust but to give a note!!

[Ahmed Bashir Chaudhry]

what if the damage is such huge that the company might face going concern problems? what effects would that have?

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