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That is the new change if its causing a going concern it no longer goes in EOM paragraph but goes into its own heading called material uncertainty related to going concern paragraph under the basis of opinion and is mentioned in the KAM section too if listed, I cant rem if it was listed or not. I presumed that’s why they originally had the contingent liability as an Emphasis of Matter, a vague question that arguments can be made for different treatments.
If everyone has another 45 mins in there we would probably all pass just goes to show they want to time pressure you to fail you. I had 15 mins to do my last question and could only write bullet points 🙁
What Q has the EOM where there was a contingent liability? For this I wrote that the EOM was not appropriate, and if the contingent liability was causing a going concern issue it should be disclosed under the basis of opinion under heading of Material Uncertainity in Relation to Going Concern and also mentioned in the KAM section of the audit report.
Was a tough paper overall Q1 requirements were very vague, audit risk but caveat to say no need to mention disclosures which to me meant she wanted the audit risks just in relation to the audit planning stage not any ROMM risks caused by audit risk.
IAS 8 and IAS 10 were in there too, IAS 40 I think. Didn’t see IFRS 2! Were ur retained earnings negative?
I found it tough, I had negative retained earnings which really threw me, also wasn’t sure what to do with the PE for the NCI share when calculating goodwill.
Q2 and Q3 were tough too, ran out of time. What was the IFRS 15 part about? I said it shouldn’t be recognised under IFRS 15 but should be IFRS 9.
Will be repeating, much better than June tho which people were still giving out about.
Looked at the IAS 37 ED but decided to omit it. Will look at IFRS 15 again, I know the 5 steps so just need to apply that to any question that comes up. Think I will do a SOFP tonight so just to refresh it. Related parties will show up somewhere too, that is topically.
Ya maybe, it was tough in June so maybe examiner will want to question it again. Who knows tho no clear pattern to follow.
I am focusing on sme and conceptual framework for Q4.
P/l and cashflow for Q1.
Current standards: IFRS 5,8,11,15.
Hardest part with this exam is you could know the definitions of all the standards inside out but not have any idea how to apply them to the questions, half the battle is trying to understand what the examiner is testing.
Hard to know now, since so many people giving out about the cashflow maybe he will test another? you couldn’t rule it out, going by order the SOCI is now due, very hard to predict it, now he has done cashflow maybe he reverts back to his favoured SOFP ?
Q1: I just did whatever adjustments I could, I know I missed a load, I got the proforma done, I was out by 100 in end.
Part B: I explained indirect and direct method and waffled about the benefits integrated reporting would bring to users of FS.
Part C: I waffled about the directors window dressing the bank overdraft to avoid there loan covenants penalties, and mentioned there ethical Responsibilities.
Q2: part A: had no idea what they were asking, I said that if the parent opened another company then the parent would become a sub to the new parent, had no idea was making it up.
Part B: can’t rem but don’t think I wrote anything.
Part C: I talked about diff between joint arrangement and joint venture, and said it was a joint venture because there was a special purpose vehicle.
Q4: part A: waffled about IAS 17 risks and rewards and off balance sheet financing.
Part B: Mentioned IFRS 16, single lessee accounting model, control over risks and rewards.
Part C: type a and type b leases, not sure if I mixed them up or explained them very well but tried to explain them as best I could, had no real idea of the accounting treatments so just guessed them.
Overall I did a lot of waffling, I filled out the recent survey and complained about vague questions, tricky examiner language, and no real connect to past exam papers. If they are changing the direction of the course then fine but I don’t see why we should be the guinea pigs.
Stink paper but come to expect it from the ACCA. Was Q4 b) about type A and type B leases under IFRS 16?
If q4 is IFRS 16 then that is fairly straight forward, but it will probably be a combination of new issues, won’t be easy anyway. But handy to have something ready in case one of the other questions is a disaster. Cashflow would be grand u can pick u marks with the proforma of it, going to revise 1 p/l just in case. Don’t think sofp will come out again.