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I did 100% of the exam
But yes the timing was tough i spent half of my time in Q1 and i looked at the clock i was like ” what the hell ! ”
But somehow i made it
~Laughing Coffin
Why did the accountant cross the road ?
Because thats what he did last year
Ahahahahahaha
When does an accountant go crazy ?
When he starts hearing invoices
*professional laughter*
Sorry Sir i sorted the forums by latest and i didnt even realise i was in an Ask Tutor Section.
Will double check next time sorry.
For a level 1 paper thats really weak
Especially if you only wrote one paper
But in the end marks dont matter once you complete the full course
That being said I dont recommend postponing your ACCA journey waiting for them.
Keep on !
~LaughingCoffin
Based on the trend it would be reasonable to assume that P level papers will soon be computer based.
In regards to your timeline question no ACCA’s timeline has not been updated .
~LaughingCoffin
Q1 – A
BUSINESS RISKSThere is a risk that the entity will not only incur fines and penalties but also the risk that their operating licence be revoked as a result of non-compliance with health and safety regulations The loss of the operating licence mean that the business is no longer a going concern.
The entity is operating in a highly competitive environment not only is there a risk that they will lose their customers but also their employees. The firm should ensure that they pay employees industry standard salaries and up. If the firm loses its key staff “brain drain” its ability to operate decreases.
The entity recently opened coastal sports facilities there is a risk that staff are not properly trained for water sports. The firm should ensure all staff are trained in first aid and hire life guards. Under the new scheme members children will be allowed free access to coaching which includes swimming. If a child is injured or drowns the negative publicity will impact the businesses customer base.
Q1 – B
RISK OF MATERIAL MISSTATEMENTIAS 16 Property, Plant and Equipment
The 12 mil investment is material in relation to total assets.
There is a risk the entity treated the investment as revenue expenditure instead of capital expenditure since the investment was an upgrade to facilities to make it more “modern”.IAS 20 Goverment Grants
The grant was material in relation to total assets.
The recognition criteria was done correctly.
The entity recognized the entire grant instead of deferring it.IAS 23 Borrowing Costs
Loan is material in relation to total assets.
Directors loan not material in relation to total assets.
The standard states that directly attributable borrowing costs should be capitalised all other borrowing costs should be expensed. (The new coastal facility )
It does not appear like the entity capitalised borrowing costs.IAS 24 Related Party Disclosures
The standard requires disclosure of related party transactions, relationships and balances.
It does not appear like the entity made the required disclosure.New System
The entity is using a new system there is a risk that data will be lost when tranferring the data from the old system. A backup of the the old data should have been created. There is a risk of errors since the system is new. The entity appears to have acknoleged this as they provided training for two months on the proper use of the system.Q1 – C
GOVERMENT GRANT PROCEDURES
>Copy of goverment grant to confirm the terms
>Review cashbook and bank statements to confirm reciept of grant
>Descussion with management on IAS 20 and the proper treatment of the grant
>Confirm errors were corrected and deferred income recognisedQ1 – D
ACCEPTANCE
Management integrity
Accountant competenceQ1 – E
ABILITY TO DETECT FRAUDFraud is the intentional use of deception in order to mislead the users of the financial. Intentional is the key word here which mean that the fraudster will do everything in their power to hide the fraud.
There is a risk that a review engagement which manily uses analitcal procedure and inquiries will not pick up on the fraud.
There is a risk that an audit will not pick up on the fraud even after performing extensive audit procedures.Q2 – A
Working Capital Ratios
Recieveables days increased
Entity recieves cash slower
Inventory days increased
Entity inventory is selling slower
Payable days decreased
Entity is paying suppliers faster
Worsening working capital position
Less cash available in the short run to pay employees and suppliersLiquidity Ratios
Current ratio fell but was still ok
Acid ratio fell too low
Less cash avilable in short run tp pay employees and suppliersQ2 – B
Cashflow procedures
>Inquire of management to identify key assumption and to determine if those assumptions are consistant with your knowledge of the business
>One of the key cashflow assumptions is the reciept of a loan so inspect coresspondence with the bank
>Another key assumption is 25% increase in revenue. What is this bases on? Inquire of mangement how they came up with that did they do market researchQ2 – C
Directors do not want to disclose material uncertainty because1. Suppliers will request payment immediately or decreace thier credit limit.
2. Bank may not approve the bank loan or may no agree to refinance current loans.
3. Investor may take their cash elsewhere.
Q3 – A (i)
Train Employees
MLCPQ3 – A (ii)
Money laundering is where criminal elements try to hide the proceeds of criminal activities by turning “dirty money” into “clean money”. There are three stages Placement, Layering and Integration.Mr. Baker place 33,000 mil into the financial system this is placement. Placement is where criminal proceeds are placed into the financial system in order to disguise it.
Mr. Baker then transferred the 33,000 mil to an off shore account this is layering. Layering is where additional layers of transactions are created in order to hide the origin of criminal proceeds in order to make it harder to trace.
The entity was cash based which increased the risk of money laundering.
Q3 – B
>Tax Return
>Office Party
Self Interest + Familiarity Threat
$30 gift immaterial can be accepted
Annual attendance creates may cause staff to become overly friendly with the client so no>IT System
Self Review
The company is a certified accounting firm it may not have the expertise to even create the website
Separate team from audit team if competent enoughHi nathan i hear u
Q3 a)
At first I too was going to write about IFRS 16 leases. But then i realised there are two parts of this contract one with the sale of medical equipment and one with leased speacialised equipment so with these two performance obligations i went with Revenue.Q3 c)
I choose IAS 38 since CUT provide information on the developement of products. IAS 38 states that research costs which are cost that do not meet recognition criteria should be expensed. It did not meet recognition criteria since it was not probable that there would be an inflow of economic benefits.But ur treatment of deferred income and expense is how i treated it so the end result is the same i guess.
Hi LC in the house
Q1
a) consolidated balance sheet
b)Plymouth 60% subsidary or 40% associate
c)IAS 24 related party loan guaranteeQ3
a)IFRS 15 revenue recognition
b)IAS 37 provision legal battle
c)IAS 38 research costs (expensed)Q4
a)historical cost vs current cost
b)single measure vs mixed measurement of assets and liability
c)IFRS 16 operating lease
IAS 20 $500,000 goverment grant
IAS 40 investment property
IAS 2 inventory
