[queen1234]

pass 77%

[queen1234]

This is what I said too. Phew! There was also something along the lines of employees being asked to sell goods on cruise as that stream of the business accounted for high margins. Any audit risk in that respect?

[queen1234]

For the revenue recognition in Q1 audit risks. What was the audit risk here?

[queen1234]

Sale of division – discontinued operation. Held for sale criteria met. Disposal group assets and liabilities will now be classified as current. No more depreciation after held for sale. The profit or loss from discontinued operation also shown on face of SOPL.

Leases – new policy. Disclosure requirements and the previous years figures to be restated. Leases material hence modify opinion

Chairman – report in other information, opinion unmodfied in this respect

[queen1234]

1)audit procedures : totals of segment must be cast.. Threshold recalculate… Review whether codm reviews the perfoemance of them… Etc etc
2)auditor has responsibility to read other information and look out for inconsistencies. Should establish what is wrong- the financials or the directors statement. If the statement not changes, no impact on the audit opinion but auditor should mention the inconsistencies in the ‘other information’ section.
3)new policy-disclosure requirement, and the financials to be restated for the previous year to allow comparability. Leases are material (was told in the question) and if not adjusted would have to qualify the opinion

[queen1234]

Q1) Fv of the non current asset, was it to do with highest and bestvalue use? should it Inc dismantling costs?

The recoverable amount, was given but it didn’t account for the 4 million worth of building that was destroyed. Did anyone take this in account to calculate the impairment?

Share based payment is that contingent consideration?

Q2) Pensions was in the current issues. It requires the net interest and service costs to be remeasured after curtailment but there nothing in the books on how the calculations should be done. So pretty much messed up there

preference share, it should be debt and not equity? I said it should be debt as directors have option to redeem at par

Q3) Revenue recognition was very hard. Did you guys say it should be recognised over time or point in time?
There was some sort of conceptual framework related question here. How did u answer this?

Regarding cryptocurrency- there was an article on acca website that detailed on how it should be recognised and measured.

There was one more question on how entities have option to use different accounting policies. Again, this was generic but not sure what sort of points should he covered here. Not sure if I had enough to write here.

Q4) was part a as simple as to take numbers and plugging into the formula? Seems too good to be true

The entitity had purchased new entity and transferred asset. But entity didn’t meet the definition of business. Nor did it meet criteria of sale. Should remain in the company’s assets.

Misc adjustments were also there. Didn’t have enough time to address them properly.

Let me know your thoughts

[Author]

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