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You’ve not read the question properly. Just relax and re-read the question. Your answers lies in these 2 statements.
“All the direct labour currently working on the TD will be made redundant immediately if TD is ceased now. This would cost $6000 in redundancy payments.”
“The supervisor(currently classed a an overhead) supervise the production of all 3 products spending approximately 20% of his time on the Td production. He would continue to be fully employed if the TD ceases to be produced now.”
The key to pass F8 paper is to have command over the concepts. If 50% of paper is based on concepts then the other 50% is based on common sense. That’s the best thing about F8. If you’ve time, read the book thoroughly, absorb each and every concept, then after going through the book, attempt past papers..try to solve them first and then look for the solution..this way you would know where you lack and next time you might not make the same mistake. There’s literally ‘no’ need to memorise anything..if you know what a certain topic is all about you would be able to write about it and believe you me it wouldn’t take you hours…..
And there’s no need to be scared, ppl do clear this subject in first attempt, just be focused and believe in yourself!….All the very best….
Hi there,
$6000 is relevant because if TD is ceased now, the company would have to pay redundancy payment that is $6000; hence it’s to be taken into consideration if the company decides to cease producing TD.
Supervisor cost is irrelevant because irrespective of the cessation of TD, the supervisor will continue working, hence irrelevant.
hi there,
If you’re doing it on your own I’d recommend you to buy BPP as well, only ofcourse if it’s possible. At times when we don’t understand something in one book, we look for the topic in the other book but that is when you’re taking no tuitions nothing.
For the syllabus, you should look it up at the acca site and it should be done before starting the preparation.hi aam2009,
Do you have any prior knowledge of accounting etc? IAS’s? F8 does incorporate IAS’s and their application, F7 and F8 is an alright combination but without doing F3 and jumping to F8, Im not sure if it’d be a wise decision.
I wish you all the very best.
Please don’t take me wrong but do you ‘really’ don’t know anything about internal controls at this point?
Yes and I was reading the examiner’s report, where she told the difference between failed and passed copies of the candidates,
for the passed ones, she mentioned that they solved the Q1 that is the scenario question first and also THEY ATTEMPTED ALL QUESTIONS…So it means if you attempt scenario question first, it would leave a good impression on her. And no matter how little you know about a topic, mix it with your common sense and attempt it, do not leave the paper at all. Don’t get tensed by seeing the big scenario question, the more big it is, the more information is there to use in your answer and you’d not have to think much. The questions that are scenario based but are small, are dangerous 😀 because you’ve to do a lot of thinking.Try solving each part as if it is a different question, if one part gets wrong or you are not sure about it, DO attempt it.Inherent risk is a built in risk. It means auditor can do nothing about it. But the detection risk is in auditors hands. If the inherent and control risks are high, then detection risk would be low and vice versa.
Then in Detection risk : 1) sampling risk
2) non-sampling risk.Shareholders : to see how the company is progressing and the money they’ve invested is properly utilised and they getting properly calculated dividend according to the profits and revenues earned by the company etc.
Potential investors : would it be of any worth if they invest in the company? would they get high divedend as compared to other companies? Is it a risky company,? etc etc.
Creditors : reasons to have the knowledge about the company could be many, one of them could be for wanting to know how well the company is doing? If we accept the company’s order will it be able to pay us back on timely basis or according to the terms and wouldn’t go bankrupt and doesn’t have going concerns issues.
Same goes for the bank, for lending and borrowing purpoeses, bank would want to know company’s liquidity condition etc..
Audit report? You taking about external auditor’s audit report and not internal report prepared by the internal audit dept/internal auditor, right?
Report prepared by internal audit is a private report for the use of the company and management. It’s not made public.
But external auditor’s report is made public so that stakeholders could benefit from it, like shareholders, potential investors, banks, creditors etc.that’s right, dagech, but the thing is what would be the use if I’d not be knowing the answers 😛
what do you mean?? you couldn’t find questions relating to all these procedures? check past papers from 12/7 onwards.
Thanks a lot, gromit. May you be blessed.
I thought of not adding a reply since you get to know by your name in the last thread that you’ve answered. Hope you’re not bothered.
We’re all under pressure but It’s not wise to take out your frustration on questions?
You don’t depreciate land instead appreciate it. This is why we separate the two in property and land.
If this is what you wanted to know?Q-Plateau
(V) The investments in equity instruments are included in Plateau’s statement of financial position (above) at their fair value on 1 october 20X6, but they have a fair value of $9 million at 30 september 20X7.Hello,
once more 😛
ummm I am not sure which part you didn’t get? the asset was undervalued so they stated it at it’s correct amount
Hi, I am sorry, I’ve no idea about the UK version else I’d have helped you. Aren’t there any ppl around who’re appearing for the same version too? Have you checked the acca site and related articles?
Hi,
Im sorry, I didn’t get the whole thing you’re asking. But as for the goodwill, there’re 2 methods of calculating it. Full goodwill method and proportionate method. In premier, NCI is valued at fair value at the date of acquisition, hence full goodwill method. So this is why NCI’s fair value is also not apportioned (taken the %).
@cool3rking said:
My reference to this post is“Hilusion” from June 03 attempt
Hillusion’s retained earnings shouldn’t be an issue. As far as Skeptic is concerned:
opening retained earnings = 5400
Subsidiary was acquired for 9 months ( july – march) and the profit for the year is 3000. So the 9 months profit belongs to post- acquisition whereas the 3 months profit would be apportioned and added to pre-acquisitioned retained earnings (3000*3/12 = 750) added to 5400.(5400+750=6150).I hope it’s somewhat clear to you?
