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Hi guys
I’ve a quick question. When referencing survey results can i reference directly to the excel worksheet (appendix) which has all the results. This is to correlate information as it is difficult to do combination graphs without getting them too complicated.
If a company is in trouble it has two options:
-liquidation
-reconstruction
Classic reconstruction is simply replacing the company’s debt with equity so it can continue operating.
In the exam the examiner could simply give you a proposed reconstruction scheme and ask you to record the double entries and assess whether the scheme will be beneficial. (see Decany from Dec 2011)Its not really hard but you have to be perfect with double entry so I would suggest you treat this as a low profile topic.
There are optional methods used in foreign currency translation. Use the one you’re comfortable with
Management of earnings is simply creative accounting or to the extreme fraudulent financial reporting.
The 15 mks in part B are usually the easiest in the paper. Any reasonable comment scores.
All you need to know for ethics is in P1. Write what’s your mind, considering the professional/ethical duties of an
accountant.@asimazad
There is a BIG difference between the two.
Read this article and you’re sorted:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012b/examiningEvidence.pdf@waqasazaz
If you have to reply to an email with or without briefing notes then you must reply in report(email format) with TO,FROM,DATE
SUBJECT. The info is normally given in the question.
For briefing notes alone, you don’t need the above because it’s not to a specific person but you still need a title, intro etc as marks will be awarded for structure.@keyboard & @marky123
I admire the determination of both of you.
But I think we’re getting ahead of ourselves. Let not our personal circumstances detract from our unified purpose on these
forums. We are all here to help each other to pass exams.
The things you mentioned justify the frustration and hard work required to balance study with other commitments.
Each person has his/her unique struggles and we should appreciate that.Finally, I feel all Prof. papers(being masters level) are challenging and people have different opinions about them. Some find
P2 hard and P7 a walkover and vice versa so it’s no use trying to compare them. What everyone agrees about though is that
solid knowledge, application and technique are essential for a pass.Good Luck to all of you!
@saajidh
Provisions used to be a favourite way to manipulate performance and smooth income because of the flimsy principles.
The new standard IAS 37 has solved many of these problems.
As you correctly mentioned all provisions are liabilities of uncertain timing or amount subject to a 3 point criteria. Provisions for bad debts and depreciation fail the criteria and are not the type of provisions mentioned in IAS 37.
They are contra accounts or adjustments to the carrying value of assets and are dealt with in other standards like
IAS 36, IAS 39 & IAS 16.You are allowed to answer in any order you like.
You should aim to answer your strongest questions first.
Whatever order you choose remember to stick to time and label questions properly.I used to have the same problem.
Here is what I learnt:
– audit risk is the risk that the auditor messes up the audit
– risk of material misstatement is a subset of audit risk.
– it focuses on why the accounts might be wrong so its primarily Fin.reporting (and controls)
– so you must mention the effects on assets, liabilities, profits etc in answerAbout the exam:
I don’t think both will ever be in one question as the answer will be redundant.
The largest part of audit risk that comes up in the exam is ROMM with very little control or detection risk.You’re not alone!
P2 is fittingly called “THE BEAST” because its tough. Tough on time, tough in technical content you name it.The key to pass this paper and the reason why it IS passable is your approach.
You need to be able to ignore the complexities and apply the basics to score marks.
Have a look at a typical mark sheet for P2. You might be surprised to know that
you can pass question 1 by ignoring some of the more complex notes as these don’t really carry a lot of marks.
Also. at least half of the 35 marks on Q1 are not consolidation marks, they’re adjustments to entity accounts.
Those 15 written marks in Q1 are also a gift if you write sensible,clear points. You can easily fail Q1 by concentrating on
impossible Groups stuff and neglect these.I think OT is a valuable resource for assistance, as is any good tuition provider but the best indication of what is likely in the exam is from the examiner himself (past papers,articles etc.)
So these are just some of the things to think about for Q1 (section B is even easier). The paper is not going to be a walkover but working on your technique using past papers is your best chance at this stage.
Here are two articles that may give you some more help:
https://www.pqaccountant.com/pmag-24B600500182021302171957.html
https://www.pqaccountant.com/pmag-24B600500182021002171957.htmlGood one!
Often a professional matter to consider in engagement
acceptance is fees. So it “PAYS” to think about $. 🙂This article makes it crystal clear:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012b/examiningEvidence.pdfThe receivable is a financial asset that is impaired at the year end. The recoverable value is 80% of remaining payments.
Using the incurred loss approach:
YR 1
Opening 51,542,000
Finance(8%) 4,123,360
Received (20,000,000)
20X7 Closing 35,665,360
YR 2
Opening 35,665,360
Finance(8%) 2,853,229
Received (20,000,000)
2OX8 Closing 18,518,589
Impairment 3,703,774 (balancing fig.)
Recoverable 14,814,815 (80%*20,000,000)/1.08The impairment reduces retained earnings and receivable is carried at recoverable value.
I have read past comments from the examiner that
suggest she doesn’t like students just asking questions(will & whether).
But I guess it depends on the quality of the answer.
This question is wide in scope and I normally use MARR to get a start.
Materiality
Accounting treatment
Risk
Reporting implication@zmukhtar
Two components of passing an exam:
knowledge (notes, lectures reading etc)
exam technique (past paper practice)
You need a balance of both and at F8 you need a sound foundation of audit theory to apply in the questions.
Learn the core areas as these repeat themselves.To try to predict a quantitative relationship between study hours and marks is frivolous to say the least.
Studying is very subjective as mentioned and examiners and tutors often emphasize the difference between active studying and passive studying. Quality prevails over quantity in most cases.Great advice!
The current issues question is not a bad idea to
Get some easy marks providing you can write and
You know the material.Some tips for P7
https://opentuition.com/topic/p7-the-final-lap/Good Luck
Once you identify relevant control(SPAMSOAP or IT) and suggest a test(s) for it
It’s correct.
From your example all of these could work
-data validation checks on input(application control)
-matching customer ID to order, invoice etc.
– test sequence of IDs(if applicable)
-check for authorization for new customer IDs
-match ID to customer info and verify they existJudgement- These relate to management bias ie. management being too optimistic and not exercising enough
Prudence thereby overstating assets and understating liabilities
Eg. Unwillingness to write down debtors to what is actually recoverableWith provisions there is a danger that they put through false provisions in one year where there is
High profit and release the provision in another year where the results are bad.
This is called profit smoothing.for now iasplus is the best chance I’ve seen for a good understnding of standards.
Try reading IFRS in your pocket by Deloitte free to download on their website.this might be useful