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Q1 b,IFRS 2 share options to employees of subsidiaries.. What is the accountign treatment for group, stand alone & subsidiaries?
my answer was:
for group :DR expense , CR Other
for stand alone parent , as options to third parties not under ifrs 2
subsidiaries as financial asset ..
but am sure its wrong 😛<cite>@shimmershehz said:</cite>
hello all .. for the question about the audit procedure …
I wrote ” Accuracy, Valuation, Existence, Cut off , Completeness” .. is this the right answer ????In my opinion, the procedures to obtain evidence are : AEUOI (Analytical procedures, observation etc)
Valuation, Accuracy etc are result of the procedures . e.g. INSPECT new additions of PPE and agree them to purchase invoice to ensure they recorded ACCURATE
So, Inspect is the procedure to obtain evidence and Accuracy is the result of ur action.
However, If I am right and the procedures are not the “Completeness, Accuracy etc you can still earn up to 5 marks for the examples you stated!
<cite> @neilsolaris said:</cite>
I didn’t think it was pervasive, so for that reason I said it was qualified, execept for… However, I made that decision on a hunch, I think if you made a case for it being pervasive, then I’m sure you could get credit for saying it was should get an adverse opinion.On the same question, I concluded that both scenarios were material, having worked out the benchmark figures for both. Was I correct?
Both was material . the first one adjusting and the second one non adjusting
<cite> @vipulv said:</cite>
So it was Adverse in question 5? AEIOU is correct!!!May I am wrong then but either it is adverse or qualified it is going to earn only one mark !
1 more mark for reffering the basis of the opinion paragraph before the opinion paragraph and the other one I think to exlain that it is due to material mistatements and that the opinion Not give a T+F view (if adverse) or except for (if qualified)<cite> @vipulv said:</cite>
My opinion, was adverse as it was materal, two items PPE and inventory. Surely auditors have no other opinion!What did people write for content of emphasis of matter in question 2? I said financial statements are T and F nothing is wrong with them etc…..just want to point out draw attention to something important. E.g Going Concern.
Correct??
yes! EOM paragr. is after the opinion paragr . and It is writen to direct attention for events which have already adequately disclosed by the management
What u wrote abt the procedures to obtain evidence?? it is abt AEIOU?
<cite>@accaeric said:</cite>
Anyone knw how to answer question4(a) about the procedure to obain audit evidence and one example on PPE.. is AEIOU or ECRV+cut off???I think AEOUI . thats what i did
Threats : SI , SR , I , F, A
assurance engagmenets : 2 parties, sufficient evidence , opinion, etc
5 types to obatin evidence : AEUOI
Q5: opinion Qualified but not pervasive
anyone agree>
<cite> @adamrobs said:</cite>
Which ratios did we have to calculate? I have a terrible memory and think I may have missed this!!roce, gross profit , asset turnover, gearing
I calculated only the loan in gearing ratio. does anyone know if am correct?
<cite> @adamrobs said:</cite>
What else was on question 3 apart from the cash-flow? I’ve forgotten!what abt the tax calulation? we had also to add the deferred tax of the revaluation? (note 1)
It was also the calculation of ratios and interpretation
Goodwill (4000) + (2000) but Sub acquired 6 months ago + 2000 = (4000) at aquisition (thats what i did.
the provision for bonus should be presented at Current Liability?RECEIVABLE ::
The main concern is valuation.
Procedures:
-circularisation
-inspect cash book to confirm cash receipts after the year end
-review ageing of receivable: enqire of management about old balances
-review correspondence with customers in dispute
agree balances to ledgersPAYABLE
The key is completence
-Reconciliation of supplier statements
– review invoices before and after the year end for cut-off
-Confirmation
– analytical procedurescheck the definition of qualifying asset! finance and other cost incurred until the completion or the use of an asset should be capitalised!
imports :
– may inventories do not recorded at the correct price due to currency exchange!
– import may need many days till inventories reach at company’s permises.. Risk that the expiration date on the food has passed
– cut-off
Auditor should recalculate currency exhange, inspect last in and out for incorrect cut-off …Rent:
-risk of incorrect classification. (substance over form)
I do not know if that helps :S
u can check the benefits in the related chapter of ur book! However , as u said Historical Cost is more common as it has been used for years from companies which mean that it is easy to apply and understandable. But , It does not adjusted for the inflation , so in periods with high inflation may an other method is most appropriate.
Lets say that P acquired S at 80%. Also, assume that Profit for the year of Consolidated Statetment of profit or loss is $10,000 and Profit for the year of subsidiary is $5000
Then, Attributable profit :
NCI : 5000*20%=1000
10,000(profit for the year of cosolidated ) – 1000 (of NCI) = 9,000 attributable to Shareholders
(sorry, its not from dec12 but I hope that it helps)
I also bought Bpp for study but finally I realise that it’s time consume with too much details and no practise. Now I use Kaplan for F7 . it’s more easier that BPP. Just use Kaplan material if possible or even download it via internet( if u find an old version is okay). If I were you , having only around a month for the exam u would di the following:
-Read only a)Preparation of FS, b)Consolodated FS, c)Cash Flows and Interpretation and practice them as much as possible !
– Read the passcards of BPP and make sure that u understand them all.Then, go to exam! If u will complete at least 65% of each part I mention above (a,b and c) and have a general understanding of the other questions achieving just 10% of them normally u have passed!
yes! It is okay for the exam. Actually in some cases is better that just answer the question in paragraphs.
For example, if u have a question where u need to identify risks and recommendation about how to mitigate them , It’s better to use columns (one side for the risk and the other one for “mitigation”).