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About Question 1 (c), it was not actually a NOCLAR I think, more like a litigation case made against the client by an environmental pressure group.
I finished about 85-90% of the paper. hope that what I wrote would be enough for a pass.
There’s various business risks to talk about in Q1 but due to time pressure I only wrote about 5 risks.
Question 5 was quite easy. How were you all comment on the adequacy of the evidence obtained in part (a) (i) ? I didn’t have much idea to write. But part (a) (ii) and (b) was indeed gifts.
What’s the matter with the impairment of receivables did you write? I only calculate materiality and talked about evidence. Totally forgot the impairment rules for receivables in IFRS9 to comment on the matters.
@spud said:
Oh Thanks!!! ??Yeah, what is NOCLAR??
?Non Compliance with Laws and Regulations
Questions were standard but time pressured. As a participant noted, deciphering the scenarios take time. Supposedly part of our professional skills making this exam demanding as always.
Hope for the best outcome as this is a resit for me also
One more to go on Friday.
@hoangduchung1903 said:
About Question 1 (c), it was not actually a NOCLAR I think, more like a litigation case made against the client by an environmental pressure group.I finished about 85-90% of the paper. hope that what I wrote would be enough for a pass.
There’s various business risks to talk about in Q1 but due to time pressure I only wrote about 5 risks.
Question 5 was quite easy. How were you all comment on the adequacy of the evidence obtained in part (a) (i) ? I didn’t have much idea to write. But part (a) (ii) and (b) was indeed gifts.
What’s the matter with the impairment of receivables did you write? I only calculate materiality and talked about evidence. Totally forgot the impairment rules for receivables in IFRS9 to comment on the matters.
I wasnt familiar with the IFRS9 so tried to use my own experience.
For the impairment of Receivables I noticed that the company’s policy was to impair residential receivables balances if they weren’t paid after 90 days which seemed to be correct as the residential receivables days had grown over the year indicating more bad debt.
However company policy for business receivables was to impair when the customer switched to another energy supplier. However, this doesn’t mean the outstanding balance wouldn’t he paid. So no need to impair. Also the business receivables days had reduced/improved over the year. So I suggested the company apply the same policy as per residential customers.
This was a huge curve ball. When I don’t know something, I just find the answer from life experience and then hope for the best!
I realised now that I wrote auditing procedures instead of edit evidence in Q 2 and Q 5 . i think that they will not give me the marks even my audit procedures are correct . What a mistake !
i failed also in june with 49 last lesson… i think it was a fair paper but so much to right .. i want 50 nothing else. i wrote all the questions with very hand writing at the end.. pray for me
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relax, the difference between “procedure” and “evidence” is immaterial and markers ignore it.
Makers are harsh and hard if they can give 49% while u need a minimum of 50% to pass. Wouldn’t they award you with 1mark maybe from professional marks and get pass. I find it so unreasonable that u can award student with 49% or 48%.
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Two part in Q1 seems comfortable for me – I have attempted both at the same time, because business risk can cause risk of material misstatement. This decreases time pressure.
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@raoul7370 said:
relax, the difference between “procedure” and “evidence” is immaterial and markers ignore it.Technical articles and trainee emphasys the importance to undestand this defference. Procedure – action, evidence – result of action.
@dianaspb said:
Technical articles and trainee emphasys the importance to undestand this defference. Procedure – action, evidence – result of action.Well what I wrote for evidence is what i expected to find (to be collected from the client) and the purpose of this evidence. I took the literal meaning of evidence. Hence i didn’t say exactly that “obtain detailed fixed asset schedule and cast for arithmetical accuracy or reference prior year balances”. Don’t know if the markers will give me credit for that.
Niche business. Adults only.
Luxury business. Economic Recession ultimate hit.
Farland; political instability.
Hotel Complex – Prohibition of usage.I wrote them four. Because there were 10 marks. So 5 were enough. 2 mark each.
@spud said:
For matters I put down materiality, was it material etc! Then the accounting standards to be adhered to for that area and what they have to do. Also if there was a risk of material misstatement.
I used the same 3 of those for all 3 parts of the Q for the matters to be considered and tried to add one or 2 more where I could to get as many marks as possible ?Matters to consider question was based on estimates in all three parts of it. One really can’t put IAS 37 into a provisioning matter, IAS 16 into a depreciation matter or IFRS 9 into a receivable matter. They’re all talking about estimates. Estimation itself is based on judgement and is prone to ROMM. Further, management bias had to included in depreciation and receivable matters. Because directly impacts profits (Bad debt expense, depreciation expense) and profits could be linked to bonuses.
@doublej2 said:
I also wrote about the danger of water sports – If not maintained properly, might be dangerous for the guest.
2 hotels affected by hurricane. – If insurance cannot be used to cover, they risk GC because of lack of cash.GC really? They had a chain of hotels, and only two of them were situated in hurricane prone area. But yes you could’ve used that point in a sense that losing a major customer base, had they located those two hotels somewhere else. (Opportunity cost)
@vnoonanirl said:
https://www.ifrsbox.com/decommissioning-provision-ifrs/I didn’t get this right but I did say management shouldn’t have been coming up with estimate themselves as it’s very complex
Never saw this on past exam papers
Me too talked about estimates. If you go back into the last attempt’s matter to consider, he asked a matter related to inventory in which a candidate required to explain absorption costing method. But contrary to it, examiner answer was way to simple and mainstream. Management bias, complexity and estimates. That’s how you roll by reading past papers.
They are also points to enter, anything that can be consider a matter to consider for that area is markable. I had covered this heavily with my lecturer who advised that this way was how the examiner liked to see it answered (and he is one of the markers of the paper) so I’m pretty happy with that approach! But any matters relevant should get points no doubt
Best of luck to all on the results ?
For one of the business risks, I said the client was exposed to liabilty because guests could consume “Unlimited” food and drink, presumably alcohol. And engaging in extreme sports in water … increases risk of an accident occurring while intoxicated. Unforseen liability which could prevent company from maximizing profits.
Honestly I am struggling to pass this exam. 46 to 47 in two sittings. I just need 50. Reading the comments, I dont think I pushed over the edge this time either. I know the material, I just find it really tricky to get through all of the information. Its a little heartbreaking.
I scored over 70 in F8. But it took me more than two attempts aswell.- Topics: 0
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Risk of material misstatement was 10 marks.
Business risk was also 10 marks.- Topics: 0
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Same here, I did not notice a breach, thus did not mention NOCLAR
I like your point about ”unlimited” food and drink 🙂 what if some guests eat the hotel out of food? will definitely put a smile on examiners face 🙂 but I suppose it is a valid risk.
I think so too. I mean examiner could have just said food and drink. The extra unlimited word had to mean something. It reminded me of when I went to a resort in Spain and it was unlimited and I ate all around me. Haha. Oh well. I guess time will tell. Results come around fast since the additional 2 sittings per year.
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