*** ACCA Paper AAA June 2019 Exam was.. Instant Poll and comments ***

Can’t include detection risk for Romm. However could include the fact that it is a listed company.Hence IAS33 earning per share and IAS8 segment reportingfor disclosure of FS for a few more points.

It was well predicted that the technical article was coming up. It happens for all advanced papers. Fingers crossed and let’s hope pass rate improved on this occasion.

impossible time management, worst paper ever

Agree entirely on time management. You are a good communicator or you will suffer.

What i wrote in my script with regards to:

1. Being a listed company (business risk)
I still think management pressure will always be there, especially it is a market leader for the past many years. So i would say its still a valid point

2. License (RMM)
I noted that the company is currently being checked by the regulator for modifying customer contracts illegally and overcharging customers. Therefore, i raised 2 key concerns:
– possible impairment of license (intangible asset)? If their license are revoked, wouldnt there be a significant impact on their revenue and their ability to be going concern?
– indefinite life. Is there a chance that the 5 years life would be reduced, and therefore the need to recognise higher amortisation cost?

Do you guys think my answer would be considered a reasonable and valid argument?

Thanks:)

Can anyone remember the property development one in q3? Had they got permission to develop the building as an investment property before the year end? If not then I assume they couldnt revalue it based on investment property values but only as a warehouse. ie highest and best use at that time.

Annually.

@dumonde said:
I was certain ED540 was coming up and I even mentioned this in the AAA forum.

Time management was ridiculous but I thought content was fair.

Q1 asked for ROMM but it also told you it was a new client, yet the examiner tells you everything is included for a reason, a new client is an audit risk (detection risk) but not a ROMM and if credit is given for that as a risk I will be livid.

I couldn’t find an awful lot wrong with the audit report but thought there were a couple of things right with it so answer included 6 points 4 con, 2 pro just hoping it was 2 marks per point

Good luck to you all

It was my post you put this in, and thank god you did!

Whilst i had only skimmed it, so wasnt exactly an expert on the topic, hopefully i have done enough to pick up a crucial few marks where most people will get nil

It feels like ACCA set papers to make students fail. The syllabus are so bulky and time very limited. Basically no major time allow to think to write.

@ryanrocke said:
I think there’s a risk that Bronte moved from an investment to an associate through the increased shareholding and it may not have been adjusted and then equity accounted for.
I supported my claim by the fact that the parent appointed one of their directors to Bronte’s board.

The appointment of director was temporary for 3 months only, what say? Does it give significant influence on the company?

Required:
(i) Evaluate the client’s accounting treatments and the difficulties which you might encounter when auditing
each of the accounting estimates described above; and
(ii) Design the audit procedures which should now be performed to gather sufficient and appropriate audit
evidence.

(ii) Regulatory penalties
Awdry Co has been subject to a review by the national railways regulator following a complaint from a member of staff with safety concerns. The regulator identified breaches in safety regulations and issued a penalty notice on 30 September 20X8. Awdry Co has appealed against the initial penalty payable. Negotiations with the regulator are still ongoing and the amount payable has not yet been finalised. Awdry Co currently
estimates that the total penalty payable as a result of the breach will be $1·3 million which it expects to repay in equal annual instalments over the next ten years with the first payment falling due on 1 March 20X9. The company’s draft statement of profit or loss for the current year recognises an expense of $1·3 million and the draft statement of financial position includes a liability for the same amount.

Please share your answers what your wrote??

Also the auditor could check with the regulator if there is any other possible consequences, such as impairment of the existing license, and account for these adjustments appropriately.

Hi guys what about the link theory??? Did it work last time??