Accounting treatments

Hello Mike,

Is it okay to not describe the accounting treatment when writing an audit risk/ ROMM?

I read an ACCA article on exam techniques and the writer suggested to describe the accounting treatment before applying it to the question but I am finding this to be such a waste of time.

This is an example of the answer written in that article:
”
The company receives a 30% deposit for the design of bespoke machinery.

Revenue should be recognised over time or at a point in time when control is passed. Such points will be determined by the contractual terms. Payments received in advance of control passing should be recognised as deferred income.

There is a risk that revenue might be recognised early when payment is received rather than being deferred.

This would result in an overstatement of revenue and an understatement of liabilities for deferred revenue.
”

I wrote this answer out on a sheet of paper and it was a little over 6 lines, and im assuming this is worth only 2 marks?

Will I get the full marks if I write it like this instead?

”
The company receives a 30% deposit for the design of bespoke machinery.

There is a risk that revenue might be recognised early when payment is received rather than being deferred, instead of recognising revenue only when control is passed.

If so, revenue would be overstated and liabilities would be understated.
“