Hi sir,
I have the following questions.
1)For Joint venture of WTC, the RMM in recognition & measurement is discussed. Will we get overall 2 marks or 2 marks each for recognition & measurement?
2)E.g revenue increased by 35% this year. How to know if the increase is significant?E.g If revenue increased by 10%,is the increase significant?
Thank you.
Ask the Tutor ACCA AAA
BBP QN 26
I don't have a BPP Revision Kit - please include Q name and exam session (as indicated on BPP contents) so I can locate.
I found the Q you are referring to - the published marking scheme indicated:
1.
Generally up to 2 marks for each well explained audit risk ...
– Recognition of 50% equity shareholding in WTC
So that's up to 2 marks for recognition.
2. You have to make a judgment in the circumstances. (If you were told you were going to get a pay rise of 35% would you consider that significant?) If revenue has been increasing year-on-year by 10% then another 10% increase would be in line with expectation - but if year-on-year increases are only 1-2%, then 10% would seem significant.
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