Current issue question

@sardarkhan
Don’t we all wish for brief and easy 🙂
However, there ARE sensible approaches to this question that really work. I recommend you having a look at the P2 exam technique article by Mike.

My approach:
The question is very conceptual and therefore not suitable for rote learning so any shot gun approach won’t work. If you seriously are considering it, then you should be following Graham Holt’s advice on active learning. Make sure you read all Graham’s articles and it might be useful to look at those he writes for AB magazine as these highlight how he’s thinking.

IAS plus is the best place for simplistic versions of the standards if you have spare time(which you obviously don’t).
LSBF’s Martin Jones writes a column for PQMagazine called “News from the ivory tower” which is available free to subscribers. I have found these to be really interesting and non technical in getting the jist of the current issues.

The key areas to focus on are:
How are things being done currently? eg. two lease classifications
What is problem with how things are being done currently? eg. Off BS finance etc.
Proposed changes and any difficulties in implementing these. eg. rights of use model
Comparing the old with the new eg. effect on gearing etc.
Don’t forget when in doubt go back to the framework.

Working past current issues questions gives you the flavour of their style. I suggest:
-reading the requirements first and using them to give you main headings of your answer
-read the scenario and pick out as many points for your answer (the majority of them are hinted at in the scenario)
-Write your points clearly in a heading+sentence approach until you have as many points as there are marks in the requirement.(the marking scheme is usually 1 mark per clearly expressed point)

Finally. though you can’t bluff your way through this question, it is certainly low on technical content and has a high scope for a wide range of subjective answers.

The trouble with Q4 is that it can be quite specific in what it wants, rather than opening something up for discussion.

If you look at Q4 in Dec 2012, the requirements were:

* Discuss the main prinicples of fair value measurement as set out by IFRS 13
* Describe the three-level hierarchy for fair value measurement used in IFRS 13
* Discuss, with relevant computations how Jayach should fair value (the asset & liability given in the question) under IFRS 13.

So it was standard specific and didn’t leave any room for manoeuvre. Which is great if your knowledge of whatever Standard is examined like that is very good.

Something Grahm Holt said about that question was that it “wasn’t as popular has had been anticipated” in the exam.. so that says to me that he thinks people weren’t knowledgeable enough to attempt it and therefore, he’ll examine it again in the near future.

That said, Q3 is the lowest average scoring question in P2 exams out of Q2 – Q4. Q2 & Q4 had an average of 11 marks each in each of the 3 sittings prior to Dec 2012, whilst Q3 averaged 9 marks.

What I think are prime suspects for appearing as Q4 are: Leasing – the saga continues, and it’s highly topical, and, Revenue Recognition – new standard due this year. They’re the big ones. A couple of more obscure current issues going on are Going Concern & Disclosure Requirements. Whether either of them is worthy of a whole question to itself, who knows?

Question 4: Guys, can anyone tell me what other ED are examinable/hot topics for June 2013 except for the following:
– Management commentary
– Measurement of liabilities under IAS 37
– Leases
– Hedges
– IFRS for SMEs

Hi Rajiv
You seem to be quite an expert in p2
I have a qs
What if a company polluted the environment and fine regulations are about to be implemented after the yr end,do we recognise a provision or not?

Thanks rajiv
but thats what confuses me.in the bpp kit they are providing for such liabilities for which a law is about to come.