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Dear Sir,
Just checked with exam report from ACCA:
(1) “The question requirement specifically used the word ‘conceptual’ and so candidates’ answers should have referred to the Conceptual Framework.”
May I know how to apply conceptual framework on IAS21?
(2) “comment on the view that the translation of an overseas subsidiary’s financial
statements is simply a mechanical and not a measurement process.”I really don’t understand with “mechanical” and “measurement process”…… on IAS21, could you please explain?
Thank you so much!
Winnie
Hi Winnie,
Great to see you looking at the exam reports, they’re so very useful.
(1) This is effectively asking you to use the qualitative characteristics, measurement and recognition criteria and relate it back to the IAS21 rules.
(2) IAS21 is very rules based with regards to prescribing the exchange rates to use, hence it being mechanical. It doesn’t really use the measurement bases from the Conceptual Framework such as historic cost, fair value, replacement cost etc. and hence not really a measurement process.
Hope that helps.
Thanks
Dear Tutor,
Now I got the question with clear instruction!
Thank you so much!
Winnie
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