P2-Group Account (exam Mar 2017)

This topic has 5 replies, 3 voices, and was last updated 5 years ago by P2-D2.

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February 18, 2017 at 3:57 am #372957
sambathkun
- Topics: 31
- Replies: 38
Hi all,

I’m Sambath from Cambodia. I’m currently doing self-study and prepare for the P2 exam on this 7th Mar 2017.

I came across a group account and i’m not sure of the following point:

In the Group Retain Earning and Other Component of Equity working, i am not sure of which types of adjustments are included in the R/E working and which types of adjustment are included in the OCE working ? i find this very confusion.

Thanks,
Sambath
February 19, 2017 at 9:41 pm #373211
P2-D2
Keymaster
- Topics: 4
- Replies: 6234
Hi Sambath,

I hope the studying has been going well and good luck with the exam in a few weeks.

Anything profit related goes through retained earnings, whilst anything other comprehensive income related goes through other components of equity. OCI items are revalutaion of PPE, gains/losses on hedging instrument in cash flow hedge, remeasurement component in defined benefit scheme, gains/losses on translation of overseas subsidiary, gains/losses on FVTOCI financial assets.

Hope that helps.

Thanks
February 23, 2017 at 10:01 am #373804
dumonde
- Topics: 28
- Replies: 58
Has anyone read the recent articles on the ACCA website, “giving investors what what they need” and “concepts of profit or loss and other comprehensive income”…?

The latter goes on about the differences between the two statements in some detail yet it also mentions the fact that there is still a large amount of uncertainty and / or manipulation in place…

The article concludes with “it’s absolutely vital that the p/l contains all information that can be relevant to investors and that nothing gets left out.

Question is, [seriously] which is more important, getting the number in the right part of the statement or getting the overall result of the statement right??

Thanks
February 23, 2017 at 2:11 pm #373853
P2-D2
Keymaster
- Topics: 4
- Replies: 6234
Hi,

I think this is a question for the general P2 forum to gauge other students’s views.

Thanks
February 25, 2017 at 8:01 am #374096
sambathkun
- Topics: 31
- Replies: 38
Dear Mr. P2-D2,

I got what you explained. Well noted with many thanks.

Sambath
February 27, 2017 at 5:48 pm #374602
P2-D2
Keymaster
- Topics: 4
- Replies: 6234
You’re welcome, keep up the hard work.
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