- This topic has 7 replies, 7 voices, and was last updated 7 years ago by
.
- Posts
Dear Sir / Madam,
My query is
1) Lorenze Co has changed its accounting policy for goodwill during the year from amortisation over its estimated useful life to Annual Impairment Testing.
I did not understand it. Goodwill is NEVER amortised where is the question of changing policy. ACCA Solved answer does NOT have mention of this.2) In the 2 Question -Undervaluing of Inventory is being considered. ACCA Solved example states that ‘Inventory will not be undervalued if it does not exist. ( eg it has been stolen. theft would be reflected in higher than normal materials consumption’. This is beyond my comprehension.
My Assessment is
1) Inventory is undervalued that means either there are problems in valuing it properly or
2) It is stolen. How come stolen material WILL ADD TO HIGHER THAN NORMAL MATERIALS CONSUMPTION.Kindly clarify.
Deep
Hello Deep,
With regards to Lorenz Co, I don’t think you have fully understood the question. Lorenz has changed its accounting policy for goodwill from annual amortization to IFRS 3 requirements of annual impairment testing. Hence a change in accounting policy requires IAS 8 disclosures. Lorenz has not disclosed this change. The question requirement is implications to audit reporting.
Hi,
Can you plz share P7 pilot paper for june 17 attempt
my id is rabishah11@yahoomail.comall past p7 papers are here;
https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p7/past-exam-papers/international-stream.htmlPilot paper is very old and probably why the ACCA have taken that off the list
hello, may you please share with me the P7 September pilot paper, my email is khotlemahali@yahoo.com, thank you.
- You must be logged in to reply to this topic.