• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Terms & faithful presentation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Terms & faithful presentation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 11, 2021 at 1:41 pm #627444
    nguyentran78921
    Member
    • Topics: 14
    • Replies: 1
    • ☆

    Q1: Technical terms in IFRS 5 and Kaplan Study Text
    Is “Statement of comprehensive income” completely the same as “Statement of profit or loss”? Why?

    If they are different from each other by any means, why does Kaplan writers decide to paraphrase the former term from original IFRS 5 to the latter term in their books?

    Thanks ./

    Q2: “faithful representation”
    Which of the following is an example of following the principle of faithful representation?
    A. Showing lease payments as a rental expense
    B. Being prudent by recording the entire amount of a convertible loan as a liability
    C. Creating a provision for staff relocation costs as part of a planned restructuring
    D. Recording a sale and repurchase transaction with a bank as a loan rather than a sale

    Ans: D

    The answer explains:
    Faithful representation means presenting transactions according to their economic substance rather than their legal form. Items A to C all represent incorrect accounting treatments, and item D reflects that a sale and repurchase agreement with a bank is likely to represent a secured loan rather than a sale.

    With this questions, I made a guess and luckily it was right. But I do not understand clearly accounting entries for each of them either.

    Could you explain further? Thanks.

    July 11, 2021 at 5:11 pm #627463
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    Which exam are you studying for? It would appear from your previous questions that you are studying for Paper FR (because you keep quoting from a Paper FR Study Text). If so, then why on earth do you keep asking questions in this forum when you should be asking in the Paper FR forum?

    Q1 The statement of comprehensive income is not the same as the statement of profit and loss. The SOPL forms part of the Statement of Comprehensive Income, but the latter then has unrealised gains below. As far as Paper FA is concerned the only unrealised profit examinable is the surplus on revaluation. This is all explained in my free lectures, which are a compete free course for Paper FA and cover everything needed to be able to pass the exam well.

    Q2 Is not examinable in full in Paper FA, and the accounting entries are not examinable at all in Paper FA.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • abdallah254 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • baraka42 on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy