Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › When IAS relating to an assertion has been superseded
- This topic has 3 replies, 2 voices, and was last updated 5 years ago by Kim Smith.
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- November 12, 2018 at 5:14 pm #484608
Hello,
How does an answer like this reflect changes in current IAS?:
“Review new lease agreements to ensure properly classified as finance lease or an operating lease”.
When considering certain assertions in respect of relevant IAS/IFRS, (e.g, rights and obligations for non current assets), what should happen when the IAS has been superseded?
Leases presentation has now changed to something called a “right of use asset”. This is reflected in your current FR open tuition note. Before, it used to be finance lease and operating lease.Is there any major recent changes I should be aware of?
November 12, 2018 at 5:29 pm #484610Financial statement assertions are generic – see Chapter 16. Some assertions will be assessed against relevant IFRSs (e.g. valuation, classification and presentation).
There are no changes in IFRS relevant to AA as only the IFRSs examinable in Financial Accounting (FA/F3) are examinable.
November 12, 2018 at 6:00 pm #484614Thank you. So, if I was to use that answer as a substantive procedure, there wouldn’t be a problem?
This answer:
Review new lease agreements to ensure properly classified as finance lease or an operating lease”.
November 12, 2018 at 6:05 pm #484615The audit of leases can’t be examined in AA because the accounting for leases is not examinable.
(In AAA, where the audit of leases is examinable, it would be incorrect because there is no longer such a classification in accounting for leases by lessees.)
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