The June 2012 DipIFR exam sitting had a lower pass rate than the previous two sittings. Many candidates struggled with time management, spending too much time on the first question. The exam consisted of one 40-mark question requiring consolidated financial statements and issues, and three 20-mark mixed issues questions. Performance was polarized, with few marginal scripts. Common mistakes included not properly accounting for deferred consideration, foreign currency loans, and defined benefit plans in question one.
E book accounting_principles_11_e_by_weygandt_kiesoAhmad Qadadha
This document provides a summary of common account titles, their classification in financial statements, and their normal balance. It includes accounts like accounts payable, accounts receivable, accumulated depreciation, cash, common stock, and more. For each it lists whether it is a current asset, long-term asset, current liability, etc. and whether it has a normal debit or credit balance in accounts. This helps provide an overview of the basic accounts typically seen in financial statements.
The document discusses the evolution of the role of underwriters from the 1980s to present. It describes how underwriting standards became loosened during periods of bubbles like the commercial real estate and dot-com booms, contributing to financial crises. In response, there has been a push to return to fundamentals of strict underwriting and risk management. The role of underwriters has evolved from general commercial lenders to specialized roles with underwriters leading deal teams to balance business interests and prudent credit standards.
The Clinical Trials Office (CTO) facilitates clinical research studies at the University of Iowa involving human subjects by processing contracts and agreements between researchers and industry sponsors, ensuring proper review and approval of study protocols and budgets, and establishing accounts to manage study funding. The CTO handles tasks such as negotiating contracts, obtaining necessary approvals, invoicing sponsors, and providing support to research teams throughout the process of initiating and conducting industry-sponsored clinical trials and pre-clinical studies at the university.
The document provides sample exam questions for a finance exam. It includes 10 multiple choice questions related to topics like financial regulations, accounting, investments, and risk management. The questions are intended to help participants prepare for exams in accounting and corporate finance. The questions were developed by the MBA Research Center and cover various skill levels from prerequisite to specialist.
Project financing and appraisal atul raitiwarineha
The document discusses project financing and appraisal, explaining that project financing deals with how to finance projects while project appraisal focuses on evaluating which projects are worth financing. It covers the different approaches to project financing and appraisal, from the promoter and lender perspectives, and examines factors like the macroeconomic environment, institutional framework, and why markets may fail in areas like public goods, asymmetric information, and externalities.
Business Borrowing Basics 2020 - Dealing With DefaultsFinancial Poise
Some borrowers default. One type of default is a payment default- the loan is not paid when due or a particular payment is missed. The other type of default is a covenant default. This webinar explains both, and discusses what happens when one happens.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/dealing-with-defaults-2020/
Modelling For Provisioning Of Bad Debt Under ifrs 9Ali Zeeshan
Prof. Arif Ahmed gave a webinar on modeling for provisioning of bad debt under IFRS 9. IFRS 9 requires expected credit losses to be recognized rather than incurred losses. This represents a major change. IFRS 9 classifies financial assets into three categories based on the business model and contractual cash flows. It also provides guidelines for assessing significant increases in credit risk, measuring 12-month and lifetime expected credit losses, and accounting for purchased or originated credit impaired assets. Implementing IFRS 9 poses many challenges around definitions, data and infrastructure requirements, and will likely increase provisions initially.
Key Areas to Consider Regarding Grant ComplianceCBIZ, Inc.
Wilfredo Corps presented on key areas of grant compliance including classifying costs as direct or indirect, properly allocating and documenting staff time, strategies for determining unit costs, and new developments that may impact future grants administration. Some new developments proposed by OMB include focusing audit efforts on higher-risk awards, streamlining compliance requirements, strengthening audit follow-up processes, and reforming cost principles.
E book accounting_principles_11_e_by_weygandt_kiesoAhmad Qadadha
This document provides a summary of common account titles, their classification in financial statements, and their normal balance. It includes accounts like accounts payable, accounts receivable, accumulated depreciation, cash, common stock, and more. For each it lists whether it is a current asset, long-term asset, current liability, etc. and whether it has a normal debit or credit balance in accounts. This helps provide an overview of the basic accounts typically seen in financial statements.
The document discusses the evolution of the role of underwriters from the 1980s to present. It describes how underwriting standards became loosened during periods of bubbles like the commercial real estate and dot-com booms, contributing to financial crises. In response, there has been a push to return to fundamentals of strict underwriting and risk management. The role of underwriters has evolved from general commercial lenders to specialized roles with underwriters leading deal teams to balance business interests and prudent credit standards.
The Clinical Trials Office (CTO) facilitates clinical research studies at the University of Iowa involving human subjects by processing contracts and agreements between researchers and industry sponsors, ensuring proper review and approval of study protocols and budgets, and establishing accounts to manage study funding. The CTO handles tasks such as negotiating contracts, obtaining necessary approvals, invoicing sponsors, and providing support to research teams throughout the process of initiating and conducting industry-sponsored clinical trials and pre-clinical studies at the university.
The document provides sample exam questions for a finance exam. It includes 10 multiple choice questions related to topics like financial regulations, accounting, investments, and risk management. The questions are intended to help participants prepare for exams in accounting and corporate finance. The questions were developed by the MBA Research Center and cover various skill levels from prerequisite to specialist.
Project financing and appraisal atul raitiwarineha
The document discusses project financing and appraisal, explaining that project financing deals with how to finance projects while project appraisal focuses on evaluating which projects are worth financing. It covers the different approaches to project financing and appraisal, from the promoter and lender perspectives, and examines factors like the macroeconomic environment, institutional framework, and why markets may fail in areas like public goods, asymmetric information, and externalities.
Business Borrowing Basics 2020 - Dealing With DefaultsFinancial Poise
Some borrowers default. One type of default is a payment default- the loan is not paid when due or a particular payment is missed. The other type of default is a covenant default. This webinar explains both, and discusses what happens when one happens.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/dealing-with-defaults-2020/
Modelling For Provisioning Of Bad Debt Under ifrs 9Ali Zeeshan
Prof. Arif Ahmed gave a webinar on modeling for provisioning of bad debt under IFRS 9. IFRS 9 requires expected credit losses to be recognized rather than incurred losses. This represents a major change. IFRS 9 classifies financial assets into three categories based on the business model and contractual cash flows. It also provides guidelines for assessing significant increases in credit risk, measuring 12-month and lifetime expected credit losses, and accounting for purchased or originated credit impaired assets. Implementing IFRS 9 poses many challenges around definitions, data and infrastructure requirements, and will likely increase provisions initially.
Key Areas to Consider Regarding Grant ComplianceCBIZ, Inc.
Wilfredo Corps presented on key areas of grant compliance including classifying costs as direct or indirect, properly allocating and documenting staff time, strategies for determining unit costs, and new developments that may impact future grants administration. Some new developments proposed by OMB include focusing audit efforts on higher-risk awards, streamlining compliance requirements, strengthening audit follow-up processes, and reforming cost principles.
The document discusses improving data center efficiency and obtaining utility rebates for efficiency projects. It provides an overview of the typical process for getting a rebate which includes baselining the data center, submitting an incentive application, implementing efficiency measures, post-project verification, and receiving the rebate incentive. It also lists various efficiency measures and their potential impacts, and provides utility contact information for many states.
1) The recent correction in equity markets is typical of the second year of a bull market as growth momentum slows and liquidity dries up.
2) While concerns about European sovereign debt triggered the decline, underlying factors like peaking earnings growth and shrinking liquidity exacerbated the fall.
3) The correction looks normal rather than the start of a new bear market, though uncertainty may keep markets weak in the near term. Selective buying of oversold stocks and sectors presents opportunities.
The document summarizes an IT-themed quiz with 5 rounds of questions about various topics related to IT. It provides the format of the quiz, explaining there will be 5 questions per round and the winners will receive a prize. Sample questions and answers are provided for each round, covering topics like famous models, the history of programming, types of caffeine, classic computing equipment, and the best IT company. The quiz is intended to test the knowledge of IT professionals.
The document discusses managing the front end of innovation, which includes idea generation, market and technology analysis, and preliminary opportunity identification. It emphasizes balancing creativity with structure through approaches that are customer-centric, flexible, and iterative. Key aspects of the front end discussed are formulating product and portfolio strategy, managing uncertainty through different new product development strategies, and addressing reality gaps to improve the learning process between ideas and successful new products.
The document describes a training program to help finance and accounting students transition to working in an ERP-based accounting environment. The program covers key finance and accounting concepts, ERP systems and processes like accounts payable, accounts receivable, and record to report. It aims to help candidates gain the skills and knowledge needed to get an entry-level job in companies like multinational corporations or financial outsourcing firms. The training includes hands-on exercises, mock interviews and assessments to evaluate participants and provide certification. The goal is to reduce the gap between academia and industry expectations to benefit both job seekers and employers.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Takshila Learning is an education and training organization established in 2009 that provides courses in commerce for students, professionals, and corporations. It offers both face-to-face and virtual live courses in subjects like accountancy, finance, and business. The organization has experienced faculty and uses innovative technologies like virtual live classes. It aims to provide high-quality education and help students and professionals achieve their career goals. Takshila Learning has experienced significant growth and now has a large client base of corporate organizations.
As DCIM emerges into a familiar term, a fortified discipline, a new market of solutions, and by definition 'integrates IT and facilities management', what does 'bridging the departmental gap' really mean? Where are the gaps, where will the synergy be, and what will be done differently with DCIM in the mix? Join Michael Tresh, Director of Product Management and Marketing, as he discusses legacy, current, and future data center infrastructure management.
This photo album document provides instructions for creating and customizing photo pages in a digital album. It explains that users can add their own pages and then click placeholders to insert pictures and captions. It also describes how the Picture Tools tab allows adjusting pictures by cropping, editing brightness and contrast, and applying single-click picture frames.
This document is a registration form for ACCA's Diploma in International Financial Reporting exam. It provides instructions on completing the form, including important deadlines of April 15th and October 15th for the June and December exam sessions. It requests personal and employment details, payment information, and a passport photo. By signing, the applicant agrees to ACCA's rules and allows their data to be stored and shared under the UK Data Protection Act.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Cwg 2010 schedule day 2 (4 okt) update 3 oct 1500Olimpikini
The document provides a schedule of 31 sporting events taking place on October 4, 2010, Day 2 of the Commonwealth Games 2010 in Delhi, India. The schedule lists the time, sport, event, gender, venue, and participating Malaysian athletes for each event. Sports include swimming, badminton, table tennis, archery, squash, weightlifting, lawn bowls, hockey, and artistic gymnastics.
This presentation discusses instructional design careers for teachers and how teachers can apply their skills in this field. It promotes the Master of Science in Instructional Design and Technology program at California State University, Fullerton. The presentation explains that instructional design incorporates skills like lesson planning, learning strategies, assessment, training and teaching. It highlights how teachers can design for a wider audience and develop lessons for an online environment through a career in instructional design. Contact information is provided for those interested in the instructional design master's program.
Joshua brewer virtual communities essay - final draftMorningMaestro
The document discusses how virtual communities like Second Life allow users to create avatars that differ significantly from their real selves. The author conducted interviews with Second Life users and found that many crafted avatars of different races, appearances, and lifestyles than their own, seeing it as a way to escape social pressures and experience new things. Some users kept their avatars similar to explore the community aspects, but most embraced the creative freedom to invent new lives and identities. Virtual worlds provide an environment without restrictions where people can fulfill dreams otherwise impossible.
This document provides instructions for logging in and managing an account on a website. It outlines logging into the homepage and management area to add a new listing in just one minute. The process involves adding or editing a listing and then seeing the result one minute later, which appears to be all that is needed to know to manage the account.
This document outlines the syllabus for a strategic financial management course, which covers advanced topics in corporate finance and investment analysis. The syllabus includes 13 sections that cover various aspects of strategic decision making, capital budgeting, dividend policy, security analysis, portfolio theory, financial services, foreign exchange, and mergers and acquisitions. The objective of the course is to apply financial management theories and techniques for strategic decision making.
The exam format was changed from previous sittings by removing optional questions and focusing more on testing knowledge of IFRS rather than financial statement preparation. As a result, the pass rate was lower. Key areas that candidates struggled with included consolidation procedures, accounting for complex financial instruments, and equity-settled share-based payments. Overall, candidates performed better on basic financial statement preparation and intangible asset accounting, but had more difficulty with advanced topics like hedging and revenue recognition. Examiners will continue to emphasize testing of IFRS knowledge and application of standards in future exams.
The examiner provides comments on student performance on the DipIFR exam from June 2010. In general, performance was superior to recent exams, with candidates performing well on questions one and two. However, a minority of candidates performed well below passing standards. For question one on preparing a consolidated statement of financial position, most candidates consolidated the subsidiary correctly but some incorrectly tried to consolidate the associate. For question two on preparing financial statements from a trial balance, most did well but some struggled with deferred tax implications of a property revaluation. Question three on impairing financial assets and accounting for leases and foreign currency transactions was answered poorly, particularly part a on impairments. Question four on revenue recognition principles was answered satisfactorily. Question
The document discusses improving data center efficiency and obtaining utility rebates for efficiency projects. It provides an overview of the typical process for getting a rebate which includes baselining the data center, submitting an incentive application, implementing efficiency measures, post-project verification, and receiving the rebate incentive. It also lists various efficiency measures and their potential impacts, and provides utility contact information for many states.
1) The recent correction in equity markets is typical of the second year of a bull market as growth momentum slows and liquidity dries up.
2) While concerns about European sovereign debt triggered the decline, underlying factors like peaking earnings growth and shrinking liquidity exacerbated the fall.
3) The correction looks normal rather than the start of a new bear market, though uncertainty may keep markets weak in the near term. Selective buying of oversold stocks and sectors presents opportunities.
The document summarizes an IT-themed quiz with 5 rounds of questions about various topics related to IT. It provides the format of the quiz, explaining there will be 5 questions per round and the winners will receive a prize. Sample questions and answers are provided for each round, covering topics like famous models, the history of programming, types of caffeine, classic computing equipment, and the best IT company. The quiz is intended to test the knowledge of IT professionals.
The document discusses managing the front end of innovation, which includes idea generation, market and technology analysis, and preliminary opportunity identification. It emphasizes balancing creativity with structure through approaches that are customer-centric, flexible, and iterative. Key aspects of the front end discussed are formulating product and portfolio strategy, managing uncertainty through different new product development strategies, and addressing reality gaps to improve the learning process between ideas and successful new products.
The document describes a training program to help finance and accounting students transition to working in an ERP-based accounting environment. The program covers key finance and accounting concepts, ERP systems and processes like accounts payable, accounts receivable, and record to report. It aims to help candidates gain the skills and knowledge needed to get an entry-level job in companies like multinational corporations or financial outsourcing firms. The training includes hands-on exercises, mock interviews and assessments to evaluate participants and provide certification. The goal is to reduce the gap between academia and industry expectations to benefit both job seekers and employers.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Takshila Learning is an education and training organization established in 2009 that provides courses in commerce for students, professionals, and corporations. It offers both face-to-face and virtual live courses in subjects like accountancy, finance, and business. The organization has experienced faculty and uses innovative technologies like virtual live classes. It aims to provide high-quality education and help students and professionals achieve their career goals. Takshila Learning has experienced significant growth and now has a large client base of corporate organizations.
As DCIM emerges into a familiar term, a fortified discipline, a new market of solutions, and by definition 'integrates IT and facilities management', what does 'bridging the departmental gap' really mean? Where are the gaps, where will the synergy be, and what will be done differently with DCIM in the mix? Join Michael Tresh, Director of Product Management and Marketing, as he discusses legacy, current, and future data center infrastructure management.
This photo album document provides instructions for creating and customizing photo pages in a digital album. It explains that users can add their own pages and then click placeholders to insert pictures and captions. It also describes how the Picture Tools tab allows adjusting pictures by cropping, editing brightness and contrast, and applying single-click picture frames.
This document is a registration form for ACCA's Diploma in International Financial Reporting exam. It provides instructions on completing the form, including important deadlines of April 15th and October 15th for the June and December exam sessions. It requests personal and employment details, payment information, and a passport photo. By signing, the applicant agrees to ACCA's rules and allows their data to be stored and shared under the UK Data Protection Act.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Cwg 2010 schedule day 2 (4 okt) update 3 oct 1500Olimpikini
The document provides a schedule of 31 sporting events taking place on October 4, 2010, Day 2 of the Commonwealth Games 2010 in Delhi, India. The schedule lists the time, sport, event, gender, venue, and participating Malaysian athletes for each event. Sports include swimming, badminton, table tennis, archery, squash, weightlifting, lawn bowls, hockey, and artistic gymnastics.
This presentation discusses instructional design careers for teachers and how teachers can apply their skills in this field. It promotes the Master of Science in Instructional Design and Technology program at California State University, Fullerton. The presentation explains that instructional design incorporates skills like lesson planning, learning strategies, assessment, training and teaching. It highlights how teachers can design for a wider audience and develop lessons for an online environment through a career in instructional design. Contact information is provided for those interested in the instructional design master's program.
Joshua brewer virtual communities essay - final draftMorningMaestro
The document discusses how virtual communities like Second Life allow users to create avatars that differ significantly from their real selves. The author conducted interviews with Second Life users and found that many crafted avatars of different races, appearances, and lifestyles than their own, seeing it as a way to escape social pressures and experience new things. Some users kept their avatars similar to explore the community aspects, but most embraced the creative freedom to invent new lives and identities. Virtual worlds provide an environment without restrictions where people can fulfill dreams otherwise impossible.
This document provides instructions for logging in and managing an account on a website. It outlines logging into the homepage and management area to add a new listing in just one minute. The process involves adding or editing a listing and then seeing the result one minute later, which appears to be all that is needed to know to manage the account.
This document outlines the syllabus for a strategic financial management course, which covers advanced topics in corporate finance and investment analysis. The syllabus includes 13 sections that cover various aspects of strategic decision making, capital budgeting, dividend policy, security analysis, portfolio theory, financial services, foreign exchange, and mergers and acquisitions. The objective of the course is to apply financial management theories and techniques for strategic decision making.
The exam format was changed from previous sittings by removing optional questions and focusing more on testing knowledge of IFRS rather than financial statement preparation. As a result, the pass rate was lower. Key areas that candidates struggled with included consolidation procedures, accounting for complex financial instruments, and equity-settled share-based payments. Overall, candidates performed better on basic financial statement preparation and intangible asset accounting, but had more difficulty with advanced topics like hedging and revenue recognition. Examiners will continue to emphasize testing of IFRS knowledge and application of standards in future exams.
The examiner provides comments on student performance on the DipIFR exam from June 2010. In general, performance was superior to recent exams, with candidates performing well on questions one and two. However, a minority of candidates performed well below passing standards. For question one on preparing a consolidated statement of financial position, most candidates consolidated the subsidiary correctly but some incorrectly tried to consolidate the associate. For question two on preparing financial statements from a trial balance, most did well but some struggled with deferred tax implications of a property revaluation. Question three on impairing financial assets and accounting for leases and foreign currency transactions was answered poorly, particularly part a on impairments. Question four on revenue recognition principles was answered satisfactorily. Question
This document provides a summary of exam performance for the Cambridge International AS/A Level Accounting exam from March 2020. It discusses candidate performance on specific exam questions and common errors. The key points are:
1. Candidate performance was mixed, with some questions answered well and others more poorly. Questions requiring explanations of concepts like absorption costing and budgeting saw weaker responses.
2. Common errors included not showing workings, lacking details in T-accounts, and failing to apply accounting concepts and standards correctly.
3. The document provides examiners' comments on each exam question to help teachers understand what candidates did well and where they struggled. This feedback can help improve instruction on challenging topics.
1
WEEK 2 TEAM ASSIGNMENT
Week 2 Team Assignment
Learning Team B
ACC/492
7/24/16
Introduction
AUDIT PROGRAM FOR CASH
Risks
· Cash transactions may not be documented correctly
· Does cash exist
· Fraud
Steps
1. Discuss and document the routine for receiving and disbursing cash.
a) Sources of cash
b) Frequency of bank deposits
c) The person making the deposit
d) The various levels of cash received, is it appropriate
e) Documentation of expenditures (check requests, agreements, invoices…)
f) The approval process
2. Confirm selected bank accounts and special activities
For the petty cash funds (Is the petty cash voucher maintained properly?)
Are physical cash counts:
a) Conducted regularly by a person or people who are not direct guardians of the petty cash funds?
b) Reconciled with the petty cash voucher?
c) Documented the counts and reconciled against the petty cash voucher?
d) Are the petty cash funds restricted to only authorized personnel? Who has contact to funds?
For all checking accounts
a) Identify how many signatures are mandatory on each check.
b) Identify the process by which cash is received and how often.
c) Acquire bank statements for each bank account.
d) Identify the frequency and timing of the bank reconciliations. Who is responsible for the reconciliations?
e) Acquire bank reconciliations and test for accuracy.
f) Affirm if an additional person reviews bank reconciliations on a regular monthly basis. The review document should include the date of examination and a signature of the second person reviewing the bank reconciliation.
3. Test bank reconciliations
Choose bank accounts for confirmation in order to obtain a moderate to low level of assurance that the above mentioned audit purposes are achieved.
a) Test the mathematical accuracy of bank reconciliations
b) Trail-back to the book balances on the client’s bank reconciliation to the summary.
c) Trail-back to the balances on the client’s bank reconciliation to the bank statement.
d) Test reconciling items on the bank reconciliation by performing the following:
i) acquire previous month bank statement and supporting documents
ii) trace outstanding items listed on the bank reconciliation.
iii) trace deposits in transit listed on the bank reconciliation.
iv) get explanation of big, uncommon reconciling items and trace to supporting documents.
v) investigate any other unusual items.
Confirmation requests should be sent under our control and, second requests and, where warranted, third requests should be mailed when responses to confirmation requests have not been received within a reasonable time.
Consider sending a special inquiry letter to ascertain the existence of special arrangements or restrictions, for example, compensating balance arrangements, security arrangements, written guarantees.
4. Review confirmations received
For confirmations received:
a) compare account information and account balance to matching summary.
...
The document discusses the requirements for a successful construction contract claim and the main reasons disputes arise on construction projects. It outlines six key requirements: 1) timely notice of potential claims, 2) determining factual details, 3) establishing legal entitlement, 4) proving causation, 5) accurately calculating damages, and 6) effective negotiation. Common causes of disputes include changes, delays, poor documentation, scheduling errors, and incomplete contracts. The most frequent claim types are changes claims, delay claims, extra work claims, and contractual non-compliance issues. Proper contract administration and documentation can help minimize disputes.
Complete the following exercisesChapter 12 – Discussion Questio.docxmaxinesmith73660
Complete the following exercises:
Chapter 12 – Discussion Questions (Making Research Decisions) # 5
Chapter 5 – Discussion Questions (Terms in Review) # 1- 3
5. One of the problems in developing rating scales is the choice of response terms to use. Below are samples of some widely used scaling codes. Do you see any problems with them?
a. Yes—Depends—No
b. Excellent—Good—Fair—Poor
c. Excellent—Good—Average—Fair—Poor
d. Strongly Approve—Approve—Uncertain—Disapprove— Strongly Disapprove
1. Explain how each of the five evaluation factors for a sec- ondary source influences its management decision-making value.
a. Purpose
b. Scope
c. Authority
d. Audience
e. Format
2. Define the distinctions between primary, secondary, and Tertiary sources in a secondary search.
3. What problems of secondary data quality must researchers face? How can they deal with them?
Question 1 (17 marks)
HiSpeed Ltd. plans to manufacture cross-country skiing equipment. Its cash flows are highly dependent on the weather in early winter. HiSpeed operates under ideal conditions of uncertainty. On August 1, 2014, the beginning of its first year in business, HiSpeed acquires equipment to be used in its operations. The equipment will last two years, at which time its salvage value will be zero. The company finances the equipment purchase by issuing common shares.
HiSpeed’s annual net cash flows will be $800 if the weather is snowy and $300 if it is not snowy. Assume that cash flows are received at year end. In each year, the objective probability that the weather is snowy is 0.7 and 0.3 that it is not snowy. The interest rate in the economy is 3% in both years.
HiSpeed will pay a dividend of $50 at the end of each year of operation.
Required
a. (9 marks)
In 2014, the weather is snowy. Prepare a statement of financial position as at July 31, 2015, the end of HiSpeed’s first year of operations, and an income statement for the year.
b. (2 marks)
What timing of revenue recognition is implicit in the income statement you have prepared in part (a)? When ideal conditions do not hold, is this timing of revenue recognition relevant? Is it reliable? Explain.
c. (6 marks)
Assume that HiSpeed paid the present value you calculated in part (a) for its equipment. Calculate HiSpeed’s net income for the year ended July 31, 2015 on a historical cost basis, assuming that equipment is depreciated on a straight-line basis. Under the more realistic assumption that ideal conditions do not hold, which measure of net income is most relevant? Which is most reliable? Why?
Question 2 (18 marks)
Prem has $2,000 that he wishes to invest for one year. He has narrowed his choices down to one of the following two actions:
i: Buy bonds of X Ltd., a company that has a very high debt-to-equity ratio. These bonds pay 8% interest, unless X defaults, in which case Prem will receive no interest but will recover his principal. (a1)
ii: Buy Canada Savings Bonds, paying 3% interest. (a2)
Prem asse.
AC 410 Success Begins / snaptutorial.comRobinsono01
1–20
Public accounting firms are sometimes grouped into categories of local firms, regional firms, national firms, and international firms. Explain briefly the characteristics of each. Include in your answer the types of services stressed in each group.
1–26
For more classes visit
www.snaptutorial.com
1–20
Public accounting firms are sometimes grouped into categories of local firms, regional firms, national firms, and international firms. Explain briefly the characteristics of each. Include in your answer the types of
Ac 410 Enthusiastic Study/snaptutorial.comGeorgeDixon30
1–20
Public accounting firms are sometimes grouped into categories of local firms, regional firms, national firms, and international firms. Explain briefly the characteristics of each. Include in your answer the types of services stressed in each group.
AUDITING Accounts PayableDiscussion TopicIm Done Top .docxrock73
AUDITING
Accounts Payable
Discussion Topic
I'm Done
Top of Form
Due July 30 at 11:59 PM
Starts Jul 24, 2017 1:00 AM
Bottom of Form
Do you think accounts payable confirmation can be useful to the auditor? How? What are the limitations of accounts payable confirmation? What are some alternatives to accounts payable confirmation?
Replies
1
The confirmation of accounts payable is not a generally accepted auditing procedure. The auditor is required to obtain confirmation of accounts receivable only. The evidence supporting accounts payable, such as vendors' invoices and statements, is produced by outside sources. Determining that all payables are recorded is the primary objective of the accounts payable audit. It follows that confirmations are very useful in supplying supporting evidence for receivables but that auditing procedures other than confirmation are required to verify that all payables are recorded. The selection of accounts payable for confirmation would be from the following groups: (1) large accounts including important suppliers even though the account balance is small at balance sheet date; (2) accounts for which monthly statements are unavailable; (3) accounts with unusual transactions; and (4) accounts with zero balances that had substantial activity earlier in the year.
The main limitation of accounts payable confirmation is that it does not prove the completeness of recorded accounts payable. The accounts payable confirmation procedures are not always used because reliable externally generated evidence supporting accounts payable balances are generally available for audit inspection on the premises of client. Some auditors believe that it is not required to confirm accounts payable because the search for unrecorded liabilities is the basic means of testing for completeness of accounts payable.
The alternative procedures are generally performed for non replies of accounts payable confirmations and or selected unconfirmed accounts. This includes examination of unpaid invoices, receiving reports and bills supporting the recorded balances. The examination of vendor statement dated near the balance sheet date can also be made. The statement balances shall be reconciled to the balance in client account. The subsequent payment of liability shall be vouched. The invoices from few selected vendors for the purchase of goods and services after balance sheet date shall be inspected. It shall be determined whether invoices show an amount that was owed as on balance sheet date. Generally alternative procedures on non replies are not required because the search for unrecorded liabilities compensates for such procedures. The main benefit of this alternative procedure is that it provides 100% confirmation about the existence of accounts payable. The limitation is that this process is quite time taking and wastes auditor’s precious time. It is not very result oriented because performing basic or alternative audit procedures for acco ...
This document discusses various concepts related to financial difficulties and bankruptcy prediction models. It defines key terms like financial distress, insolvency, and bankruptcy. It also describes univariate and multivariate analysis methods for predicting bankruptcy, including the times interest earned (TIE) ratio and Z-score model. Finally, it provides a case study of General Motors' financial distress and bankruptcy in 2008-2009.
Accounts receivable and inventory managementluburtusi
This document discusses key aspects of accounts receivable management, credit analysis, and inventory control. It addresses setting credit policies, analyzing credit applicants, managing the billing and collection process, and following up on overdue accounts. It also outlines the five C's model for credit analysis - character, capacity, capital, collateral, and conditions. Finally, it discusses techniques for inventory control like ABC analysis, economic order quantity models, reorder points, and just-in-time systems. Effective accounts receivable and inventory management requires cooperation across sales, finance, accounting, and other functions.
This document discusses various types of commercial real estate loans, including construction loans, land development loans, and loans for income-generating commercial properties. It provides details on:
- The loan application process and documentation requirements, including operating statements, balance sheets, tax returns, and property evaluations.
- How construction loans are disbursed based on completion of stages of construction and ensuring costs are paid.
- Additional risks associated with lending for land purchases, development projects, and speculative residential construction versus contracted builds.
- The role of takeout commitments in protecting construction lenders for residential property loans.
Best Known as a real estate agent, Boris Gantsevich assists clients to achieve real estate desires. He delivers important knowledge to clients about real estate market and properties. Whether you are buying or selling he guides his clients through the process.
The costs associated with administering an employer-sponsored 401(k) plan have always been an issue that requires great care. Employers may soon find this task a little easier, thanks to some recent court rulings. The focus of the various courts has not been on the actual amount of fees charged, but on the objectivity of the process for determining those fees.
Defined Contribution Plans and Fee Lawsuits: Stuck in the Mud or the Road to ...Callan
The document summarizes recent 401(k) fee lawsuits against plan sponsors and discusses best practices for sponsors to avoid costly litigation. It notes that nearly 40 lawsuits have been filed since 2006 regarding issues such as excessive fees, revenue sharing violations, and imprudent investment options. Settlements have typically required sponsors to reduce fees, improve investment options, and enhance disclosures. The document examines some high-profile lawsuits and concludes by recommending sponsors closely monitor fees, benchmark expenses, and document their oversight to stay out of legal trouble.
The engagement letter between the CPA firm Abernathy & Chapman and their audit client Lakeside Company outlines both parties' responsibilities. For Abernathy & Chapman, it specifies performing the audit to express an opinion on the financial statements, searching for material misstatements, reporting on internal controls and potential fee changes, and providing the final audit report by February 22, 2013. For Lakeside Company, it specifies paying the audit fee and providing interim and year-end trial balances and audit documents as specified.
This document discusses the conceptual framework underlying financial accounting. It begins by outlining the learning objectives, which are to describe the meaning and usefulness of the conceptual framework, understand the objectives of financial reporting, identify the qualitative characteristics of accounting information, define the basic elements of financial statements, describe the basic assumptions of accounting, and explain the application of the basic principles of accounting. It then provides details on the conceptual framework, including that it establishes the concepts that underlie financial reporting and allows new problems to be quickly solved. It also discusses the usefulness of the conceptual framework in increasing understanding and confidence in financial reporting and enhancing comparability.
Recording of Special Transactions of Accounting in Saparate books, includes :
1."Cash Book" for Cash, Bank & Discount transactions
2. "Purchase Book" for Credit purchases of goods
3. "Returns Outward Book" for Return of Credit purchases goods
4. "Sales Book" : Credit Sale of goods
5."Return Inwards Book" for Return of Credit Sold goods; 6. "Bills Receivable" book: Details of Bills drawn &
7. "Bills Payable" Book.
8. "Journal Proper": for the remaining Transactions.
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Humans can make unintentional errors, but in Accounting, there is an option to make a Rectification entry for the errors.
Some errors affect the Trial Balance, some not
Rectification of errors depends on the timing of its detection:
1.Errors detected before preparation of Trial Balance are corrected by
"Writing a Narration" for Single Sided Errors &
" Rectified entry for Double Sided Error"
2. Errors detected after Trial Balance : by
" Opening Suspense A/C for Single Sided Errors"
" Rectification Entry"
3. Errors detected in Next accounting period :
Through P&L Adjustment Accounts
Recording of Special Transactions of Accounting in Saparate books, includes :
1."Cash Book" for Cash, Bank & Discount transactions
2. "Purchase Book" for Credit purchases of goods
3. "Returns Outward Book" for Return of Credit purchases goods
4. "Sales Book" : Credit Sale of goods
5."Return Inwards Book" for Return of Credit Sold goods; 6. "Bills Receivable" book: Details of Bills drawn &
7. "Bills Payable" Book.
8. "Journal Proper": for the remaining Transactions.
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After the preparation of Trial Balance, in the final stage of summarizing, Final accounts of the business are prepared which includes Trading, Profit & Loss A/c & Balance Sheet. Preparation of these statements & the various adjustments therein have been discussed here.
The document discusses the key financial statements prepared for a sole proprietorship business, including the trading account, profit and loss account, and balance sheet. It explains that the trading account shows direct revenues and expenses related to goods sold, while the profit and loss account includes indirect expenses and incomes. Finally, the balance sheet presents the accumulated assets and liabilities of the business over time based on the accounting equation of assets equaling liabilities plus owner's equity.
Depreciation accounting involves allocating the cost of a fixed asset over its useful life. Common methods for calculating depreciation include straight line, reducing balance, units of production and annuity. The cost basis for depreciation includes expenses for acquisition, installation and commissioning of the asset. Revaluation of assets, upward or downward, affects the depreciation calculation and associated accounting entries.
Here we have discussed the Future estimates made by business, the meaning of future probable inflow of benefits i.e. Contingent Assets & future probable obligations i.e. Contingent liabilities . The Disclosure in Accounting of Contingencies (as per Full Disclosure Concept) has been discussed. The difference between Provisions & Contingent liabilities is not to be ignored.
Treatment of a Transaction depends on the duration of its effect, i.e Long term or short term. The long term effect transaction i.e Capital Transactions & the short term
A bank reconciliation statement is prepared to reconcile the differences between the balances as per the cash book and as per the bank statement/pass book. It identifies timing differences in recording transactions as well as errors in the cash book or pass book. When preparing a bank reconciliation statement, all errors and omissions in the cash book as well as timing differences between the two statements are taken into consideration.
This topic will provide you the Basic meaning of accounting. The Definitions of Accounting, Transactions & Events has been discussed. The Accounting process/cycle has been explained elaborately. The accounting users, Characteristics of Accounting, its limitations & its sub fields have been discussed.
The laws/framework behind the Accounting that explains the Procedure of Accounting in different scenarios, that brings the Uniformity in Accounting i.e Accounting Standards have been discussed. The objectives, benefits & limitations of Accounting standards has also been discussed.
The document discusses accounting standards in India. It provides definitions, objectives, benefits and limitations of accounting standards. It notes that accounting standards are issued by the Institute of Chartered Accountants of India and are mandatory for companies. It lists 31 accounting standards and provides brief descriptions of some key standards including AS-1 on disclosure of accounting policies, AS-2 on valuation of inventories, AS-3 on cash flow statements, and AS-9 on revenue recognition. It also discusses converged Indian accounting standards (Ind AS) applicable to certain companies.
Accounting Standards are Rules and Regulation of Financial Accounting set by ICAI (Institute of Chartered Accountant of India) which Cover the Treatment, Recognition, Measurement, Disclosure etc. It include the Objective, Benefits and Limitation of AS (Accounting Standard)
Total 32 Accounting Standards are issued by ICAI.
The document provides information about the Financial Risk Manager (FRM) certification program, which involves passing two exams to demonstrate knowledge of financial risk management. It details the requirements to obtain the FRM charter, including work experience and education qualifications. Key details are provided around the exam dates and locations, registration fees, course structure and duration, and payment options for an upcoming training program in India to prepare candidates for the FRM exams.
Takshila provides a variety of finance and business-related courses through both in-person and virtual formats. It was established in 2009 by professionals from IT, telecom, and education to provide cutting-edge training solutions. Courses include those in finance, accounting, taxation, soft skills, and more for students, professionals, and corporate clients. Takshila aims to help trainees achieve their career goals through qualified faculty and innovative learning approaches like virtual live classes. They strive for excellence through values like ethics, innovation, and passion.
The document discusses the Certified Public Accountant (CPA) qualification from the United States. Some key points include:
- The CPA is the highest accounting qualification in the world, similar to the CA qualification in India. It is administered by the American Institute of Certified Public Accountants (AICPA).
- The CPA exams are based on real-life case studies, unlike the pattern in India. Appearing again costs 2-3 lakhs. Technical expertise is required to solve simulations.
- Takshila provides end-to-end support for students pursuing a CPA, including visa assistance, airport pickup, accommodation in the US, and both face-to-face and online classes
1. Just four Exam ,2. 15 Full Days Classes (Only on Sundays), 3. 120hrs of Revision Online Classes is free , 4.) Face to Face or Online Live both mode, 5. Equivalent Qualification to CA, 6.) Highest Accounting Qualification, 7.) Faculty is working with Big4 in US Advisory Service.
Takshila Learning Provide Best Coaching for Dip.IFRS it Include:- 1). 9 Full Days Classes(Only on Sundays), 2. Also 72 hrs Online Revision Class, 3). Face to Face or Online Classes both, 4) Faculty with IFRS Implementation exp. 5) ACCA Platinum Approved GTG Study Material, 6) Faculty OWN Notes, 7.) Documentation Support, 8.) 1 Day Practical Training on IFRS.
The document provides information about the Certified Public Accountant (CPA) designation, which is the highest accounting qualification in the world administered by the American Institute of Certified Public Accountants. It describes the CPA qualification process, including details about the 4-part Uniform CPA Examination, exam structure and format, and the skills assessed. The document also discusses the career opportunities and benefits of obtaining the CPA designation globally.
This document shows citizenship, residency, social security, and international program requirements for various US states and territories. It contains 55 rows listing each state/territory and whether citizenship is required, residency is required, participation in a social security program is required, and if they participate in international programs. The data is sourced from https://www.thiswaytocpa.com.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
1. Examiner’s report
DipIFR
June 2012
General Comments
The June 2012 sitting was the second under the relatively new format that was introduced in June 2011. The
June 2012 paper consisted of one 40 mark question and three 20 mark questions. The 40 mark question
required the preparation of a consolidated statement of financial position and the practical consideration of a
number of other financial reporting issues. Two of the three 20 mark questions were scenario based mixed issue
questions. Question two required candidates to evaluate the financial reporting implications of the construction of
a complex asset, a share based payment arrangement, a legal case and damage to inventory caused after the end
of the reporting period. Question four required candidates to consider the financial reporting implications of the
lease of a property and a hedging contract. Question three was a single-issue scenario question requiring
candidates to consider various aspects of IFRS 5 – Non-current Assets Held for Sale and Discontinued
Operations.
The pass rate for this sitting was lower than that of June and December 2011. As in previous sittings the
performance of candidates was very polarised, with very few marginal scripts encountered. A key impact on the
pass rate this time was that many candidates seemed to have a problem with time allocation. This was
evidenced either by candidates spending a disproportionate amount of time on question one, when tackling it
first, or insufficient time on question one when tackling it last. Time management is a key component of
examination technique and one to which candidates should give more attention. I repeat the comment made in
last time’s report that candidates need to present themselves for examination having acquired a satisfactory level
of knowledge by disciplined study and being able to explain clearly the steps they are taking when answering
examination questions.
Specific Comments
Question One
This question required the preparation of a consolidated statement of financial position for a group that contained
one subsidiary and one associate. Information about the recoverable amount of the subsidiary at the year-end
was provided and it was necessary to test the goodwill on acquisition of the subsidiary for impairment.
In addition to the consolidation tasks candidates were required to adjust the financial statements of the parent
for a number of transactions that had not been properly accounted for by the parent. These included deferred
consideration on acquisition of the subsidiary, a financial liability repayable in a foreign currency, and a defined
benefit retirement benefit plan to which the parent contributed.
On the whole the standard of presentation of the statement of financial position was good and workings were
clearly labelled and easy to follow – suggesting that most candidates are tackling the question in a methodical
way.
Areas showing good knowledge:
• Most candidates correctly consolidated the parent and subsidiary but a significant minority of candidates
proportionally consolidated the associate Gamma.
• Basic goodwill calculations for Beta – although only a minority of candidates correctly computed the
deferred consideration at the date of acquisition. Most candidates correctly identified the fair value
adjustments and calculated the correct amount of deferred tax on them at the date of acquisition.
• Most candidates correctly dealt with intercompany balances – although only many also deducted
balances relating to trading with the associate
• Most candidates correctly deducted the unrealised profit relating to the subsidiary from inventories –
although many included the associate’s too, rather than deducting it from the investment in associate.
Examiner’s report – DipIFR June 2012 1
2. • On the whole, most candidates made a reasonable attempt at correctly accounting for the defined benefit
retirement benefit arrangements. However a significant minority failed to realise that the retirement
benefits actually paid would have no impact on the net pension liability.
Areas where mistakes were common:
• Incorrect calculation of the fair value adjustments relating to property, plant and equipment (PPE) at the
reporting date. Many candidates were not aware how to do this when part of the PPE in existence at the
date of acquisition had been disposed of by the reporting date.
• Impairment of goodwill - common mistake was not taking the goodwill into account for the carrying
value so comparing $70,000 with $75,000 and saying there was no impairment. Also many candidates
forgot to complete the double entry and take the debit to retained earnings and NCI.
• Candidates’ performance in accounting for the loan measured at amortised cost but denominated in a
foreign currency was disappointing. A significant minority tried to discount the future cash flows using an
effective rate of interest and compute a liability and equity component, as if this were a compound
financial instrument. This indicated a fundamental misunderstanding of the topic. It may or may not be
relevant that question 1 from December 2011 did contain a compound financial instrument and perhaps
candidates were influenced by the fact. As already stated, this indicates a basic lack of understanding of
the topic. Additionally few candidates seemed able to correctly translate whatever they had computed for
the year end liability in foreign currency.
• Few candidates were able to correctly account for the reversal of the post-acquisition revaluation of
Beta’s PPE to apply with group policy, particularly as regards its impact on other components of equity.
Question Two
This question required candidates to explain and illustrate the financial reporting treatment of:
a. The construction of a complex asset that was used in the mineral extraction process.
b. A share based payment.
c. A legal claim against the reporting entity and a counter-claim by the reporting entity.
d. Damage to inventory caused after the reporting date.
Part (a)
Areas showing good knowledge:
• Most candidates were aware that the basic costs of constructing the asset, including the provision for
restoration at the end of its useful life, should be capitalised and depreciated.
• Most candidates were aware of the need to compute the provision at present value and unwind the
discount.
Areas where mistakes were common:
• Many candidates were unable to distinguish between the provision for restoration, which should be
capitalised, with the provision for damage already caused by the reporting date, which should be
charged to profit or loss.
Examiner’s report – DipIFR June 2012 2
3. • Many candidates attempted to provide for all the expected damage, rather than just that damage
actually caused by the reporting date.
• The standard of calculations of depreciation and unwinding of the discount was generally poor.
Part (b)
Areas showing good knowledge:
• Most candidates were aware of the principle that the cost of an equity settled share based payment
should be recognised over the vesting period.
• Most candidates measured the cost using the fair value of the options at the grant date.
Areas where mistakes were common:
• A significant minority of candidates used the incorrect number of employees when computing the total
expected cost of the share based payment.
• A significant minority of candidates stated that the credit entry for an equity settled share based payment
was to liabilities, rather than equity.
• Even candidates whose computations were generally satisfactory did not always back up their
computations with appropriate explanations, particularly of the difference in treatment of a market and
non-market vesting condition.
Part (c)
Areas showing good knowledge:
• Most candidates were aware that the case against the company would result in the recording of a
liability, although a number did then go on to state that this would be a contingent liability.
• Most candidates correctly stated that the counter-claim by the company would result in a contingent
asset that could not be recognised.
Areas where mistakes were common:
• A significant minority of candidates stated the appropriate provision for a legal case in which $1 million
is claimed, with a 75% chance of success, would be $750,000. This is unlikely to be correct in the case
of a potential obligation with effectively only two outcomes.
• A minority of candidates stated that the appropriate provision would be $200,000 (the $1 million claim
less the $800,000 counter-claim).
Part (d)
Areas showing good knowledge:
• The majority of candidates were aware that the damage to the inventory occurred after the reporting date
and that this was a significant issue in how it should be reported.
Areas where mistakes were common:
• A significant minority of candidates stated the damage to the inventory was an adjusting, rather than a
non-adjusting, event.
• A minority of candidates completely failed to appreciate that the issue was an event after
Examiner’s report – DipIFR June 2012 3
4. the reporting date and concentrated on computing the net realisable value of the inventory, a calculation
that basically wasn’t needed.
Question Three
This concerned IFRS 5 – Non Current Assets Held for Sale and Discontinued Operations. Part (a) required
candidates to explain the basic terms outlined in the standard, and also how both non-current assets held for
sale and discontinued operations should be reported in the financial statements. Part (b) was essentially a
practical scenario that illustrated the principles outlined in part (a).
Part (a)
Areas showing good knowledge:
• The majority of candidates were able to explain the meaning of ‘held for sale’ and the financial reporting
implications of classifying an asset or disposal group in that manner.
• The majority of candidates were able to correctly explain that the results of discontinued operations were
separately disclosed in the statement of comprehensive income.
Areas where mistakes were common:
• Most candidates’ explanations of the meaning of discontinued operations were disappointing. A common
cause of confusion was to cite the criteria for recognising a restructuring provision rather those for
reporting a discontinued operation.
Part (b)
Areas showing good knowledge:
• Most candidates were able to correctly compute the overall impairment loss and allocate it to goodwill in
the first instance.
• A pleasing number of candidates were aware that impairment losses on goodwill can never be reversed.
Areas where mistakes were common:
• A large number of candidates did not explain how the balance of the impairment loss of $12 million
would be treated after allocating the first $10 million to goodwill.
• A large number of candidates seemed unaware that there was the partial reversal of the original
impairment loss by the year end. Even those that were aware of this were on the whole unaware of
exactly how to treat it.
• Despite the requirements of part (a) few candidates seemed aware that there were issues surrounding a
discontinued operation in this part as well
Question Four
This question required candidates to:
a. Explain and illustrate the appropriate financial reporting treatment of the lease of a property where the
lease rentals included a significant premium.
b. Explain and illustrate the financial reporting treatment of the purchase of an asset under a contract
denominated in a foreign currency where the associated currency risk was hedged by a derivative.
Examiner’s report – DipIFR June 2012 4
5. Part (a)
Areas showing good knowledge:
• Most candidates were aware that the lease needed assessing in two parts.
• Most candidates were able to conclude that the land lease was an operating lease but the buildings lease
was a finance lease.
Areas where mistakes were common:
• Many candidates made arithmetical errors in allocating the lease payments to the two lease elements.
• Very few candidates realised that the lease premium would result in a pre-payment when applied to the
operating lease of land.
• Very few candidates demonstrated an understanding that the amount capitalised on the finance lease
was the lower of the present value of the minimum lease payments and the fair value of the asset.
• The standard of classification of the finance lease liability into its current and non-current components
was poor.
Part (b)
Areas showing good knowledge:
• Most candidates were aware that in year one the contract to purchase the asset was an executory one
that would not be recognised in that year.
• Most candidates were aware that the exchange rate used to recognise the asset in year two should be
the spot rate at the date of delivery.
Areas where mistakes were common:
• Many candidates were clearly unaware of the basic principles of hedge accounting and wasted time
performing meaningless calculations with the numbers and exchange rates they’d been given.
• A significant minority of candidates did not appreciate that the forward currency contract was a
derivative which should be recognised at fair value in the statement of financial position.
Examiner’s report – DipIFR June 2012 5