TARC ACCA 2005

tips june 2005 paper 3.6 Advanced Corporate Reporting

source:- BPP

Section A
The section A question can be on any of the traditional higher-level group accounting topics
that are not examinable in paper 2.5. Complex group structures or disposals of subsidiaries
appear to be the most likely topics having not appeared for quite some time.
(Questions: X Group, Wright)

Section B
Section B questions tend to range over a number of topics and may include:
• International reconciliations and the continuing attempts to bring about international
harmonisation. IFRS 1 on First time Adoption of IFRS has already been examined but
could reappear due to its topicality.
• “Mixed” questions can include a wide range of new and longer-established areas of
accounting. Issues relating to recognition and impairment of tangible and intangible
assets have been a recurring theme along with provisions and retirement benefits.
• Accounting for financial instruments could be tested.
• The new standards on share-based payment could be tested in numerical detail.
• Performance and valuation measures and how these are affected by accounting
policies often appear in the ACR exam.
(Good questions for practice on these areas include: Impairment of assets, Finaleyes, retirement Benefits, Vacs, Low Paints (Q2 within Mock Exam 2 in the UK kit), Desolve, FREDs 23 and 30)
• A discussion question looking at current developments in corporate reporting. Social and
environmental reporting can appear here as well as business ethics, and reporting on the
internet.
(Questions: Glowball, Mineral)

Relevant Articles
• IAS 39, Graham Holt, May 2005
• First-time adoption of International Financial Reporting Standards, Steve Scott, January 2005
• Improving standards, Graham Holt, August 2004
• Disposal of non-current assets and presentation of discontinued operations, David
Towers, April 2004
• Group accounting: associated companies and negative goodwill, Steve Scott, April
2003
• Convergence of UK GAAP to IAS : Group accounting, Steve Lawrence, December 2002
• A review of recent FREDs, Graham Holt, September 2002
• Convergence of UK GAAP to IAS : Part 3, Steve Lawrence,September 2002
• Convergence of UK GAAP to IAS : Part 2, Steve Lawrence, September 2002
• Convergence of UK GAAP to IAS : Part 1 Steve Lawrence, July 2002
• Deferred tax, Paul Robins, July 2002

source: LVMT
Consolidated balance sheet including adjustments for accounting errors when applying recent standards

Leases including sale and leaseback arrangements, the differences between IAS 17 and SSAP 21 and the discussion paper on leases

Events after the balance sheet date (FRS 21/IAS10)
Earnings per share (FRS 22)
Joint ventures and associates (FRS 9/IAS28& IAS31)
Investment properties (SSAP19/IAS40) and Government grants
A combination of different standards in one question possibly involving FRS 15, FRS 23, FRS 24, SSAP 25, FRS 11, etc
OFR, Corporate governance and environmental reporting
FRSs 22 through 26, with emphasis on the changes to current reporting
Finally, ensure you thoroughly understand the basic principle underpinning a broad spectrum of the syllabus. For this you MUST fully appreciate the usefulness of the Statement of Principles and its applicability to the elements of financial statements.

Source: FTC UK
Group Income statement - with disposals / complex group structures / associates
or Group Balance sheet - with accounting adjustments
Share based payments
Accounting standards in a case study situation e.g. Pensions, EPS, deferred tax.
International issues (again!)
Corporate Governance and CSR

Source: FTC S'pore
Lecturer - Mr Saminathan

1. Computational question on group accounts.
- piecemeal acquisition
- vertical consolidation
- disposal of subsidiary
Look out for adjustments related to financial instruments & goodwill impairment .

2. Issues related to FRS 21 especially hedging for investment in a foreign entity.
3. Issues related to fixed assets - impairment of assets with reversal of impairment losses,intangible assets with finite & infinite life.
4. Issues related to FRS 12 - deferred tax.
5. FRS 105 Discontinuing operations
6. FRS 19 - Retirement benefit & share based payments.
7. Issues related to consolidation & groups could be a full question.
8 . Environmental reporting & human capital management
Also FRS 39 issues could be included as part of any of the issues
above

Health Warning! The examiners deliberately try to avoid question spotting. Just because a question featured last time, doesn’t mean it won’t feature this time. Use the tips as areas to have a good look at, but remember that no one knows what is in the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in your revision, as the examiner aims to do in the exam.

Disclaimer : All the above are reproduced materials,all the copyright remained to the original sources and i shall not take any responsibility towards the accuracy and reliance on the tips.

posted by Unknown @ 11:02 PM