ahtfulal wrote: » Anyone else think the cases are pure waffle? Like I tried writing one myself there out of boredom..... You are Ipee Freely, newly qualified accountant. It's a miserable day to start your first day in your new company "Fiddlesticks" the forecast gave for warm sunshine with the chance of the odd light shower but "oh bol**x" you thought to yourself as the lava started spilling from the volcano high above the town. Just as your about to make a pee in your pants from the sight of the erupting volcano your new boss Sammy "big mac" McGee calls "Story Ipee it's Sammy here, what's sizzling my friend? I need a favour lad on your way into the office. 2 bacon rolls, pint of milk, 4 bottles of water and some ice creams because I hear it's gonna be a hot one today" Sorry couldn't finish case because volcano reached town and everybody perished including big mac and Ipee.
Fiona44 wrote: » Great thanks a mill!:) Sorry, I have another question someone might be able to shed some light on - In the first case in the auditing elective they change the method of valuing inventory from FIFO to the retail method. And in the solution it says that this is not a change in accounting policy. But in other examples I have it says that changes in inventory valuation (specifically from LIFO to FIFO or from FIFO to weighted average) DO constitute a change in accounting policy. Im assuming the sample solution is right so how come it isnt a change in policy does anyone know?!
ahtfulal wrote: » Don't be such a dry s***t accountant backtothebooks. Not being smart or anything but its alright to have a sense of humour! Not all about getting exams.
Jamesw2 wrote: » Fiona44 wrote: » Great thanks a mill!:) Sorry, I have another question someone might be able to shed some light on - In the first case in the auditing elective they change the method of valuing inventory from FIFO to the retail method. And in the solution it says that this is not a change in accounting policy. But in other examples I have it says that changes in inventory valuation (specifically from LIFO to FIFO or from FIFO to weighted average) DO constitute a change in accounting policy. Im assuming the sample solution is right so how come it isnt a change in policy does anyone know?! Does anyone have an answer to this??
Maps2011 wrote: » If nobody wants to post their timetable publicly the please pm it to me. Much appreciated - trust me.
Nidot wrote: » From my understanding this qualifies as a change in accounting estimate. Under IAS2 - Inventoies you can calculate inventoru value based on several methods ( weighted average, fifo, retail method - lifo not perscribed for usage) therefor changing which method to use is a change in accounting estimate rather than a change in accounting policy as you're still using IAS2 for inventory valuation. Thats my interpterpretation on it but i'm open to correction.
Choc Chip wrote: » I'd be happy enough treating a change from LIFO to FIFO as correction of an error. You're not permitted to value inventory using LIFO under IAS 2 so the change to FIFO would be correction of the previously erroneous treatment. I wouldn't worry about it - it'll prob be a tiny part of one indicator..
Jamesw2 wrote: » NOT GOOD ENOUGH. CHANGE FROM FIFO TO RETAIL METHOD HAS TO BE A CHANGE IN MEASUREMENT BASIS APPLIED THEREFORE POLICY CHANGE NOT CORRECTION OF ERROR. THERE HAS TO BE A CORRECT ANSWER (DOESN'T THERE!!!!!)
Nidot wrote: » James, take a walk and come back when you're not going to be shouting at people using large text. This thread is for people looking to help eachother with FAE's, it's not after hours.
Fiona44 wrote: » So the standard says that "a change in measurement basis" is a change in accounting policy. Then the sample solution given for simulation 1 in the auditing elective mock paper says: "The new system for determining the closing stock is attempting to approximate precisely the same result using a different estimation method. Hence it is NOT a change in accounting policy."My understanding of the above (after giving it a bit of thought!) is that the measurement basis has not changed - ie. the inventory is still being MEASURED at the lower of cost and NRV in accordance with IAS 2. But the way that the cost is being ESTIMATED has changed - so a change from say weighted average would be a change in accounting estimate and not policy. As regards a change from LIFO to FIFO, as LIFO is specifically disallowed this would be the correction of an error.
Ciara471 wrote: » Apologies if it's been asked already but does anyone have a link for the tax rates for 2011 and the indexation tables? Can't find them anywhere
ahtfulal wrote: » Think you're right there spoofer, the less the better, bringing in too much stuff is a distraction more than anything. The main thing is understanding what's going down in the case and relating ur answer back to that particular case. This is the main skill they are looking for to pass these exams and one which cannot be found in any book! Your right also about summarising super 6 in a folder, it's a good idea to whip this out for guidance. Also thing it's important to note what indicators are being asked as you make ur journey through the cases. It seems likely that there will be 2 audit and 2 tax indicators over the 2 days. So at least if you spot these and answer them well you will get a nice buzz. Business leadership is going to be the fly in the ointment!
Fiona44 wrote: » So the standard says that "a change in measurement basis" is a change in accounting policy. Then the sample solution given for simulation 1 in the auditing elective mock paper says: "The new system for determining the closing stock is attempting to approximate precisely the same result using a different estimation method. Hence it is NOT a change in accounting policy." My understanding of the above (after giving it a bit of thought!) is that the measurement basis has not changed - ie. the inventory is still being MEASURED at the lower of cost and NRV in accordance with IAS 2. But the way that the cost is being ESTIMATED has changed - so a change from say weighted average would be a change in accounting estimate and not policy. As regards a change from LIFO to FIFO, as LIFO is specifically disallowed this would be the correction of an error.
