Presentation AAFR 2009

8/14/2019 Presentation AAFR 2009

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AhsanAnis

MuhammadShujaatBhatti


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CourseOverview Area (%)FinancialStatementsReporting/IASandStatutoryRequirements

30

SpecificAccounting Areas

AnalysisofFinancialStatements 15

SpecialisedFinancialStatements 10

100

The weightages given above are for guidance purposes only and

deviations in setting of papers may be expected.


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Successfactors Planning:

Preparation

Revision

Attempt80%ofthe80%


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Planning

Factorsto

consider

while

planning

Preparation/Revisionofotherpapersatthesametime

Workcommitments

Family

and

social

circle

SleepandFun!

Contingencies

Monitoringyourplanisasimportantasplanningitself


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Preparation:DiscussiononCourse IAS+IFRS+SIC+IFRIC+Framework

SpecialisedFinancialStatements

RatioAnalysis

ValuationofCompanies

StatutoryandDirectorsreport

Disclosurerequirements

under

CO84

(4th Schedule)


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Frameworkforthepreparationand presentationofFinancialStatements

Underlyingassumptions

DifferentMeasurement

Basis

Conceptsofcapitalmaintenance(Financial+Physical)


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IAS1

Components

of

FS Goingconcern/Accrual/Materiality

Comparativeinformation

Reportingperiod

Statementof

Financial

Position

/current

/non

current

/contents/Infotobepresentedonface

StatementofComprehensiveincome/Classificationofexpensesonbasisoftheirnatureorfunction(Pakistan)

Statementofchangesinequity

Capitaldisclosures(e.g.ifminimumcapitalrequirementsapply)


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IAS7 Pastpaperspractice

Effectofforeigncurrencytranslation

Consolidation(Appendix

may

help)

IAS8

Change

in

Accounting

policy

/

estimate

and

disclosure WhattodoifIFRSissilentontheaccountingtreatmentofa

particulartransaction

IAS11

Differentmethodsofrecognisingcontractcostsandrevenues

Lookforthespecificrequirementinexam,otherwiseusethemostsuitablebasis


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IAS16

Elementsofcost

Exchangetransactions/concept

of

commercial

substance

Startofdepreciation

Residualvalue

re

assesments

Revaluation

Derecognition

IAS18

Appendixisimportant

Concept

of

pre

acquisition

dividends

eliminated


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IAS19 Definitions

Exampleswithinstandard

Insuredbenefits(Qualifyinginsurancepoliciesandreimbursementrights)

Transitionalprovisions

AppendixAandC

AppendixBfordisclosure

IAS20

Definitions Immediaterecognitionincertaincases

Grantrelatedtoassets/income

RepaymentofGovernmentgrants


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IAS24

SomeapparenttransactionsmaynotbeRPtransactions

(refer

standard) Practicethroughadisclosureinamanufacturing

concernsfinancialstatements


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IAS26 Disclosurerequirementsfor:

Definedcontributionplans

Definedbenefit

plans

Valuationofplanassetsatfairvalue

IAS29 Theconceptofhyperinflationaryeconomy

HistoricalcostFinancialStatements BalancesheetandP/Lstatedintermsofmeasuringunit

currentat

Balance

Sheet

date,

i.e.

applying

ageneral

price

indexforinflationimpact

GainorlosstoberecordedinP/Landdisclosedseparately


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IAS32

Definitions

Differencebetweenequityandliability testofequity

Example9


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IAS39

Definitions

Embeddedderivatives

Regularwaypurchase/sale

Subsequentmeasurement/Gainsandlosses

Reclassification

Impairment

Derecognition(summarised)

Hedging

Calculationof

IRR

SomeexamplesfromImplementationGuidance

IAS39isnotapplicableonbanks


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IAS33

Doexamples!Must!

IAS34

Minimumcomponents(condensedFS)

Selectedexplanatory

notes

Periods

StatementofFinancialPosition,comprehensiveincome,cashflow,SOCE

Restatementofpreviouslyreportedinterimperiods

AppendixBandCimp


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IAS37

Definitions

Restructuringprovisions

Discounting

Appendix

IAS38

Intangibleassetswithindefiniteusefullives

Illustrativeexamplesonassessingtheusefullivesof

Intangibleassets


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IAS40

Notapplicableonbanks

Conditionsfor

classifying

assets

obtained

on

operating

leaseasInvestmentProperty

ExamplesofInvestmentproperty

Fairvalue

model

/cost

model

IAS41

Applicablein

Pakistan

now

ReadallandalsodoExample2


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IFRS1

Notimportant.Dealswiththefirsttimeadoption.

IFRS2

AllExamples.Mayskipex9.

IFRS4

Notimportant

IFRS5

Examples


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IFRS6

Measurementatandafterrecognition

IFRS8

Criteriaforidentifyingoperatingsegments

Disclosure


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Interpretations

SIC

15 Incentives Operatingleases

32 websitecosts

IFRIC Consensuspartisimportant

1 Subsequent

changes

to

Decommissioning

/Restoration

Liabilities

4 Determiningwhetheranarrangementcontainsalease

7 ApplyingrestatementapproachunderIAS29(notveryimportant)

10 InterimFinancialReportingandImpairment

15 Agreementsfortheconstructionofrealestate(para1019)

17 DistributionofNoncashassetstoowners


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Consolidation

CIMAstudytextforpreparation

Past

papers

BPP SelectedquestionsfromACCA3.6revisionkit

IAS27+IFRS3+IAS28+IAS31+IAS21

Practice!

Corroboratewiththeoryofthesestatndardsatthetimeofpractising


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ImportantareasforfocusConsolidation

Simplegroups

Complex

groups,

foreign

currencyconsolidation,cashflowconsolidation

Adjustment

PURP Purchase

and

sale

within

the

group

Theabovemayincludeinventory,fixedassetoranyotherthing

Everythingthathastodowithsubsidiaryshouldeffectminority

Fair

Value

adjustment ImpairmentofGoodwill

Eliminationofintracompanybalances


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Consolidation simplegroups(cont.)Rsin'000

Costofinvestment xxxLess:Fairvalueofassetpurchased xxxGoodwill Partial(a) xxx

FairvalueofNCI xxxNetassetsinNCI xxxGoodwill NCI(b) xxx

TotalGoodwill(a+b) FullGWmethod xxx


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Costofinvestment Everythingyougiveatfairvalue Market

price

of

shares

given

Presentvalueofanypaymenttobemadeafteracertainperiodoftime Allcontingentpayments tobeaccountedforatFV Anylongtermsloanswithoutinterest repaymenttermsare

accountedforasinvestment Less

any

divided

received

from

pre

acquisition

profits

Transactioncostnottobeexcluded

Fairvalueofassetpurchased Everything

you

take

at

fair

value

Identifycontingentliabilities Identifyintangibles

Fairvalue

of

NCI Marketvalueofsubsidiarysharestimesthenumberofsharesheldby

NCI InexamseithertheGWofminority,ormarketpriceofsharesor fair

valueofNCIwouldbegiven


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Peacemealacquisition

Rsin'000Costofinvestmentof40% 1000Add:Fairvaluesharegivenup10%and20% 300Total

COI 1300

Less:Fairvalueofassetpurchased 800Goodwill Partial(a) 500

Peacemealacquisition


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DeferredTaxNormaltaxcomputationAccounting

income XXX

Add:AccountingDepreciation xxxLess:TaxDep xxxADD:Provisionforgratuity xxxLess:Actualgratuitypayment xxxADD:Deponfinancelease xxxLess:LeaseRentals xxxAdd:DonationUnapproved xxxAdd:Penalties xxxTaxableIncome XXX

Givesriseto

deferredtax

Permanent

difference


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SpecialisedFinancialStatements


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TACKLINGTHEPROBLEMAREAS


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TACKLINGTHEPROBLEMAREAS

Groupstudy

for

technical

/complex

areas

Makestudyinginterestingandfun

Makeacronymsforpointswhicharedifficulttolearn

MakeFlashcardsandmindmapswhichwillhelpinrevisinglengthyareasquickly

Donttrytolearnitinonego.Reviseworkalreadylearnt


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Examinationtechniques Controllingnervesduringpreparationisthekey

Ifthepaperisdifficultitissameforallthestudentsandthereforethedifficultquestionsinthepaperdonotdetermineyoursuccess.

Arriveearlyattheexamtoavoidpanic.Willithelptochatto otherswhilewaiting,or

make

you

more

nervous

Intheexam,spendthefirst5minutesreadingthepaper.Makesureyouunderstandtheinstructionstoanswertherightnumberofquestions.Decidewhichquestionstoanswer.

Itisimportanttounderstandthequestionandanswerwhatisasked.Underlinekeyand'instruction'words.Youwillnotgetmarksforanirrelevantanswerevenifitisexcellent.


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ExaminationTechniques Trytoavoidquestionswhichcontainawordorphraseyoudon'tunderstand.

Decidehowlongtospendonaquestion(asperitsmarksallocationandasperthetimegainedonattemptingeasierquestions),stopworkingonitwhenthattimeisup,returntoitifyouhavetimetospare.

Thefirst50%ofthemarksaretheeasiesttoget;thenext25%areharder;thelast25%arethehardest.Ifyourunoutoftime:twohalfanswersmaygetmoremarksthanonefullone;jotdownthemainpointstoincludewhiletheyareinyourmindandreturnlater.

Attemptmaximum

questions

Supportyouranswerwithcalculations(evenifroughones)!

Present!


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Examinerscomments Selective

study

JUSTgivingreferencesisnotsufficient

Poorpresentation

Useofopenbookassessment


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Caveats

ALLCOURSEMATERIAL,STUDYTECHNIQUES,KEYAREASEMPHASIZED DURING THIS WORKSHOP REPRESENT

PRESENTERS OPINION

AND

IT

IS

NOT

ENDORSED

BY

ICAP!


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Thankyou&GoodLuck!

Documents

Presentation AAFR 2009