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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!