Today I heard that people say auditors are petty, particular, calculative and analytical. In this thread, it is proven true.

I think we have a tendency for missing the whole point, as ACCA students generally. I've begun to hear strange things about what people think of ACCA.

Some start to say that they now find ACCA very much a commodity, at least amongst fellow auditors. For ACCA students who went straight to the tuition centers without degree (aka CAT-ACCA programme), they've been known to lack presentation ability. (broad generalization)

PwC for instance, from what I heard, prefers Australian/UK graduates over M'sia ACCA (sunway or not, makes no difference to them). So actually, in all honesty whether you are from Sunway or not should logically make no difference.

I personally suspect the reason being, pure ACCA students have a strange view of the world. As if the world owes them things...

Now, I am not saying ACCA is bad. Just it's Malaysian students generally aren't as good as overseas grads at speaking english, and given our ACCA culture of spoonfeeding by lecturers, we aren't the best at research either.

So, in a dynamic environment, we generally aren't really the best equipped to deal with it, (living and thinking skills wise).

(Again this is just a broad generalization on what people have told me of what they think of ACCA grads, especially SPM-CAT-ACCA ones, so if you feel offended, I'm very sorry)

well, i don't think i need to say that it's a broad generalization, thus there's always exceptions? (please, read everything before commenting, thank you.)

generally, that happens in the case of very specific industires, where the nature of the business means applying standards will lead to rather distorted figures..

i've so far not heard of any, but it's possible to speculate in the case where perhaps the use of fair value as a measure of value is invalid in the case of IAS39 financial instruments. (aka stock market bubble etc, where the market price doesn't reflect the fundamental value of the stock) (i'm speculating)

but usually, if there was a problem, they'd probably come out with a standard, and if they didn't US GAAP would've covered it.

I assume preference dividend is issued out by the subsidiary, and 70% is subscribed by MI, 30% is by the parent company.

Thus, under such circumstances, the point of calculating MI is to find how much of your subsidiary's profits are attributable to MI. (aka in line with how it is financed).

We do not minus ordinary dividend, because any ordinary dividends issued or not is in the same proportions as your share of ownership in the company, so if you DID minus, it would've been the same.

Example:

PAT - 50
Pref div - 10
Ordinary div -10

NET = 30.

Of which, pref dividend * 70% = 7
+ Ordinary dividends of which 20% is paid to MI = 10*20% = 2
+ NET * 20% = 6

= 7 + 2 + 6 = 15.

So, whether u minused or not, it will be the same amount, because that is the amount attributable to them.

We minus preference dividends ONLY, is because it's often subscribed by MI in different proportions to the PARENT"s share of ownership in the subsidiary, whereas ordinary dividends is almost always paid out in the same proportion as the parent's ownership.

that is true, but in this case, he is trying to calculate the amount paid to MI, in this case, preference dividend needs to be deducted from subsidiary's profits to find the [net profit after preference dividends] = A, and from A * (NCI's share of A) = B

B + Preference dividends * NCI share of pref div = amount of profit attributatble to NCI

simple, assume revenue accrue evenly, divide the period into 60% periods, and the 80% period.

say 30/9/X8 they up it to 80% from 60, y/e 31/12/2008, for 9 months, MI has 40%, and for the remaining 3 months, MI has 20%. total MI for the year = Pft for 9 mths * 40% + pft for 3 mths * 20%

(this is standard assumption only la)

hahaha, yeah.. it is. but i've called it MI for so long I can't help but not call it MI

In cases like this, having some business sense helps hahaha. I guess you can start by talking to people, how they do business. Sometimes even hanging out in mamaks listening to how ppl do business might be more helpful than memorizing There's this practical aspect to P3 that if you can know how it relates, the models become natural.

1. First, reversal entries.

On consolidation, the inter-co sale doesn't exist.
Thus, Dr Consolidated PL 10k, Cr Asset 10k.

Then, because of the inter-co sale, S would've charged higher depreciation.

So, 25k (new NBV) -15k (original NBV) = 10k * 20% (depreciation rate)

Dr Asset 2k
Cr Consol PL 2k * 75%
Cr NCI 2k * 25%

===

2. When did S transfer the asset? Otherwise I can't answer for u.

===

3. 1st, as always, reversal entries.

Dr Consol PL 5k * 60% = 3k
DR NCI 5k * 20% = 2k
CR NCA 5k

Then, Excess Depreciation Adjustment

(URP on asset/EUL = 1k p.a.)

Dr NCA 1k
CR Consol PL 1k

NCI = MI = Non-controlling interest.

For q2, if the dates are the same, there will be no adjustment for both P or S, whichever way the transfer goes.

F7? Let me tell you how I did F7. Practice. Lots of bloody practice. And also, get your double entries right.

No accountant has ever got anywhere significant, without knowing his double entry like the back of his hand. Fundamental knowledge of the dual impacts of any transaction will make you get through tax, revaluation, impairment, consolidation like eating good tau fu fa.

Once you know it by heart, F7 is one of those few papers you can get out feeling very confident, and your confidence won't be disappointed.

generally a point to note is :

Stock turnover ratio. Low turnover may mean low popularity of product (or might be due to the nature of the industry).

Leverage: Higher leverage may mean the company is vulnerable to low trenches in cyclical industries, or low leverage may mean company not expanding aggressive enough.

Then, there's generally a lot of industry specific ratios that u may want to note as and when u see the questions, such as airlines would be passenger-mile , or in hotels, room-nights/occupancy rates...

-
Also, generally u should keep note of cash levels. Usually can b a very good area to elaborate on how secure the entity's short term future is.

shows how hard each paper is

not necessarily he is from sunway. such a flow is actually quite commonly available throughout, most IAS32/39 lecturers and explanations from accounting bodies adopt a similar flow.

No such thing, at least to my knowledge. You can take as many paper as u like whether ur part time or full time.

has anyone noticed the profileration of ACCA or accounting related topics in both EE and Jobs/Careers? There seem to be alot of people doing accounts...

I guess it's too late for me to get out of the cramped field now..

Topace111, elaborate. I don't see how overcrowdedness in a particular field ties in to whatever you are saying.

You seem to me to be saying that ACCA gets you employed, but doesn't get you promoted.

I don't see how that's related to the soon-to-be (it's coming.. given the trend of people taking accounts now, I say in about 4-5 years we'll have too many) over-abundance of accountants

Not saying you are wrong btw, just would like you to explain whatever you saying in more detail.

not to brag.. but i've done 4 papers all my life. 2.1-2.4, f7/f7/p1/p3, and p1/p/2/p4/p7. erm... tiring.. sort of.

my dear, you'll feel like cheap labour in audit too