ACCA P2 Dec 2007 Q 4 International conceptual framework

The question 4 in ACCA P2 exam tends to be easier than 2 and 3 in section B. It is usually a current issues question. To be highly scored on this question, you need to plan your answer, use the headings and short paragraphs for every sensible point.

Question 4 December 2007

International conceptual framework

25 marks * 1,8 minutes = 45 minutes.
15 minutes to read&understand question requirements and plan the answer
25 minutes for write 25 reasonable points
5 minutes to revise the completness of your answer under plan

You can download the past exam papers www.accaglobal.com

Q4 The IASB has begun a joint project to revisit its conceptual framework for financial accounting and reporting. The goals of the existing frameworks and converge them into a common framework.

Required:
a) Discuss why there is a need to develop an agreed international conceptual framework and the extent to which an agreed international conceptual framework can be used to resolve practical accounting issues. (13 marks)

b) Discuss the key issues which will need to be addressed determining the basic components of an agreed international conceptual framework. (10 marks)

Appropriateness and quality of dicussion (2 marks)

Q4 (a) 13 marks

(1) Convergence

Useful Mnemonics for ACCA P1 Governance, ethics and risks

Preparing for exams, I have noticed that such enormous amount of new information is not able to be retained in my mind (!) How to improve the memory? The answer of this question is given by mnemonics. Many of teachers at Opentuition, BPP & LSBF use this technique in their lectures to improve the memorizing of their students.

I have collected some useful mnemonics for ACCA P1 Governance, ethics and risks. Hope it facilitates you to remember the relevant. :)

Ethical principles
PrOFIT

Probity
Openness
Fairness
Integrity
Transparency


Internal controls - categorisation
OPA SPAMS

Organisational Controls

• Control over the organisation structure including managers having specific responsibilities and delegations tasks.

Authorisation

• Controls to ensure that transactions do not proceed until an appropriate individual has given approval.

Physical

• Protection of assets against theft, unauthorised access or use.

Supervision

• Oversight of work of other individuals to ensure tasks are carried out correctly.

Personnel

• Controls in place to ensure the suitable people are employed.

Arithmetic Accounting

• Checking accounting transactions for accuracy, includes use of accounts and reconciliations (e.g. bank reconciliation).

Segregation/rotation

• Different people for each transaction to – Authorise, Record, Maintain physical custody of any assets (i.e. petty cash), pay for it.

Management Controls

• Control actions taken by management depending on the contents of reports received. Managers should be involved in the day to day supervision of staff.

Internal control - objectives

SCARE

Safegard Assets

Comply with Laws&Regulation

Accurate Financial Information

Reduce Fraud

Efficient Business

Corporate governance - concepts

HAIR DRIFT