June Exam preparation
May 2024
Announcements
June Exam- Assessment Opportunity 3
Scope- Unit 1- 14
Marks- 120
Venue- Exam timetable
Time- 12:30
Write the correct exam number and bring all necessary stationary.
Consultations will be communicated on Moodle
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First semester units
Unit1- Theory questions
Unit 2: Conceptual Framework
Unit 3: Presentation of Financial statement
Unit 4: Property, Plant & Equipment
Unit 5: Investment property
Unit 6: Impairment of Assets
Unit 7: Income tax
Unit 8: Revenue
Unit 9: Lease
Unit 10: FOREX
Unit 11: Borrowing cost
Unit 12: IAS 37
Unit 13: Employee benefits
Unit 14: Accounting policies, Change in accounting estimates and Errors
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Exam Technique
Exam technique
1.Time management:
❖Give enough points to score the marks in the question and move on.
❖Be efficient and logical when it comes to how much they write, mark allocations be your
guide.
❖Writing speed is something that is practiced before the test, not during the test.
❖Show workings (calculations) clearly.
Show every step of your calculation on your script. Markers do not take out a calculator and try to figure out what
you punched in your calculator.
❖Understand the required ensuring you are answering what has been asked. Not for effort.
Therefore, if a question asks for journal entries and you give a discussion as your answer,
you earn no marks.
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2. Integration
❖As the year progresses the test questions become more and more integrated but As the year progresses the test
questions become more and more integrated. Just practice.
3. Study technique
❖Study everything that is examinable and aim to be competent in everything. Ensure all Tash’s focal point are mastered.
❖Practice question banks under exam conditions.
❖Have a study plan.
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Unit 12: Provisions, Contingent Liabilities &
Contingent Assets
Unit 12- Provisions, Contingent Liabilities & Contingent Assets
• Definition of:
➢ Provision
➢ Contingent liability
➢ Contingent asset
➢ Liability
➢ Obligating event
➢ Legal obligation
➢ Constructive obligation
RECOGNITION
A provision will be recognised when:
a) an entity has a present obligation as a result of a past event;
b) it is probable that an outflow of economic resource benefits will be required to settle the obligation; and
c) a reliable estimate can be made of the amount of the obligation.
No recognition for Contingent liability and contingent asset but disclosure
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Unit 12 continues…
• MEASUREMENT
➢ Best estimate of the expenditure required to settle the present obligation at
➢ the end of the reporting period
➢ Measured before tax
• Best estimate takes into account
➢ Risk and uncertainties
➢ Future events
➢ Expected disposal of assets
Changes in provisions
Provisions must be reviewed at end of each reporting period and adjusted to reflect the current best estimate.
Reversed if no longer probable.
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Unit 13: Employee benefits
Unit 13- Employee benefits
Different type of employee benefits
1. Short-term
2. Post employment benefits
3. Termination benefits
4. Other long-term benefits
Use of provisions
➢Provision shall be used only for expenditures for which the provision was originally recognised.
Future operating losses
➢ Provisions shall not be recognised for future operating losses.
Tutorial videos
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Unit 14: Accounting policies, Change in accounting estimates
and Errors
Accounting policies, Change in accounting estimates and Errors
Accounting policy-
• Adoption of specific principles bases conventions rules and practices by entity when preparing & presenting
financial statements, (retrospective approach)
Estimate-
• Estimation involves judgements by management based on the latest reliable information that is available when
the financial statements are prepared, (Prospective application)
Prior period error-
• Are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods
arising from a failure to use (or misuse) reliable information that was available when the financial statements
for those periods were authorised for issue and could reasonably be expected to have been obtained and
taken into account in the preparation and presentation of those financial statements. (Retrospectively)
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Question(s)?
