NON-CURRENT ASSETS HELD FOR SALE: CLASSIFICATION

Under IFRS 5 Non-current assets held for sale and discontinued operations, a non-current asset or disposal group should be classified as 'held for sale' if its carrying amount will be recovered principally through a sale transaction rather than through continuing use.

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CONSOLIDATION EXEMPTION FOR A PARENT COMPANY

There are certain situations in which a parent company may not wish to consolidate a subsidiary. In this article, we are going to discuss why a parent company may wish to do so, and the circumstances in which the non-consolidation of subsidiaries is permitted by International Accounting Standards.

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ANSWER TO QUESTION 1 (JUNE 2011 EXAM) UPDATED

Since the June 2011 exam was over, there were a lot of discussions among candidates about how they have performed in the exam. Here, we provide a suggested answer to Question 1 of the exam, the core question featuring group accounting that involves two subsidiaries, one of which is a foreign entity. Due to the discursive nature of part (c) of the question, we have decided to skip answering it.

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ACCOUNTING FOR COMPOUND FINANCIAL INSTRUMENTS

A compound financial instrument is a financial instrument that has the characteristics of both an equity and liability (debt). An example would be a bond that can be converted into shares. It doesn't matter whether the bondholders will ultimately opt for conversion. As long as there is the option to convert into shares, the financial instrument would carry an equity component. 

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ACCA P2 JUNE 2011 EXAM FEEDBACK

The ACCA P2 June 2011 exam has just passed. With all sweat and tears, the exam is finally over. Please share your experiences and opinions on the paper, such as the topics being examined, your result expectations, the difficulty level, etc. Also, don't forget to vote for our poll at the bottom right of the site.

At the same time, ACCA is conducting an exam survey as well. All candidates are encouraged to participate. The closing date for the survey is 20 June 2011. You can access it here.

Will all you candidates go for a well deserved break now!

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