Financial Reporting (FR) Mar / June 2021 Examiner’s report
Where did candidates go wrong?
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| Where did candidates go wrong?
The most common error was to select that only the patent should be capitalised. Therefore, while most candidates recognised that the costs relating to the customer list should not be capitalised, many also thought that the website domain name should also not be capitalised. The costs incurred on developing this website would be subject to the requirements of IAS 38, which would include the $800,000 spent to purchase the domain name. Although certain costs relating to web design may be expensed to the statement of profit or loss in accordance with IAS 38, any costs incurred in purchasing a domain name should be capitalised as an intangible asset. Examiner’s report – FR March/June 2021 16 Section C We have selected two constructed response questions, Pastry Co and Gold Co, that are available on the ACCA Practice Platform. Pastry Co is a financial statements analysis and interpretation question for a single entity, while Gold Co is a consolidated financial statements preparation question. When using the following detailed commentary, it would be helpful to consult the questions and answers available to you here . Pastry Co Pastry Co shares similarities with recent questions examined on the syllabus area of analysis and interpretation of the financial statements (syllabus section C). The question contained both numerical information and additional information relating to two companies, Cook Co and Dough Co, that are potential acquisition targets for Pastry Co. Analysis and interpretation is an important area of the syllabus and will continue to be examined. As in previous examination sessions, most candidates failed to score high marks on this question. The reason for this seemed to be poor exam technique by not addressing the requirements or not adequately using the information in the scenario. The focus for this detailed commentary will be on getting the most out of the question, rather than simply recreating the suggested solution and will highlight the importance of using the scenario when constructing an answer to an interpretation question. tải về 0.8 Mb. Chia sẻ với bạn bè của bạn:
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