[knylam]

Jackson9: welcome

Gromit: Dear Tutor, from what I understood, for beyond budgeting, we can say the following:

E.g. The beyond budgeting concept may be used by this Company, instead of the zero-based budgets. As the name itself implies, the beyond budgeting does not involve the use of budgets, thereby leading to less resources allocated to the budget exercise.

The main concepts for BB are the empowerment of the lower level managers and a greater flexibility of the senior management level…

Then apply to the scenario, and eventually, we can say that the traditional budgeting methods can still be used (like ABB, ZBB).

Am I correct?

Many thanks.

[knylam]

Hi Jackson9,

There is no need to draw any margin.

[knylam]

Dear Tutor,

Thank you for your reply.

I have also been looking at other concepts, like ABC/ABM, I understand that by using those tools/techniques, the company will be able to achieve their strategy/objectives (e.g. adding more value to their products/service).

However, I find it hard to understand how it will affect performance management. Is it correct to say that manager will be assessed on the activities for which he is responsible – e.g. has he been able to add more value/to lead to a more effective and efficient activity/to result in reduced costs for this activity?

Meanwhile, we do not need to do this link, all the time as it will depend on the question requirements. Am i right?

Please help to confirm the above.

Many thanks.

Kny

[knylam]

Hi vee, do you have a link to the full question?

Thanks

[knylam]

hi emmalin, just had a look at the question.

Thanks.

Any last minute tips as well? just reading the notes (because not remembering them).

[knylam]

Hi kylefran,
In my opinion, the main things to be retained are the following:

1) Performance measurement focuses on results and allows users to analyze those results through charts, grids, trends, and by drilling-down to even greater depths of detail.

So, it relates to the end results/outcomes.

2) Performance management by contrast is all to do with the business processes and day-to-day actions that lead to strategic goals. This includes how management choose a particular course of action in a given business environment.

As for this one, it relates to how that outcome is being achieved; i.e. before arriving at this profit level for instance.

(Please correct me if am wrong).

[knylam]

thank you very much John, really helpful!

[knylam]

yeps, can even get both in same question.

[knylam]

No, it is applied after, so i was thinking, maybe we should derecognise the amount in the Revaluation reserve, not really sure though.

[knylam]

Yes, OCI = P & L, just after the profit for the year, and
OCE = Balance Sheet in Equity section.

So, when you Cr the Revaluation Reserve, (both takes the increase).
All the best.

[knylam]

Hi bhoornima,
For me, I assumed it is Dr Asset a/c
Cr Revaluation Reserve a/c (it is found in both the OCE & OCI)
OCE = other components of equity, which is found in the SOFP
OCI = other comprehensive income, in SOCI, right after profit for the year.
Hope that helps.
(Please correct me if wrong)

[knylam]

Hi, 1-2 lines should be enough. E.g. For this analysis, the model PESTEL will be used, which looks at Political, Economic, Social, Technological, Ecological and Legal factors.
Then, apply directly to scenario.

(Correct me if I am wrong).

[knylam]

https://www.accaglobal.com/content/dam/acca/global/pdf/sa_aug10_ba_p3.pdf

[knylam]

Hello,

In my opinion, exchg differences arise mainly due to transactions in different currencies, e.g. USD & Crowns
For instance, the foreign subsidiary purchases Inventory from Parent company, at 6,000 Crowns on 1 Jan 2001. So here you have to perform normal journal entries at the rate prevailing on 1 Jan 2001, e.g. 1 USD = 2 Crowns, then it will be USD 3,000.
Given that the subsidiary has not yet settled the amount at year end, as per IAS 21, you will have to retranslate the 6,000 Crowns, at the rate prevailing on 31 Dec 2001 (e.g. 1 USD = 2.2 Crowns), then it will be USD 2,727.
Hence, the payables (amount owed to parent) in the foreign sub fs will decrease from USD 3,000 to USD 2,727 = USD 273 which is the exchange gain, because the subsidiary will be owing less to the parent.
Hope that helps.

(Correct me if am wrong)

[knylam]

if you are referring to T a/c, I guess it should be Consolidated Cash Flow Statement, right?

[knylam]

hi, normally it is stated in the question, right? something like FVTPL or FVTOCI?

[knylam]

Hi everyone, i think we should just try to chill and if we don’t know in exam, try to write something that makes sense, we can still get 1 or 2 marks and pass! 🙂

[knylam]

hi i guess it should be the updated one, even though not effective yet, it has already been issued.

quick question: when answering questions in Section B, it does not have to be exactly the same wording, right? so long as we justify ourself, we should get marks.
thx

[knylam]

Hi, you should look out for the following sentences:

1. it is group policy to value non-controlling interest at its proporationate share of the fv of the subs identifiable net assets – this means partial

2. the group uses fair value method to measure nci, then it is full goodwill

hope that helps.

[knylam]

hi karmuks,
yes, mainly because then all the risks (not getting paid by debtors) and rewards (every debt has been paid) goes to the Bank,
As such, Robby would have to derecognise the financial asset in its FS.

[knylam]

hi, the treatment is because Robby has made the wrong treatment by derecognising the receivables.
the risks and rewards of ownership have not been transferred to the bank, as Robby promised to pay the bank for any shortfall.
So Robby cannot derecognise the receivables;

that is why Dr trade receivables, and Cr the 3.6 as a loan.

(Correct me if am wrong).

[knylam]

hi, the 2/3 is actually the months.
it’s 12 months (for the period 1 June 07 to 31 May 08) divided by the whole vesting period, i.e. 18 months (1 June 07 to 30 November 08).

correct me if am wrong.

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