[accm]

I think suitability of either p4 or p5 depends on specialisation you want to take in your career, for example if you want to become a financial analyst its better to consider p4. Thats wat i think.

[accm]

thanks Ansi

[accm]

good job Ansi

[accm]

thanks Ansi

[accm]

thats very true practice is working for me although it needs a lot of hours per day so as to cover ground

@mikelittle said:
hi – the only thing I can suggest at this ( late ) stage is question practice. Satrt with the “preparation questions” from the revision kit and work your way up to exam standard questions. Seriously, the more you practice the same “moves” the more automatic it becomes and, at the same time, the clearer will become the logic behind it. Don’t get put off by the little idiosyncracies within individual questions – there’s always something a little bit out of the ordinary. Don’t let those “bits” put you off.

Try a couple of questions before you post again and, if you’re still needing an explanation of any parts of those “couple” then post again and I’ll try to explain them for you

[accm]

I have also read that the question format is going to change, however, can you please send me the updated BPP revision kit with questions with the new format.please help!

email: mushangr@ovi.com
thank you

[accm]

did anyone get the june 2011 bpp mock papers. if so pls can u send to me at
mushangr@ovi.com

[accm]

did anyone of the june 2011mock exam Bpp group get the mock papers. if so pls can u send to me at mushangr@ovi.com

[accm]

@ I jah man, these are audit procedures which are carried out by the auditor to confirm financial statements assertions.

Financial statement assertions are classified into the following five:

1. Existence: The assertion on existence is made to check whether the specified assets and liabilities are present at the given date. It is also required to check that the transactions that are recorded took place at the specified date. In order to test these items of the financial statement, it is not sufficient that only books are consulted which record the assets or the liabilities. There should be proof of the existence of the physical assets or liability. For checking existence help is also sought from outside.

2. Completeness: Checking completeness of a financial statement is to analyze whether all the transactions that are already given in the financial statement are rightfully included. In order to abide by the completeness assertion, the auditors prove with the help of sufficient evidence that all the recorded transactions deserve to be included. This is further supported with an external document so as to provide evidence regarding the occurrence of the transaction.

3. Valuation: Valuation basically checks whether the different components of the financial statement have been included in the right proportion. The components are assets, liabilities, expense and revenue. The auditor does this with the help of GAAP.

4. Rights and obligations: This is to check whether the assets that are included in the financial statement are the rights and the liabilities are the obligations of the company. In order to ensure this, sometimes special purpose entities are created.

5. Presentation and Disclosure: This assertion is to ensure whether the items in the financial statements are classified in the right way. It is important to check that the account balance is calculated as well as disclosed properly.

Auditors decompose these broad assertions into a detailed set of statements referred to as management assertions, separated into three categories:

1.Transactions:

Occurrence: The transactions actually took place
Completeness: All transactions that should have been recorded have been recorded
Accuracy: The transactions were recorded at the appropriate amounts. This is not an assertion in Voyager.
Authorization: All transactions were properly authorized
Cutoff: The transactions have been recorded in the correct accounting period
Classification: The transactions have been recorded in the proper accounts

2.Accounts balances:

Existence: Assets, liabilities and equity balances exist
Rights and Obligations: The entity holds or controls the rights to its assets and owes obligations to its liabilities
Completeness: All assets, liabilities and equity balances that should have been recorded have been recorded
Valuation and Allocation: Assets, liabilities and equity balances are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.

3.Presentation and disclosure:

Occurrence: The transactions have occurred
Rights and Obligations: The transactions pertained to the entity
Completeness: All disclosures that should have been included in the financial statements have been included
Classification and Understandability: Financial statements are appropriately presented and described, and information in disclosures is clearly expressed.
Accuracy and Valuation: Financial and other information is disclosed fairly and at appropriate amounts

[accm]

thanxs much mrfaizankhan, I was also unclear.

[accm]

Hi guys
i was want to be part of the discussions but i didnt see the leasing question on this forum where was it posted.

[accm]

will the technical articled published in the student accountant appear in the June 2011 exam?

Was anyone able to download the latest technical April 2011 articles for P7 from the ACCA website, if so, can you please email me the articles because when i tried to download there was an error message saying the files were damaged.my email is mushangr@ovimail.com

[accm]

Does anyone have the p7 rev kit.my email is rmushangwe@gmail.com

[accm]

Thanks,its now clear.

[accm]

Hello,

how were the revenue, variable costs and fixed costs figures calculated for the number 1 question (Westamber Hospital) of the Pilot paper, December 2006 which on ACCA’s website, the past exam question?

The information on the question is as folows:

The Westamber Hospital (‘Westamber’), which is partially government-funded, specialises in the provision of ear,
nose and throat operations for patients in Zonderland. Its mission statement states that the hospital ‘is committed to
providing high quality healthcare to all patients’. Westamber provides treatment to private fee-paying patients as well
as to patients who are funded by the government.
Relevant operating data for Westamber for the year ended 30 June 2006 is as follows:
(1) The budgeted mix of operations
Type of operation % of total operations
Ear 30
Nose 30
Throat 40
(2) Fees (budget and actual) payable to Westamber in respect of each patient who received treatment from the
hospital
Fee payable by private patients Fee payable by government
Type of operation: ($) ($)
Ear 3,000 2,000
Nose 4,000 3,000
Throat 5,000 4,000
It was budgeted that 50% of patients (for each type of operation) would have the cost of their operations funded by
the government because under existing legislation they earned what the government defined as a low income.
(3) Budgeted costs for the year based on 100% capacity utilisation
$000 Variable cost (%) Fixed cost (%)
Surgical 35,400 25 75
Nursing 38,000 30 70
Depreciation 31,700 – 100
Administration 33,250 – 100
Sundry 35,750 20 80
Variable surgical costs include a total amount of $1,000,000 in respect of operations undertaken on an emergency
basis.
(4) Actual costs incurred during the year
Variable costs ($000) Fixed costs ($000)
Surgical 8,284 26,550
Nursing 2,224 25,600
Depreciation 21,700
Administration 23,412
Sundry 1,116 24,912
Note: (i) $800,000 of the variable surgical costs related to the provision of emergency operations.
(ii) The proportion of emergency operations as a percentage of total operations was as per budget.
(5) Westamber had no loan finance during the year.
(6) A recently qualified accountant employed by Westamber has stated that “it is obvious that the mix of government
to private patients mix is the key determinant of profitability. Next year it looks as if demand for total operations
will exceed our available capacity and therefore we should give priority to private fee-paying patients as we receive
more fees from them for each type of operation. It is as simple as that since there aren’t any ethical issues to be
considered”.
(7) Other statistics relating to Westamber (all stated on an ACTUAL basis):
Capacity utilisation (%): 80%
Patient mix (%) for each type of operation:
Government-funded patients 75%
Privately-funded patients 25%
Operation mix (%):
Ear 35%
Nose 30%
Throat 35%
Eastgreen Hospital
Eastgreen Hospital (‘Eastgreen’), is a privately owned hospital which also specialises in the provision of ear, nose
and throat operations. All of its patients are responsible for the payment of their own fees. Eastgreen does not
undertake operations on an emergency basis.
The summary income statement for Eastgreen on an actual basis was as follows:
$000
Fee income 36,000
Costs:
Surgery & nursing 25,000
Depreciation 3,400
Loan interest 500
Administration and sundry 5,100
Total costs 34,000
Net profit 2,000
(i) Eastgreen operates comparable accounting policies to those of Westamber.
(ii) The income of Eastgreen is derived from the provision of an annual healthcare scheme. Each patient pays
$100 per month under a fixed term contract of three years. All contracts were renewed on 1 July 2005. There
were 30,000 contracts in existence throughout the year. Note: Contracts can only be entered into on 1 July
in each year.
Each hospital is comprised of 15 wards, each of which can accommodate eight patients. The average patient
stay in both hospitals was three days. Each hospital is open for 365 days per annum.
Required:
(a) Prepare a statement, in columnar format, which shows comparable actual and budgeted results for Westamber
for the year ended 30 June 2006. (14 marks)

I saw the solution but could not see how they came up with the answer. workings were not shown.

[Author]

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