FIN 214 Candidates As candidates progress with their study this week they should be attempting to engage with Unit 17 and 18 if they are trying to keep with the Institute timeline. Unit 17 looks at two (2) Standards on Joint Arrangements and Equity Accounting. Similar to Unit 16 questions across these areas are generally that theory style of identifying the accounting treatment that should be applied re joint control or significant influence for smaller marks or journal entry / calculation style for larger marks. From the theory style if we were to bring together Unit 16 and 17 that would mean that candidates should be confident when they walk into the exam to identify from a set of background facts whether control, joint control or significant influence exists. It is important to appreciate however that where candidates can get caught with this style of question is that they consistently hear that if you own over 50% you are presumed to have control or if you own between 20% and 49% you have significant influence. Unfortunately the specifics of the Standards make no such overriding statement so to generate marks candidates need to talk in terms of the power to participate in operating and financing decisions and the like.Once again however this is another of these areas where candidates tend to resort to quoting the Standard than actually applying the facts of the question in response. Candidates may be interested to know that even if you just take the last three (3) main exams we have had a control (FIN 313 Question 4 Part A), joint control (FIN 113 Question 4 Part A) and joint venture / equity accounting (FIN 212 Question 4 Part A) question in each of these exams. typical feedback from the Institute is that candidates could have a done better job in answering.
Posted on: Mon, 25 Aug 2014 05:44:47 +0000
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