2012 Unit 4 Exam Discussion- How was it?

[Toto.]

The scale in dollars on the right was just terrible - very difficult to interpret the figures :/

It has been a long day... Accounting and Spesh :S

I thought Question 3 was straight forward but very confusing. Im not sure who said it before, but to have a "paid" amount in an income statement is surely not a way to "test" students, its just a poorly formatted question, although not too hard.

That would be me as well as liverpoolxD (I ranted on for about a page before). Yeah, it wasn't difficult, it's just really badly formatted. It was something different from the usual accounting exams. But really poorly formatted.

[Tragesty]

For the depreciation question, I talked about:

- Depreciation should match the revenue earning capabilities of the non current asset over its useful life
- Accountant believes revenue will be earned in an even manner
- Accountant wants to change methods midway through the NCA's useful life, which would be going against comparibility and consistency, making future reports hard to compare
- But he he deemed it to be more relevant to decision making of the business to do so

Is that on the right track? I don't think I had 6 distinct points...

[PetersDanceInSpiderman3]

Hi, can someone estimate my study score please?

Mid-year: mid or high A (let's assume 72/90)
SACs: rank 1 in a strong cohort (question: would my score here be based on the average of the two highest scores from both exams, or the average of the single highest scorer across both exams?). Both cases would give an average around 84+/90.
End-of-year exam: high A+ (85+/90)

SS Estimator says 42-47 for me.

What do you think?

A for the first exam will cost you , and if you are ranked 1 in a cohort and got approx 72/90 for exam one then id say maximum 42

To clarify, I'm ranked 1 in SACs, but the top mark for mid-year was A+ (probably 84+/90), which is the mark I should get as my SAC mark. Still the same?

[abcdqdxD]

yeah.. i said the above too.. also talked discussed reducing balance, and effect on net profit if straight line was used instead of RB..

[Tragesty]

[abcdqdxD]

lol real challenge was the DTO/bad debts one imo..

[Toto.]

Tragesty, you are definitely on the right track!

If you expanded on each qualitative characteristic, and the accounting principle. I'm sure you will have gotten 6 marks, 3 marks for identifying the QC/AP, 1 mark for expanding on Relevance, 1 mark for expanding on Consistency/Comparability, 1 mark for talking about how depreciation expense should match the revenue earned by the NCA.



I don't think it was necessary to talk about reducing balance because it's talking about what the accountant had to consider in making the decision to change depreciation methods.

[abcdqdxD]

its relevant to analyse both methods because the accountant would've considered both methods before making a decision..

[Toto.]

Mmmm it's relevant, but I don't think it was absolutely necessary?

The main point was that the depreciation expense should match the revenue that the NCA contributes over the reporting period.

I dunno, pointless argument here liverpool

[abcdqdxD]

haha yes we can all agree on that

[thetimeis]

its relevant to analyse both methods because the accountant would've considered both methods before making a decision..

It's not relevant but it doesnt hurt. As long as you identified that the accountant thought it was relevant to change methods to allocate expense evenly to match even revenue earning of the asset, thats all you needed.
Alongside relevance and explanation, consistency and explanation, and comparibility and explanation, I think it's enough for 6 marks. You could have also mentioned Conservatism I think (I said assuming it was year 2013 from last question its probably better to use straight line as its later on in the assets life so will account for the greater expense incurred each period.)

[abcdqdxD]

choice of depreciation methods has nothing to do with conservatism as far as I know o.o

[thetimeis]

Thought so too, but was like, screw it let's add another one in.

[liamlizza1]

For the depreciation question, I talked about:

- Depreciation should match the revenue earning capabilities of the non current asset over its useful life
- Accountant believes revenue will be earned in an even manner
- Accountant wants to change methods midway through the NCA's useful life, which would be going against comparibility and consistency, making future reports hard to compare
- But he he deemed it to be more relevant to decision making of the business to do so

Is that on the right track? I don't think I had 6 distinct points...

EXACTLY what I wrote

[abcdqdxD]

do they take off marks for incorrect points..? like do they try to give you maximum marks or deduct marks for incorrect points? interesting..