Financial Reporting

It is always surprising to notice in the ICAP exams that many students who study alot ( in terms of time spent) also flunk and many of the students who study comparatively less are able to go through.

It will not solve the students problem by condemning things beyond control (Like ICAP) for not passing as it would increase the level of frustration and will add up nothing.

This is time for all those who passed to share their stengths with others. And offcourse, all those who failed should try to figure out what is the thing which has caused the problem and which they can issue including the following:

Do we understand the nature of each subject?

Were we really making our concepts or just scaming?

Have we visualize the depth of each and every sentence of the study material and discussed the things?

Have we planned the things properly and controlled our long or short term loans?

Are all our concepts clear?

Did we revised and practised properly?

As far as financial reporting is concerned. Basic mistakes we do include the following:

We do not visualize IAS/IFRS and just try to remeber. I think we should try to feel the meaning of each treatment and disclosure and try to understand why this helps in users of the financial statements and what is its other impact on the financials.

The other major mistake we do is to try to remember formats ( for example in consolidation) without understanding them. It is quick and easy to use these formates. we should try to understand these formats by lets say with respect to true concept of double entry we know the calculations of Goodwill, Minority Interest etc but the logic behind these and how do certain things cancel out each other. This will help in handeling many of the treatments which we have not seen in books.

Practise by solving not by studying. We should try to solve all the questions on paper assumung that we are solving them in exams. It takes more time but let us handle the situation exactly. No hurry to go to conclussion.

I would request other memebrs of the group to also share their views about this.


Best of luck to all the members for future endeavours.

Mary J. Delcambre