sn0b01: reglatory and ethical framework [23:35:19] hellohowlowlow: we probably remember something from that [23:35:43] kele: well

the first part of the syll is the ethical and professional duty of the accountant [23:35:47] kele: any thoughts [23:35:58] sn0b01: {kele} thats correct [23:36:25] sn0b01: btw we have all done the regulatory framework part in f7...so we just need to refresh our memories here [23:36:58] diltawf: {sn0b01} plz refresh us [23:37:02] kele: what ethical and professional issues may face advisors on corporate reports [23:37:47] sn0b01: can anyone answer kele's question? [23:38:06] kele: advisors being mostly auditors - this is the first requirement [23:38:15] kele: ok let me start [23:38:18] josey: to falsify reports [23:38:49] kele: {josey} not preparers a [23:38:54] kele: its advisors [23:39:41] sn0b01: ok lets start now. [23:39:54] kele: independence of auditors - question is can auditors really be independent if they are being paid for their services [23:40:14] josey: they can be [23:40:30] almujtaba: hi all [23:40:38] josey: if they act with no self interest [23:40:49] davisdadon: SIR FAIM [23:40:53] davisdadon: Self interest [23:40:55] josey: advocacy or not being independent [23:40:58] davisdadon: Self review [23:41:02] davisdadon: Familiarity

[23:41:06] davisdadon: Advocacy [23:41:07] josey: sorry dependent on one client [23:41:14] davisdadon: Intimidation [23:41:26] davisdadon: guessing :) [23:41:39] kele: exactly so its safe to say that this may be an ethical issue right [23:41:55] josey: yes [23:43:11] kele: another ethical issue may be auditors fees - the fees are so high that a firm may risk being unethical if great sums of money are involved [23:43:42] davisdadon: ok [23:43:56] Swanlee: Arthur Andersen earned $25M for auditing Enron - a huge sum... [23:44:08] davisdadon: M - management [23:44:11] kele: {Swanlee} good example [23:44:35] josey: they may act less responsible if fees r due to them as well [23:44:39] sn0b01: {Swanlee} thats true si this proves that there is normally a pretty significant financial involved [23:44:59] sn0b01: but for effective [23:45:02] sn0b01: audit [23:45:16] Swanlee: it demonstrates that there is potential for conflict of interest... [23:45:19] sn0b01: it is neccesary that the auditors are objective and independent [23:45:46] kele: {sn0b01} and here lies the ethical dilemma [23:45:46] josey: agreed [23:46:04] sn0b01: so for the audit to be succesful [23:46:13] sn0b01: the auditor needs to fulfill [23:46:26] sn0b01: the professional and ethical duties expected of him [23:46:52] josey: k [23:46:58] sn0b01: ACCA for that purpose says that there are 5 ethical principles to be followed

[23:47:02] kele: {sn0b01} exactly and the good thing is that accountancy bodies do issue conduct and ethical guidelines [23:47:09] sn0b01: i guess you shd be able to name them [23:47:16] sn0b01: anyone? [23:47:22] diltawf: {sn0b01} sure [23:47:25] Swanlee: OPTIC [23:47:32] diltawf: competence n due care [23:47:35] josey: objectivity [23:47:35] Swanlee: Objectivity [23:47:38] diltawf: objectivity [23:47:40] sn0b01: {Swanlee} thats right and a very good mnemonic btw [23:47:41] almujtaba: Professional behaviour [23:47:42] josey: professional behavour [23:47:45] diltawf: pro behavior [23:47:46] diltawf: integrity [23:47:50] josey: integrity [23:47:54] diltawf: confidentiality [23:47:57] josey: conf [23:48:09] diltawf: {josey} always after me [23:48:15] diltawf: :d [23:48:20] Swanlee: Did we miss the T [23:48:20] josey: lol [23:48:26] davisdadon: transparecy [23:48:34] Swanlee: Ahhh yes! [23:48:35] diltawf: {Swanlee} mine is COPIC [23:48:48] sn0b01: {Swanlee} no there is no transerancy

[23:48:53] Swanlee: that works.. [23:49:03] diltawf: {sn0b01} no transparency [23:49:06] sn0b01: there is no t [23:49:15] sn0b01: a\its COPIC [23:49:35] davisdadon: ok [23:49:35] Swanlee: lets stay with COPIC... [23:49:57] kele: i have integrity, objectivity, professional beh, confidentiality, professional competence and due care [23:50:11] almujtaba: that will do [23:50:15] kele: agreed? [23:50:15] sn0b01: ok and there is another ethical issue for the person whois advicing on corporate reports [23:50:48] kele: {sn0b01} yes [23:50:48] yaroslava: hi [23:50:51] sn0b01: i.e the provision of non audit services....could they be done without compromising your ethical stance? [23:50:54] sn0b01: {yaroslava} hi [23:50:58] sn0b01: {kele} yes agreed [23:50:59] diltawf: {yaroslava} hi [23:51:13] josey: yes [23:51:28] kele: well audit firms do make alot from these services [23:51:35] sn0b01: {josey} all audit firms argue that it can be [23:51:39] diltawf: {kele} true [23:51:42] sn0b01: {kele} in real life they do [23:51:55] sn0b01: but does it compromise your independence? [23:51:57] sn0b01: ?

[23:52:20] kele: so again its the question of whether they will give this up in a situation where there is a dilemma [23:52:45] kele: could be a problem [23:52:48] Swanlee: Sarbanes Oxley stipulates that they must be kept separate... [23:52:55] sn0b01: {kele} normally they dont...and thats the problem [23:53:14] sn0b01: in real life almost all auditors do some other work too [23:53:24] sn0b01: be it adivsory or anything [23:53:40] kele: in my country there is no separation [23:53:46] sn0b01: so this makes it immensely important that you are still ethical and independent [23:54:07] kele: yes [23:54:15] sn0b01: {Swanlee} it does....SOX has blacklisted a list of jobs an auditor CANNOT do. [23:54:32] josey: ok [23:54:36] sn0b01: but still there is a lot he can and that for a significant amount of money [23:54:42] diltawf: {sn0b01} {kele} SOX has nofing to do with p2 guys [23:54:46] diltawf: ryt? [23:55:02] kele: {diltawf} actually it does [23:55:40] sn0b01: {diltawf} yes it is manly related to orporate repoting so you dont have to study the details....but just remember that there are a host of activities an auditor can do which could [23:55:51] sn0b01: make a ethical prolem for him [23:55:58] almujtaba: it's going to be part of professional papers some or the other way [23:56:10] davisdadon: i know in P1 SOX - is rules base corp governance whereas Cadbury - principal base [23:56:11] sn0b01: s comes the improtance of professional and ethical behavious [23:56:14] almujtaba: Ethics is a big issue [23:56:18] davisdadon: but it's all to do with ethics [23:56:27] davisdadon: and corp governance [23:57:24] yaroslava: here they just want us to cover the basics. its a big issue in p1 dav is right.

[23:57:26] diltawf: {sn0b01} {almujtaba} {davisdadon} ok NEXT PLZZZZZZZZZ [23:57:31] kele: general idea of sox is good as it relates to the preparation of corporate reports and its ethical implications [23:57:39] sn0b01: yes moving on [23:57:54] josey: thx [23:58:08] sn0b01: ethical and professional issues in advicing on corporate reporting [23:58:21] kele: did that [23:58:37] sn0b01: that was giving opinion [23:58:44] sn0b01: not making accounts [23:59:00] sn0b01: what are the issues when actually making accounts [23:59:06] sn0b01: for the accountant [23:59:07] kele: so u mean preparing [23:59:13] sn0b01: {kele} thats right [23:59:53] kele: firstly ethical conflicts of interests - fraud, illegal activity [00:00:24] kele: pressure from higher ups affecting intergrity? [00:00:28] almujtaba: it should begin with compliance of accounting standards [00:00:36] sn0b01: now it is said that the market likes the illusion of stability, but that is not practically possible so it is said that the onus is on the creative accountant to iron out the profits in the years of boom and boost in the slower years. [00:00:36] almujtaba: compliance with* [00:00:51] sn0b01: but we cannot accept everything the employer tells us to do [00:00:56] kele: ok [00:01:00] sn0b01: there are things to be considered [00:01:32] sn0b01: {kele} you are right in telling the kind of things we may have to do becuz of the pressure from above [00:01:43] sn0b01: so how to deal with it? [00:01:53] sn0b01: {almujtaba} you mentioned point 1

[00:02:18] josey: report to ur manager [00:02:44] diltawf: {sn0b01} ethical values overrul [00:02:59] diltawf: mgt n work pressure [00:03:00] sn0b01: F/S has to be prepared in accordance with accounting standards and present a true and fair view. [00:03:29] sn0b01: {josey} what is your manager askes you to do it in the first place? [00:03:40] sn0b01: you need to maintain an ethical stance always [00:03:56] sn0b01: but how? [00:04:00] sn0b01: what to do? [00:04:37] almujtaba: follow ethical guidlines set out by the respective profession [00:04:44] josey: comply with standards.... [00:05:02] kele: well firstly evaluate significance of issue by referring to these things [00:05:07] sn0b01: {almujtaba} {josey} We always need to do that. [00:05:12] sn0b01: {kele} true [00:05:19] sn0b01: {kele} first task always [00:05:33] almujtaba: ok [00:05:49] sn0b01: {kele} then try to reason things out with the superior [00:06:01] josey: established if accs prepared according to standards in order to give t n f view [00:06:12] sn0b01: not working? go to his superior [00:06:34] sn0b01: within the organisation as long as possible [00:06:39] sn0b01: dispute stll there [00:06:41] kele: always try internally to get help first [00:06:55] sn0b01: then go for legal advice [00:07:28] sn0b01: also imp. is that you cannot go to external auditor before you have used all other available mean [00:07:30] josey: r we talking from an aduitor perspective or preparer

[00:07:38] sn0b01: {josey} preparer [00:07:45] josey: ok [00:08:02] josey: {sn0b01} af=greed [00:08:13] diltawf: {almujtaba} {kele} {sn0b01} {josey} next [00:08:22] sn0b01: they too have to maintain the ethical principle of confidentiality [00:08:28] amanda7787: not disclose any information to third parties without proper and specific authority unless there's a legal and professional right or duty to disclose [00:08:46] sn0b01: {amanda7787} exactly [00:08:48] sn0b01: good [00:08:53] kele: {amanda7787} yes [00:09:02] sn0b01: now for that purpose [00:09:24] josey: so before seeking lega advise he/she shd go to the board if no luck with managers [00:09:32] sn0b01: iasb framework provides a conceptual(princiles based) framework [00:10:03] sn0b01: standards are based on that so that the accountant has something to make his judgements upon [00:10:38] sn0b01: under this we have the regulatory framework [00:11:20] sn0b01: which includes the standards formed within the framework by iaasb...which is TO BE followed [00:12:02] sn0b01: conceptual framework gives guidance [00:12:05] sn0b01: on [00:12:27] sn0b01: when an event is to be recognised(for eg ias 18 in case of revenue) [00:12:43] sn0b01: and how it should be presented [00:13:10] sn0b01: so it helps the preparers agreed? [00:13:19] kele: yes [00:13:33] almujtaba: yes [00:14:00] sn0b01: any question on conceptual framework and the process by which the preparer shd make his accounts

[00:14:13] sn0b01: keeping in mind the professional and ethical duties? [00:14:51] diltawf: {sn0b01} can we plz move to smefing more interactive n simple plz [00:14:55] yaroslava: what are its several intented roles? [00:15:11] almujtaba: {diltawf} this is the simplest you're going to get at this level [00:15:11] sn0b01: {yaroslava} wat do you mean? [00:15:45] sn0b01: {diltawf} ok we will move on if no problems till now. [00:15:56] yaroslava: the framework assist not only the preparers...who else [00:16:16] kele: users [00:16:19] josey: its my first time in a group discussion..can someone explain how it works? is it one person is responsible for directing or anyone cld put something on the table [00:16:43] kele: {josey} its a discussion [00:16:58] sn0b01: {kele} true...+ it has the advantage of being transapent and more trustworthy [00:17:03] josey: {kele} on any topic [00:17:11] diltawf: {yaroslava} auditors, shareholders,govt [00:17:11] almujtaba: Less inconsistent standards [00:17:13] diltawf: in other words [00:17:16] amanda7787: The topic today is Regulatory and ethical framework. BPP study text incorporates it into 3 chapters. Is this the case with Kaplan book? [00:17:20] diltawf: all stake holders [00:17:24] almujtaba: assist users in relying on the financial report [00:17:52] yaroslava: and the IASB in developing new standards and reviewing the existing ones [00:17:59] sn0b01: {diltawf} true all interested stakeholders....always remember better the accountancy profession more beneficail it will be for the society [00:18:04] kele: {yaroslava} yes [00:18:11] sn0b01: {yaroslava} yes [00:18:28] kele: check the website iasplus.com for more info on this [00:19:04] kele: its a site by deloitte

[00:19:07] yaroslava: audtiors in formulating a opinion as to whether fin st are conforming to the standard [00:19:20] sn0b01: {yaroslava} gud point [00:20:23] sn0b01: ok shall we move on...or anyone has any other point? [00:20:26] almujtaba: The more consistent the standards, the truer and fairer the presentation... which should benefit all the users [00:20:49] sn0b01: {almujtaba} and the community as good accountancy profession is in public interest [00:21:02] yaroslava: the framwork also provie basis for reducing alternative accountint treatmentspermited by law and acc standards. [00:21:17] sn0b01: iimagine a world where accounts could not be relied upon... [00:21:31] Swanlee: In international is True & Fair not referred to as Fair Presentation... [00:21:59] almujtaba: {Swanlee} it's the same thing [00:22:05] Swanlee: ok... [00:22:12] amanda7787: can anyone advise?? [00:22:22] sn0b01: {amanda7787} what? [00:22:38] sn0b01: ok moving on [00:22:54] sn0b01: next part of our sylabbus is [00:22:55] amanda7787: The topic today is Regulatory and ethical framework. BPP study text incorporates it into 3 chapters. Is this the case with Kaplan book? [00:23:21] sn0b01: evaluation of the valuation models adopted by our standard setters [00:23:23] kele: in kaplan it s one chapter for the professiona and ethical duty of the acc [00:23:41] sn0b01: first can anyone name the different models used? [00:23:42] almujtaba: chapter 7 [00:23:45] amanda7787: ok, thanks. I studied 3, lol [00:24:00] sn0b01: anyone? [00:24:10] sn0b01: first is the historic cost model

[00:24:14] diltawf: {sn0b01} not me this time [00:24:15] diltawf: llolz [00:24:43] sn0b01: then the current cost model [00:24:55] sn0b01: the present value model [00:25:18] sn0b01: and the realisable value model [00:25:37] yaroslava: brief us then [00:25:40] sn0b01: historical cost model....recognition at the original cost [00:25:55] sn0b01: for assets [00:26:21] sn0b01: and for liabilities at the amount at which they are expectd to be settled [00:26:33] sn0b01: advantages anyone? [00:26:57] Swanlee: no arguments over value... [00:27:06] sn0b01: {Swanlee} right [00:27:13] sn0b01: we have a evidence for that [00:27:24] sn0b01: vouchers or contracts [00:27:46] yaroslava: most commonly used but highly critisised [00:28:01] sn0b01: {yaroslava} right why critisised? [00:28:18] kele: ignores the current value [00:28:20] almujtaba: {sn0b01} time value of money not considered [00:28:38] Swanlee: doesn't reflect true value of asset/liability at the current moment.. [00:28:47] sn0b01: {almujtaba} actually for liabilities we consider the time value by using discunting [00:29:01] sn0b01: {kele} {Swanlee} hats right [00:29:04] Swanlee: makes sense... [00:29:17] sn0b01: so even though F/S is supposed to be value now [00:29:33] sn0b01: it is historical [00:29:53] sn0b01: cost - a notional charge of depreciation

[00:30:17] Swanlee: i have a burning question...where does fair value come in then... [00:30:38] sn0b01: {Swanlee} that comes in if we revalue the asset [00:30:50] Swanlee: thanks... [00:31:13] sn0b01: {Swanlee} so there is no obligation to revalue normally...carry it forward on historical cost youlike [00:31:23] sn0b01: this is what is allowed [00:31:35] sn0b01: with the exception of some assets [00:31:42] almujtaba: but revaluation is mandatory in certain cases? [00:31:44] Swanlee: which are... [00:31:47] sn0b01: covered in ias 16 and 40 [00:31:58] sn0b01: we will cover that later [00:32:06] sn0b01: so we know the weaknesses [00:32:14] sn0b01: but why its still widely used [00:32:24] sn0b01: ok [00:32:28] josey: easier [00:32:31] sn0b01: current cost method [00:32:31] almujtaba: less awareness of other methods [00:32:53] Swanlee: easy to prove... [00:32:54] sn0b01: this is a new exciting method getting a lot of fans [00:32:57] josey: easily compared [00:33:12] sn0b01: {Swanlee} {almujtaba} {josey} correct [00:33:13] yaroslava: users want to be able to compare financial infor form priod to period. [00:33:24] sn0b01: {yaroslava} gud point [00:33:32] sn0b01: so what is current cost method? [00:33:35] kele: {sn0b01} yes assets carried at their current cost [00:33:47] almujtaba: i think current cost does the job of comparison better

[00:33:58] sn0b01: current purchase price actually [00:34:12] yaroslava: all those qualitative characteristics of financial statements can be applied here [00:34:23] kele: {sn0b01} yes true [00:34:31] sn0b01: {almujtaba} no it dosnt becuz current price flactuate sometimes for no gud reason [00:34:48] sn0b01: so comparisions are not that reliable [00:35:04] kele: liab at undiscounted amount required to settle them [00:35:17] sn0b01: {kele} yes very good [00:35:27] sn0b01: unlike in historical cost [00:35:52] sn0b01: where they are carried at discounted cost of amout that would be required to settle them late [00:35:54] sn0b01: r [00:36:04] sn0b01: so adv. anyone? [00:36:20] kele: {sn0b01} very nice i like the comparison [00:36:27] almujtaba: does time value of money come into play here? [00:36:40] sn0b01: {almujtaba} in historical cost model [00:36:48] sn0b01: for liabalities [00:37:01] sn0b01: then those are discounted [00:37:15] sn0b01: not in current cost as kele mentioned [00:37:26] sn0b01: so advantages of current cost model? [00:37:52] almujtaba: thanks [00:38:03] almujtaba: i'm a bit confused , perhaps i'll have to revise [00:38:18] sn0b01: well one of them is obvious...same as the disadvantage of historical cost... [00:38:30] sn0b01: historical cost may be very far from now value [00:38:49] josey: can it be seen as more reliabe as it records the value now or the value it can b sold for now [00:39:14] sn0b01: {josey} well thats arguable

[00:39:41] josey: than historical [00:40:20] sn0b01: {josey} we can most of the times not get at the current purchase price as many asstets are not traded and there is normally not a market for half used assets used by some companies for their specific purpose [00:40:24] sn0b01: so wat to do then? [00:40:41] kele: {sn0b01} good point [00:40:45] sn0b01: you must appreciate that sum assets are uniquely used be some companies [00:40:56] sn0b01: so no evidence [00:41:07] sn0b01: the accountant cannot guess the amount [00:41:13] sn0b01: and use that [00:41:22] kele: so there is problem when no active market exists right? [00:41:31] almujtaba: yea [00:41:33] sn0b01: {kele} correct [00:41:51] josey: ok [00:41:53] sn0b01: so thats why historical cost method still exists [00:42:07] kele: {sn0b01} makes sense [00:42:09] josey: makes sense [00:42:12] sn0b01: ok now realisable value model anyone? [00:42:12] josey: lol [00:42:16] kele: yes [00:42:46] josey: amt u will get from its sale [00:42:57] sn0b01: {josey} exactly...simple as that [00:42:58] kele: assets at an amount that could be currently obtained by an orderly disposal [00:43:05] sn0b01: amount you will realise [00:43:10] sn0b01: {kele} aptly put [00:43:10] josey: eg selling of inventories

[00:43:16] kele: what about liab [00:43:34] masoodsarwar: the net proceeds from an asset after deducting all the expenses necessary to amke the sale [00:43:42] masoodsarwar: make* [00:43:42] sn0b01: {masoodsarwar} correct [00:43:53] sn0b01: {kele} for liabilities? [00:44:10] sn0b01: just like historical ost [00:44:20] kele: ok [00:44:22] sn0b01: at the valeue they will be settled on [00:44:29] kele: yes [00:44:40] sn0b01: ok not used why? [00:44:47] sn0b01: going concern concept [00:44:59] sn0b01: we arnt selling [00:45:07] kele: yes [00:45:14] sn0b01: so selling cost are not relevant ;) [00:45:30] sn0b01: but useful when the auditor or accontant [00:45:35] kele: statements not based on berak up basis [00:45:44] sn0b01: says that going concern concept no longer applies [00:45:44] kele: *break [00:46:06] sn0b01: yes then F/s based on [00:46:15] sn0b01: break up basis and this model used [00:46:20] sn0b01: so last model now [00:46:34] kele: yes [00:46:40] sn0b01: lastly present value model [00:46:43] kele: {sn0b01} are we alone [00:46:44] sn0b01: anyone?

[00:46:55] sn0b01: sleeping ppl [00:46:56] yaroslava: discounted future cashflows [00:46:57] Swanlee: still here... [00:46:57] sn0b01: zzzz [00:47:14] sn0b01: {yaroslava} correct [00:47:17] almujtaba: i said i need to revise [00:47:24] yaroslava: takes intoaccount the time value of money [00:47:31] masoodsarwar: is aslo termed as value in use [00:47:31] sn0b01: {yaroslava} yes [00:47:50] sn0b01: {masoodsarwar} exactly value in use [00:48:02] kele: so liab the discounted value of outflows right [00:48:05] sn0b01: inflows we will get if we use this asset [00:48:19] sn0b01: {kele} yes [00:48:48] sn0b01: this uses the economic benifit the assets is expected to get from use of the asset [00:48:53] sn0b01: and discounts them [00:49:12] kele: ok [00:49:13] sn0b01: still at an infant stage this model has sum real potential [00:49:40] sn0b01: but the thing is the estimates we still need to make to have a reliable estimate [00:50:19] kele: yeah but the use of different discount rates could be problem - comparability [00:50:23] sn0b01: but it best recognised the need of the conceptual framework.....logic- assets recognised at the benifit they will bring in [00:50:25] Swanlee: and it is these estimates that bring into play the accountants judgement... [00:50:38] masoodsarwar: the volatility in the economic environment [00:50:40] masoodsarwar: as well [00:50:47] sn0b01: {Swanlee} {kele} those are the issues that needs to worked out.... [00:51:03] Swanlee: understand...

[00:51:05] kele: {masoodsarwar} yes [00:51:27] sn0b01: acturies could be used but that would involve costs impracticle for small businesses [00:51:38] sn0b01: so cannot use at this stage [00:51:53] sn0b01: so everybody clear with the 4 models? [00:52:03] zoc88: yes!!! [00:52:12] kele: :) [00:52:14] sn0b01: {zoc88} hey you been following? [00:52:20] masoodsarwar: yeah [00:52:29] Swanlee: :) [00:52:43] zoc88: yes...atfirst i had troublesunderstanding what actually we were discussing here [00:53:00] masoodsarwar: {sn0b01} can u make your hand writing bolf so its easier to see [00:53:02] zoc88: but yes...everything startinting make sense noe [00:53:12] masoodsarwar: {zoc88} plz change the color [00:53:15] sn0b01: {masoodsarwar} ok [00:53:16] almujtaba: for some reason, i find the models very confusing [00:53:28] sn0b01: {almujtaba} why? [00:53:31] almujtaba: i had problems understanding them at F7 as well [00:53:32] masoodsarwar: {sn0b01} bold* [00:53:47] masoodsarwar: {sn0b01} thanks [00:53:51] sn0b01: {almujtaba} try to revise it [00:54:10] masoodsarwar: {almujtaba} historic cost and current cost cant be confusing [00:54:17] masoodsarwar: they are excatly oppoisite [00:54:30] sn0b01: if you still dont get it try to read this discussion again...ppl hv made some gud point here. [00:54:33] masoodsarwar: NRV takes in accout sale value [00:54:54] Swanlee: can we save this discussion...

[00:54:56] almujtaba: {sn0b01} yes i can see the benefit of this session [00:55:03] masoodsarwar: while present value is based on continuius use of asset [00:55:11] kele: {sn0b01} good session [00:55:13] sn0b01: {Swanlee} i will upload it within a day [00:55:24] Swanlee: thank you! [00:55:24] sn0b01: ok moving on [00:55:34] sn0b01: next on our syllabus is [00:55:40] sn0b01: performance reporting [00:55:46] sn0b01: prepare reports [00:55:59] sn0b01: relating to corporate performance [00:56:16] sn0b01: now bpp and kaplan texts hvnt covered this area very well [00:56:32] masoodsarwar: planiing, evluating performance [00:56:51] masoodsarwar: your past exams cover a good bit of it [00:56:58] almujtaba: {sn0b01} btw, can you tell me what exactly are we doing here. Is it like a walkthrough? [00:57:14] sn0b01: but the thing to rremember here is that when preparing reports for external stakeholders [00:57:21] sn0b01: we need to remember that [00:57:31] masoodsarwar: {almujtaba} It is. this is first session, so u need to see the big pisture as well [00:57:39] sn0b01: we are not misleading and we give a true and fair view [00:58:43] sn0b01: also companies have to be more transparent in their reporting [00:59:01] sn0b01: and need to disclose whats needed to get the true picture [00:59:23] sn0b01: It is in the interests of an entity to make its information as accessible to users as possible and many corporate reports include a great deal of information on strategy and activities of entities. [00:59:49] kele: alot of org now prepare non financial reorts

[00:59:58] sn0b01: {kele} true [01:00:33] almujtaba: the big deal here would be group entities [01:00:34] sn0b01: okay [01:01:27] sn0b01: now last topic of the syllabus is discussing the success of the IAASB framework in introducing [01:01:42] sn0b01: rigorous and consistent acc. standards [01:01:48] sn0b01: any comments? [01:02:07] sn0b01: i meant syllabus of todays area [01:02:16] masoodsarwar: advantaegs and dis advantages of framework? [01:02:30] sn0b01: no that we hvv already discussed [01:02:42] sn0b01: and we can find it easily in our text books [01:02:48] sn0b01: the bottom line [01:02:59] sn0b01: has these been succesful or not [01:03:02] almujtaba: what do you mean by bpp and kaplan not covering part C? [01:03:06] sn0b01: and to what extent [01:03:18] Swanlee: refer to standard for actual treatment...IASB framework is a catch all std... [01:03:39] almujtaba: part C of the syllabus i.e. [01:03:45] sn0b01: {almujtaba} they hv taken ias 18 and stuff but not a lot of disscussion on preparing reports [01:03:53] masoodsarwar: we cant measure the success still but it is on the way of success [01:04:17] masoodsarwar: as many countryies are adopting to accouting standards [01:04:27] kele: refer to ed 2009 about management commentary [01:04:31] sn0b01: {masoodsarwar} that is a BIG BIG success [01:04:47] sn0b01: more consistent stds accross the world [01:04:54] kele: and even the ifrs for smes [01:05:31] sn0b01: + now becuz of recent developments in conceptual framework

[01:05:36] masoodsarwar: {sn0b01} yeah. Ireland has adopted [01:05:53] sn0b01: stds are not made on a patchwork basis now [01:06:07] sn0b01: or in a haphazard or firefighting approach [01:06:44] sn0b01: accountants are now less open to external pressure [01:07:17] sn0b01: but the weakness still is non financial reporting [01:07:34] sn0b01: no viable alternative to historical costing method [01:08:00] sn0b01: application to non profit entities [01:08:18] sn0b01: there profit is not the objective so why shd it be the bottom line [01:08:30] Swanlee: and non-financial reporting is more forward looking... [01:08:51] sn0b01: as success could not be based on profit assesment in nfp [01:09:21] sn0b01: and reliability in qualitative characterstics [01:09:52] sn0b01: zzz [01:09:57] kele: {sn0b01} is there any discussion paper on this [01:10:02] sn0b01: ye there is [01:10:15] almujtaba: i think there's a debate on it [01:10:29] kele: ok have to read [01:10:37] sn0b01: its an ed [01:10:45] sn0b01: exposure draft [01:10:54] sn0b01: on conceptual framework [01:11:04] kele: ok i see it [01:11:18] Swanlee: is the new conceptual framework examinable... [01:11:22] yaroslava: where is it guys? [01:11:56] kele: {Swanlee} the ed on it is [01:11:57] sn0b01: {Swanlee} you need to know about the conceptual framework [01:12:10] sn0b01: the ed is in examinable documents

[01:12:22] sn0b01: but is not a likely area [01:12:22] kele: just chapters 1 and2 [01:12:29] kele: {sn0b01} k [01:12:38] yaroslava: ok [01:12:52] sn0b01: as long as you know and can discuss all abt the conceptual framework you are fine [01:13:02] almujtaba: the developments are recent so they'll probably take it to DEC [01:13:27] sn0b01: ok any doubts [01:13:40] sn0b01: no examples to practice today :) [01:13:41] saline: hello guys just a piece of help for u. visit http://www.kieranmaguire.co.uk/Kieran/Home.html for p2 [01:13:42] saline: "_ [01:13:45] saline: :) [01:14:03] almujtaba: that was quick [01:14:13] kele: anything else [01:14:42] sn0b01: not really...could go more into ethical theories and stuff [01:14:54] almujtaba: what are we going to do in the next session? [01:14:56] masoodsarwar: {sn0b01} very nice man [01:14:59] sn0b01: and what kind of behavior to take etc [01:15:18] sn0b01: {masoodsarwar} thnx [01:15:29] sn0b01: {almujtaba} non current assets [01:15:43] masoodsarwar: Now guys what we should do is [01:15:55] almujtaba: are we done with the regulatory and ethical framework? [01:15:55] masoodsarwar: go thorugh the whole what we studied today [01:16:06] almujtaba: {masoodsarwar} nice idea [01:16:08] masoodsarwar: and they try to see how it is tested ine xam

[01:16:40] yaroslava: {sn0b01} Is it ok for you to send us a list of topic areas so we know the whole schedule? [01:16:42] almujtaba: pardon me, i though u were talking about post-session [01:17:05] sn0b01: {yaroslava} ok will try [01:17:20] yaroslava: cheers [01:17:22] masoodsarwar: yeah. i was saing about pist session [01:17:47] masoodsarwar: {sn0b01} if not whole [01:17:53] masoodsarwar: then may be next 2 sessions [01:17:57] kele: sorry guys have to leave but on to nca [01:18:19] sn0b01: next two session would probably be abt non current assets [01:18:21] masoodsarwar: {masoodsarwar} its kele. u made your presence worthwhile [01:18:34] masoodsarwar: {sn0b01} just NCA? [01:18:58] sn0b01: yeah big topic will go through it really well [01:18:59] masoodsarwar: {kele} its ok kele. u made your presence worthwhile [01:19:01] almujtaba: nca has many IASs [01:19:02] yaroslava: when? o you mean all NCA or a particular standard? [01:19:20] masoodsarwar: ok. so guys bring calculator [01:19:24] sn0b01: all stds...starting with ias 16 [01:19:24] Swanlee: Great session...thank you to all....in particular, thanks to snOb01 for doing a great job... [01:19:33] sn0b01: {Swanlee} thnx [01:19:45] sn0b01: {Swanlee} seeya [01:19:46] masoodsarwar: and try to go thorugh it before coming here so u know your weakness and can ask question about it [01:19:50] yaroslava: {sn0b01} When is the next one? [01:20:05] sn0b01: {yaroslava} how about saturday? [01:20:07] Swanlee: Ciao!

[01:20:07] almujtaba: {yaroslava} smart question [01:20:17] masoodsarwar: cant we do it on suday [01:20:21] masoodsarwar: I have a class [01:20:24] masoodsarwar: on sat [01:20:29] masoodsarwar: sunday [01:20:35] sn0b01: {sn0b01} you were gud today....make sure you revise the topic before the session next time [01:20:35] yaroslava: sounds good if everyone is happy [01:20:52] sn0b01: {masoodsarwar} ok then lets say friday [01:21:02] kele: {sn0b01} thanx for a good session [01:21:06] sn0b01: friday okay wid everyone here [01:21:07] masoodsarwar: thats fine [01:21:11] kele: yeah [01:21:14] sn0b01: {kele} thankyou [01:21:18] kele: same time [01:21:21] sn0b01: yes [01:21:22] yaroslava: Friday then [01:21:25] sn0b01: and nca [01:21:32] sn0b01: topic [01:21:51] sn0b01: i will email also so that everybody knows [01:22:00] yaroslava: thank you guys you were bril. cant wait for friday [01:22:07] kele: {sn0b01} ok bye [01:22:13] almujtaba: k i guess the goodbye's takin too long [01:22:18] sn0b01: ok [01:22:25] masoodsarwar: {sn0b01} and history as well plz [01:22:27] sn0b01: bye everyone

[01:22:32] sn0b01: {masoodsarwar} of course [01:22:35] yaroslava: good night or day depending on where you at [01:22:35] sn0b01: seeya [01:22:37] sn0b01: thnx