Category Archives: Intermediate

What is OCI?

OCI stands for “other comprehensive income”.  Students are expected to be as comfortable with this terminology as they are with “asset”, “liability”, “revenue” or “profit” and yet often they are not.  This isn’t necessarily the student’s fault.  It’s often introduced in a minor way in low level papers and so not much attention is paid to it.  It then becomes assumed knowledge at the next level and so isn’t properly explained.  Understanding it falls through the gap.  Continue reading

CIMA F2 reading time

All CIMA exams (except certificate level) start with 20 minutes reading time. Have you thought about how you’re going to spend it? Here’s my thoughts about how to use the reading time to your advantage in the CIMA F2 exam.
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Depreciation and amortisation – what’s the difference?

Depreciation and amortisation are terms that are often used interchangeably – so are they the same or not?  Well, yes and no! Continue reading

What is depreciation?

Depreciation is a word that is used in the general english language as well as a specific technical accountancy term.  They do not always mean the same thing, which can obviously cause confusion.  So from an accounting perspective what is depreciation and what does it mean? Continue reading

Consolidated Statement of Comprehensive Income in 3 steps

Students often find a consolidated statement of comprehensive income question more difficult that a consolidated statement of financial position question.  In reality you can complete a consol SCI question in just three easy steps. Continue reading

Revaluations and depreciation

Should you calculate depreciation before or after the revaluation?  This depends on the date of the revaluation.

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