Tag Archives: ACCA P2

Defined benefit pension schemes

Examiners prefer to test defined benefit pension schemes as they are the more complex to account for.  So how can you remember the items that need to be reported in the financial statements?  Here’s a mnemonic to help. Continue reading

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

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

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