When it comes
to the P2 Corporate Reporting exam, wider reading will mostly be helpful when
it comes to tackling Question 4, which is typically the “current issue”
question. Accounting standards that are in the process of being updated, or
which are being debated, are those which are likely to feature in this
question.
Wider reading
The Economist has recently printed a succinct and accessible article on the changes, and it should be considered very helpful reading for any candidates planning on attempting Question 4 – lease accounting may well come up in your exam! There is also an older article on the topic that may give some historical context but should be considered secondary.
Lease
accounting has been the subject of much debate recently, largely to remove inconsistencies
between IFRS and US GAAP. P2 candidates will (hopefully!) be aware of the current
different accounting treatments for finance leases and operating leases.
However the
IASB and FASB (US) have proposed removing this distinction in an effort to
further combat off-balance sheet financing. The result would be that
operating leases would also be capitalised rather than merely expensed to the
income statement. Users of financial statements would gain a better understanding
of the financing commitments and gearing of entities when examining their
balance sheets.
The Economist has recently printed a succinct and accessible article on the changes, and it should be considered very helpful reading for any candidates planning on attempting Question 4 – lease accounting may well come up in your exam! There is also an older article on the topic that may give some historical context but should be considered secondary.
I am actually using mapitaccoutancy for my p2 exam, but it has now comparison between IFRS and UK GAAP at all, need some help please
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