ACCA’s Certificate of Achievement for F1, F2 and F3

Under the new scheme,

There will be no more paper winners for F1 to F3. Instead a Certificate of Achievement will be awarded to students who have scored 85% and above in these papers. This is regardless of whether they took the paper-based or CBE exams.

MSER students will only be eligible for prizes from F4 to F9 and P1 to P7 when they transfer to the Professional Scheme.

P/S – So for those who have scored higher than 85%, please look out for your “Certificate of Achievement”. Cheers.

We got to learn new names.

The terms “Balance Sheet” and “Cash Flow Statement” will be passe very soon.

In Sept 2007, IASB issued the revised IAS 1 (similar to our sFRS 1) with the main changes in the presentation of financial statements and terminology.

For international versions of CAT6, CAT8, F3, F7, F8, P2 and P7:-

  • “Balance sheet” will be “statement of financial position”.
  • “Income statement” – no change.
  • “Cash flow statement” will be ” statement of cash flows”.

It is effective from June 2008 sitting.

For other papers NOT mentioned above :-

  • “Balance sheet” = “statement of financial position (balance sheet)” (for Jun / Dec 2008 exams).
  • “Balance sheet” = “statement of financial position” (from Jun 2009 exam onwards)
  • “Cash flow statement” = “statement of cash flows” (from Jun 2008 exam onwards)
  • “Income statement” = “statement of comprehensive income” (from Jun 2009 exam onwards)

GST for Gold trading could be different

Under normal circumstances, GST is to be accounted for at the earliest of the following events:-

  • date when goods are delivered or made available to your customer;
  • date when payment is received; or
  • date of issuance of invoice.

But when it comes to trading of gold where the prices are dependent on fluctuations in the market for a period of 90 days.

The law allows that the invoice to be issued on the 90th day with the price determined by (assuming the seller has not received any payment),

  • buyer/seller; or
  • otherwise based on the open market value prevailing on that day.

This method of accounting is only peculier to sales of gold jewellery.

Mei Hua says…

Hi Edgar,

Just logged in to the ACCA website to check my F3 exam result….I got 86. Just want to say thank you for your repeat reminders on the important points and for the extra (free) revision class given going through all MCQ. I struggled for about 15-20 minutes on the first question and was all nervous throughout the whole examination…..

Mei Hua (Jun 2007)

What is "verifiable CPD"?

What is the Rule?
A member has to fulfill 40 relevant units of CPD each year, where one unit is equal to one hour of development. 21 units must be verifiable. The other 19 can be non-verifiable.

Verifiable CPD, to many, is the act of getting a certificate ie. a black and white to confirm that you have attended a learning event.

But is it all that is? The simple answer is no.

There are 3 other critical criteria to be fulfilled before a verified event can be counted towards the Rule. What are they?

  • The relevant activity must be relevant to your role/s.
  • You need to tell ACCA how you can apply the learning.
  • You need to show some things that learning has taken place. (This last is tough ya?)

Is there any other ways, beside collecting the certificates, of evidencing that you have attended a learning event/activity?

  • Can you show the report/review/proposals arising from that event?
  • Did you get a copy of the handouts/powerpoint slides?
  • A copy of the invoice or evidence of payment made to attend the event?
  • Did you keep the email confirmation of your attendance?
  • Or like Edgar, writing about these events on the blog after attending them?

P/S – This is note to remind Edgar and for those who have completed your studies and qualified for the ACCA qualification.

GST – Residential Building Project

There is no doubt that you have to charge GST for construction services done for both residential and commercial properties.
Zero-rated if it is done on properties outside Singapore.

You are the GST-registered sub-contractor appointed to do the tiling and flooring works for a project eg. total value is $20,000 (excluding GST).

Your GST-registered main contractor will supply you the tiles eg. valued at $8,000 (excluding GST).

How could you do the billing?

Option 1 – Invoice the main contractor on the net value ie. ($20,000 less $12,000) $8,000 + $560 GST.

Option 2 – Invoice main contractor for the total value of contract ie $20,000 + $1,400 GST. Main contractor would then invoice you for the tiles supplied ie. $12,000 + $840 GST.

P/S – Adapted from article in ST Feb 6, 2008.

Depreciation policy and your bottomline


I have just completed my session on FRS16 on property, plant and equipment with F3 Financial Accounting class.

I have stressed that depreciation policy is within management’s right to decide. The management may adopt a relevant method or formula to account for depreciation for the “right impact” on its bottomline.

Allow me to cite the example of this airline company managing its fleet of planes and the choice of depreciation policy.

The company chose to expense high depreciation for its young fleet. This will consequently push up the breakeven passenger load factor and cargo capacity utilisation levels. The management are thus “motivated” to think at operating its business at different levels (ie. in terms of efficiency, effectiveness, customer service etc) compared to its competitors.

After using the planes for a few years and given its expressed desire to maintain the youngest fleet for its passengers, these planes with relatively low net book values were then disposed at market prices at very handsome accounting profits.

If these gains from disposals were to be judged as non-operating profits and thus not subjected to the usual corporate tax, this would be certainly provide the icing on the cake for the overall bottomline.

Attentive review and consequent adoption of any accounting policies are critical first steps of a company. While the depreciation policy alone is not the magic wand in making a company successful, it will help in certain circumstances.