Yen Hoon says ...

Hi,

I thought that I didn't do well for paper 1.1 as I did last minute revision. I was expecting to retake the paper or at most get only 60 marks.

Instead, I got 87. Really happy about the result.

I'm now doing regular studies for my papers 1.3 and 2.1.

Thank you, Edgar, for being a wonderful and dedicated teacher.

Yen Hoon

P/S - Congrats to Yen Hoon. Edgar

Annie says ...

Dear Edgar,

The December 2006 Exams results are out today and I want to thank you for your patience and self-less devotion in lecturing us.

You are an outstanding lecturer who delivers lessons in a unique way. Thank you for your many times of 'nagging' (repeated) so that the concepts are driven to my head without much effort.

You are already a successful lecturer and I know you will enjoy more successes in future.

P/S Annie secured 85 marks for P1.1.

Tan K.T says ...

Hi Edgar and Mr Goh,

Thanks for all your guidance in my paper 1.1.

I am quite delighted with the result i have achieved for your paper 1.1
I have obtain a score of 78 marks for this paper 1.1. Although it is still a bit below my target score (80 marks), at least i pass the paper.

Finally can relax now and can enjoy my Chinese New Year before going all out for the other papers (especially Paper 2.3 under Mr Goh) Hahaha. =)

And by the way, Mr Goh, please forgive me of all those broken english (or maybe not even english language) i have use in this email. Just treat like what you always mention in the sunday class, listening to the uncle's conversation at the coffeeshop.

By the way, i like to wish you a happy Chinese New Year and have a prosperous new year ahead.

Gong Xi Fa Cai.

Once again thanks for all the effort you have made in order for me to pass this paper.

Regards,

Tan K. T.

Making Accounting Cool

Need to up the profile of accountants.

Why? General increase in demand for accountancy services due to:-

• increasing regulation
• hot economy
• record levels of M&A
• adoption of international accounting standards

In Australia, there is only one accountant for every 4 job openings.

How to raise the x-factor in accountancy for the supply?
Besides the standards thrills and frills of bigger pay packages, signing on bonuses, etc etc etc,

• Hong Kong Institute of Certified Public Accountants (HKICPA), through its office in Beijing, will help to train 1,500 mainland accountants over 10 years.
• The most interesting idea of all - Institute of Chartered Accountancy of India (ICAI) want to add the prefix "CA" (ie. Chartered Accountant) to the names of all licensed CPAs ie. as per "Dr" for doctors.

So signing off now at 1.45am, CA Edgar Wong :)

Reference - Feb 2007, "Making Accounting Cool", CFO Asia.

Denise Ang and her Gaelic victim

The festive spirit is among us.

Remember the case of Gaelic Inns of Muddy Murphy's Irish Pub and Penny Black vs Patrick Lee Public Accounting Corp for $1mio of negligence.

Judge Belinda Ang had found the auditors guilty of negligence for not alerting management earlier of possible discrepancy in the cash balances of up to $672,253. $775,000 was awarded.

In yesterday's ST, Judge Ang explained her judgement. She said directors cannot "siam" or abdicate their duties by engaging experts and reasonably competent employees.

Duties such as asking for and analysing bank reconciliation statements. The managment has to take some level of responsibilities for contributing to the negligence.

Patrick Lee PAC is appealing.

A definition of Accountant

Hi friends - Share with you the sentiment of this reader who wrote to me.

====================================

Hi Edgar,

Share my thoughts with you. A practical accountant in a harsh business climate is very different from a academic accountant. I am very shocked to learn what is meant by a real life accountant from my own exposure. This is also confirmed by your article on the Auston's case.

Their life is definitely not easy. I am beginning to re-define an accountant's job. Now, I know that running a business and being an accountant is no difference. Think about this point and you will know that their stress level is no joke.

RP

Ford Motor Co - Can this pre-historic company survive?

This 103 years old company recorded a whopping USD$12.7bio loss for 2006.

Why?

- slumping sales and huge restructuring costs

What is Alan Mulally, the president and CEO, and its management team trying to do?

Apparently they are executing a plan that will put the 103 years old company through a complete makeover costing USD$23.4bio. The makeover has started in 2006 and is expected to end in 2009. To pay for the bill all the way to year 2009, it has mortgaged its assets and borrowed the money.

• To shrink its massive production capacities to match shrinking demand.


• To change their product lines of trucks and petrol-guzzling SUVs to producing smaller, more fuel efficient vehicles.


• To clear up its pension commitment to 38,000 employees.


• To remove 14,000 white-collar managers.

Can they pull it off?

If not, another pre-historic dinosaur will disappear.

FRS 39 - etched in an apprentice's memory forever

Hi friends,

I am reproducing, with permission, an email (albeit edited) from a friend.

=========================================

Hi Edgar,

Share with you my day in the office today. I had been working on this assignment on FRS 39 - revaluation of fair value of term loans for a week already.

I submitted my completed audit schedule to the Accountant. With one glance and she said this to me, "The figures don't make any sense. How can the bank be making huge losses and the company be logging huge gains by lending the money to the company?".

She picked up a high-lighter and high-lighted almost every item in the schedule. I started laughing uncontrollably. Of course I am laughing at my stupidity.

Of course, I understand perfectly the remarks, "The figures don't make sense." because in auditing, somehow we are trained to have feelings for numbers.

FYI - The Accountant had been explaining FRS 39 to me for ONE WEEK already.

As she stared straight into my eyes, I felt her asking me telepathically, "Can or can you not handle it?".

My subconcious mind responded, "And what makes you think I can handle it?" But for my pride and dignity, I kept silence. Yet I was very apologetic that I was not able to perform and deliver on my work.

FRS 39 should be included in paper 1.1, so that I don't have to look stupid. But I did learn a thing or two from this assignment. FRS 39 is actually a schedule to calculate the IRR in order to get the effective interest rate and compare against the book value as per the general ledger.

Am I right, Edgar?

============== The End ==================

P/S Jane Doe :), thanks again for letting me share a page from your auditing life with your fellow students.