Paper F2 Financial Management: Candidates Have Struggled to Answer Questions on Human Asset Accounting in Recent Sittings, but It Is a Key Topic, So the Examiner Is Unlikely to Let Students off Lightly in Future Papers

Howson, Jayne, Financial Management (UK)

When I ask the question "are you an asset to your employer?" in class, my students are often disappointed to learn that the answer is "no". In fact, students, like all employees, are an expense-and often a large one at that. At least we can all take some comfort in the knowledge that we aren't liabilities either. Which brings us to a topic often tested in F2 papers-and, therefore, dear to the examiner's heart: human asset accounting and the recognition problems it poses.

As recently as November 2010, candidates were asked to discuss why the narrative element of a company's financial report is likely to include comments about staff being a company's key asset-and what problems of recognition prevent such an asset from being included in the statement of financial position. While some candidates made some excellent comments about these issues, far too many showed that they didn't have a clue. The topic was also covered in an optional question in November 2009's F2 paper-and it wasn't answered at all well in that case, either.

It is important to note that this topic covers a key aspect of the …

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Publication information: Article title: Paper F2 Financial Management: Candidates Have Struggled to Answer Questions on Human Asset Accounting in Recent Sittings, but It Is a Key Topic, So the Examiner Is Unlikely to Let Students off Lightly in Future Papers. Contributors: Howson, Jayne - Author. Magazine title: Financial Management (UK). Publication date: April 2011. Page number: 48+. © 2009 Chartered Institute of Management Accountants (CIMA). COPYRIGHT 2011 Gale Group.

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