IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Technical Summary
This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.For the requirements reference must be made to International Financial Reporting Standards.


IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

OBJECTIVE OF IFRS 5:
To specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations.

In particular, the IFRS requires:

(a) assets that meet the criteria to be classified as held for sale to be measured at the lower of carrying amount and fair value less costs to sell, and depreciation on such assets to cease; and

(b) assets that meet the criteria to be classified as held for sale to be presented separately in the statement of financial position and the results of discontinued operations to be presented separately in the statement of comprehensive income.

The IFRS:
(a) adopts the classification ‘held for sale’.

(b) introduces the concept of a disposal group, being a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction.

(c) classifies an operation as discontinued at the date the operation meets the criteria to be classified as held for sale or when the entity has disposed of the operation.

An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use.

For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable.

For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the asset (or disposal group), and an active programme to locate a buyer and complete the plan must have been initiated. Further, the asset (or disposal group) must be actively marketed for sale at a price that is reasonable in relation to its current fair value. In addition, the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification, except as permitted by paragraph 9, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and

(a) represents a separate major line of business or geographical area of operations,

(b) is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations or

(c) is a subsidiary acquired exclusively with a view to resale.

A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. In other words, a component of an entity will have been a cash-generating unit or a group of cash-generating units while being held for use.

An entity shall not classify as held for sale a non-current asset (or disposal group) that is to be abandoned. This is because its carrying amount will be recovered principally through continuing use.

Source: International Accounting Standards Board

IFRS 4 Insurance Contracts

Technical Summary

This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.For the requirements reference must be made to International Financial Reporting Standards.

IFRS 4 Insurance Contracts

OBJECTIVE OF IFRS4:

To specify the financial reporting for insurance contracts by any entity that issues such contracts (described in this IFRS as an insurer) until the Board completes the second phase of its project on insurance contracts.

Requirements of IFRS 4:

(a) limited improvements to accounting by insurers for insurance contracts.

(b) disclosure that identifies and explains the amounts in an insurer’s financial statements arising from insurance contracts and helps users of those financial statements understand the amount, timing and uncertainty of future cash flows from insurance contracts.

Insurance contract - contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

The IFRS applies to all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds, except for specified contracts covered by other IFRSs. It does not apply to other assets and liabilities of an insurer, such as financial assets and financial liabilities within the scope of IAS 39 Financial Instruments: Recognition and Measurement. Furthermore, it does not address accounting by policyholders.

The IFRS exempts an insurer temporarily (ie during phase I of this project) from some requirements of other IFRSs, including the requirement to consider the Framework in selecting accounting policies for insurance contracts. However, the IFRS:

(a) prohibits provisions for possible claims under contracts that are not in existence at the end of the reporting period (such as catastrophe and equalisation provisions).

(b) requires a test for the adequacy of recognised insurance liabilities and an impairment test for reinsurance assets.

(c) requires an insurer to keep insurance liabilities in its statement of financial
position until they are discharged or cancelled, or expire, and to present insurance liabilities without offsetting them against related reinsurance assets.

The IFRS permits an insurer to change its accounting policies for insurance contracts only if, as a result, its financial statements present information that is more relevant and no less reliable, or more reliable and no less relevant. In particular, an insurer cannot introduce any of the following practices, although it may continue using accounting policies that involve them:

(a) measuring insurance liabilities on an undiscounted basis.

(b) measuring contractual rights to future investment management fees at an amount that exceeds their fair value as implied by a comparison with current fees charged by other market participants for similar services.

(c) using non-uniform accounting policies for the insurance liabilities of subsidiaries.

The IFRS permits the introduction of an accounting policy that involves remeasuring
designated insurance liabilities consistently in each period to reflect current market interest rates (and, if the insurer so elects, other current estimates and assumptions). Without this permission, an insurer would have been required to apply the change in accounting policies consistently to all similar liabilities.

The IFRS requires disclosure to help users understand:

(a) the amounts in the insurer’s financial statements that arise from insurance contracts.

(b) the amount, timing and uncertainty of future cash flows from insurance contracts.

Source: International Accounting Standards Board

IFRS 3 Business Combinations

Technical Summary

This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.For the requirements reference must be made to International Financial Reporting Standards.

IFRS 3 Business Combinations

OBJECTIVE OF IFRS 3

To enhance the relevance, reliability and comparability of the information that an entity provides in its financial statements about a business combination and its effects. It does that by establishing principles and requirements for how an acquirer:

(a) recognises and measures in its financial statements the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree;

(b) recognises and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and

(c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.

Core principle

An acquirer of a business recognises the assets acquired and liabilities assumed at their acquisition-date fair values and discloses information that enables users to evaluate the nature and financial effects of the acquisition.

Applying the acquisition method

A business combination must be accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. One of the parties to a business combination can always be identified as the acquirer, being the entity that obtains control of the other business (the acquiree). Formations of a joint venture or the acquisition of an asset or a group of assets that does not constitute a business are not business combinations.

The IFRS establishes principles for recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. Any classifications or designations made in recognising these items must be made in accordance with the contractual terms, economic conditions, acquirer’s operating or accounting policies and other factors that exist at the acquisition date.

Each identifiable asset and liability is measured at its acquisition-date fair value. Any non-controlling interest in an acquiree is measured at fair value or as the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.

The IFRS provides limited exceptions to these recognition and measurement principles:

(a) Leases and insurance contracts are required to be classified on the basis of the contractual terms and other factors at the inception of the contract (or when the terms have changed) rather than on the basis of the factors that exist at the acquisition date.

(b) Only those contingent liabilities assumed in a business combination that are a present obligation and can be measured reliably are recognised.

(c) Some assets and liabilities are required to be recognised or measured in accordance with other IFRSs, rather than at fair value. The assets and liabilities affected are those falling within the scope of IAS 12 Income Taxes, IAS 19 Employee Benefits, IFRS 2 Share-based Payment and IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

(d) There are special requirements for measuring a reacquired right.

(e) Indemnification assets are recognised and measured on a basis that is consistent with the item that is subject to the indemnification, even if that measure is not fair value.

The IFRS requires the acquirer, having recognised the identifiable assets, the liabilities and any non-controlling interests, to identify any difference between:

(a) the aggregate of the consideration transferred, any non-controlling interest in the acquiree and, in a business combination achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree; and

(b) the net identifiable assets acquired.

The difference will, generally, be recognised as goodwill. If the acquirer has made a gain from a bargain purchase that gain is recognised in profit or loss.

The consideration transferred in a business combination (including any contingent consideration) is measured at fair value.

In general, an acquirer measures and accounts for assets acquired and liabilities assumed or incurred in a business combination after the business combination has been completed in accordance with other applicable IFRSs. However, the IFRS provides accounting requirements for reacquired rights, contingent liabilities, contingent consideration and indemnification assets.

Disclosure

The IFRS requires the acquirer to disclose information that enables users of its financial statements to evaluate the nature and financial effect of business combinations that occurred during the current reporting period or after the reporting date but before the financial statements are authorised for issue. After a business combination, the acquirer must disclose any adjustments recognised in the current reporting period that relate to business combinations that occurred in the current or previous reporting periods.

Source: International Accounting Standards Board

IFRS 2 Share-based Payment

Technical Summary
This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.For the requirements reference must be made to International Financial Reporting Standards.

IFRS 2 Share-based Payment

OBJECTIVE OF IFRS 2:

To specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees.

The IFRS requires an entity to recognise share-based payment transactions in its financial statements, including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity. There are no exceptions to the IFRS, other than for transactions to which other Standards apply.
This also applies to transfers of equity instruments of the entity’s parent, or equity instruments of another entity in the same group as the entity, to parties that have supplied goods or services to the entity.

The IFRS sets out measurement principles and specific requirements for three types of share-based payment transactions:

(a) equity-settled share-based payment transactions, in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share options);

(b) cash-settled share-based payment transactions, in which the entity acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price (or value) of the entity’s shares or other equity instruments of the entity; and

(c) transactions in which the entity receives or acquires goods or services and the terms of the arrangement provide either the entity or the supplier of those goods or services with a choice of whether the entity settles the transaction in cash or by issuing equity instruments.

For equity-settled share-based payment transactions, the IFRS requires an entity to measure the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. If the entity cannot estimate reliably the fair value of the goods or services received, the entity is required to measure their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted. Furthermore:

(a) for transactions with employees and others providing similar services, the entity is required to measure the fair value of the equity instruments granted, because it is typically not possible to estimate reliably the fair value of employee services received. The fair value of the equity instruments granted is measured at grant date.

(b) for transactions with parties other than employees (and those providing similar services), there is a rebuttable presumption that the fair value of the goods or
services received can be estimated reliably. That fair value is measured at the date the entity obtains the goods or the counterparty renders service. In rare cases, if the presumption is rebutted, the transaction is measured by reference to the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders service.

(c) for goods or services measured by reference to the fair value of the equity instruments granted, the IFRS specifies that vesting conditions, other than market conditions, are not taken into account when estimating the fair value of the shares or options at the relevant measurement date (as specified above). Instead, vesting conditions are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised for goods or services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest. Hence, on a cumulative basis, no amount is recognised for goods or services received if the equity instruments granted do not vest because of failure to satisfy a vesting condition (other than a market condition).

(d) the IFRS requires the fair value of equity instruments granted to be based on market prices, if available, and to take into account the terms and conditions upon which those equity instruments were granted. In the absence of market prices, fair value is estimated, using a valuation technique to estimate what the price of those equity instruments would have been on the measurement date in an arm’s length transaction between knowledgeable, willing parties.

(e) the IFRS also sets out requirements if the terms and conditions of an option or share grant are modified (eg an option is repriced) or if a grant is cancelled, repurchased or replaced with another grant of equity instruments. For example, irrespective of any modification, cancellation or settlement of a grant of equity instruments to employees, the IFRS generally requires the entity to recognise, as a minimum, the services received measured at the grant date fair value of the equity instruments granted.

For cash-settled share-based payment transactions, the IFRS requires an entity to measure the goods or services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the entity is required to remeasure the fair value of the liability at each reporting date and at the date of settlement, with any changes in value recognised in profit or loss for the period.

For share-based payment transactions in which the terms of the arrangement provide either the entity or the supplier of goods or services with a choice of whether the entity settles the transaction in cash or by issuing equity instruments, the entity is required to account for that transaction, or the components of that transaction, as a cash-settled share-based payment transaction if, and to the extent that, the entity has incurred a liability to settle in cash (or other assets), or as an equity-settled share-based payment transaction if, and to the extent that, no such liability has been incurred.

The IFRS prescribes various disclosure requirements to enable users of financial statements to understand:

(a) the nature and extent of share-based payment arrangements that existed during the period;

(b) how the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period was determined; and

(c) the effect of share-based payment transactions on the entity’s profit or loss for the period and on its financial position.

Source: International Accounting Standards Board

IFRS 1 First-time Adoption of International Financial Reporting Standards

Technical Summary

This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.For the requirements reference must be made to International Financial Reporting Standards.

OBJECTIVE OF IFRS 1:
To ensure that an entity’s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:

(a) is transparent for users and comparable over all periods presented;

(b) provides a suitable starting point for accounting under International Financial Reporting Standards (IFRSs); and

(c) can be generated at a cost that does not exceed the benefits to users. (cost beneficial)

An entity shall prepare and present an opening IFRS statement of financial position at the date of transition to IFRSs. This is the starting point for its accounting under IFRSs.

An entity shall prepare an opening IFRS balance sheet at the date of transition to IFRSs. This is the starting point for its accounting under IFRSs.

An entity need not present its opening IFRS balance sheet in its first IFRS financial statements.

In general, the IFRS requires an entity to comply with each IFRS effective at the end of its first IFRS reporting period. In particular, the IFRS requires an entity to do the following in the opening IFRS statement of financial position that it prepares as a starting point for its accounting under IFRSs:

(a) recognise all assets and liabilities whose recognition is required by IFRSs;
(b) not recognise items as assets or liabilities if IFRSs do not permit such recognition;
(c) reclassify items that it recognised under previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity under IFRSs; and
(d) apply IFRSs in measuring all recognised assets and liabilities.

The IFRS grants limited exemptions from these requirements in specified areas where the cost of complying with them would be likely to exceed the benefits to users of financial statements. The IFRS also prohibits retrospective application of IFRSs in some areas, particularly where retrospective application would require judgements by management about past conditions after the outcome of a particular transaction is already known.

The IFRS requires disclosures that explain how the transition from previous GAAP to IFRSs affected the entity’s reported financial position, financial performance and cash flows.

Source: IASC Education Foundation

Framework for the Preparation and Presentation of Financial Statements (Technical Summary)

Technical Summary

This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.For the requirements reference must be made to the Framework.

Framework for the Preparation and Presentation of Financial Statements
The IASB Framework was approved by the IASC Board in April 1989 for publication in July 1989, and adopted by the IASB in April 2001.
This Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users.

The Framework deals with:
(a) the objective of financial statements;
(b) the qualitative characteristics that determine the usefulness of information in financial statements;
(c) the definition, recognition and measurement of the elements from which financial statements are constructed; and
(d) concepts of capital and capital maintenance.

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. Financial statements prepared for this purpose meet the common needs of most users. However, financial statements do not provide all the information that users may need to make economic decisions since they largely portray the financial effects of past events and do not necessarily provide non-financial information.

In order to meet their objectives, financial statements are prepared on the accrual basis of accounting.

The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for the foreseeable future.Qualitative characteristics are the attributes that make the information provided in financial statements useful to users.In practice a balancing, or trade-off, between qualitative characteristics is often necessary.

Qualitative Characteristics:
1. understandability
2. relevance
3. reliability
4. comparability


The elements directly related to the measurement of financial position are:

1. Assets- resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.

2. Liabilities- present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

3. Equity - residual interest in the assets of the entity after deducting all its liabilities.

Simply speaking, the formula is:

Asset = Liabilities + Equity

The elements of income and expenses are defined as follows:

(a) Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants

(b) Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

An item that meets the definition of an element should be recognised if:

(a) it is probable that any future economic benefit associated with the item will flow to or from the entity; and

(b) the item has a cost or value that can be measured with reliability.

Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement. This involves the selection of the particular basis of measurement.

The concept of capital maintenance is concerned with how an entity defines the capital that it seeks to maintain. It provides the linkage between the concepts of capital and the concepts of profit because it provides the point of reference by which profit is measured; it is a prerequisite for distinguishing between an entity’s return on capital and its return of capital; only inflows of assets in excess of amounts needed to maintain capital may be regarded as profit and therefore as a return on capital. Hence, profit is the residual amount that remains after expenses (including capital maintenance adjustments, where appropriate) have been deducted from income. If expenses exceed income the residual amount is a loss.

The Board of IASC recognises that in a limited number of cases there may be a conflict between the Framework and an International Accounting Standard. In those cases where there is a conflict, the requirements of the International Accounting Standard prevail over those of the Framework. As, however, the Board of IASC will be guided by the Framework in the development of future Standards and in its review of existing Standards, the number of cases of conflict between the Framework and International Accounting Standards will diminish through time.

Source: International Accounting Standards Board

P.S. I have made some modifications so that we can easily remember the key points. But there are no major changes made as to the content.

Tips of Becoming a Certified Public Accountant

I have listed some of my simple ways of passing the CPA board exam. These were the things I did that somehow made me pass the board exam. I have subdivided it into two, the first one is about a person's manner and the next group is about study tools and techniques.

Here are my tips:

1. Have a good time management.

I made myself a study schedule and I followed it strictly. I always see to it to have enough time to study and time to rest and relax. Similarly, make a schedule of your activities and keep it balanced. Remember, 'All work and no play makes Jack a dull boy.'

2. Stay focused

It is true that there should be time to relax and unwind even during the review period, but most of your time must be to study. Remember, focus your mind to your goal--to be a CPA.

3. Study well and have best quality of study period.

It doesn't matter if you read ALL the Accounting books and didn't retain it in your head. What is more important is the best study quality. Know the test pointers and focus mainly on these. Also, study the basic and most importantly the standards.

4. Be humble and ask help.

If there are certain things that you don't understand or are not clear to you, be humble and ask help. Don't pretend that you understand ALL. but instead, ask help from reliable persons, like your professors, if you are confused even in the littlest accounting matter.

5. Be observant and resourceful.

Always know the latest review books. You don't have to buy all of it but you can always find ways to secure a copy of these (you may perhaps borrow from someone or from the library). Research and seek for previous actual exam questions. In certain cases, there are old exam questions which are repeated. The probability is 50:50. But there is nothing to lose.

6. Know your BEST time to study.

There are people who are nocturnal, others are diurnal. As for your case, know yourself. There are people who can memorize well or retain study materials on daytime and others prefer nighttime. KNOW YOURSELF. As for me, I prefer to study at night until dawn. Honestly, I am nocturnal.

Study Tips

7. Read, understand and take notes.

Read the accounting books not just those review books which are often summarized. If possible, read it more than once. Apply the concepts in problem-solving questions to test yourself if you've understand something. Take notes of what you've read so that you can read it some other time for simple recall.

8. Test yourself.

Study those review books and previous actual exam questions. But first of all, remember to read the standards and go back to the basic. Then, apply the concepts in certain theory or analytical questions. Answer the questions and explain to yourself why you come up with those answers. If confused, relax...just study that certain topic or seek others' help. Don't pressure yourself since it will hinder you from retaining the topic.

9. Good study tools usage.

As I've said, when reading certain topics, take down notes. Write it at the space of the books near that important key points. If possible, summarize those topics your OWN WAY. Read it wherever you go (if possible). Possible write it in a small index card. For those topics which requires memorization (formula, laws, standards) write it on 'post-it' memo pads (sticky notes) and put it in your room. Stick it on the wall where you can always see it. In my own personal experience, the capital budgetting formula were written on those sticky note pads and I posted it on the wall near my bed so that I can easily see it when i wake up.

10. Be inspired.

As for me, I always trust in God and I bear in mind that my family will be happy if I succeed.

Actually, i also did some techniques that others call 'DUMMIES TECHNIQUES'

Dummies' Technique that works( this is not accurate)

1. Color Coding Technique

I associate my study progress with colors. Before I study, I look at closely anything that is colored YELLOW.

Reason is, YELLOW, means caution. According to my review instructor, looking at this color can prepare the brain for retention. Just imagine the color yellow in traffic light. It prepares the drivers either to stop or go.

If I am tired of studying, I look at the color GREEN to relax my eyes

If taking down notes, I use different colors. Most importantly I use RED pen for items that confuses me.

2. Icons Technique

In writing notes, I draw icons that can give me a clue about that certain topic or accounting standard.

3. Desperados' Technique in answering questions.

According to my review instructor, in desperate situations we have no chose but to use this technique.

Elimination Technique-Since the exam is a multiple choice question, we can use this technique. If there are 4 choices, we have 25% in of getting the right answer. Still, understand and examine the question. Then, eliminate the very obvious wrong choices. Then choose the nearest choice based on what you know so far.

2.Over-the-top Technique-Here you just have to read and understand the questions. Sometimes the answers are just found in the questions itself and there is no need in solving it. (Examples are certain Management Services questions

Anyway, what matters most is to study well and have much preparation. Taking the CPA board exam is like going out of war. Obviously, we DON'T want to go to a battle with no weapon nor training. Similarly, in taking the exam, you have to be very well prepared and well equipped. Don't forget to be physically and mentally prepared. Be inspired, study well but stay healthy.

How I became a CPA (Certified Public Accountant)

It was May 2000 and everyone from my batch were busy enrolling to the course they desire for college. Some enrolled in Engineering, others in Medical Course and some in Commerce or Business-related field. As for me, I have not made up my mind which path to follow. My parents kept bugging me to enroll to any course. They gave me money to pay for the enrollment. So, finally, I decided to go to a school near our place and took an entrance exam. Luckily, I passed. Still, I don't have any idea what course to take. It is because deep in my heart I want to be an archaeologist or a writer. But the course are offered some other place so I have no choice but to choose any course from a nearby school's course list.

So, I went to the school nearby. My cousin who was also about to enter college enrolled in Bachelor of Science in Industrial Engineering. I thought 'Why not take this course? Almost everyone in our clan finished this degree.' I took an enrollment form for Industrial Engineering and completed the enrollment process. Still, something inside me is telling me not to proceed with this course. I remembered on of the guidance counselors told me "Don't ever bother enrolling in Engineering or Medical Course because your intelligence in those fields has a rating of just 1 out of 10" Her voice is echoing in my mind. I slept that night and woke up the next morning with a firm decision-not to proceed in an Engineering Course. I further decided to take an Accountancy course instead. I hurriedly went to the Registrar's office and got a course withdrawal form. Then, I finally decided to go to the Commerce Department and talked to the College of Commerce Dean. He assessed my grades and accepted me to enroll in Accountancy department.

That's it! It started my accounting learning process. During my four years as an Accountancy student, I studied well but never deprived myself from having recreation. I always keep things in balance. Through my effort and with God's help, I have finished the course with flying colors.

Having graduated the course as an honor student is not just a prestige but a challenge as well. Then, I took the review class. But I was slipping away from my goal and so the first time I took the board exam was a tragedy--I failed.

Then, I got a job in the city and worked there for six months as a Bookkeeper/Disbursement officer/collection officer. I saved money from that tedious multi-task job and so I decided to leave the job and made use of my money the better way. I took a review class and decided to stay very focused. Well, I don't have the heart to be a CPA but I thought to myself that an accountancy graduate will have much worth by passing the CPA licensure exam.

I enrolled in one famous review class in our city. The review instructors are equally good. They taught the subject in a detailed manner--such a good refresher course. After six months, I attend another review class in another university. Well the review class was truly awesome because the instructors were doing it in a fast-pace manner. After another six months, I finished the review and was about to take the exam. I paid for the exam fee and then after a month that was May 7,8,14,15 year 2006, were the scheduled exam dates. I was very relaxed in taking the exam and made sure about my answers. It was May 16 and I thought there was a release on CPA Board exam passers but there was nothing about it. Waiting for the exam result was scarier than taking the exam itself. I felt as if floating mid-air wherever I go. On May 17, I shiver more. I went out because I just can't calm down. When I went home, my sister told me that my friends called up and announced that I passed the board exam. Then my close friend Jane called up and congratulated me. I just can't believe that finally I succeeded. Then, everything else is history.