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Date Posted: 02:19:43 05/24/06 Wed
Author: Woy Felia
Subject: AL PA

Dear Mr. Kowng,
I am the PA teacher of PLK Chao King Lin Sixth Form college. I would like to know that should we have to follow the most updated standards issued bu HKICPA?
For examples, some recent changes are as follows:
(1) Negative goodwill - immediately to income statement
(2) Positive goodwill - no amortization anymore, only impairment each year and there is the possibility of reversal of impairement??
(3) extraordinary items now prohibited
(4) no last in first out

Those are the changes that may affect AL students. Do we need to teach most updated standards ?

I look forward for your reply.

Best regards,

Felia

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