Accountancy
Accountancy
This domain tests your ability to prepare, analyse, and interpret financial information under Dutch law and IFRS. Core concepts include the accrual basis, matching principle, revenue recognition (IFRS 15 five-step model), lease accounting (IFRS 16), inventory valuation (IAS 2), and the distinction between provisions and contingent liabilities (IAS 37). You must also understand consolidation (IFRS 10), the equity method (IAS 28), and the Dutch statutory framework (Title 9 Book 2 BW), including the difference between the commercial and fiscal balance sheet.
Traps in exam questions include: confusing the timing of revenue recognition with cash receipt; misapplying the percentage-of-completion method when performance obligations are not distinct; treating a finance lease as an operating lease; and ignoring deferred tax when an asset is revalued. Another common trap is the treatment of a provision for restructuring: only costs that are necessarily entailed and not associated with ongoing activities qualify.
Worked example (rule of thumb): A company sells goods with a right of return. Under IFRS 15, recognise revenue for the expected non-returned amount and a refund liability for the expected returns. Do not wait until the return period expires. Always ask: has control transferred? If yes, recognise revenue, but adjust for variable consideration.
Rule of thumb: For any transaction, first identify the contract, then the performance obligations, then the transaction price, then allocate, then recognise when control passes. This sequence prevents most errors.