How to Write an IRAC Board Memo on MFRS Issues for a Law or Governance Master’s
Short answer: a strong IRAC board memo answers one question per issue, names the exact standard or section, applies it to the facts given, and ends with a clear instruction to the board. Markers reward precise rules and honest limits on the facts more than long descriptions of accounting theory.
The original assessment brief is available on our question page: Interpreting Financial and Accounting Information Assignment Question 2026 | MAICSA.
If your law or governance master’s has set a memo on financial reporting issues, you are probably short of time and unsure how technical the accounting should be. The guidance below uses the LGV7014 Interpreting Financial and Accounting Information format at Veritas University College as the working example, though the method suits any similar memo.
If you would like a second pair of eyes on your outline before you draft, our law assignment help page explains how we work with students.
What the brief really asks
The LGV7014 task puts you in the role of legal counsel. A listed company has several unresolved accounting questions, and the board wants advice before the statements are signed. The topics include revenue from a bundled contract, a probable regulatory liability, an event after year-end, a sale and leaseback, control of an investee, and pressure from a chief executive to present profit favourably.
You are not auditing the company or preparing journals. You are telling the directors what the law and the standards allow, what they do not, and what the board should do next. That is why the marks are split between framework, individual issues and the final judgement on the board’s position.
The full question is on the questions archive, and a worked extract is in our worked sample, for reference only.
Step-by-step approach
- Read each issue for the trigger fact. Every matter has one detail that decides the answer, such as “counsel says probable with a best estimate” or “legal title transferred”. Underline it.
- Match the issue to its standard. Revenue points to MFRS 15, provisions to MFRS 137, post-year-end events to MFRS 110, leases to MFRS 16 and control to MFRS 10.
- State the rule in two or three sentences. Quote the paragraph number only if you have checked it in the standard itself.
- Apply the rule to the facts. Use the case words. Say what each fact supports and what is missing.
- Conclude in one direct sentence. “The board should recognise a provision” is better than “the board may wish to consider”.
- Finish with a ranked recommendation. Put the highest legal and reporting risk first and give a reason.
For help structuring a long memo, our report writing help page covers headings, executive summaries and tone.
A simple IRAC layout for each issue
| Step | What to write | Typical length |
|---|---|---|
| Issue | One question, framed from the board’s point of view | 1 to 2 sentences |
| Rule | The standard or section and the test it sets | 2 to 4 sentences |
| Application | Facts set against each part of the test | The longest part |
| Conclusion | Treatment and one action for the board | 1 to 2 sentences |
Spending your word count by marks
With 2,000 words and marks of 15, 15, 15, 15, 20 and 20, a proportionate plan gives roughly 300 words to each 15-mark task and 400 words to each 20-mark task. Our own suggestion is to trim the framework section slightly in favour of the two 20-mark tasks, since those carry the hardest judgement.
| Task | Marks | Approximate words |
|---|---|---|
| 1 Framework and professional responsibility | 15 | 300 |
| 2 Customer contract | 15 | 300 |
| 3 Provision or contingency | 15 | 300 |
| 4 Post-reporting-date event | 15 | 300 |
| 5 Headquarters sale and continuing use | 20 | 400 |
| 6 Control, judgements and board advice | 20 | 400 |
What markers look for
- A correct memo format with To, From, Date and Subject, and a short summary of advice at the top.
- Each issue answered in IRAC order, with the conclusion actually stated.
- Standards named by number and, where you are sure, by paragraph.
- Application to the case facts rather than a summary of the standard.
- No invented numbers. Say what information the board still needs.
- Companies Act 2016 duties tied to the facts, not just listed.
- A final recommendation that is ranked and practical.
- A consistent reference list, in OSCOLA style if your course asks for it.
Common mistakes
- Writing an accounting essay with no legal angle, so the memo never explains why the directors are exposed.
- Treating “disclose” as the safe answer. When the recognition test is met, disclosure alone does not fix the problem.
- Relying on a management label, such as “licence sale” or “below 50%”, instead of the substance of the contract.
- Citing paragraph numbers from memory. A wrong number costs more than none.
- Skipping the conclusion because the application ran long.
- Ignoring the chief executive’s pressure. Markers want you to say plainly that profit maximisation is not a reporting standard.
What students worry about most
Students on law and governance programmes often say the accounting standards feel like a different language. Others are unsure how to cite a standard in OSCOLA, or whether a table counts toward the word limit. Many also fear giving a firm answer when the case leaves gaps.
On the last point, a firm answer with a stated assumption is safer than a vague one. Write “on the facts given, the entity should consolidate, subject to confirming the shareholders’ agreement”. That shows judgement and honesty at once.
On referencing, check your module guide before you finalise. Many students use a reference list of standards and statutes first, followed by secondary sources, but your marker’s rule applies. Real student feedback on our service is on our reviews page.
How to write the final recommendation
The last section is where many memos fade. Instead of repeating each conclusion, rank the issues by the risk they pose to the directors and the company. A matter involving a probable liability or a possible misstatement usually ranks above a matter that needs only a note.
Give each ranked item one action, one owner (for example the audit committee or the finance director) and one reason. A short table works well here. Keep the language direct, such as “recognise”, “consolidate” or “obtain the contract terms”, because the board is reading to decide, not to be taught.
Finally, state the limits of your advice. If the case leaves out a fact that could change the answer, say which fact and how it would change the treatment.
Mark-maximising checklist before you submit
- Does every issue end with a one-sentence conclusion?
- Have you checked each paragraph number against the published standard?
- Is each table short and labelled, with its meaning explained in text?
- Are assumed facts marked as assumptions?
- Does the final table rank the issues and give a reason for the order?
- Is the memo within the word limit, with headings kept brief?
Need help turning a draft into a clean memo? Read about our accounting assignment help service, or ask for a review of your outline.
FAQs
Is IRAC the right structure for a board memo?
Yes, if you apply it per issue and add a short summary at the top and a ranked recommendation at the end. IRAC keeps your reasoning visible, while the memo wrapper gives the board what it needs to act.
How technical should the accounting be?
Technical enough to apply the test correctly, but no further. You need the recognition or control test, not journal entries. The law student’s strength is explaining why the test matters to directors.
Should I cite paragraph numbers?
Cite them when you have confirmed them in the standard or an official source. If you cannot confirm a number, cite the standard by name and number alone. An accurate general citation is better than a precise wrong one.
Can I use tables in a 2,000-word memo?
Usually yes, for summaries and the final recommendation, but check whether table text counts toward your limit. Keep tables short and refer to them in the text.
What if the case gives no figures?
Do not invent them. State the treatment, explain which numbers management must supply, and say how the conclusion could change. Markers treat this as sound professional practice.
How do I handle pressure from a chief executive in the case?
Tie your answer to the directors’ duties under the Companies Act 2016 and to fair presentation under MFRS 101. Explain that an action not expressly prohibited can still produce misleading statements.
About the expert
Law-and-reporting briefs are the kind of work handled by experts such as John Collins. His profile lists a master’s in Law from the University of Malaya and specialisms in criminal, corporate, media and international law. It also shows 10 years of experience in his field and 2,966 completed orders on the site. For more about the team, see our about us page.
References
- Companies Act 2016 (Malaysia) (Act 777), ss 213, 248.
- Malaysian Accounting Standards Board, MFRS 101 Presentation of Financial Statements; MFRS 110 Events after the Reporting Period; MFRS 137 Provisions, Contingent Liabilities and Contingent Assets.
- Malaysian Institute of Accountants, MFRS 15 FAQs (MIA 2022) <https://mia.org.my/box/2022/07/MIA_MFRS_15_FAQs.pdf> accessed 19 October 2026.
- ICAEW, How to distinguish adjusting from non-adjusting events after the reporting period under IAS 10 <https://www.icaew.com/technical/corporate-reporting/ifrs/ifrs-faqs/how-to-distinguish-adjusting-from-non-adjusting-events-after-the-reporting-period-under-ias-10> accessed 19 October 2026.
- Mazars, Companies Act 2016 (Part 1) <https://forvismazars.com/my/en/content/download/899499/file/MAZARS%20-%20Co%20Act%202016%20%28part%201%29.pdf> accessed 19 October 2026.
