Best Of
Re: Level 4
There are no entry requirements for level 4. It will assume however that you are familiar with all the level 3 concepts and will only touch on them briefly.
Pian32
1
Re: Sale of shares to raise capital
The share premium is a reserve, part of equity, and remains until the company is wound up, or there is a capital reconstruction. The only tax issues I can think of affect the new shareholder, on the eventual disposal of the shares. Dividend policy may change and this also has tax implications.
PeterC
5
Re: Aat level 3 bookkeeping
Hi there,
I can highly recommend First Intuition's study books (both the Course notes & Workbooks). I found they explain the various topics really easily and offer lots of practice questions and mock questions in their workbooks.
I can highly recommend First Intuition's study books (both the Course notes & Workbooks). I found they explain the various topics really easily and offer lots of practice questions and mock questions in their workbooks.
amurray
5
Re: Ruby Dale - Synoptic Assessment
Hi, I have got my exam Friday 13th (unlucky for some! But hopefully not me haha)
Would you like me to send you some notes over regarding the pre-release? I have done a few bullet points below though (just the obvious stuff though)
Fashion Business
Fast-moving environment, heavily influenced on consumer disposable income and economic conditions
Economic uncertainty in the UK and Europe caused by political events. 42% of sales are generated by the UK (with its economic uncertainty, not good). The fast-growing business also leads to mistakes in the internal control system. May need to review/renew policies.
The company is committed to corporate and social responsibility, yet an opportunity of outsourcing products overseas was suggested by the FD (Joshua Edeki). The triple bottom line needs to be considered, adverse environmental impact, and maybe the quality of the product. The Directors are also shareholders, so maybe Joshua is thinking more about the profits of the company rather than the commitment to corporate social responsibilities. Maybe a bias SWOT analysis.
Rolling budget would probably be best for this company because of the fast-paced environment of fashion
The organisational chart for the employees has ample opportunity for segregation of duties within the accounting and internal control system. (Credit controller, accounts payable, accounts rec, general accs and cashier, payroll) - 5 subdepartments?
Another problem with the SWOT analysis (sorry I have done a lot on this haha) is the opportunity to float on the stock market. It will dilute the shareholding of Ruby Dale and Jack Carey, meaning loss of voting control. Increase pressure from investors to generate profit. Ruby's morals (of triple bottom line) may go out of the window.
I have worked out all of the ratios too, and the following is what i gathered
Profitability:
Gross Profit
Operating profit
ROCE
Profitable company, high GP but lower OP in comparison, due to high costs?
Liquidity
Current ratio
Quick ratio
Inv holding days
Receivable period
Payable period
Working capital cycle
Sufficient current assets to cover the current liabilities. Even when taking out the inventory, the liabilities are still covered. Current assets are mainly made up of inv and trade receivables. Maybe obsolete inv and credit control issues?
Payables are quite high if the standard is 30 days. Need to see what terms are offered. Maybe cash flow issues and maybe overtrading?
Working capital is long for this industry. both long inv time and payable time - can't use suppliers as a form of finance
Financial risk
Gearing
Interest cover
Lower financial risk. lots of opportunities to take out further long term borrowing as the gearing is low at present. May interest potential share investors. Banks would be happy to loan more out with the good finance cover.
I am not feeling great about this exam at all, after reading all the failed students comments on this forum haha. I am hoping that if I have a good understanding of all the information, no matter what question comes up, I shouldn't struggle. However, there is just so much to remember!!
When is your exam? And good luck to you too!
Would you like me to send you some notes over regarding the pre-release? I have done a few bullet points below though (just the obvious stuff though)
Fashion Business
Fast-moving environment, heavily influenced on consumer disposable income and economic conditions
Economic uncertainty in the UK and Europe caused by political events. 42% of sales are generated by the UK (with its economic uncertainty, not good). The fast-growing business also leads to mistakes in the internal control system. May need to review/renew policies.
The company is committed to corporate and social responsibility, yet an opportunity of outsourcing products overseas was suggested by the FD (Joshua Edeki). The triple bottom line needs to be considered, adverse environmental impact, and maybe the quality of the product. The Directors are also shareholders, so maybe Joshua is thinking more about the profits of the company rather than the commitment to corporate social responsibilities. Maybe a bias SWOT analysis.
Rolling budget would probably be best for this company because of the fast-paced environment of fashion
The organisational chart for the employees has ample opportunity for segregation of duties within the accounting and internal control system. (Credit controller, accounts payable, accounts rec, general accs and cashier, payroll) - 5 subdepartments?
Another problem with the SWOT analysis (sorry I have done a lot on this haha) is the opportunity to float on the stock market. It will dilute the shareholding of Ruby Dale and Jack Carey, meaning loss of voting control. Increase pressure from investors to generate profit. Ruby's morals (of triple bottom line) may go out of the window.
I have worked out all of the ratios too, and the following is what i gathered
Profitability:
Gross Profit
Operating profit
ROCE
Profitable company, high GP but lower OP in comparison, due to high costs?
Liquidity
Current ratio
Quick ratio
Inv holding days
Receivable period
Payable period
Working capital cycle
Sufficient current assets to cover the current liabilities. Even when taking out the inventory, the liabilities are still covered. Current assets are mainly made up of inv and trade receivables. Maybe obsolete inv and credit control issues?
Payables are quite high if the standard is 30 days. Need to see what terms are offered. Maybe cash flow issues and maybe overtrading?
Working capital is long for this industry. both long inv time and payable time - can't use suppliers as a form of finance
Financial risk
Gearing
Interest cover
Lower financial risk. lots of opportunities to take out further long term borrowing as the gearing is low at present. May interest potential share investors. Banks would be happy to loan more out with the good finance cover.
I am not feeling great about this exam at all, after reading all the failed students comments on this forum haha. I am hoping that if I have a good understanding of all the information, no matter what question comes up, I shouldn't struggle. However, there is just so much to remember!!
When is your exam? And good luck to you too!
Re: can you please give me tips or notes on how I can pass pass , writing
Which exam are you doing?
I found that the only way to conquer these is to practice practice and practice. I would look through the AAT answers and try to memorize and understand the level of detail they expected and just used to write my answers out every night in the week leading up to my exam and then when I was in the exam, I would do all the calculation questions first and leave my written answers to last. I used the scrap paper to make key notes of stuff they wanted me to mention in the answer and made quick draft answer plans.
It's also worth doing written answers and asking a tutor or fellow student to mark your answers for you - I found this very helpful
I found that the only way to conquer these is to practice practice and practice. I would look through the AAT answers and try to memorize and understand the level of detail they expected and just used to write my answers out every night in the week leading up to my exam and then when I was in the exam, I would do all the calculation questions first and leave my written answers to last. I used the scrap paper to make key notes of stuff they wanted me to mention in the answer and made quick draft answer plans.
It's also worth doing written answers and asking a tutor or fellow student to mark your answers for you - I found this very helpful
Re: Professional Discussion or Written Essay?? For L4 Apprentices
I had no idea a written piece was even an option!! I am getting ready to do my end point assessment and as far as I am aware, they will be conducted via Skype for the foreseeable and so I personally feel that's less pressure anyway. I was told it was the same questions as level 3 and so should be just as easy. If you passed at level 3 with the discussion, I would recommend choosing the same option for level 4.
Re: Ruby Dale Synoptic
When I sat the exam AAT information stated that task 6 was a CBA or a SWOT that might have changed since last year.
For SWOT the best way to think of it is a weakness is something already in the system that could cause problems. eg A single person handling billing and receiving funds has a chance for fraud so is a weakness as it's already present.
A threat would be a potential change that would cause issues.
eg A new competitor has opened up in the industry raising competetion and possibly undercutting your business.
The best way to think of it is the SW is about current situations and OT is about potential future situations.
Budgeting
Go over the advantages/disadvantages of different budgets. Which do you think is best suited to the pre release material as that will be a good reference point. Make sure you know how to flex/adjust budgets to actual levels and be prepared to do some variance calculations to compare actual to budget.
Do not be afraid to put calculations in the written sections, back everything that you state up and you'll pull in those extra marks.
For SWOT the best way to think of it is a weakness is something already in the system that could cause problems. eg A single person handling billing and receiving funds has a chance for fraud so is a weakness as it's already present.
A threat would be a potential change that would cause issues.
eg A new competitor has opened up in the industry raising competetion and possibly undercutting your business.
The best way to think of it is the SW is about current situations and OT is about potential future situations.
Budgeting
Go over the advantages/disadvantages of different budgets. Which do you think is best suited to the pre release material as that will be a good reference point. Make sure you know how to flex/adjust budgets to actual levels and be prepared to do some variance calculations to compare actual to budget.
Do not be afraid to put calculations in the written sections, back everything that you state up and you'll pull in those extra marks.
Pian32
1
Re: Ruby Dale Synoptic
@iech2020
1 - from others experience of sitting this exam majority had either ABC or CBA or Make or Buy, very few had SWOT.
2 - Keep practicing SWOT, sorry not the recommendation you are probably looking for. Maybe others can help.
3 - Budgeting, learn different types of budgets, advantages and disadvantages and then how you can apply them to the scenario or given question on the exam.
1 - from others experience of sitting this exam majority had either ABC or CBA or Make or Buy, very few had SWOT.
2 - Keep practicing SWOT, sorry not the recommendation you are probably looking for. Maybe others can help.
3 - Budgeting, learn different types of budgets, advantages and disadvantages and then how you can apply them to the scenario or given question on the exam.
mergen
1
Re: Capital gains tax on a second home after inheriting another
The rules on that have changed slightly this year. For residental property any gains have to be reported and paid within 30 days. It should also be reported on the relevant self assessment tax return for the year.
There is a lot more information on this on the government website.
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax
There is a lot more information on this on the government website.
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax
Pian32
5
Re: Indirect Tax - AAT Practice Assessment
No problem. I'll answer anyway incase others are confused.
You divide by 5 as the value for EU purchases is VAT exclusive. If it was VAT inclusive you'd divide by 6
You divide by 5 as the value for EU purchases is VAT exclusive. If it was VAT inclusive you'd divide by 6
Pian32
1