Unit 11

System

I am just wondering if anybody else is finding it hard to study DFS unit 11 with the new standards. In college we are using BPP books which are wrong, (how the dividends are dealt with etc).luckily our tutor is fantastic. I just wish we had more mock papers to do as I find they help me no end. Does anyone know if we will be given any more mock papers like the one on the AAT website? I just feel one is not enough. Please let me know if there is a book out there that people have found useful and is correct of course.
Thanks for reading this.
Happy studding,
JC

System

Re:Unit 11

Hi,

I feel the same way you do!

I know the Osborne Workbook has practice exams, but have not looked at them yet (ordered the book today).

I will let you know how I get on.

Fiona

System

Re:Unit 11

Hi

I'm also using the BPP books for DFS, I didn't realise the way dividends were handled was wrong in the book, my tutor obviously hasn't noticed.

I'll need to have a look at that

System

Re:Unit 11

Your tutor didn't happen to tell you how they should be dealt with...just thought about it and haven't got a clue

Thanks
Kerry

System

Re:Unit 11

Thanks for all your replys. I will have a look at my notes when I get home and let you know how the dividends are dealth with.
Hope I haven't worried anybody.
JC

System

Re:Unit 11

We've been told that only dividends paid out are to be included. Any proposed dividends are not included, unlike in previous standards where proposed dividends are accounted for. Is this the same as you've been told?

Talking about books being wrong - how have you been told to work out Return on Equity (ROE)? Osborne has it as:
profit after tax/ equity

whereas our tutor says to use:
profit before tax and after interest/equity

System

Re:Unit 11

In class on Wednesday our tutor went through the new unit 11 paper from this website.
We were told that there are two ways of getting your Retained Earnings figure. One being a Working Schedule and the other way is to put under your Income Statement an:

'Extract From Statement of Change in Equity' £


Retained profits Balance b/f 17,349
Profit after tax 12,538
Final dividend (1,000)
Interim dividend (600)

Retained Earnings C/F £28,287

This should be the only place that the dividends are to go.

This might make more sense if you have a look at the paper mentioned. From what I gather, in the BBP books, the dividends are put in to the Income Statement, which according to out tutor is wrong.
I hope I haven't confused you even more.
I will get back to you about you ROE question.

If anybody disagrees with me PLEASE, PLEASE let me know. The last thing I want to do is give out incorrect information.
Regards,
JC

System

Re:Unit 11

You are correct. I'm studying international standards on a degree and dividends are definitely not entered into the income statement, only in the statement of changes in equity. i.e. the appropriation account which used to sit at the end of the profit and loss account has been scrappydoo'd.

Proposed dividends are not entered into the accounts at all except perhaps as a note to the accounts, UNLESS they were declared before the balance sheet date.

System

Re:Unit 11

I am doing International Standards Financial reporting ACCA paper with BPP and have been told that although dividends paid don't go in the income statement, sometimes in the exam dividends are included in the statement and in that case you are allowed to put them in in your answer. Other than that they only go in the statement of changes in equity.

Confusing eh!!