proformas in exam

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited June 18 in AAT student discussion
I know we will be supplied with a pro forma for the cashflow statement but does nayone know whether we will be provided with one for the reconciliation of profit to net cash from operating activities?

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Our lecturer has told us we need to know the Income Statement, statement of recognised income and expenditure, statement of changes in equity, reconciliation of operating profit to net cash flows from operating activites, cash flow statements and consolidated IS and BS layout, but only some will be in the exam.

    He did state try and do without the proforma's just in case they do not give us any in the exam.

    Regards
    Lisajane
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    You dont need to know the statement in Change in Equity, this will not be examined at all!!

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Mr Magoo - they are most definitely examined in the new exams - be very aware of this!

    Even the specimen exam has an answer on this!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Also the balance of the statement of changes in equity is the figure for retained earnings in the balance sheet. Without doing this your balance sheet will not balance!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Claire

    I'm not sure if this was off this site or the MSN AAT website but I have a document, from Ian Dennis, updating what will and wont be tested! See below!!

    This has also been confirmed by our lecturer who had a day with Ian about 6 weeks ago!

    Thanks


    UNIT 11 CLARIFICATION FOR JUNE 2006 EXAM
    The Unit 11 examiner, Ian Dennis, gave the following additional information
    on how he will examine IAS in a recent masterclass.
    1. IAS 10รขโ‚ฌโ„ขs treatment of final dividends is too complicated. Therefore, in the
    exam, final dividends will always be declared after the year-end. So they
    should be disclosed by way of note and not accrued.
    2. Preference shares will not be examined.
    3. The statement of changes in equity will not be examined. Therefore
    dividends paid should be included in the income statement.    4. When preparing the balance sheet, students should be aware that there will
    be at least two or three types of current liabilities to be entered eg trade
    payables, accruals, tax payable and bank overdraft.
    5. The proformas for income statement and balance sheet will be one column
    only. Therefore students should show net current assets as follows:
    Current assets $
    Inventory 10,000
    Receivables 75,000
    Bank 4,000
    89,000
    Current liabilities
    Payables 53,000
    Accruals 5,000
    Tax payable 20,000
    78,000
    Net current assets 11,000
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    There are detailed guidance notes on each unit in the 'Resource Centre'.

    Scott.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Sorry to sound thick but who is Ian Dennis?

    We have been told in our DFS class to put the statement at the bottom of the income statement showing :

    Balance brought forward of retained earnings
    Profit for the year
    Dividends paid
    Balance at the year end ( this figure then goes to the retained earnings on your balance sheet)

    Help - I am panicking now!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Ian Dennis is the unit 11 examiner.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Claire

    I think we might be talking about different kinds of statement in change of equity!

    The one we were told to learn before this came out didn't only have the dividends payments in there, we also have issue of share capital and revaluation reserves movement!

    Hope this helps.

    Thanks

    Tim
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    I hope someone is reading this to help clarify this problem - its only 3 weeks to the exam. Where then do the retained earnings brought forward go?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    The technique we have been told is from the Trial balance, do all the journals and then enter each figure just after the relevant heading.

    So for retained earnings on the balance sheet, we enter the figure that is already there on the Trial balance. This figure is then altered depending on the figure you get from the Income Statement once all the transactions have been accounted for.

    I hope that makes sense.

    Tim
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    i haven't a clue what you are on about can you please clarify!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    MrMagoo,
    The information you have from the examiner was actually what BPP got from attending the master class. A statement of changes etc is to be done. And proposed dividends are entered as a note.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    .
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Can you tell me where to find the information from the examiner that BPP got from attending the master class. I have looked on the BPP site and can't find it.

    Thanks
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Click on the link below.
    If it doesn't work I will reply and give you more details. Like I said in my previous post, BPP have got it wrong about the Statement of changes and equity. It is examined. Hope this helps. Your best bet is to get familiar with the guidance and exam on this website.
    http://www.bpp.com/accandtax/misc_downloads/aat11_update_june2006.pdf
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Thank you Lovesit - people should not post this sort of information just weeks before the exam.

    GET YOUR FACTS RIGHT FIRST!!!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:proformas in exam

    Thank you very much Lovesit

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