Did anyone spot the AAT mistake?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
In DFS on question 1 the consolidated balance sheet, the addtional notes made reference to the profit and loss figure - this should have been called retained earnings? - anyone agree? :?:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Did anyone spot the AAT mistake?

    Yes I spotted it !! Deduct a mark off them I say!!!! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Did anyone spot the AAT mistake?

    Is Net Profit now meant to be called "Operating Profit ?" :? :?:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Did anyone spot the AAT mistake?

    Net profit in the new terms means net profit from operations
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Did anyone spot the AAT mistake?
    Claire034 wrote:
    In DFS on question 1 the consolidated balance sheet, the addtional notes made reference to the profit and loss figure - this should have been called retained earnings? - anyone agree? :?:

    I wish I could have applied that logic :evil:

    In my workings I became stuck and actually wrote down 'no retained earning figure given'.

    Nevermind :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Did anyone spot the AAT mistake?

    This is not a mistake and the profit and loss figure is the right terminology. They were trying to see whether we knew that this was the retained earnings brought forward.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Did anyone spot the AAT mistake?

    OK, so why did the specimen exam paper use retained earnings, and all the practice exam papers in the Osbourne book used retained earnings? The terminology 'profit and loss' no longer exists in the new IAS standards.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Did anyone spot the AAT mistake?

    Lol - The terms profit and loss will always exist, its only the name of the statement that changes - i.e Income Statement

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