DFS June 2007 Suggested Answers

System
System Posts: 100,534 πŸ€– Admin πŸ€–
edited June 18 in AAT student discussion
As requested by a few of you, I have uploaded my suggested answers to DFS June 2007 (which I consider to be relatively accurate without sounding big-headed!) If you are not a registered member of the accountancy students website you will have to register (it is free) and log in to be able to view the answers. The attachment says June 2006 but they are, in fact, June 2007!

http://www.accountancystudents.co.uk/forums/viewtopic.php?p=23043#23043
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Comments

  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi,

    I have had a look at your post, but cannot see the attachment.... being new to the other site I may not be looking in the right place, but cannot see it anywhere. Please advise.

    Thanks
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    You need to be logged in to access any attachments. If that is the case and you still can't get it, pm me and I'll see what I can do.

    Annette
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi Peugot
    I've registered on the site but can't find the attachment. Please help
    Saschalou :)
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    If you cannot see the attachment, then go the AAT Technician Forum and click my thread - the attachment should be there.

    Please note, as Bluewednesday has said, you MUST be logged in to view the attachment.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers


    I registered and then clicked on Steve's link and the attachment was there.

    Helen
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Thanks, I found it this time.

    Kinda wish I hadnt looked though.....

    Never mind, fingers crossed. :)
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers
    lizmcginn wrote:
    Kinda wish I hadnt looked though.....

    You and me both then.... :lol::lol:
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi All

    Thank You Peugeot. I just registered and logged in and obtained your answers to the DFS, I have made one or two minor mistakes and your report reads so much better than mine :cry: but here hoping all will be alright on the night (day) :D
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    I wouldn't worry about the wordy parts. My answers just touch on the main points and there is huge scope for very different and very much relevant (and correct) answers.

    I tried to limit the amount of points I raised in the wordy questions to take into account the fact that you only have 3 hours to do the exam. The AAT's answers will more than likely go into much more depth.

    Kind regards
    Steve

  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Thanks for this Peugot, I was feeling confident about the exam anyway but it is always good to compare answers. From what I remember all my calculations seem to be correct, your reports are more detailed than mine but I got the main points down. I wish I was as confident about PCR and PTC :?
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    I had a look but I can't remember any of my answers so they were no help to me lol just wait till August I suppose
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    thank you
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    It is very good of you Steve, many thanks. I've also discovered another forum....... :lol:
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    It's not a problem. I got asked from a few people to do them so I agreed!

    The only issue I will make about the answers I've uploaded is in connection with the narrative questions. A few PM's have come through with people having concerns that they did not mention some of the things I did e.g. the directors personal guarantees and the gross profit reduction in one of the questions. I would just like to add that discursive questions can attract an abundance of answers. Unlike computational questions where there is a right or wrong answer, discursive questions aren't as black and white.

    My wordy answers did not go into that much detail - they simply addressed a couple of key points that I would have picked up on had it been a real-life situation. Just because a student did not mention personal guarantees or gross profit reduction does not mean that they did not mention equally valid and relevant points that I didn't - so don't panic if you did not mention some of the points I did. As long as you got the basic approach right and you answered the questions that were asked, rather than what you wanted to be asked, you shouldn't have a problem.

    Not only that there's only so much you can write down in the time allocated! Also, as the old saying goes, "there's nothing you can do about it now, anyway!"

    Good luck to you all.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi,

    This is my first time to the forum!

    Help not able to link to the answers!

    Thinking might have to be resitting the paper in DECEMBER
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    You probably aren't logged in. You must log in to the accountancy students site in order to be able to view the attachment. The administrator has put a note on the thread to assist you.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi,

    Thanks was able to link and check the answers out!

    Does anyone know what the pass mark is for each section?

    The thought of resitting is just unthinkable :!:

  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi,

    I have logged in and clicked on your link, it takes me to another page with your message on it cut can see no attachment to open. Is there any chance you could email them to me please? I cant seem to see whats wrong!!! cjohnston1808@hotmail.co.uk. WOuld be very appreciated as i am quite worried about DFS! Thanks :D
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    If you are logged in you should be able to see a grid underneath the administrators note. To the right of that grid is the word "Download". Click on Download and you should be able to access it. I don't think there is a problem as people appear to be downloading it fine.

    Unfortunately I cannot email it to you but if you have any problems please feel free to PM me or ask Bluewednesday (I hope she doesn't mind) as Bluewednesday is a moderator on that forum so might be able to "work some magic".

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Thanks for the link to the suggested answers.

    With regards to the 9 prepayment in task 1.1, this is how I always had done it in the past. However one past paper showed it as 9 coming off the payables rather than added to receivables so I changed my method to do it like this

    Am I likely to lose many points for this?

    Thanks
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi Emma,

    This was the insurance prepayment. The year end was March 2007 and the insurance had been paid to June 2007 at an amount of £36k. So, £36k x 3 months/12 = £9k.

    The journal in my answer debited prepayments in receivables and credited insurance.

    I have never seen prepayments being debited to payables, however, it is a long time since I have done any exams and AAT may have cases where this does arise.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    In task 1.3b you refer to IAS 18. I don't have my course notes handy, but I'm fairly certain that this IAS was NOT covered in the classes I attended.

    So if I am marked down for not correctly answering this question, do I have any case for appeal as I was not taught this standard?
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    I have double checked and, yes, IAS 18 is Revenue.

    I doubt very much you would have a case for appeal. The AAT's standards are quite clear. If a tuition provider does not teach in accordance with those standards then it is the tuition provider who is at fault - not the AAT I'm afraid.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Following on from my above reply. Pages 11 onwards of the standards for DFS gives the IAS/IFRS that are examinable. You will note IAS 18 is referred to on page 13. You can find these standards under the student resource centre on the students homepage.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi

    I have been looking at your answers. The only difference I had was with the loss on disposal of the business. I deducted this at the bottom of the IS in discontinued operations. Was I wrong to do this of are there different methods. I think the with the new IFRS accounts we are supposed to put that sort of thing in the discontinued operations, but I could be wrong.

  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    This question would have confused many people. It would have prompted many people to consider IFRS 5 (Non current assets held for sale and discontinued operations).

    In terms of the income statement IFRS 5 requires that the total post tax profit or loss and post tax gain or loss should be presented as a single amount on the face of the income statement. As there was no further information available i.e. revenue, pre-tax profits or losses and related income taxes attributable to the discontinued operation, I do not see how the required format in the income statement for continuing operations and discontinued operations could have been followed. In view of this the IFRS requirement was to put it under the gross profit line as a separate disclosure (a bit like the UK FRS 3 requirements relating to exceptional items). Discontinued operations and IFRS 5 are actually the feature of a forthcoming article of mine which will either go in the printed AAT magazine or on the electronic magazine, which is on the AAT's Homepage. I will post a link when this article is published.

    However, as long you included the loss in the income statement, whether incorporated in the 1 income statement or classified separately, I doubt it will make too much of a difference. I suspect there will be a wide variety of answers!

    I would just like to mention (just to put your minds at ease) that the AAT are testing for competence - not technical perfection. You can still pass this paper even if you put the loss on disposal in the totally wrong area of the income statement or even if your balance sheet/cash flow statement didn't balance. Please don't get too bogged down in the fine details of my answers. As I have previously said - as long as your basic approach was correct - you won't have a problem.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi Peugeot

    I am having difficulty logging in to the linked Forum where you've attached the suggested answers. Could you pls email me at f.gaida@btinternet.com. Many thanks.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    Hi Face,

    I am unable to email the answers. If you try logging in then go to the AAT Technician Forum you will see the thread, then click download.

    If you still struggle then if you PM Bluewednesday, she is a moderator on that website so may be able to assist you.

    Kind regards
    Steve
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    .
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    Re:DFS June 2007 Suggested Answers

    I'm sorry if you had difficulty downloading them.

    The loan interest was for six months only. So £14,000 x 7% = £980 x 6 months over 12 = £490.

    Kind regards
    Steve

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