Steve's DFS Answers are Here

peugeotpeugeot Experienced MentorRegistered Posts: 624
I have prepared some suggested answers for December 2008 DFS. They have been checked for errors/omissions and I am happy that they can be relied upon for guidance on how this paper should have been answered.

Certain areas may have been approached differently by candidates, so if you need any clarification on how I have arrived at any of my figures (most of which are supported by workings), then please feel free to contact me.

Best wishes
Steve

Comments

  • lou123lou123 Feels At Home Registered Posts: 53
    DFS answers

    Hi there, this is my first ever post so I hope it gets there!

    I think I must be doing something wrong because I just get an icon of a Word doc when I try and open the answers you have supplied for us.

    Any suggestions?

    Thanks. :001_smile:
  • coco78coco78 New Member Registered Posts: 8
    First of all thank you for the answers.

    Do you think I will lost lots of mark for using the wrong figure for the Inventories for Task 1.1. My calculation is based on 135 instead of 87, thus my profit is differ to yours.

    Secondly, I spent about an hour on Task 1-1 and have to rush through the paper. I am please that the rest my numeral answer is same as yours. But now I realise that I did not answer Task 2.1 in report form. Will that cost me lots of points eventhough my formula and calculation for 2007 & 2008 is correct, did give my feedback on the figure and give what I hope a logical and financial sound advice and I am confident that I got it right on Task 2.2, will this be enough for me to pass session two.

    I am feeling really sick....with worry...

    I think if I fail I will appeal.
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    I don't know the marking scheme for DFS I'm afraid. With the returned stock the question was testing IAS 2 as well as the accounting knowledge for returned goods. I would not think you would be the only person to do what you did - I think plenty of students would have done that, so don't worry about it.

    You will probably lose a mark for not doing a report, but I wouldn't worry now. Remember to pass you don't have to get 100%

    Steve
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    lou123 wrote: »
    Hi there, this is my first ever post so I hope it gets there!

    I think I must be doing something wrong because I just get an icon of a Word doc when I try and open the answers you have supplied for us.

    Any suggestions?

    Thanks. :001_smile:

    Not sure why you can't download the document. I have however uploaded the same document on www.accountancystudents.co.uk

    If you go to the discussion forums, go down to AAT Technician, you will find it there.

    Kind regards
    Steve
  • lou123lou123 Feels At Home Registered Posts: 53
    DFS answers

    Hi Steve

    Thanks for that, I managed to download the answers from your article.

    Really appreciate your time and trouble.

    Lou123 :001_smile:
  • LizzimLizzim Feels At Home Registered Posts: 48
    Thanks Steve - I recognise quite a few numbers which is reassuring. Hopefully I won't have done too much wrong!
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    I am going to steal Sandy's idea (I hope you don't mind Sandy), but as it is Christmas - if you did find these answers helpful and in recognition of the time that has been put in to preparing them for you, please can you make a donation to one of the charities on Sandy's PEV Answers thread or to Cancer Research

    Many thanks

    Steve
  • Suzuki1987Suzuki1987 Just Joined Registered Posts: 1
    dfs answers

    I made a mess of the payables ratio, I don't know what happened,I knew them allso well, it had never been mentioned in my college lessons or the Osbourne books about using COS if purchases cannot be worked out for both years. Do you think this is a failable error? Other than that My answers were pretty similar to yours, I'm confident my section 1 was ok.
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    I would be very surprised if you failed an entire section just because you got a ratio wrong. I'm sure they take exam pressure into account.

    I do have to advise that I do not know the marking scheme, so I cannot give a definitive answer, but like I say errors such as getting 1 ratio out of 4 wrong would not give rise to a fail.
  • jackieshepjackieshep Feels At Home Registered Posts: 68
    Many thanks for the answers Steve, I was worried about my written work rather than the calculations and it has helped me to be cautiously optomistic, although obviously I will still be keeping my fingers crossed for February.
  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    Jackie
    Thank you
    http://www.justgiving.com/Cerebral-Connections
    Sandy

    And thank you Steve
    Sandy
    [email protected]
    www.sandyhood.com
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    No problem Sandy.

    For the students, I have received a few questions (on here and on the other forum) concerning my answers and asking whether you would fail if a ratio had been calculated incorrectly or if the inventories figure had been done wrong.

    I don't actually know the marking scheme but if you make a single mistake in a task, I doubt this in its entirety would cause you to fail the whole section.

    You're being tested for 'competence' not 'perfection', so don't worry if some of my answers do not necessarily agree to what you put. There are also different approaches to questions e.g. putting the loan interest against the loan or accruing for it or setting up another liability account in the balance sheet. My answers are not 'model' answers, they are 'suggested' answers and the aim of which is to offer reassurance.

    Good luck.
    Kind regards
    Steve
  • mark130273mark130273 Font Of All Knowledge Registered Posts: 4,234
    well that first answer with putting back in the 87???
    i never ???

    only thing that i thought was different from my paper !
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    The goods cost £87k but were sold for £135k in Aug 08 but returned on 30 October 2008 (1 day before the balance sheet date). The reason I have put them back in stock is because the question states that "no entries have been made in the accounts in the trial balance to the return of these goods......these goods were not included in the physical stocktake carried out on 31 October 2008". Therefore, the £135k has been deducted from trade receivables and revenue (ie to represent a 'credit note'), whilst I have included the items back in stock at their cost of £87k (ie lower of cost and net realisable value (135k) per IAS 2).

    Please, please do not worry if you did not do this. Also can I just re-iterate that you're not expected to get the whole paper right to pass. Exam pressure and the work you are expected to do in the 3 hours can be immense so you are bound to miss certain things.

    Regards
    steve
  • mark130273mark130273 Font Of All Knowledge Registered Posts: 4,234
    peugeot wrote: »
    The goods cost £87k but were sold for £135k in Aug 08 but returned on 30 October 2008 (1 day before the balance sheet date). The reason I have put them back in stock is because the question states that "no entries have been made in the accounts in the trial balance to the return of these goods......these goods were not included in the physical stocktake carried out on 31 October 2008". Therefore, the £135k has been deducted from trade receivables and revenue (ie to represent a 'credit note'), whilst I have included the items back in stock at their cost of £87k (ie lower of cost and net realisable value (135k) per IAS 2).

    Please, please do not worry if you did not do this. Also can I just re-iterate that you're not expected to get the whole paper right to pass. Exam pressure and the work you are expected to do in the 3 hours can be immense so you are bound to miss certain things.

    Regards
    steve


    cheers i understood the amount is just the way they said about not in the acounts.....just made me think that they didnt want us to put them in the accounts !!!

    not worried. cus i got the rest right !!!

    other than the 2.1 i put that they are meant to show a fair and unbias account of the finances of the company ??
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Do you mean 2.2(a)

    The IASB's official words are "relevant and reliable" but this equates to "fair and unbias" so I don't think you'll have a problem here!:thumbup1:

    Best regards
    Steve
  • mark130273mark130273 Font Of All Knowledge Registered Posts: 4,234
    cheers for that !!!!

    not worried at all now ...........

    but why do we have to wait till mid feb ?
  • mfernottmfernott Feels At Home Registered Posts: 32
    Thanks for the answers! Great help! I missed out the 87 quid journal so got profit of 1515 which I carried through - I hope this doesn't lose me too many marks :001_unsure:
  • SarahSarah New Member Registered Posts: 5
    Hi Steve,

    Thanks for posting the answers to the DFS exam - I think (hope) I have done enough to pass!

    Will you be posting suggested answers for the PTC exam too? I would be really grateful if you could!

    Thanks, again.

    Sarah

    Sarah
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Hi Sarah,

    Unfortunately my current workload at the minute is too much. I was also asked for FRA answers and ACCA F7 but I just don't have the time at the minute to work the answers, type them up, have them reviewed and the upload them. Please accept my apologies.

    I'm sure you've done fine though.

    Best wishes
    Steve
  • cornflowercornflower Well-Known Registered Posts: 129
    Thanks for doing those even though they confirm my belief that I have really screwed up on the exam:thumbdown:
    Steve can you tell me why you did the consolidatioin using fractions and not percents as I dont understand it.I also put the objective of financial statments was to give a fair and true view -do you think I will have failed on this or will i stil pass the question.

    Carrie x
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    I used fractions because if you didn't the figures in the consolidated balance sheet would be slightly out of balance. You could still balance the consolidated balance sheet by using 67% and still get through the task but your figures would be out of line.

    In terms of the objective of financial statements, you refer to "true and fair", which is UK GAAP. The IASB refer to "relevant and reliable".

    I do not know what constitutes a fail because as i have said previously, I do not know the marking scheme.

    Kind regards

    Steve
  • cornflowercornflower Well-Known Registered Posts: 129
    what is GAAP:ohmy:
  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    Generally Accepted Accounting Principles
    - at the heart of DFS


    Your preparation for the exam will focus on many of the principles.
    http://www.iasplus.com/index.htm
    You may well find that someone at work regularly consults the GAAP book.
    Sandy
    [email protected]
    www.sandyhood.com
  • mark130273mark130273 Font Of All Knowledge Registered Posts: 4,234
    i thought gaap was a shopping stall ????

    hahahahahahaha
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    I have been asked to clarify a point in my answers:001_rolleyes:

    The accounting standard number to Working 2 to task 1.2 (b) has been missed out it says:

    "under the provisions of IAS 'inventories' these goods must be valued at lower of cost/net realisable value".

    It should read:

    "under the provisions of IAS 2"

    Hopefully this issue will no longer cause sleepless nights for the person who sent me the PM.

    *steve hangs his head in shame*

    Kind regards
    Steve
  • mark130273mark130273 Font Of All Knowledge Registered Posts: 4,234
    people of picking on you steve....everyone knows that it was ias 2
  • Jane40Jane40 Just Joined Registered Posts: 1
    Thanks Steve

    Hi Steve

    I only just found out from a friend a college that you posted the DFS sample answers from Dec 08.

    I feel much happier about the pending results now.

    Cheers

    Jane:001_smile:
  • JuliaJulia Feels At Home Registered Posts: 78
    I have taught DFS for a number of years at a well known private tuition provider and have to say these answers are 100% spot on!!

    I am always interested to read your posts and your articles. Students always benefit from your words of wisdom and I , and indeed many other tutors, always refer students to your articles.

    Thanks Steve.
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Thanks for your positive replies and thank you Julia for your support.

    I am really pleased these answers have helped.

    Best wishes
    Steve
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