business's last financial statement

any2002uk
any2002uk Registered Posts: 88 Regular contributor ⭐
in AAT Level 3 (Level 6 in Scotland)
:confused1:like woolworth maybe the AAT exam in FRA will ask me to prepare their last ever financial statement which mean everything in business must be sold and make business balance nil. i am not sure if it will happen in AAT and i am very worry.

i know the partnerships usually have retire or new partner, but what about their last finish because of close down business, do u know what i mean. iplease ask AAT examiner whether it will happen, if so why is there no information how to close down business financial statement, partnership, balancesheet everything to be nil balance.

thanks

Comments

  • mikes
    mikes Registered Posts: 254 Dedicated contributor 🦉
    I shouldn't worry about it, as they can only test us what is in the current standards and the general sylabus. Which is why the questions all quote VAT at 17.5% rather than 15%. I think that only current affairs may be tested at a higher level, such as ACCA, CIMA etc. I dont know about Technition though. I haven't read anything about closing down a business either, when i did this.
  • any2002uk
    any2002uk Registered Posts: 88 Regular contributor ⭐
    so they won;t ask FRA questions to prepare the close down business's final statement. only prepare the following financial year so that business continue the next financial year?
  • mikes
    mikes Registered Posts: 254 Dedicated contributor 🦉
    I have had another look at my text book and they mention about the accounting standards, in that all accounts are done, in a going concern concept. Ie that they expect the business to carry on as normal, for the near future and not expecting to be sold off. If they were, then the stock value and assets were to be reduced considerably, as they have to show a net relisable value. If the exam was to talk about about a company not continuing, then they would just test your knowledge on the going concern concept, by writing a short sentance or two, on what you know about it, or give you all the information that you need to reduce the values or how to treat goodwill as if a partner was leaving. I would suggest speaking to your tutor, for more reasurance about this. They wont know what will be in the exam paper, only the chief examiner will know that, but any new topics will only be a short answer worth 1 mark.

    This is my opinion only.

    Try not to get too worked up about this and the best of luck for your exam.

Categories

Privacy Policy