FRA exam wednesday

Daffy
Daffy Registered Posts: 3 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Hi, everyone

I'm new to the forum, I'm a distance learner and I think I've missed out on alot of useful info.
Example: not knowing that Work in Progress was going to appear on the ECR exam!! I'm pretty sure I messed up on that in particular. It was going so well up to that point.

As a heads-up does anyone have any info as to what might appear on FRA exam Wednesday this week? Anything that has not been tested in the last say 3 years?

Thanks

:confused1:

Comments

  • rachy1975
    rachy1975 Registered Posts: 366 Dedicated contributor 🦉
    Daffy wrote: »
    Hi, everyone

    I'm new to the forum, I'm a distance learner and I think I've missed out on alot of useful info.
    Example: not knowing that Work in Progress was going to appear on the ECR exam!! I'm pretty sure I messed up on that in particular. It was going so well up to that point.

    As a heads-up does anyone have any info as to what might appear on FRA exam Wednesday this week? Anything that has not been tested in the last say 3 years?

    Thanks

    :confused1:

    all i can say it revise everything...thats what im doing then there should be no nasty surprises....the exam will cover anything in unit 5 so revise it all......lol
    Make sure you know what goodwill is and the difference between hire purchase and leasing what goes into each account etc...change of partnerships...good luck

    :thumbup1:
  • Daffy
    Daffy Registered Posts: 3 New contributor 🐸
    Thanks for your response, the only reason I asked is that I only found out about WIP being included on ECR from someone just before the exam. They were told by their tutor ages ago that AAT were planning to test this on the December's exam, but didin't. So to expect it on the June ECR. If I had known this I would have studied it more closely, but it hadn't been tested on any of the past papers and the exams appear to be far removed from the text examples in the textbooks (that's me being very tactful)

    If anyone has been informed of a change/addition to the FRA paper on the grape vine please, please, please let me know?!

    Thanks again
  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
    Best bet

    Don't think anyone every really knows what's coming up, so advice to revise everything is your best bet.

    I do agree though, goodwill, partnership changes and partners' current a/cs would be most tricky bit for me, so that's where I focussing.

    How to deal with leases also good one. All depends on likely ownership at the end of the lease and whether the lease is for a period greater that 12 months. Operating leases - short term and no transfer of ownership treated as revenue expenditure so record as expense in P&L.
    Financial leases are like HP, longer term, possible transfer of ownership and therefore record as an asset and acc. dep goes in BS and depreciation expense in P&L.

    Please someone tell me if any of the above is wrong, otherwise I'm doomed!

    Ta
  • HayleyM
    HayleyM Registered Posts: 63 Regular contributor ⭐
    No you have definately got that right! I have just revised leases so you will be ok on that! Good luck :001_smile:
  • rachy1975
    rachy1975 Registered Posts: 366 Dedicated contributor 🦉
    am i correct in if its a hire purchase it is not a fixed assest yet? as the asset does not get passed on until the end of the hire purchase??
  • safrica
    safrica Registered Posts: 106 Dedicated contributor 🦉
    rachy1975 wrote: »
    am i correct in if its a hire purchase it is not a fixed assest yet? as the asset does not get passed on until the end of the hire purchase??

    That's what I understand as well nut not 100% sure....anyone else ??
  • safrica
    safrica Registered Posts: 106 Dedicated contributor 🦉
    safrica wrote: »
    That's what I understand as well nut not 100% sure....anyone else ??

    but not nut..:lol: or is it ???:001_tt2:
  • ema192
    ema192 Registered Posts: 107 Dedicated contributor 🦉
    i thought it was recorded as an asset even if it was on hp?
  • rachy1975
    rachy1975 Registered Posts: 366 Dedicated contributor 🦉
    ema192 wrote: »
    i thought it was recorded as an asset even if it was on hp?

    ive just looked in my book actually and it does say to record hire purchase and finance lease in the balance sheet and profit and loss...operating lease payments are recorded in profit and loss only....

    thinking about it i hae heard people moaning about still paying for cars etc when they dont have anymore.....
  • galaxy
    galaxy Registered Posts: 21 New contributor 🐸
    From what I understand the HP or Finance Lease asset is recorded in the balance sheet less provision for depreciation but you also record the liability for future leasing payments for the asset so these amounts cancel each other out... Does that sound right??
  • ema192
    ema192 Registered Posts: 107 Dedicated contributor 🦉
    It says in the book treatment in the final accounts of the (business) hirer is that an asset being bought on HP agreement is shown as a fixed asset on the balance sheet, even tho in legal terms the owner is still the finance company.

    Thought it was, sorry just had to know in my own head thats all

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