Dfs

ryannnnnnnnnnnnn

Hi,

Can someone please give me a brief idea as to what DFS consists of, as i am moving onto this unti and have totally no idea what it is about.

Any help is appreciated.

Thanks

Rinske

In short the financial statements for limited companies.

It includes a lot of IFRS/ IAS rules, consolidated statements and such. But not sure yet how deep it goes, as I only got to chapter 3 of my book so far!

Criggers

Basically you need to understand balance sheets and income statements. Consolidated Accounts (balance sheets/IS's again) for Parent/Subsidiary companies. Cash Flow statements and reconciliations.
Then there is a lot of ratio calculation and analysis when you come to section 2 of the paper. This is just moreof the ratio's used in the Intermediate paper (can't remember the name, the one that isnt ECR) plus some new ratio's.
It is basically an extension to Intermediate, building on skills etc. I wouldn't say there is anything to be scared of.

reddwarf

I've been meaning to ask this:-

How much of the definition of each standard would you think we need to learn i.e. verbatim? Or do we only have to understand the standard and be able to explain how to apply it?

Steve Collings

reddwarf wrote: »

I've been meaning to ask this:-

How much of the definition of each standard would you think we need to learn i.e. verbatim? Or do we only have to understand the standard and be able to explain how to apply it?

You need to understand the basics of the standards but try not to learn them inside out and be conscious of the ones you already know, but sometimes don't realise it! For example, if you are doing a consolidated statement of financial position, you are applying IAS 27. If you are preparing a statement of cash flows, you are applying IAS 7. If you are calculating goodwill on the acquisition of a subsidiary, this is IFRS 3. You will be asked a question (or a couple of questions) where you will be expected to deal with an accounting standard(s) in its/their entirety so try to get a basic and broad understanding of the examinable ones.

Some students use 'flash cards' as a way of remembering the standards. I wrote a book summarising the technical content of each IFRS/IAS up to IFRS 8.

Regards
Steve

Andypandy

Thanks for that Steve, been given questions at college this week re. justifying calculations with reference to IAS whatevers....reminding me of A level law 20+ years ago! Would you say this is a snapshot of things to come with ACA?

Steve Collings

Andypandy wrote: »

Thanks for that Steve, been given questions at college this week re. justifying calculations with reference to IAS whatevers....reminding me of A level law 20+ years ago! Would you say this is a snapshot of things to come with ACA?

Most higher level papers such as those at ICAEW/ACCA level require candidates to justify various amounts in the financial statements in accordance with the IFRS/IAS. Certainly at ACCA F7/P2 you will be given various scenarios, such as:

'The Directors propose to capitalise the staff training costs on the grounds that they will bring future economic benefits to the entity and on the basis that they are over their capitalisation threshold'.

Requirement:
Discuss whether the directors proposed capitalisation of the training costs are appropriate.

You would then be expected to argue that under IAS 16 the directors CANNOT capitalise the costs on the grounds that they cannot exercise control over the skills obtained by the staff as a result of the training they have received, thus such costs should be written off to the statement of comprehensive income as incurred.

Kind regards
Steve