DFS IAS 1 and Framework Tip from steve

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Steve Collings
Steve Collings Registered Posts: 997 Epic contributor 🐘
Hi All,

I have received a few emails from students who have both attended my classes and on AccountancyStudents and there seems to be a consistent theme to these emails which I think I need to clarify on the forums as well for those of you who are also studying DFS. The consistency is that students are not grasping where they are going wrong in differentiating between assets, liabilities and non-current assets and non-current liabilities.

In recent sittings, the examiner has asked for candidates to define:

1. a current and non-current asset and a current and non-current liability
2. an asset and a liability as well as income, expenses and equity

Be careful here!

In (1) a non-current and current asset and a non-current and current liability is dealt with under IAS 1 'Presentation of Financial Statements'.

In (2) an asset and a liability together with income, expenses and equity are dealt with in the Framework Document.

It is important you can distinguish the two because if you get mixed up you won't score any marks in the exam!

Remember, the Framework Document does not have the force of an accounting standard. In situations where the Framework conflicts with an accounting standard, the accounting standard prevails.

This has been tested in recent sittings and the number of students who get mixed up because the words 'asset' and 'liability' are mentioned is astonishing. Slow down and read the question requirements - do not go into autopilot just because you see a familiar word!

Best wishes
Steve

Comments

  • Andypandy
    Andypandy Registered Posts: 526 Epic contributor 🐘
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    Thanks muchly Steve, looks like there's alot to look forward to with DFS:(
  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
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    I'll be publishing an article very soon on AccountancyStudents and in PQ Magazine about how to pass DFS so I'll post a link when it is available. It will go on AccountancyStudents first (hopefully by the end of this week).

    If I can upload a PDF version of the article on here then I will.

    Kind regards
    Steve
  • sammyd22
    sammyd22 Registered Posts: 207 Dedicated contributor 🦉
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    I'll be publishing an article very soon on AccountancyStudents and in PQ Magazine about how to pass DFS so I'll post a link when it is available. It will go on AccountancyStudents first (hopefully by the end of this week).

    If I can upload a PDF version of the article on here then I will.

    Kind regards
    Steve

    Hi Steve,

    Do you have a list of All Standards & IFRS's etc with key notes attached to each. To make it easier to absorb? As these are being tested on CIMA as well as AAT (Obviously)!

    Thanks
  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
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    Hi Sammy,

    For DFS purposes the students need to pull off the Guidance Notes from this website as not all IFRS/IAS are examinable at DFS level.

    For everyone else, my book looks at every IFRS/IAS and highlights the key aspects of them as well as illustrating them in key areas.

    The book is not updated for IFRS 9 but I published an article on this on AccountingWEB. This standard is relatively new so you need to check your syllabus to see if (and when) this is examinable.

    Best wishes
    Steve
  • sammyd22
    sammyd22 Registered Posts: 207 Dedicated contributor 🦉
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    Hi Sammy,

    For DFS purposes the students need to pull off the Guidance Notes from this website as not all IFRS/IAS are examinable at DFS level.

    For everyone else, my book looks at every IFRS/IAS and highlights the key aspects of them as well as illustrating them in key areas.

    The book is not updated for IFRS 9 but I published an article on this on AccountingWEB. This standard is relatively new so you need to check your syllabus to see if (and when) this is examinable.

    Best wishes
    Steve


    Thanks
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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    I can recommend Steve's book, it lays it out in easy to read terms and gives examples throughout too.

    Tracy
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    Hi Steve, I'd like to look at this would you point me to the relevant paper/questions please?

    thanks
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    Hi Steve, do you know which paper/s questions I can refer to to see your point?

    thanks
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    I thought it was the June 09 paper - on section 2.
  • Julia
    Julia Registered Posts: 78 Regular contributor ⭐
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    Hello it is usually asked on section 2 of DFS and usually comes up a lot.

    As Steve rightly points out you need to be able to distinguish the two.

    Julia - BPP
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