Changes to DFS Unit 11 and Exams

sainty

is anybody else struggling with all these changes to DFS. i am studying NVQ pathway, the osbourne books aren't up to date so loads of extra photocopied material has been given to us by our tutor. if that isn't bad enough the exam format is going to change in june so the past exam paper answers are not accurate. all AAT have done is publish the amended pages on their website and that even hasn't been done very well, with the different formats crammed together making them difficult to use.
the whole thing has been handled in an amateurish and unprofessional way! why didn't they wait until new books were published incorporating the changes, this is not very helpful when trying to understand complex accounting techniques.

jow774

I must admit I feel the same. Why didnt they just make the changes in the new syllabus or give us who are half way through the same dispensation as in the December exams and give us the old and new headings?

Clare Finch

Format of statement of financial position (balance sheet)

Hi both,

I just wanted to reassure you that although you are correct and the AAT will be adopting the full IAS 1 format for the exams in June 2010, it is really really easy so please don't let it put you off.

Simply the debits will be in the top half (all assets)

The credits will be in the bottom half (all equity and liabilities)

It is therefore easier than the old style.

When the AAT moved DFS (unit 11) onto International financial reporting, they left the balance sheet in the UK style..all past papers show the liabilities in the top half.

For June 2010 the correct format is being adopted as well as the new title 'statement of financial position'.

Anyone using ' A student's guide to International Financial Reporting Standards' by Clare Finch (me!) will find the correct format on page 16.

Really it is NOT a big deal...all debits in top, all credits in bottom.

Hope that helps and good luck for June

Clare

jow774

Thanks clare, I will have a look for your book.

Londina

wow I didn't know about these changes! where is possible to see an example of this layout?

"The credits will be in the bottom half (all equity and liabilities)"
"they left the balance sheet in the UK style..all past papers show the liabilities in the top half."

I don't get them!

SandyHood

Many companies have used this layout since adopting the international standards
Try MandS and morrissons
Adobe acrobat page 83 of http://corporate.marksandspencer.com/file.axd?pointerid=c25b7670e6e4420abd2403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23[url]
http://www.morrisons.co.uk/Corporate/2009/AnnualReport/financial_statements/consolidated_balance_sheet.html[/url]

Londina

SandyHood wrote: »

Many companies have used this layout since adopting the international standards
Try MandS and morrissons
Adobe acrobat page 83 of http://corporate.marksandspencer.com/file.axd?pointerid=c25b7670e6e4420abd2403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23[url]
http://www.morrisons.co.uk/Corporate/2009/AnnualReport/financial_statements/consolidated_balance_sheet.html[/url]

Thanks Sandy, but I don't see the difference, looking at page 83 of M&S I see the usual layout:
NON CURRENT ASSETS
CURRENT ASSETS
CURRENT LIABILITIES
NON CURRENT LIABILITIES
EQUITY

What is the situation where the credits will be in the bottom half?

SandyHood

Sorry
The penny has just dropped
I'll try to find an example

I know what you mean
Total assets are separate from equity and liabilities

Monsoon

Clare Finch wrote: »

Simply the debits will be in the top half (all assets)

The credits will be in the bottom half (all equity and liabilities)

It is therefore easier than the old style.

Saints preserve us, if it ain't broke, don't fix it!

This isn't a dig at the AAT at all, just a general gripe about accounting standards in general.

Really, there was nothing wrong with Equity = Assets - Liabilities!

I do feel sorry for students having to switch half way through (somewhere between intermediate and technician for me, stock became inventories (!) and debtors became trade receivables (!!), etc, which was annoying enough. Funnily enough in practice, I still call them stock and debtors...!).

The new style is simple but when you're just trying to get your head around a new concept and then it changes (even if the change is simpler) it can still be a stumbling block.

Good luck to students who are affected by this change, and hope the exams go well for you all. :-)

SandyHood

http://www.cimaglobal.com/Documents/ImportedDocuments/F2nov09specimenpaper.pdf
Use this link with caution It is only intended as a way for you to see the layout (not to worry you in terms of the questions)
Look at the layouts in questions 4 and 6

Londina

SandyHood wrote: »

http://www.cimaglobal.com/Documents/ImportedDocuments/F2nov09specimenpaper.pdf
Use this link with caution It is only intended as a way for you to see the layout (not to worry you in terms of the questions)
Look at the layouts in questions 4 and 6

aahhhh I see now! I actually think this layout is much easier that the previous one!

Non current assets
Current assets
Equity
Non current liabilities
Current liabilities

I found confusing instead the UK layout, with these additional additions:

Non current assets
Current assets
Total Assets
Current liabilities
Net current assets
Non current liabilities
Total liabilities
Net assets
Equity