Dfs section 2 part 1

numberz

Hiya everyone
I failed my DFS in June 09 and didnt resit in December as was due to give birth that week......... but i am already to get going again and pass my final exam to become fully qualifed after years of hardwork......

My problem is passing section 2........ i've bought the Steve collings book suggested by other students which arrived yesterday and is fantastic and has broken down each standard for me to understand easier

Part 1 is going to be a bit tricker (explaining ratios) i can do all the number crunching but my problem is explaining it........can anyone help me with this with any suggestions on what to read or other books to buy

Many thanks
Luci

Steve Collings

Thank you for your comments on my book! Glad it helps.

With section 2 and the 'wordy' bits - what I would do is think about how you would tell someone what the ratios mean as if you were talking to them over the phone and then restructure the reply in writing. With lots of practice, you should find that by the time of exam day you will be able to rhyme the anwers off. Think about obvious things, e.g. gross profit margin reduction:

- cut offs
- incomplete sales
- inventory valuation
- incorrect classification e.g. overheads classed as cost of sales and vice versa

If you can understand WHY a ratio is inconsistent and what it represents the rest will follow with sufficient practice.

I am planning a revision day in Manchester in May (can only do one session this time around I am afraid) but I am planning to spend a lor of time on section 2 as this is generally the section students fail on.

Best wishes
Steve

Julia

I am a tutor at BPP and subject specialist for FR and Audit and can recommend Steves book!

Incidentally steve are you the same Steve that writes for Accountingweb? A couple of my colleagues were wondering?

Steve Collings

Yes I am! I write their Financial Reporting and Auditing material for them.

Best wishes

Steve

sdv

numberz wrote: »

Part 1 is going to be a bit tricker (explaining ratios) i can do all the number crunching but my problem is explaining it........can anyone help me with this with any suggestions.............

DFS section 2

This is a very important section to pass. This section actually tests whether you have an ability to understand of all the number crunching, analyse it, know it’s effect on the business (Company) and make recommendations to improve any weaknesses identified.

THIS IS THE REAL ACCOUNTANT’S WORK and not number crunching though enjoyable it is.


To pass section 2 you need to answer 3 questions after working out the ratios.

1 What has happened?
2 Why has it happened?
3 What is the effect of it on the company? (you will need a good book/tutor for this, and do last 5 years exam papers thoroughly)


4 what would you recommend to improve the ratio and what will the improved ratio’s effect be on the company?

Question 4 is not required to pass the AAT exams but by answering it reasonably well – by that I mean showing the understanding of ratio’s implications on the business, you will SEAL the deal.

See an article published by aat examiners:-

https://www.aat.org.uk/myaat/unit/item13768/
read a document called DFS and written tasks

Look at any of the Exam questions on section and you will see all the above 4 questions are answered.

If you wand an ACTUAL example to be worked out here, don’t hesitate to ask!

katz568

Steve when is the revision day in Manchester for DFS. I think i'm going to need all the help I can get as we do not start work on DFS until we go back to college next Thursday.
Thanks
Katrina

Steve Collings

I am not absolutely sure yet. I will look at my diary this week and see what dates I have available. It will be on a Saturday, possibly the weekend before the bank holiday weekend (I refuse to lecture or work on a bank hol weekend!!!)

I will post details on here this week.

Best wishes
Steve

Clare Finch

Really useful article

My colleague Bobbie Retallack has written this fantastic article which is directly relevant to DFS although on the ACCA website.

I think you will find this exactly what you need.

Have a look...

Good luck for June

Clare (Finch)

http://www.accaglobal.com/students/student_accountant/archive/2010/105/3308953

numberz

Dfs

Thank you all so so much on your reply's - really udeful tips

I've printed off articles requested and am going to read them now........Havent got a tutor to help this time around so just relying on books and plenty of study

Thanks again

Luci