DFS Revision Game

A-Vic
A-Vic Registered Posts: 6,970
Sorry one for DFS too i have already sat this but may be helpful for others :)

Q, What is Goodwill?
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Comments

  • Primble
    Primble Registered Posts: 734
    A-Vic wrote: »
    Sorry one for DFS too i have already sat this but may be helpful for others :)

    Q, What is Goodwill?

    in a consolidated sense?
    cost of interest - group share of net assets at acquisition

    Vic, these threads are a fab idea

    Q. what is the IASB framework?
  • Steve Collings
    Steve Collings Registered Posts: 997
    Which standard deals with assets/liabilities/income/expenses/equity?
  • Rachey
    Rachey Registered Posts: 589
    which standard deals with assets/liabilities/income/expenses/equity?

    ias 1....?????
  • Primble
    Primble Registered Posts: 734
    Which standard deals with assets/liabilities/income/expenses/equity?

    isn't that the framework?
  • Steve Collings
    Steve Collings Registered Posts: 997
    I was being particularly cruel on that one by saying which 'standard'!!

    IAS 1 deals with non-current/current assets and liabilities. It is the Framework Document that deals with the 'elements' of financial statements: assets, liabilities, income, expenses etc.etc.

    But that's something else on Saturday's agenda!
  • A-Vic
    A-Vic Registered Posts: 6,970
    hahaha cought ya steve - ask a question primble :)
  • Primble
    Primble Registered Posts: 734
    I was being particularly cruel on that one by saying which 'standard'!!

    IAS 1 deals with non-current/current assets and liabilities. It is the Framework Document that deals with the 'elements' of financial statements: assets, liabilities, income, expenses etc.etc.

    But that's something else on Saturday's agenda!

    yay i remembered something and that's down to your early event at Birmingham

    Q what is the accounting entry for a bonus issue?
  • Rachey
    Rachey Registered Posts: 589
    Go on Primble, fire a question out! Steve you're banned for making me cry :-(






    (only joking!)
  • katz568
    katz568 Registered Posts: 93 ? ? ?
    Arghhhhhh so annoyed I can not do Saturdays revision day as I had already planned a day out with the kids, btw I think Steves book will be doing huge extra sales after I took it into class today and all were saying they were going to look into getting it.
    Ok Where do pre-payments and Accruals go in consolidated accounts?
  • Primble
    Primble Registered Posts: 734
    Rachey wrote: »
    Go on Primble, fire a question out! Steve you're banned for making me cry :-(






    (only joking!)

    lol i did
  • Rachey
    Rachey Registered Posts: 589
    Primble wrote: »
    yay i remembered something and that's down to your early event at Birmingham

    Q what is the accounting entry for a bonus issue?

    DEBIT Share Premium

    CREDIT Share Capital

    What is the difference between an assosiated company and a subsidiary?
  • Primble
    Primble Registered Posts: 734
    Rachey wrote: »
    DEBIT Share Premium

    CREDIT Share Capital

    What is the difference between an assosiated company and a subsidiary?

    the degree of control the parent has

    what are the five stages to working out consolidated accounts?
  • Rachey
    Rachey Registered Posts: 589
    Primble wrote: »
    the degree of control the parent has

    what are the five stages to working out consolidated accounts?

    Hi Primble,

    I'd have answered sooner but i've been in the land of BTC!!!

    This is how i've interpreted your question, my apologies if i've mis-understood.

    Do we own 100% or how much do we own?
    What is the non-controlling interest?
    Are there any internal transactions?
    Is there any goodwill?
    Have the assets been re-valued?

    Just a little question, incase the above is incorrect....

    What little sum can you do to ensure you have calculated the statement of cash flow correctly?
  • Primble
    Primble Registered Posts: 734
    Rachey wrote: »
    Hi Primble,

    I'd have answered sooner but i've been in the land of BTC!!!

    This is how i've interpreted your question, my apologies if i've mis-understood.

    Do we own 100% or how much do we own?
    What is the non-controlling interest?
    Are there any internal transactions?
    Is there any goodwill?
    Have the assets been re-valued?

    Just a little question, incase the above is incorrect....

    What little sum can you do to ensure you have calculated the statement of cash flow correctly?

    lol ive taken even longer to reply as had to wait until i was home (and then had to engage brain to answer these questions)

    oh its not working
  • Primble
    Primble Registered Posts: 734
    Rachey wrote: »
    Hi Primble,

    I'd have answered sooner but i've been in the land of BTC!!!

    This is how i've interpreted your question, my apologies if i've mis-understood.

    Do we own 100% or how much do we own?
    What is the non-controlling interest?
    Are there any internal transactions?
    Is there any goodwill?
    Have the assets been re-valued?

    Just a little question, incase the above is incorrect....

    What little sum can you do to ensure you have calculated the statement of cash flow correctly?

    is that the indirect method??????
  • Steve Collings
    Steve Collings Registered Posts: 997
    What sort of profits go into the goodwill calculation? Pre or post acquisition?
  • taskey
    taskey Registered Posts: 1,800
    What sort of profits go into the goodwill calculation? Pre or post acquisition?

    i think pre

    cant think of a question as i am struggling with it all lol

    Tracy
  • Rachey
    Rachey Registered Posts: 589
    taskey wrote: »
    i think pre

    cant think of a question as i am struggling with it all lol

    Tracy

    Yep, pre aquisiton.

    I'm clearly rubbish at wording my questions, i only meant to ask about closing cash balances from one year to the next, equalling the figure on your statement of cash flow, good job im not an examiner.

    Q Which International Accounting Standard deals with associated companies?
  • Rinske
    Rinske Registered Posts: 2,453
    IAS 28 - Investments in associates

    Q why is it a requirement to prepare consolidated statements?
  • Rachey
    Rachey Registered Posts: 589
    Rinske wrote: »
    IAS 28 - Investments in associates

    Q why is it a requirement to prepare consolidated statements?

    IAS 27 says so! A parent company must produce consolidated financial statements if it has control of one or more subsidiaries.

    Will that do or is there a more in depth answer? Feel free to add here :-)

    Q What is the ratio for calculating interest cover?
  • Rinske
    Rinske Registered Posts: 2,453
    I'd say it's good enough, does that help?

    Operating profit/ interest paid

    Q What is the definition of a liability?
  • Rachey
    Rachey Registered Posts: 589
    Rinske wrote: »
    I'd say it's good enough, does that help?

    Operating profit/ interest paid

    Q What is the definition of a liability?

    This was a question in one of the past papers and I know the answer went into a bit more depth but this is what I could remember.

    A current liability is an amount that is due to be settled within 12 months of the SoFP date during the normal course of business.

    A non-current liability is an amount that is due to be re-payable past the 12 months of the SoFP date.

    Q What is the definition of equity?
  • Rinske
    Rinske Registered Posts: 2,453
    I learned the definition of liability as a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of resources.

    Equity is the residual interest in the assets of the entity after deducting all its liabilities.

    I know sad, but I figured if I stamp those in my head while understanding them, it might be useful for the exam.

    Q What are the different types of shares?
  • Rachey
    Rachey Registered Posts: 589
    Primble wrote: »
    is that the indirect method??????

    Only just seen this, dont know what you mean, i've probably not understood the question properly (as usual lol) What was you looking for?

    Cheers
    Rinske wrote: »
    I learned the definition of liability as a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of resources.

    Equity is the residual interest in the assets of the entity after deducting all its liabilities.

    I know sad, but I figured if I stamp those in my head while understanding them, it might be useful for the exam.

    Q What are the different types of shares?

    Ordinary Shares & Preference Shares

    Also there are bonus & rights issue.

    Q When producing the statement of cash flow do you use tax paid or tax due?

    It's surprising how many people actually use the wrong tax figure, it's easily done.
  • Rinske
    Rinske Registered Posts: 2,453
    Tax paid, as it's a cash flow, you want the amount that actually got paid!

    But yes, it seems too easy to make mistakes with this unit.

    Q What IAS deals with intangible assets?
  • Rachey
    Rachey Registered Posts: 589
    Rinske wrote: »
    Tax paid, as it's a cash flow, you want the amount that actually got paid!

    But yes, it seems too easy to make mistakes with this unit.

    Q What IAS deals with intangible assets?

    IAS 38 deals with intangible assets. This does not include goodwill. Goodwill is covered within IFRS 3. IAS 38 covers intangible assets such as development, royalties, patents etc.

    Q Within research and development, which one is written off and which one is capitalised?
  • Rinske
    Rinske Registered Posts: 2,453
    Rachey wrote: »
    IAS 38 deals with intangible assets. This does not include goodwill. Goodwill is covered within IFRS 3. IAS 38 covers intangible assets such as development, royalties, patents etc.

    Q Within research and development, which one is written off and which one is capitalised?
    Research is written off as expenditure, unless non-current assets are purchased.

    Development is written off as expenditure as well, unless all of the criteria to capitalise it are met.
    The criteria are:
    That the technical feasability exists for completing it so that it will be available for use or sale.
    The entity's ability to sell or use the asset
    The entity's intention to sell or use the asset
    The entity needs to demonstrate in which way the asset will generate the future economic benefits.
    The resources to complete the development should be available
    and the entity should be able to measure the expenditure on development reliably.

    Q Which costs are included in the cost of the development and which ones aren't if the asset was to be capitalised?
  • Rachey
    Rachey Registered Posts: 589
    Rinske wrote: »
    Research is written off as expenditure, unless non-current assets are purchased.

    Development is written off as expenditure as well, unless all of the criteria to capitalise it are met.
    The criteria are:
    That the technical feasability exists for completing it so that it will be available for use or sale.
    The entity's ability to sell or use the asset
    The entity's intention to sell or use the asset
    The entity needs to demonstrate in which way the asset will generate the future economic benefits.
    The resources to complete the development should be available
    and the entity should be able to measure the expenditure on development reliably.

    Q Which costs are included in the cost of the development and which ones aren't if the asset was to be capitalised?

    Unable to include:
    Salaries and wages of staff

    Able to include:
    Shipping costs
    Royalty/ Patent if required

    I cannot think of any more off the top of my head! Feel free to add to the list, it my crop up on the exam!

    Q How do you treat the gain on the sale of a fixed asset in the cash flow statement?
  • Rinske
    Rinske Registered Posts: 2,453
    Rachey wrote: »
    Unable to include:
    Salaries and wages of staff

    Able to include:
    Shipping costs
    Royalty/ Patent if required

    I cannot think of any more off the top of my head! Feel free to add to the list, it my crop up on the exam!

    Q How do you treat the gain on the sale of a fixed asset in the cash flow statement?
    Unable to include:
    Administrative expenses. (all general overheads)

    Include:
    All direct costs, can't think anything else up for you at the moment, sorry. Silly enough as I was just studying on this one!

    I now moved on to impairment losses, but it's not coming easy today!

    My answer:

    Deduct the amount of the sale from the profit from operations.

    Calculate the accumulated depreciation/ amortisation and add the proceeds from the sales and lists this as a positive amount in the investing activities.

    Q: What are cash generating units?
  • Primble
    Primble Registered Posts: 734
    Rinske wrote: »
    Unable to include:
    Administrative expenses. (all general overheads)

    Include:
    All direct costs, can't think anything else up for you at the moment, sorry. Silly enough as I was just studying on this one!

    I now moved on to impairment losses, but it's not coming easy today!

    My answer:

    Deduct the amount of the sale from the profit from operations.

    Calculate the accumulated depreciation/ amortisation and add the proceeds from the sales and lists this as a positive amount in the investing activities.

    Q: What are cash generating units?
    this comes under IAS 36 impairmnent of assets. it is a small asset that helps generate cash inflow from continued use

    what are the limitations to ratio analysis?
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