DFS Revision Game
A-Vic
Registered Posts: 6,970 Beyond epic contributor 🧙♂️
Sorry one for DFS too i have already sat this but may be helpful for others 
Q, What is Goodwill?
Q, What is Goodwill?
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Which standard deals with assets/liabilities/income/expenses/equity?0
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steve collings wrote: »which standard deals with assets/liabilities/income/expenses/equity?
ias 1....?????0 -
Steve Collings wrote: »Which standard deals with assets/liabilities/income/expenses/equity?
isn't that the framework?0 -
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!0 -
hahaha cought ya steve - ask a question primble 0
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Steve Collings wrote: »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?0 -
Go on Primble, fire a question out! Steve you're banned for making me cry :-(
(only joking!)0 -
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?0 -
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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?0 -
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 working0 -
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??????0 -
What sort of profits go into the goodwill calculation? Pre or post acquisition?0
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Steve Collings wrote: »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
Tracy0 -
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?0 -
IAS 28 - Investments in associates
Q why is it a requirement to prepare consolidated statements?0 -
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?0 -
I'd say it's good enough, does that help?
Operating profit/ interest paid
Q What is the definition of a liability?0 -
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?0 -
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?0 -
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?
CheersI 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.0 -
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?0 -
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?0 -
Research is written off as expenditure, unless non-current assets are purchased.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?
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?0 -
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?0 -
Unable to include: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?
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?0 -
this comes under IAS 36 impairmnent of assets. it is a small asset that helps generate cash inflow from continued useUnable 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?
what are the limitations to ratio analysis?0
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