DFS Revision Game
Comments
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I've ran out of ideas for questions now. I'm even duplicating them!!
We need a bit help... Annette? Clare? Pretty please :-)0 -
When reconciling operating profit to net cash flow from ops what is deducted and what added? Include prepayments and accruals!0
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When reconciling operating profit to net cash flow from ops what is deducted and what added? Include prepayments and accruals!
Increase in trade and other receivables - Deduct
Decrease in trade and other receivables - Add
Increase in trade and other payables - Add
Decrease in trade and other payables - Deduct
Increase in inventories - Deduct
Decrease in inventories - Add
Accruals and prepayments.... Have I missed something.....???? Oops.0 -
in the bpp book they added an increase in accruals and a decrease in prepayments.
I am just trying to get my head around the logic..0 -
Your go Rachey....
How about stuff on IAS37?0 -
in the bpp book they added an increase in accruals and a decrease in prepayments.
I am just trying to get my head around the logic..
Aaaahhhh, I was under the impression they were included within the 'other' bit in trade and other receivables and payables. I definitely include them but I dont list them separately.Your go Rachey....
How about stuff on IAS37?
I think there's been a question on IAS 37, contingent assets and liabilities.... BUT i didn't understand it. So maybe you can put it in a 'for dummies' version for me?0 -
Provision (uncertain timing and amount) only recognised if reliable estimate, probable (50%) that economic value will flow out as an obligation as a result of past events, and a legal or constructive (e.g. expectation of customers that refunds will be given because this is what has happened before) obligation exists.
contingent liability, not recognised but disclosed as note in accounts, it is a 'possible' obligation depending on occurence of some future event, but it's not probable (less than 50%) and not estimable.
contingent asset, not recognised but disclosed as note in accounts, possible asset confirmed by occurrence or non occurence of some future event not wholly in the entity's control
Actually thinking aout this I wonder how BP are dealing with the oil leakage!!0 -
An occurance that is possible to happen in the future and is out of the entitys control. A note should be made in the accounts but no entry made in the financial statements.
This is all I know about IAS 37 at the moment so i'll be sure to learn the below to add to it! And now if IAS 37 pops up i'll automatically think about BP's oil leakage and it will all slot in place :-)Provision (uncertain timing and amount) only recognised if reliable estimate, probable (50%) that economic value will flow out as an obligation as a result of past events, and a legal or constructive (e.g. expectation of customers that refunds will be given because this is what has happened before) obligation exists.
contingent liability, not recognised but disclosed as note in accounts, it is a 'possible' obligation depending on occurence of some future event, but it's not probable (less than 50%) and not estimable.
contingent asset, not recognised but disclosed as note in accounts, possible asset confirmed by occurrence or non occurence of some future event not wholly in the entity's control
Actually thinking aout this I wonder how BP are dealing with the oil leakage!!
Q What is depreciation?
You may think it's an easy question but you can refer to the standard too if you wish. (I'm running out of questions...)0 -
IAS16 PPE - A systematic method of recognising the cost of the reduction in an asset's useful life as an expense in the accounting period expected to benefit from it's use (matching).
What are the different methods and what are the most common methods?0 -
Re accuruals and prepayments in the cash flow, I think BPP were just being mischievious!0
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IAS16 PPE - A systematic method of recognising the cost of the reduction in an asset's useful life as an expense in the accounting period expected to benefit from it's use (matching).
What are the different methods and what are the most common methods?
I only remember straight line and reducing balance
Straight line = Cost - Residual Value / Useful Life
Reducing Balance = The same % deducted off the NET NOOK VALUE each year.
Are there any more?
Q What isn't depreciated?0 -
Land0
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Aaron C Rescue wrote: »Land
You need to ask a question...... :-)0 -
I was thinking maybe.... have we done fair value?
What is meant by fair value?0 -
the amount an asset can be exchanged for in an arms length transaction between knowlegeable, willing parties?0
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I only remember straight line and reducing balance
Straight line = Cost - Residual Value / Useful Life
Reducing Balance = The same % deducted off the NET NOOK VALUE each year.
Are there any more?
Yep there is one more. You can also reduce based on the number of units produced for IAS 16. In which case it is called the unit of production (output) method.
(not often used as far as I can tell, but might be nice justto add it to the list here)0 -
Yep there is one more. You can also reduce based on the number of units produced for IAS 16. In which case it is called the unit of production (output) method.
(not often used as far as I can tell, but might be nice justto add it to the list here)
Go oooooonnnn, you know you wanna ask a question!!0 -
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financ lease and operating lease.
finance lease could be buildings
operating lease can be land (as it has no fixed life)
what would the journal entry be for a lease?
operating lease - written off in income statement
finance lease - item on lease enters SoFP as an asset and the finance is shown as a liability, however the interest is written off in the income statement.
I hope :-)
Q What is the new pro-forma for the statement of comprehensive income?
(A biggy question this time!!!)0 -
Operating lease:
Debit income statement with actual lease payments (administration/ distribution expenses)
Finance lease:
Non-current assets - including accounting for depreciation.
Non-current liabilities - all future payments not due for 12 months
Current liabilities - payments due in the next 12 months
Expenses - payments made during the year.
Am I missing anything?
I'm sure we had this one already, but what is the formula for inventory turnover and what does it show?0 -
Operating lease:
Debit income statement with actual lease payments (administration/ distribution expenses)
Finance lease:
Non-current assets - including accounting for depreciation.
Non-current liabilities - all future payments not due for 12 months
Current liabilities - payments due in the next 12 months
Expenses - payments made during the year.
Am I missing anything?
I'm sure we had this one already, but what is the formula for inventory turnover and what does it show?
inventories/cost of sales x 365 average days it takes for inventories to sell. Low = Good
High = Bad. Sure I can word that better in the exam though LOL!! Already asked a Q above......... :-)0 -
operating lease - written off in income statement
finance lease - item on lease enters SoFP as an asset and the finance is shown as a liability, however the interest is written off in the income statement.
I hope :-)
Q What is the new pro-forma for the statement of comprehensive income?
(A biggy question this time!!!)
Profit/ Loss for the period.
Other income (revaluations etc)
Less tax
Other income less tax
Total profit/ loss
I think....
New Q: why is confidentiality so important?0 -
Profit/ Loss for the period.
Other income (revaluations etc)
Less tax
Other income less tax
Total profit/ loss
I think....
New Q: why is confidentiality so important?
because it could be detremental if information got into the wrong peoples hands not only for the person the information is on about but people wouldn't trust you
Q. what is included in the statement of changes in equity0 -
retained earnings brought forward
profit for the year
less dividends paid
bal at end of year0 -
scuse me assuming I'm right! and go to go and do some revision!
what are the responsibilities of directors?0 -
Directors are responsible for the running of the company. For making sure the accounts are properly prepared and show a true and fair view of the company at the given time.scuse me assuming I'm right! and go to go and do some revision!
what are the responsibilities of directors?
They also need to write the reports that come along with the accounts (renumeration report I think it was called) and they have to give the auditors unlimited access to the business, as to make sure the auditors can do their work properly.
Any additions are welcome!
Q how do you calculate goodwill in the consolidated accounts?0 -
Directors are responsible for the running of the company. For making sure the accounts are properly prepared and show a true and fair view of the company at the given time.
They also need to write the reports that come along with the accounts (renumeration report I think it was called) and they have to give the auditors unlimited access to the business, as to make sure the auditors can do their work properly.
Any additions are welcome!
Q how do you calculate goodwill in the consolidated accounts?
SUBSIDIARY---- multiplied by % owned by holding company
Share Capital
Share Premium
Fair Value Adjustments
Pre Aquisition Reserves
Less Impairment
Total
COST OF INVESTMENT MINUS TOTAL OF HOLDING CO'S NET ASSETS
Q How can you define 'Operating Activities'?0 -
Good stuff Rinske , some more directors stuff;
Act in accordance with Companies act 2009
Do not accept gifts from third parties
disclose interests in prospective transactons of the company
promote the success of the company
exercise independent judgement
avoid conflicts of interest
take reasonable care
Can't answer the operating activies one!0 -
Thanks Reddwarf.
The operating activities:
All normal day-to-day activities of the company, in order to generate revenue (and profit).
Can't say I can think of more to say about it, so any additions are welcome again!
Q: Following up on the operating activities, can you define the finance activities?0
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