DFS Revision Game
Comments
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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?
finance activities are activities that result in changes in the share capital and the borrowing entity.
proceeds from issuing shares
proceeds from issuing debentures and other income
repayments of amounts borrowed
Q: what is ias 33 ?0 -
finance activities are activities that result in changes in the share capital and the borrowing entity.
proceeds from issuing shares
proceeds from issuing debentures and other income
repayments of amounts borrowed
Q: what is ias 33 ?
IAS 33 - Earnings per Share
To improve performance comparisons between different period of accounts for current investors or different companies for possible investors.
Ratio - Net Income / No of shares in issue
Q Can somebody please confirm which 'income' figure is used in the ratio as I dont currently have my books on me.
Cheers0 -
IAS 33 - Earnings per Share
To improve performance comparisons between different period of accounts for current investors or different companies for possible investors.
Ratio - Net Income / No of shares in issue
Q Can somebody please confirm which 'income' figure is used in the ratio as I dont currently have my books on me.
Cheers
mine says
net profit/weighted average number of shares
is that what you needed?0 -
Because if there are shares issued during the year, they wouldn't get the full return. So if you then use the total shares, rather than the weighted average, you get a distorted view of exactly how much profit goes to each share.
Q What does IFRS 3 deal with?
(I know it's not an exam question, but can't think of anything else at the moment, and didn't see a question going anymore)0 -
Because if there are shares issued during the year, they wouldn't get the full return. So if you then use the total shares, rather than the weighted average, you get a distorted view of exactly how much profit goes to each share.
Q What does IFRS 3 deal with?
(I know it's not an exam question, but can't think of anything else at the moment, and didn't see a question going anymore)
it is a business combination (too late to type anything else lol)
my daughter is doing business gcse and has just asked
Q what is net profit?0 -
it is a business combination (too late to type anything else lol)
my daughter is doing business gcse and has just asked
Q what is net profit?
Net Profit is:
Deducting a company's total expenses from total revenue, showing what the company has earned or lost during the period of accounts.
Cant think of a question.... Will think then post......0 -
Q What is the ROCE ratio and how can you comment if high or low?
I have a feeling we may start duplicating questions but I dont see that as a bad thing!0 -
I don't think its a bad thing either.
ROCE ratio is profit before finance costs / capital employed.
It shows how much return your capital gives. A high ratio is better than a low ratio. The aim should be to increase it over time.
If the ratio is very low, it is not a positive investment and it might be better to invest elsewhere. If it is a high ratio, it means the return is higher. Although it would still be better to add the comparison of the return per share if you want to decide if you want to invest money.0 -
Sorry not the best wording ever and I also need to add a question, which I forgot.
What is the liquid capital ratio and how would you interpret it if it's high or low?0 -
I don't think its a bad thing either.
ROCE ratio is profit before finance costs / capital employed.
It shows how much return your capital gives. A high ratio is better than a low ratio. The aim should be to increase it over time.
If the ratio is very low, it is not a positive investment and it might be better to invest elsewhere. If it is a high ratio, it means the return is higher. Although it would still be better to add the comparison of the return per share if you want to decide if you want to invest money.
Rinske that's fantasic and will come in use for a potential written question.... something like.... 'I would also recommend the potential investor to look into Earnings per Share etc etc'
Q What's the double entry for closing stock? (inventories.... sorry!!)0 -
Debit inventories Statement of Financial position
Credit Inventories Income statement
See my question above!0 -
Debit inventories Statement of Financial position
Credit Inventories Income statement
See my question above!
I'm choosing to ignore it.......... lol.
Only jokin, I need to get my thinkin cap on for that one though, or maybe i'll let someone else have a turn. Being the generous kind of person I am :-) I wasn't being ignorant either, we both posted at the same time!0 -
I know! I just didn't feel like thinking of another question, so thought I refer to that one againI'm choosing to ignore it.......... lol.
Only jokin, I need to get my thinkin cap on for that one though, or maybe i'll let someone else have a turn. Being the generous kind of person I am :-) I wasn't being ignorant either, we both posted at the same time!
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I know! I just didn't feel like thinking of another question, so thought I refer to that one again
Right... stab in the dark here. Liquidity is used in current items so ill go with...
current assets / current Liabilities ????
The higher the better as assets are more than liabilities?
Can this be a minus figure?
Sorry for the question marks...0 -
Almost:
Current assets minus inventories / current liabilities.
It shows how well the company can cover their current debts if they would fall due.
In the ideal situation this would be 1:1. Below 1:1 it is a question whether the company can pay their debts when they fall due, but some companies can perfectly handle it, as it also depends on what the company does/ sells.
Not sure how to explain myself there, sorry, so it's a bit vague rambling.0 -
Almost:
Current assets minus inventories / current liabilities.
It shows how well the company can cover their current debts if they would fall due.
In the ideal situation this would be 1:1. Below 1:1 it is a question whether the company can pay their debts when they fall due, but some companies can perfectly handle it, as it also depends on what the company does/ sells.
Not sure how to explain myself there, sorry, so it's a bit vague rambling.
I have not a clue why i put non current when its pretty obvious that i meant current!! Ive changed it above, but I didnt include the deduction of inventories. It makes sense to do that as they're not very liquid.
Fantastic description.0 -
Just to add to your confusion:
The liquid capital ratio is the same as the quick ratio and acid test.
The working capital ratio aka current ratio is the one that does include stock and you would in an ideal world find
it to be 2:1, although again it strongly depend on the type of business you deal with as well.
Sorry if I sound like a lecturer/ know it all, I assure you I am not nor do I want to be!0 -
Just to add to your confusion:
The liquid capital ratio is the same as the quick ratio and acid test.
The working capital ratio aka current ratio is the one that does include stock and you would in an ideal world find it to be 2:1, although again it strongly depend on the type of business you deal with as well.
So the same ratio has 3 different names?
The AAT need some serious butt kicking for that!
I understand the working capital ratio, I just need to remember the liquid capital/quick/acid doesn't include stock!!!
Thanks for all your help Rinske :-)
Q Double entry for an prepayment for advertising costs?0 -
Just one small note on the quick ratio and then I'll shut up about it. It does remove the stock from the current assets, as if all the debts would have to be paid today, it is unlikely all stock has been sold/ will be sold at the current value.
Debit Prepayments
Credit Administration expenses
Last question of the day for me. More tomorrow, as I got the day off for study!
Q What are the double entries for goods sold that have been returned?0 -
Just one small note on the quick ratio and then I'll shut up about it. It does remove the stock from the current assets, as if all the debts would have to be paid today, it is unlikely all stock has been sold/ will be sold at the current value.
Debit Prepayments
Credit Administration expenses
Last question of the day for me. More tomorrow, as I got the day off for study!
Q What are the double entries for goods sold that have been returned?
debit sales
credit returns in
i know the other one will be on the income statement but cannot think (5 to 11 here in the land of nod)
probably wrong but trying to do this without books
Q what is ias 160 -
debit sales
credit returns in
i know the other one will be on the income statement but cannot think (5 to 11 here in the land of nod)
probably wrong but trying to do this without books
Q what is ias 16
PPE- shows how it should be shown at cost incl costs to make it in working condition, also deals with depreciation
Q. what is PURP??0 -
debit sales
credit returns in
i know the other one will be on the income statement but cannot think (5 to 11 here in the land of nod)
probably wrong but trying to do this without books
Q what is ias 16
Don't forget to adjust your stock figures!PPE- shows how it should be shown at cost incl costs to make it in working condition, also deals with depreciation
Q. what is PURP??
Got no clue, I so knew that was going to be a question here soon!
Anyways, I told myself not to check anymore, and yet here I am, big bad addict!
Hopefully someone can answer this....0 -
Don't forget to adjust your stock figures!
Got no clue, I so knew that was going to be a question here soon!
Anyways, I told myself not to check anymore, and yet here I am, big bad addict!
Hopefully someone can answer this....
lol couldn't resist asking it. it's hard to get off here. but i am going now. see you tomorow0 -
I think it stands for provision for unrealised profit.. my tutor calls it pup. Which Rinske described in a previous thread so much better than I ever could!!0
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Oh provision for unrealised profit...I think it stands for provision for unrealised profit.. my tutor calls it pup. Which Rinske described in a previous thread so much better than I ever could!!
Never heard PURP as an expression before, but doing it all in distance learning, so maybe that's why I don't know it.
O well, you answered the question, so your turn to ask a new one 0 -
not actually doing dfs yet but I can google.
PURP is provision for unrealised profit. I guess this would be for when your cashflow relies on right amount of sales or right prices. THis could be a back up in case of bad debts or supplier price increases.
I cant ask a question sorry as im not doing the subject so someone else please do so 0 -
I think.. not 100% sure.. lol
Q - What are post acquisition profits?0 -
Profits realised after the acquisition date in case of a group of companies.
Any additions are welcome again, as I'm trying to shut my brain down, so I can go to sleep!
I would say now it's the real last question for today, but knowing myself, I'll be here for another half an hour.
Q what does IFRS 8 deal with?0 -
Profits realised after the acquisition date in case of a group of companies.
Any additions are welcome again, as I'm trying to shut my brain down, so I can go to sleep!
I would say now it's the real last question for today, but knowing myself, I'll be here for another half an hour.
Q what does IFRS 8 deal with?
IFRS 8 i know is Operating segments but i am unable to elaborate on them. Do I remember a previous post where you said IFRS 8 was being replaced by IAS something or the other way around?
I'd not heard of IFRS 8 until then as I thought it wasn't examinable. I now know it's name but haven't yet looked into the standard itself.
Q Please elaborate on IFRS 8!!0
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