Mark apportionment to DFS exam sections

Options
reddwarf
reddwarf Registered Posts: 528 Epic contributor 🐘
If secton 1 is 70% of the paper and section 2 30%, and say the pass mark is 80% for instance. Can we achieve 70% in section 1 and 10% in section 2, o 60/20 etc? Or are the sections each marked out of a 100% needing 80% in each section?

Comments

  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    No, we need to pass both sections with the pass mark.
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
    Options
    Jolly good!!! Thanks

    On another point - Steve said people are falling down over the definition of assets/liablities current and non current as defined in the Framework which are different from the definitons in IAS1.

    I can't find the IAS1 definition/s..
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    Options
    Can someone please write down what these definitions are so that I can make sure I have them stuck into my memory correctly - just starting to panic now hence being up so early studying!!
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    Options
    Which book are you using am sure there will be definitions in them?
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    I think it's the following definitions, but I am not 100% sure.

    IAS 1

    Assets:
    An entity shall classify an asset as current when:
    (a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
    (b) it holds the asset primarily for the purpose of trading;
    (c) it expects to realise the asset within twelve months after the reporting period; or
    (d) the asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

    An entity shall classify all other assets as non-current.

    Liabilities
    An entity shall classify a liability as current when:
    (a) it expects to settle the liability in its normal operating cycle;
    (b) it holds the liability primarily for the purpose of trading;
    (c) the liability is due to be settled within twelve months after the reporting period; or
    (d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period (see paragraph 73). Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

    An entity shall classify all other liabilities as non-current.

    *****These are copied from the EC site, so it might be described slightly different in your book, but maybe someone else can say if I'm right or wrong.*****

    IASB's Framework

    Assets
    A resource controlled by the entity, as a result of past events, from which future economic benefits are expected.

    Liabilities
    A present obligation of the entity, arising from past events, the settlement of which is expected to result in an ooutflow of resources.

    Equity
    The residual interest in the assets of the entity after deducting all its liabilities. It includes funds contributed by shareholders, retained earnings and other gains and losses.

    Income
    An increase in economic benefits in the form of inflows or enhancements in assets that increase equity.

    Expense
    Decreases in economic benefits in the form of outflows or depletions of assets or the incurring liabilities that decrease equities.
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
    Options
    Thanks Rinske, that's good, I can't find anything as definitive as that. In m BPP book the only criteria relating to IAS1 assets , I can find are relates to reconition and derecognition ....

    I wonder if Steve might confirm your info for us, if he is around...?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    Options
    marks up with consolidated intercompany transactions

    I am having difficulty understanding 8.11 osborne dfs question, it referes to inventory being purchased from a parent company for 60000, then being invoiced at 33.3%. A third of goods still held at year end. At year end 10k intercompany balance was outstanding.
    I understand that I need to cancel trade payables out with the trade receivables of 10k but I do not understand how to get to the answer of 5k for inventory adjustment. I am just having a mental block with mark up and margins!!

    Help please so that I can continue leaning the IAS's!!!
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    That one is a bit of a vague one to be fair. They say it's 33.3% but they actually use one third for their calculations.

    Churchill purchased goods from Winston for 60,000. So they recorded the goods in their books for 60,000

    Winston had sold these goods for their nominal value plus 33.3%. The original value is then 45,000 (60,000 divided by 1 1/3).

    1/3 of those goods have not been sold at the end of the year. 1/3 of 45,000 is 15,000.
    The goods are recorded in stock as 60,000 in total. 1/3 hasn't been sold means 20,000 is left in there.

    20,000 minus 15,000 is 5,000, which is the value you deduct from stock, as you want the goods recorded at cost and not at cost plus a bit of profit.

    Does this help at all?
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Options
    nscuffell wrote: »
    I am having difficulty understanding 8.11 osborne dfs question, it referes to inventory being purchased from a parent company for 60000, then being invoiced at 33.3%. A third of goods still held at year end. At year end 10k intercompany balance was outstanding.
    .....................................I do not understand how to get to the answer of 5k for inventory adjustment. I am just having a mental block with mark up and margins!!

    Help please so that I can continue leaning the IAS's!!!

    when you consolidate income Statements, profits made from inter-company transactions are not profit at all. They are assets transfer from one company to another.

    Therefore the profit element on the sale of inventory (by Parent) has to be taken off the value of the closing stock in the subsiduary company

    unsold inventories = 1/3 times £60,000 = £20,000 (includes a mark-up profit of 33.3%)

    Unrealised profit in unsold inventories = £20,000 divide by 133.33 times 33.33 = £5000
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
    Options
    Back to IAS1 - I've found the question in June 09 paper

    quote

    Lewis is slightly confused (he aint the only one!!!) by some of the terms used in the balance sheet (SOFP!) in particular the terms labelled 'current'. On checking the internet (as do we all!) he has found out that these terms are defined in something called IAS1 but he has been unable to find any further information (he ain't as good as Rinske!)

    Write short notes to explain how IAS1 defines the following terms:

    current assets
    current liabilities

    Answer:
    Current assets are; cash, cash equivalents, assets held for collection, sale, or consumption within the enterprise's (not the Starship!) normal operating cycle, or assets held for trading within the next 12 months. All other assets are noncurrent. (IAS1.57).

    Current liabilities are those to be settled within the enterprise's normal operating cycle or due within 12 months, or those held for trading, or those for which the entity (now we are on entities not starships!) does not have an unconditional right to defer payment beyond 12 months. Other liabilities are noncurrent. IAS1.6).

    unquote
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    Options
    thank you rinske and sdv, makes sense now .
  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
    Options
    reddwarf wrote: »
    Thanks Rinske, that's good, I can't find anything as definitive as that. In m BPP book the only criteria relating to IAS1 assets , I can find are relates to reconition and derecognition ....

    I wonder if Steve might confirm your info for us, if he is around...?

    Past sittings have seen the examiner ask students to distinguish some 'elements' of financial statements (assets/liabilities/income/expenses and equity) and (non)current assets/liabilities. When asked to distinguish non-current/current assets and liabilities some students misunderstood the requirement and cited the definition of an asset/liability per the Framework doc. Non-current/current assets and liabilities are dealt with in IAS 1 as opposed to the Framework which deals with assets/liabilities.

    Regards
    Steve
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    Past sittings have seen the examiner ask students to distinguish some 'elements' of financial statements (assets/liabilities/income/expenses and equity) and (non)current assets/liabilities. When asked to distinguish non-current/current assets and liabilities some students misunderstood the requirement and cited the definition of an asset/liability per the Framework doc. Non-current/current assets and liabilities are dealt with in IAS 1 as opposed to the Framework which deals with assets/liabilities.

    Regards
    Steve
    Thanks for that explanation Steve!
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
    Options
    Thanks Steve
Privacy Policy