DFS - last few tips from Steve!!

Well guys, exams next week!! For those of you doing DFS, here are some last minute tips from me:

- Remember what I said to you guys who were on my courses - show all your workings! A wrong answer can still attract marks - a wrong answer with no workings is a wrong answer!!

- Be professional in your written tasks - don't use slang and definitely don't use 'text' speak!

- Remember the 'tricky' bits with the consolidated SFP - goodwill impairment: CR goodwill, DR consolidated retained earnings, Pre-acq reserves: form part of goodwill calculation, Post-acq reserves form part of the consolidated retained earnings.

- Calculate Post-acq reserves by taking the opening reserves (usually found in the notes to the individual SFPs) and deducting the retained earnings balance in the subs SFP - the difference is profit for the year in the sub and goes in consolidated retained earnings.

- Go over what goes in 'operating/investing and financing' activities in the statement of cash flows.

- In the consolidated SFP, remember, share capital and share premium will ALWAYS be PARENT'S ONLY! Get those numbers in FIRST before you start tackling the question.

- If asked for a report in section 2, head up your answer as a report (title 'Report', to, from, date, subject). Always come to a conclusion in your report - no 'ifs' 'buts' and 'maybes'. Back up your conclusion with reasoned argument.

- In the statement of cash flows, the items you are going to need to do workings for are: PPE additions, proceeds on disposal of PPE, share issues, (potentially) finance costs paid (if you have a finance cost payable b/fwd).

- Remember, 'add' movements in working capital to operating profit if there has effectively been a cash 'inflow' e.g. reduction in trade receivables, decrease in inventory and increase in payables. 'Deduct' if effectively an 'outflow' e.g. increase in inventories and receivables and decrease in payables.

- If you finish the exam early - go back and go through your paper as thoroughly as time will allow. Remember, the exam is structured to last 3 hours, so use the full 3 hours!

- On the night before the exam read all my relevant articles and for those who attended my revision/early start days, read the course notes I gave to you. Also, read all relevant articles in 'Accounting Technician'.

Finally - good luck and let me know how you get on!!

Best wishes


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