Financial Statements

awatson86

I am currently self studying Financial Statements. I am finding limited company accounts, cash flows & consolidated accounts ok but I am struggling with the written questions. On question 1.3 there are 21 standards that can be tested and I wondered what methods others used to learn all of these? Also, those that have taken the CBA for this unit, which standards came up?

The written question on the ratio’s I am not finding too bad. Question 2.3, does this always cover IASB framework for financial statements?

Any help would be appreciated.

jenny3549

Oh, I know exactly how you feel! I have my exam in a few weeks and I'm in exactly the same boat. I'm fine with the calculations but no matter how much I do I can't seem to be in a position to answer all the wordy questions. On past papers I get all the calculations fine but fall down on the other ones.

I know that's not much help! What I'm trying to focus on between now and the next few weeks is learning all the definitions. I'm wandering round the house muttering things like "a present obligation arising from a past event...".

A good suggestion if you haven't already got it is to get hold of Clare Finch's book 'A Student's Guide to IFRS' which is excellent. Reading that once you have got to grips with the calculations does seem to be helping.

Not the most useful answer I know, but it's always good to know that you're not on your own.

awatson86

Thanks for your help. The written question are not my best but I found them ok in the other exams. There is just so much more to remember for the written questions in this unit.

stickthin1809

Financial Statements

I had the same problem and my tutor decided to pull all the IASs and IFRSs into the P&L, B/S and Cash Flow and when you tie them in, it is amazing to see how much you already know.

For Eg, in the P&L, you would start with IAS2, Revenue and so on.

Initially you may find that you are shifting alot of pages back and forth, the best layout we found was in the pocket notes. They were clear and concise. So even if you read the text to get a grasp and follow the pocket notes, plus plenty of practise questions should be enough, My worst experience was that the questions in real life papers were nothing like the ones in practise or the CBA ones online....However, as long as you know your IASs and IFRSs, you will be able to answer the question.

I hope this helps.

Ix

Steve Collings

What I used to advise students on revision courses was NOT to think you have to write 'chapter and verse' on the IASs/IFRSs. Just be sure to get the key provisions down! For example IAS 2 'Inventory' be sure you know the concept of "lower of cost and net realisable value". The chances are this knowledge won't be enough to get you through at this level and you'll need to know how 'cost' is calculated and what 'net realisable value' is all about.

A lot of the core provisions of the IFRS/IAS are quite easy to remember, but don't forget the 'grey' areas. FNST and DFS examiners have been known to ask for the definition of an asset and a liability as per the Conceptual Framework (previously Framework Document) but then in another sitting as what constitutes a current and non-current asset/liability which is dealt with in IAS 1! Lots of students fell down on this question and cited the definition of an asset and a liability which would have scored zero because it wasn't the question asked! Be sure not to fall into this hole.

Kind regards
Steve

babsa

Hi Stickthin,

Revenue is IAS 18,

stickthin1809 wrote: »

, in the P&L, you would start with IAS2, Revenue and so on.



Ix

I had Government Grants IAS20 in my CBA.

I learned a few IAS everytime I wrote out the P&L and BS (not that they are called that at level 4) . I would write the IAS in the margin.

stickthin1809

babsa wrote: »

Hi Stickthin,

Revenue is IAS 18,



I had Government Grants IAS20 in my CBA.

I learned a few IAS everytime I wrote out the P&L and BS (not that they are called that at level 4) . I would write the IAS in the margin.

Oh that was meant to read Inventories, my manager came over discussing some revenue stuff, hence the error. Sorry guys

awatson86

Thanks for the advice guys.

lyndseywood87

In my exam we had IAS 16, Plant Property and Equipment.

uknitty

I had IAS 40 - Investment Property and the use of the fair value model.