Fnst

mano

Hi :001_smile:

I am stuck with other income on consolidated statement of comperhensive income practice CBT 1 .

The answer is 261 I don`t know the working for it.

Short key words definitions needed for:

Relevance
Faithful representation
Understandability
Verifiability
Comparability
Timeliness
Going concern
Accrual basis

Please let me know if anyone of you know about it.
Any help would be greatly appreciated.

Richard

I can't help you with your first part as I don't have the practice exam you are using.

However, regarding the second part, there is an article in the latest AAT magazine (pg. 56 & 57) which you may find useful. If you don't have a copy, PM me your email address and I'll scan you a copy.

mano

Wow , that`s really good Richard.
Yes I have got the latest AAT magazine I read it and was very useful.
Thanks for the help.

Anyone else can help me for the 1st part ?

uknitty

I don't quite understand what exam you are looking at either.

If you are looking at practice CBE 1 on the AAT website, the statement of comprehensive income you are asked to produce is for a company called Pine. Is this the one you are using ? If so, when I looked at the answers the "other" comprehensive income is £9222 (which is the movement of the revaluation reserve as per the second note 50,000 - 41,778).

I don't know which exam you are looking at because neither on the AAT website seem to have a SOCI question with an "other" income of £261. If you can post the actual question then we will be better placed to try and help.

Even though I can't answer the question exactly, I can suggest that the first place I would look for "other" income in this type of question would be in the revaluation of non current assets.

Newts22

I too am wondering how to get the 261 as shown in the answer!

Its FNST practice exam 1, question 1.5 b. Consolidated statement of comprehensive income for Claw Plc.

any help gratefully received!

Thanks
Newts

mano

yeah uknitty, You got the right papper but I am talking about task 1.5 (b) Consolidated statement of comprehensive income for Claw Plc.

Claw Plc acquired 90% of the issued share capital of Deer Ltd on 1 April 20X0.

Extracts from their statements of comprehensive income for the year ended 31 March 20X1 are shown below:

Claw Plc Deer Ltd
£000 £000
Continuing operations
Revenue 40,800 18,600
Cost of sales (24,200) (7,300)
Gross profit 16,600 11,300
Other income 1,800 -
Distribution costs & administrative expenses (2,500) (1,600)
Profit before tax 15,900 9,700

Additional data

During the year Deer Ltd sold goods which had cost £100,000 to Claw Plc for £480,000. Half of these goods still remain in inventory at the end of the year.

(b) Draft the consolidated statement of comprehensive income for Claw Plc and its subsidiary undertaking up to and including the profit before tax line for the year ended 31 March 20X1.

uknitty

Hi there

The reason you can't find it is because it is to do with the dividends (not even mentioned above )

Note 1 tells us that Claw receieved a dividend from Deer.

Note 2 tells us that Deer paid a dividend of 1710 in the year.

We know that Claw owns 90% of Deer - so of the 1710 dividend that was paid 90% of it was paid within the group - so it whilst this is income in the individual accounts, when we look at the consolidated accounts, it is just money moved from Deer to Claw so it has to be eliminated.

90% * 1710 = 1539 intragroup dividend paid

"other income" = 1800 - 1539 = 261


If you get a question in the exam that has dividends, check to see if they have been paid intragroup and remember to remove the PARENTS share from the consolidated accounts. (You wouldn't remove the whole dividend unless the subsidiary was 100% owned.)

Hope that makes sense. Let me know if you want me to go through any part of this - I'm revising consolidated statements right now for my AAT/ACA top up paper so it helps me with my revision to try and explain consolidation !

Newts22

Uknitty
Thank you, so simple when you know how lol!
Last lot of cramming for my FNST is 9:30 in the morning, so not going to sleep tonight!!
Newts
:crying:

uknitty

Get a good night sleep, and good luck for tomorrow.

Let us know how you get on .

Jo Clark

uknitty wrote: »

Get a good night sleep, and good luck for tomorrow.

Let us know how you get on .

Good advice from uknitty. Don't go to the exam feeling tired as you may make silly mistakes.

Good luck from me too!


JC

mano

Thank you so much uknitty.I am so glad that finally I get to know the workings for Other income:)
I was just completely ignoring the dividends.

@ newts22 : Good luck for your exam.

mano

@ Newts22 : Best of luck for your exams, hope you do well.:thumbup1:

Newts22

Thank you Jo and Uknitty,

I had the best nights sleep of the week, been up since 5am, now in costas having a latte and going over some revision notes before I step into the lions den lol!
I'll be back here later to let you know how it went, if I can remember any of it lol!
Cheers
Newts

nicd1981

Hey Newts, how did the exam go?

Ive got mine tommorrow any tips or advice?

Nic x

Newts22

Hi Nic

Hope Im not too late in replying to you!
Good luck, dont panic!
I know I messed up the written part of section 1, but the rest was pretty much like the practice exams online, with section 2 calculating ratios and then a written task on the performance of two regional offices.
Hope this helps.

Good luck, and let us know how you feel afterwards!
:001_smile:

nicd1981

Hey Newts, i did the exam last night, definitely failed, my consolidated Sofp was out of balance by 24 pound and my written section on section one although i think i answered it correctly i dont think i wrote enough.
I am just going to keep on revising until my resit, but our tutor wont let us book resit until we get results xx
Anyway, got PTX , CGMT exams to study for , exams are in 8 weeks and im awaiting results for my ICAS project but my tutor said itll be signed off in 3 weeks so one down!
Good luck Newts with your results xx

Jo Clark

nicd1981 wrote: »

Hey Newts, i did the exam last night, definitely failed, my consolidated Sofp was out of balance by 24 pound and my written section on section one although i think i answered it correctly i dont think i wrote enough.
I am just going to keep on revising until my resit, but our tutor wont let us book resit until we get results xx
Anyway, got PTX , CGMT exams to study for , exams are in 8 weeks and im awaiting results for my ICAS project but my tutor said itll be signed off in 3 weeks so one down!
Good luck Newts with your results xx

Hello Nic

I'm pleased to see you sat the exam after your last post and not being sure whether to or not

I wouldn't worry too much about how much you wrote, rather did you answer the question and include all the relevant points/important facts?

Good luck with your next two exams and well done on the project, I have yet to do that.

Fingers crossed for you and hoping your results come through quickly.


JC

nicd1981

Hi Jo,

I sat the exam thinking of it as a practice, i knew i didnt have a chance in hell ofpassing but i answered every question and flagged all i didnt know and just went back to it x
I think i got some of the points for written section but defintely not all, im going to keep doing practice exams and reading the standards as i hope to resit in 4- 5 weeks, that does seem to the the time results are coming in
Thanks Jo, and good luck
The project flows quite quickly once you get the basics down on paper,
Our college gave us a template for the layout so its basicaly deciding what to use
If you need any advice dont hesitate to ask and ill help the best i can )
Nic xx

Newts22

Hi Nic

I'm sorry you don't think FNST went too well, fingers crossed you have gained enough to pass though hun!
Well done on ICAS! I will be starting mine in July I expect, as hoping to move house 3 days after my last exam, so will need a few weeks to decorate etc!
If we both have to re-sit FNST then we will know what is expected, and can talk each other through it!
Good luck with your next two!

nicd1981

I know il have to resit fnst, i didnt balance and i didnt know the 3rd question about my standard ifrs 3 but answered the 1st two , but like i said didnt write enough!
but im happy, i faced my fear lol
Good luck with rest of your exams, budgeting was pretty easy and fnpf i thought was difficult but thats also down to me not having the time to study as much as i used too!!
nic xx