DFS - Another Tip!!!
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Hi Guys,
FRS 1 - Cash Flow Statements always comes up - I'm not saying it will come up tomorrow - but I reckon it's ripe for tomorrows paper. An easy way to remember the format:=
Never = Net operating cash flow from operating activities (line 1)
Really = Returns on investment servicing of finance (interest pd and recd)
Thought = Taxation (tax paid NOT the tax provision in the accounts)
CIMA = Capital expenditure/disposal proceeds (obvious - use T accs)
Exams = Equity Dividends paid (again PAID not proposed or accrued)
Much = Management of liquid resources (e.g. short term deposits)
Fun = Financing (eg share issues, loans taken out)
Another FRS that always seems to come up is FRS 12 (Provisions) - you MUST MUST MUST MUST know this for tomorrow e.g. when to provide and when not to - don't forget the three conditions that must be met before a provision is made and when to disclose a contingency in notes
With regards to the rest of the FRS's SSAPs - just go in with the basic knowledge of them READ what the question is gearing you towards and don't get too worked up if you can't remember all the detail. You are in a three hour exam - you cannot re-write the standards!
Best of luck
Steve
FRS 1 - Cash Flow Statements always comes up - I'm not saying it will come up tomorrow - but I reckon it's ripe for tomorrows paper. An easy way to remember the format:=
Never = Net operating cash flow from operating activities (line 1)
Really = Returns on investment servicing of finance (interest pd and recd)
Thought = Taxation (tax paid NOT the tax provision in the accounts)
CIMA = Capital expenditure/disposal proceeds (obvious - use T accs)
Exams = Equity Dividends paid (again PAID not proposed or accrued)
Much = Management of liquid resources (e.g. short term deposits)
Fun = Financing (eg share issues, loans taken out)
Another FRS that always seems to come up is FRS 12 (Provisions) - you MUST MUST MUST MUST know this for tomorrow e.g. when to provide and when not to - don't forget the three conditions that must be met before a provision is made and when to disclose a contingency in notes
With regards to the rest of the FRS's SSAPs - just go in with the basic knowledge of them READ what the question is gearing you towards and don't get too worked up if you can't remember all the detail. You are in a three hour exam - you cannot re-write the standards!
Best of luck
Steve
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Re:DFS - Another Tip!!!
Thanks Steve before.
I had never grasped FRS12, but i do now many thanks to your tip.0