DFS Accounting Standards

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Debs2809
Debs2809 Registered Posts: 42 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Can anyone help, has anyone got a revision aid which will help me answer any of the questions regarding to accounting standards in the DFS paper!!!
How much detail do we need to learn???
I'm so worried that this is going to seriously trip me up!!!
I'm only sitting ECR, PEV, PTC, PCR and DFS this week and my baby is due in 5 weeks!!!!!
:crying:

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  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
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    Hi,

    You will only need a basic knowledge of the examinable standards. A lot of students seem to think that they have to revise (in detail) every single IAS/IFRS. This is not the case.

    There are only approximately 22 examinable standards at AAT level out of a possible of approximately 36 in issue - have a look at the student resource centre for DFS on this site for those that are examinable (they are on the students homepage).

    Then just get a basic knowledge of each one. For example IAS 2 - Inventories - key point = lower of cost/net realisable value (define cost which is cost + costs directly attributable in bringing the inventory to its present location and state). IAS 37 (Provisions etc) - remember the 3 criteria for a provision to be made in the accounts or for a contingent asset/liability to be disclosed. IAS 16 (Property Plant and Equip) remember what 'cost' is and what the revaluation/cost model is all about. IAS 17 Leases - remember what defines an operating/finance lease and which gets capitalised and which doesn't. Getting the key points of each standard down should help you greatly!

    Simply bullet point the main provisos in the standards (those that are examinable only - not every one) and that will be fine.

    Kind regards
    Steve
  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
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    The link to the support document which contains the examinable IAS is here:

    http://www.aat.org.uk/servlet/file/Unit_11_DFS_Guidance.doc?ITEM_ENT_ID=90277&COLLSPEC_ENT_ID=34
  • Debs2809
    Debs2809 Registered Posts: 42 Regular contributor ⭐
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    Thanks Steve

    I downloaded a copy of the guidance notes earlier and read which standards were applicable to the DFS exam I didn't feel though they gave me a very clear understanding of what was needed...
    I know there's not many questions regarding standards in the exam but there's so many they could pick from...
    In a real life scenario would we not just refer to a book!!!

    Debs
  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
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    When I am asked question on accounting standards by people in the profession or write articles on complex accounting standards, it is necessary to go back to the book in some respects because some IAS's are very complicated and detailed.

    The AAT are not expecting you to be an IFRS expert. What they are expecting is for you to have a basic knowledge of how an IAS is applied in an exam standard question. For example, the December 2007 DFS paper contained a question asking about various components on IFRS 3 (Business Combinations). You would not have to have detailed technical knowledge on IFRS 3 in order to answer that question - more a basic knowledge would have got you through.

    It is true to say that there are a lot of standards the examiner can pick on to test your ability. My advice is just to get a basic knowledge of each one and try to refer to their application in a scenario. For example, if you have a question on (say) a company with an investment property (note this is just an illustration, I'm not saying you will get a Q on investment properties), then bring IAS 40 and the basic requirements into your answer. That will generate your marks.

    Kind regards
    Steve

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