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Comments
Can anyone help with some revision tips for the accounting standards as I'm stuggling to retain anything!!!
Big mistake sitting ECR, PEV, PCR, PTC and DFS when you've only got 5 weeks to go till your baby is due...
I so need help!!!!
biggest tip is dont panic remember you dont need 100% to pass
Consolidated Cash Flow statements aren't examinable under DFS. It will only be a consolidated balance sheet (common), a consolidated income statement (less common, but came up June 2007), or extracts(rare).
There are no consolidated Cash flows in past papers. Only cash flows for a single entity.
sorry for any confusion caused
lesson learnt is always read the words in context properly esp in an exam is your unsure then state so as in " i assume the following to be blah blah blah"
That's what I meant. I thought that's what jimbob was referring to consolidated cash flows as we seem to be talking about consolidated accounts in this thread.
Am i right in thinking the following :
1-Take the profit from operations
2-Add back depreciation (its not cash and reduces profit)
3-Add back losses on sale of assets
4-Subtract any increase in inventories ( as its cash spent )
5-Subtract any increase in trade recievables ( you havent got the cash yet ? )
6- Add increases in trade payables ( you still have this cash)
7-Finnaly subtract any taxes or interest paid ( not sure why)
Does that sound correct ? Or am i totally off ?
Thanks in advance
Mid
The goodwill on consolidation is calculated as the cost of the investment (£39,500) less the net assets acquired in Seek on the date of acquisition. The difference between the two is goodwill. In DFS there is usually always a goodwill calculation to do.
For all the answer papers I have seen for DFS, the examiner does tend to use the same format for the consolidation process.
Kind regards
STeve
Thanks zippy ! Thought this was never going to sink in !
Journal entries
Income statement
Cash flow statement
Consolidated income and balance sheets
What each examible IAS means
Ratios ( not a problem after PEV )
You will also be expected to perform journal adjustments to demonstrate your ability in this area.
Cash flow statements usually feature a lot. Remember, do the operating profit reconciliations first, then investment activities, then financing activities. Show all your workings in this area as a lot of marks can be generated merely by doing the workings.
Section B is usually a report (remember if asked for a report, write a report - if a memo, do a memo) - normally you get asked to comment on a potential investment and are asked to do various ratios. This normally includes (a) calculation of the ratios and then (b) commentary. Remember - do not question spot in this area. The examiner has been known in the past to throw in complex ratios (which students were not expecting) and then it all goes pear shaped. Revise all your examinable ratios (including gearing - this is the one students tend to dislike).
Best of luck
Steve
p.s. if I can get hold of the question paper after you do DFS I shall do some suggested answers.
When reading the consolidation question, there maybe a clue in the names of the companies as to whether they are subsidiaries or associates. For example, I have just answered a thread above by Andrewh re Dec 05 paper. This had two companies:
Haydn and
Seek
H = Holding company
S = Subsidiary.
I have also seen things like, Holdbrite (holding), Staybrite (subsidiary) and Allbrite (associate).
Just a quick tip for you to help you along the way!!
Kind regards
Steve
Don't forget Add a decrease in prepayments and add an increase in accruals should it arise!
Kind regards
Steve
Yes they changed - there have been 4 past papers for the one tomorrow, so concentrate more on them...otherwise you'll get things messed up....they don't ask for things that were in those papers...and layout is slightly different......mind you there is no harm at attempting them. Just miss the bits that you don't recognise!!
remember if its a asset - for increase + for decrease
if its a liab then - for decrease and + for increase
Do we need know the statement of gains or losses and the movements in shareholders fund
I have never come across this before
Panic:ohmy:
Good idea. However, (in my opinion) it's worthwhile doing tasks 1.3 and 1.4a from DFS June 2005 as it has an associate as well as a subsidiary, and is therefore good practice as none of the last 4 feature an associate.