dfs exam weds

2

Comments

  • confused!!confused!! Well-Known Registered Posts: 130
    Yeah we are allowed to!! my tutor is on holiday, but we are allowed to ask the other tutors for advice etc!
  • hunterhunter Feels At Home Registered Posts: 54
    Our tutor covered associates in about half an hour and said it would probably be just a bullet point question, and probably wouldn't come up at all, think I had better have a look at books as I havnt revised this area, just made sure I got Balance sheet and income statement methods correct. :(
  • jimbobjimbob Feels At Home Registered Posts: 43
    99% of ppl did that too dont forget your cashflow
  • Debs2809Debs2809 Feels At Home Registered Posts: 42
    DFS accounting standards

    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!!!!
  • jimbobjimbob Feels At Home Registered Posts: 43
    no bad idea but u forget you wont have time when bubs arrives so make sure you pass
    biggest tip is dont panic remember you dont need 100% to pass
  • mehmetmehmet Well-Known Registered Posts: 113
    jimbob wrote: »
    99% of ppl did that too dont forget your cashflow

    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).
  • jimbobjimbob Feels At Home Registered Posts: 43
    so how come there are cashflow statements in nearly all of the past few papers
  • karenvkarenv Well-Known Registered Posts: 114
    Think there is confusion here.
    There are no consolidated Cash flows in past papers. Only cash flows for a single entity.
  • Debs2809Debs2809 Feels At Home Registered Posts: 42
    See IAS 7 Cash Flow Statements, in the guidance notes on the AAT website..:001_smile:
  • jimbobjimbob Feels At Home Registered Posts: 43
    exactly i didnt mention consolidated cashflow as we never studied them just cashflows as in singular
    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"
  • mehmetmehmet Well-Known Registered Posts: 113
    karenv wrote: »
    Think there is confusion here.
    There are no consolidated Cash flows in past papers. Only cash flows for a single entity.

    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.
  • MidmacMidmac New Member Registered Posts: 9
    Can anyone help me with the cash flow questions.

    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
  • confused!!confused!! Well-Known Registered Posts: 130
    The June 2005 exam looks awful, I pray we dont get one that is like that
  • zippyzippy Feels At Home Registered Posts: 28
    Mid, you are correct. Remember on point 2 to do the opposite if a profit is made on disposal, i.e deduct it.
  • Andrewh26Andrewh26 Feels At Home Registered Posts: 69
    Im just doing dfs dec 2005. Can someone help me regarding calculation of goodwill. If we are required to calculate it in the exam, will it always state this in the way it does in this paper? And can somebody help me as to where the values for consideration and goodwill arising on consolidation come from in the suggested answers? It seems to me to be maybe the single most difficult thing in the dfs exam.. The calculation of goodwill. What do others think? Thanks
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    The value of the consideration is shown in Hadyn's balance sheet as 'Investment in Seek' for £39,500. This investment must be eliminated as it forms part of the goodwill calculation. Thus the consolidated balance sheet will not show the actual cost of investment.

    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
  • MidmacMidmac New Member Registered Posts: 9
    zippy wrote: »
    Mid, you are correct. Remember on point 2 to do the opposite if a profit is made on disposal, i.e deduct it.

    Thanks zippy ! Thought this was never going to sink in !
  • MidmacMidmac New Member Registered Posts: 9
    So will i be ok for the exam if i am comfortable with the following :
    Journal entries
    Income statement
    Cash flow statement
    Consolidated income and balance sheets
    What each examible IAS means
    Ratios ( not a problem after PEV )
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Yes you will be well-prepared. Remember section 1 will usually contain a consolidation question (whether a subsidiary or an associate is included is anyone's guess). Get a good, basic skill of doing both a consolidated balance sheet and income statement.

    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.
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Could I offer one more tip to you guys sitting DFS.

    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
  • Andrewh26Andrewh26 Feels At Home Registered Posts: 69
    Thanks. Ive revised dfs but forgot quite a bit due to concentrating on pev
  • LouLou143LouLou143 Feels At Home Registered Posts: 74
    Midmac wrote: »
    Can anyone help me with the cash flow questions.

    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



    Don't forget Add a decrease in prepayments and add an increase in accruals should it arise!
  • confused!!confused!! Well-Known Registered Posts: 130
    I thought I was reasonably ok with DFS, untill I looked at the June 05 exam paper, it looks horrible and the lay out is different, is this because the standards etc were different back then?
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    There has been a change of examiner since the June 05 paper. There has been changes in standards since 2005, but if you've got reasonably up to date material then you shouldn't have a problem.

    Kind regards
    Steve
  • LouLou143LouLou143 Feels At Home Registered Posts: 74
    confused!! wrote: »
    I thought I was reasonably ok with DFS, untill I looked at the June 05 exam paper, it looks horrible and the lay out is different, is this because the standards etc were different back then?

    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!!
  • confused!!confused!! Well-Known Registered Posts: 130
    Oh thanks, I feel a bit better now! I seem to be ok with the newer ones... I cant wait until Thursday afternnon and it will all be over.....until December!
  • jimbobjimbob Feels At Home Registered Posts: 43
    we were told to concentrate on the last 4 exams papers for practise as not to get confused with old standards
  • jimbobjimbob Feels At Home Registered Posts: 43
    Midmac wrote: »
    Can anyone help me with the cash flow questions.

    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



    remember if its a asset - for increase + for decrease
    if its a liab then - for decrease and + for increase
  • tiny tinatiny tina New Member Registered Posts: 14
    going back to past paper eg June 2005

    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:
  • mehmetmehmet Well-Known Registered Posts: 113
    jimbob wrote: »
    we were told to concentrate on the last 4 exams papers for practise as not to get confused with old standards

    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.
Sign In or Register to comment.