Dfs -tips post

Oh great a new assessor, i bet it will be completely different!!!!

new assessor ? O M G :ohmy:

I was just beginning to feel positive too :crying:

LOL, Keep calm there won't be a massive difference in papers IMO.

70% is a big percentage though lol.

Section 1:- Just double check everything really, simple. If it balances, winner!

Section2:- Say wether the increase/decrease is a good or bad thing, and explain why!

Just take your time and you'll be fine.

You need to get most questions right in section 2 as it is only 30% and there will only be a few.

Oh well - too late now - altho when they changed the assessor for Pev or was it PCR last year it caused chaos - Glad to say I passed.

The point is we are being tested on our knowledge and application of that, not how many past papers we have memorised, I reckon thats why they change the assessor from time to time - If you read there reports they always say there is too much evidence of students rote learning past papers

Still scared though :eek:

"" The bringing together of seperate entities or businesses into one reporting entity"

I cant either, can someone copy and paste what it says because i cant download it.

Here we go, panic over!!!!
DFS (unit 11) and written tasks

Introduction

AAT students are like accounting students all over the world and at all levels of accounting: they like figures but are less fond of words. From National Certificate students to taught Masters, calculations are fine but sentences are not.

Many questions in accounting exams allocate about three quarters of the available marks to calculations. The balance is then a written – or ‘discursive’ as it’s often called – part which usually requires a comment on what has been calculated. Many students simply ignore this written part. They manage to pass, though, because they achieve the required 50% of the marks.

However, AAT’s exams are different, especially at Technician level. DFS stands for Drafting Financial Statements, but the range statement and all the available information make it quite clear that this unit is really about both drafting and interpreting financial statements.

Section 1 of the paper deals with the drafting of financial statements and Section 2 is about calculating relevant ratios and commenting on the implications of the results achieved.

Even if they get every single practical exercise correct, students cannot pass this unit on that alone. An attempt must also be made at the written tasks if a successful outcome is to be achieved.

When students who are unhappy with their exam result (or simply want detailed feedback) decide to go through the enquiries and appeals procedure, the most common reason why a student is “surprised at the outcome” proves to be those scripts in which most calculations have been attempted successfully but the answers to the written parts of the task are either poor or totally non existent.

Is this because they find the language used in unit 11 quite ‘heavy going’ or difficult? Or do students think that the way in which some of the model answers are written is a bit ‘off-putting’, especially for those students whose first language is not English?

Having said that, the front cover of the published answers always reminds tutors and students that “The model answers may, in parts, be longer than would be expected of candidates in the exam. The fuller version is given for teaching purposes.”

So let’s look at a few sample answers that may not be ‘perfect’ or exactly as those published online but nevertheless attract full or part credit.

More to come!!!

Example 3
Task 1.6 at the June 2007 sitting asked candidates to prepare – from the reconciliation given in the data – a report for the company directors to explain the change in net cash from operating activities between 2006 and 2007.

The published report is as follows (note the headings for which credit is also given). The main points that would gain marks have been emboldened.

“To: The Directors of Goramsee Ltd
From: AAT student
Subject: Comments on cash from operating activities
Date: 20 June 2007

This report comments upon the change in net cash from operating activities between 2006 and 2007 in Goramsee Ltd.

Although the profit from operations has increased considerably in the year from £5,721,000 to £6,938,000, the net cash from operating activities has declined from £6,708,000 in 2006 to £6,680,000 in 2007. This means that a smaller amount of cash was received by the company from its operating activities than in the previous year. It would have been expected that the cash from operations would increase if profit from operations had increased.

Although more was paid out in income taxes for the period, the increase was relatively small at only £38,000 and would be due to increased profit from operations. The increase in interest paid of £140,000 was due to the increase in the loan during the year and this would have reduced the cash from operating activities.

The major factors in the decrease in cash were the changes in working capital. The inventories balance increased by £1,176,000 thus reducing cash from operations. It is unclear why this has happened and is substantially more than the modest increase in 2006. It might be due to a change in the company’s inventories holding policy. It may also suggest that there are problems with inventories control or that slow moving goods remain in inventories for a longer period of time.

Trade receivables have also increased significantly in 2007. This reduced the cash from operations by £873,000. Again, this increase is much greater than in 2007. This may be due to variation in the credit terms allowed to customers or due to the fact that trade receivables are, on average, taking much longer to pay their debts. It is possible that credit control is deteriorating and trade receivables are not being chased for the amount owing to the company.

Trade payables have actually reduced between the two years. It may be that the decrease is due to a change in the credit policy of suppliers, but it might also indicate that the company is paying trade payables too quickly and not taking full advantage of the credit terms allowed by suppliers.

It is important to address the issues raised in this report since the decline in net cash flow from operating activities means that cash has to be found from other sources. If you have any queries over matters raised in my report, do not hesitate to contact me.

AAT Student”

It is not difficult to spot how many times the words ‘due to’ feature in this report. It is important to give reasons or possible reasons for what is happening rather than just quote the figures given in the data.

Here’s an example of an answer that does not make enough of the above points for a candidate to be considered competent in this particular task. However, the marks awarded here could make the difference between ‘competent’ and ‘not competent’ when the whole section is taken into account!

“As you will see from the reconciliation of operating profit to net cash inflow for 2006 and 2007, there has been a slight decrease of £28,000 in net cash. This loss is nothing to worry about in terms of cash flow. Although in 2007 there was an increase in gains on disposals of £348,000 from 2006, there have been other costs incurred as well, such as an increase in both trade inventories of £1,074,000 and in trade receivables of £788,000. I would suggest the company looks at credit control procedures as soon as possible. Also I would not suggest holding a large amount of inventory as you do. Inventory is the least liquid asset and is hard to dispose of.”

Almost there!!!!

Thank you.

The main point he seems to be making is in the summary - that we've GOT to be able to back everything up and explain it in writing. Which is something my tutor said as well.
I just hope he doesn't put a load more questions in specifically about the standards because my brain has gone dead on them!

Oh well - fingers crossed!

Ampsie
trying not to be worried!
:001_smile:

LOL cs1988!!!!!!!!!!!

So the lesson to be learnt is - revise the syllabus, know the important stuff, and try all questions.

I know it'll be chaos on here tomorrow, but it would be nice to think that a group of professional people about to complete a major qualification weren't going to run around like headless chickens saying "OMG, OMG, OMG, that was soooooooo hard!!!!!!!!" for 3 days.

Believe in yourselves - if you weren't capable you wouldn't have got this far.

Yeap totally!!!!
Lol cs1988

thats the definition of an asset done, just liability & equity to go.......recon that will be enough.
If thats not asked, I may just write a note saying that the 'accounting equation is SO IMPORTANT in every way, and the definitions are.....' who knows, they make just think ive gone mental & be to concerned about my state to fail me???????