SSAPs & FRSs

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Our tutor has said we may need to quote SSAPs and FRSs. Any thoughts?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    yep they always come up<BR><BR>ssap9 - stock valuation<BR>frs18 - prudence, accruals, matching, going concern concepts<BR>ssap 5 - vat <BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    quote what about them?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    I think the only ones we need to have an understanding of are :-<BR><BR>Along with breif notes on each.<BR><BR>FRS 18 - Accounting Policies<BR>Going Concern<BR>Prudence<BR>Consistency<BR>Accruals/Matching<BR>Materiality<BR>Realisation<BR>Relevance<BR>Realiability<BR>Understandability<BR><BR>FRS 15 - Tangiable Fixed Assets<BR>In the text book this talks about depreciation and the devaluing of assets overtime. Deciding on a method of depreciation, i.e Reducing Balance or Straight Line.<BR><BR>SSAP 5 - Accounting for VAT<BR>The sales figure in the trading account should not include VAT<BR>Purchases and expenses should be shown net of VAT<BR>If the VAT on purchases and expenses is irrecoverable then the VAT should be included as part of the cost or expense<BR>The amount owed to or from Customs and Excise should be shown as a debtor or creditor in the Balance Sheet<BR><BR>SSAP 9 - Stocks and Longterm Contracts<BR>Stock should be valued lower of cost or net realisable value<BR><BR>Also i think SSAP 21 -Accounting for Leases. But im not sure about this one. Someone please advise.<BR><BR>Hope this helps<BR>Andy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    petrolmonkey i think you should come to my college tommow and sit next to me in the exam. you seem to know everything.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    lol, i'm ok now but once nerves kick in my brain is all over the walls!! splattt!!<BR><BR>SSAP 21- accounting for the treatment of leases and hire purchases<BR><BR>two types of lease finance lease or operating lease,<BR><BR>on operating lease on final payment you never become the owner and its is not included in the balance sheet and payments are charges to the pl<BR><BR>finance lease - company become the legal owner after final payment and is included in the balance sheet and depreciate in the same way you would treat as asset it you brought it out right,
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    Hi this is my first post on this forum, i hope everyone's exam went well for them yesterday.<BR><BR>Finance leasing: i understood that the assets could be recorded in the balance sheet and treated as the business owns them, but the legal ownership does remain with the lessor not the lessee. <BR><BR>Good luck for tomorrow.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    SSAPs & FRSs

    sorry i'm cracking up. finance lease you never become the legal ower but HP ownership is the lessee on the last payment.<BR><BR><BR>good luck to you too

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