Peugeots Answers to DFS - how did he do????

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
As a lot of you know, I provided you with my suggested answers for DFS in June 2005. I have now checked my answers against the AAT.<BR><BR>I am pleased to say that my answers could have (more or less) been relied upon. I did make a couple of mistakes. My STRGL included the wrong profit figure but my reconciliation of shareholders funds was correct. My earnings per share in the report was calculated as a percentage rather than pence in the pound although this figure has been known in the past to be represented as a %. The return on equity formula was slightly different in my report but I have double checked this again with the BPP books and I still come to the same. Again, as I said to another student this can be interpreted in different ways. Other than that everything else agreed with the AAT. <BR><BR>The discussion parts of the question were obviously different but my points portrayed an accurate answer to the questions set.<BR><BR>Anyway, any student who wants any help with DFS (or an equivalent paper at a different level) please do not hesitate to contact me via the forums. I will, of course, prepare answers for the December 2005 sitting when the papers arrive on the site.<BR><BR>Best of luck for all your studies.<BR><BR>Steve.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Hi Steve<BR><BR>Fancy being my personal tutor for my re-sit. I don't know where to start. I worked so hard for those exams. Every night for months. Yet still I failed DFS. If I didn't pass then, what can I do differently this time round?<BR><BR>Yvonne
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Hi Disco1, First of all don't despair. I am replying to you personally but aiming this reply to the others that failed DFS. The problem with DFS (especially this time round it seems) is that the paper was not conventional by nature, namely Group Accounting was hardly present. A lot of students would have been hammering Group Accounting when revising this subject but the only group aspects that came up were calculation of goodwill and investment in associate together with a discursive element by virtue of FRS 9 (Associates and Joint Ventures). <BR><BR>The other problematic aspect appeared to be the Rec. of Shareholders Funds. This was an area that was not expected and there were countless numbers of comments via the forums complaining about this. My advice to pass this paper, is to get the key basics sussed. For example, group accounting may well dominate the paper in December because it wasn't present in June - however, question spotting cannot get you through an exam. You won't be expected to recite all the FRS's, SSAPs, etc etc but you must get a good basic knowledge of the key ones. Sometime nearer to the exams, I'll perhaps post a schedule of the main FRS's and a brief description of what they aim to do (though the description will not be detailed). I will also be posting some more articles via the www.accountancystudents.co.uk on Group Accounting, Cash Flows and discussions within the course of the next couple of weeks so watch out for them. I will post a message via this forum stating when I have loaded them on the website.<BR><BR>The other tip is to print off the past exam papers and practice them under exam conditions and then compare your answers to the actual answers. This will give you an idea of your weaknesses. Try not to practice the areas you are good on, but develop these but concentrate on the areas you feel more weaker. When I was studying, I struggled a bit with FRS 17 (retirement benefits) but after doing lots of them, they become second nature.<BR><BR>The final bit of advice I would give is to develop an effective revision plan and stick to it. Work through various aspects of the paper, for example, say on Saturdays practice Group aspects (goodwill, associates, joint ventures and the treatments of each) and say, on Sundays concentrate on things like Cash Flows (these always come up), discursive questions and learn a few FRS's. That way you break up the number crunching and the discussion questions.<BR><BR>If you, or any student needs any more advice on ways to get through this paper or the lower level equivalents, please feel free to contact me via the forums. These exams are bloody hard and I will help wherever possible.<BR><BR>Best of luck (forget June now, concentrate on December)<BR>Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Thanks for your comments Steve<BR><BR>I actually passed Section 1 of the paper and failed section 2 so I guess my main weakness was the ratio's. I have read the examiners report and for once I totally agree with it. I, like others only really concentrated on past papers. I did the last four papers and could do them blindfolded after a while. Lesson learnt, exams can not be passed off past papers alone. I studied using Osborne last year so for my re-sit I am going to get the BPP book and read it from cover to cover. Then the last 3-4 weeks before the exam I plan on doing the past papers again until I am very familiar with them, especially the June paper.<BR><BR>I WILL PASS THIS TIME.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    I have read the Chief Assessors report for DFS and do agree with the comments they have made. I think a common mistake for those who failed was to rely on what had been examined in the past i.e. Shareholders Funds reconciliation had not been examined so it would have been a common misconception to assume that it isn't examinable. There is also the issue with regards to the Ratios. Ratios always come up not only in AAT but in other professional exams. You will always be asked to comment on the ratios (to prove your understanding of them and not just be able to bang the numbers out on a calculator). This is an area where a lot of people struggle on i.e. explaining what the key ratios mean. Also, the other problem is that there are a lot of ratios to learn and sometimes it is a bit hit and miss in getting the right "profit" figure in the calculation (as I did on one of mine in my suggested answers). <BR><BR>Moreover, I feel the biggest problem which would have meant students fail this paper is the fact that section 1 was numbers (profit and loss, balance sheet, cashflow, goodwill and investments in associate). What happens in number crunching exercises is that some students get bogged down in the numbers. This is the worst thing you can do. You must stick to the suggested time allocation and when time is up MOVE ON. Do not try to balance something up. If you run over on time you risk losing marks in section 2 because you are eating in to the time which needs to be set aside to do the final section. The AAT is looking for competence in both sections and if you overrun on your time in section 1, thus gaining competence in section 1 you won't leave enough time to do section 2 competently - the end result is a fail in section 2. Hopefully, in December this won't happen.<BR><BR>Hope I've helped with the "tips" to pass the exam in December.<BR><BR>Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Hi Disco1<BR><BR>Sorry to butt in on your conversation but was really feeling for you. I noticed you are going to try a different tack and try the BPP books this time around. The only real experience I have of the BPP books was for audit and the working with computers units - both an absolute nightmare - the units themselves should have been straightforward enough but the text was so tedious and drawn out. I carried the audit book around with me for months trying to make inroads and almost left the course because of that one unit alone. Nothing seemed to sink in and I found the text was over technical.<BR><BR>If you have been using Osborne and have liked the style I wouldn't change the text, as everything you need is in there, but perhaps focus on different areas. I used the workbook which I found invaluable as it tests all areas and also purchased the BPP revision cards which are a lot more straightforward than their books. I'm very much a belts and braces person and tend to go into overdrive during revision which isn't good for you either so I placed some notes on disc (tape would work just as well) and using acronyms or mnemonics(?) to help me remember important points. I constantly listened to these notes whilst walking the dogs, washing the car, etc, etc. Actually I think preparing the notes to put on disc helped the most and listening to them simply fixed them in my head (my voice bored the pants off me though so beware).<BR><BR>The layout for STRGL I remembered by thinking it looks a little like 'strangle' and simply said to myself you would need to be fit to strangle so you would need to 'PUT PT' first.<BR><BR>Profit for the financial year<BR>Unrealised surplus on revaluation of properties<BR>Total recognised gains<BR>Prior year adjustment<BR>Total gains and losses for the year.<BR><BR>It's a little like Peugot's Cashflow Statement - Never Really Thought Cima Exams Much Fun, although taken out of context mine sounds a little sick. Only had an inkling this may come up the night before the exam and that was all I could come up with to help me remember the layout at such short notice. You still need to understand what it is you are doing and if you do you will realise that you may not need all of the headings in this task but if remembering layouts is stopping you learning the more important stuff behind the layout then it is one hurdle out of the way and lets you get on with more important tasks. I was actually pleased when this and the Movement of Shareholders Funds appeared on the paper (bit sad I know) as I was doing something different from all the past papers but it was something I had just learnt.<BR><BR>You will get there this time round. If you think it may have been the ratios that let you down write the formulae down for each category and stick them all over the house. Get someone to test you on the spot every so often - I did this with the standards and it really works.<BR><BR>Good luck and sorry if this seemed a bit of a lecture.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Hi Disco 1, Peurgeot and Birdseyeview<BR><BR>Sorry to but in but I agree, I have just signed up to do DFS at college, last exam to do, although I know this is my weakest area I am going to give it my best shot. Have already booked a revision course with BPP for October and want to try and learn an FRS or SSAP each week, hopefully that will help. But it is I think one of the most daunting papers because there is so much AAT can ask you about. <BR><BR>We know we can do it so lets get on and show them we can!!!!!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Hi Chocolover<BR>That is the right attitude. I have been dwelling too much lately on the fact that I failed but its time to get up, brush myself down and get on with it.<BR>Thanks for all your comments guys. I have taken them all on board. I will look at the BPP book and also go over the Osborne book again. I am also going to try and get on a revision course somewhere in Nov, I will need to find out who I can do it with. Can you do it with BPP or FTC if you have not been on their courses?<BR>Roll on Dec.......I can't wait to put this one to bed and move onto CIMA in Feb.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Peugeots Answers to DFS - how did he do????

    Hi Steve<BR><BR>I could really do with some help on the DFS paper. Im the same as disco1, I passed section 1 not section2 , but to be honest I really struggled with section 1.<BR><BR>Any extra help or advice you can give would be much appreciated, my e-mail address is leomoore1975@hotmail.com<BR><BR>Thanks<BR><BR>Leo
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS - HELP

    Hi Steve<BR>Can you you explain what items should be included in Administration Expenses and Distribution Costs when doing a P&L a/c for limited companies.<BR>Thanks<BR>dejected
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Peugeots Answers to DFS - I Dont understand!!


    Hello,

    I have a couple of questions relating to the answers to this exam;

    Firstly, where do you get the 'goodwill written off' figure of £200 from in task 1.3?
    Secondly, where do you get the 'goodwill on acquisition' figure of £500 from on task 1.4?

    and finally, the 'Group's share of post-acquisition profits' £1,000,000?

    Thanks

    Anns
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Peugeots Answers to DFS - how did he do????

    hi there, not sure but as i looked at it, it seemed to me as follows!

    -the £200 write comes from where it says (Goodwill is estimated to have a useful life of 10 years), therfore you divide £2000 by 10.- the £500 goodwill, this time you need use Grand Ltd figures by %25 ( as it says 2500000 shares acquired by Bell plc from its total £1000000)
    Called up shares cap 25% of 10000= £2500
    share premium 25% of zero = 0
    p&l @ acquisition 25% of 8000= £2000
    th total is £4500
    investments or cost of shares £5000
    different ( goodwill) £500
    -group's share of post-acquisition profits is £1000000, cos its a profit since acquisition therefore its different B £9000000 on B/S and £8000000 on blance of P&L as stated in the note,,,, i will check if its 100% ok or not,,, cheers, norine6@msn.com

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