OpenTuition.com Free Accountancy Education » All Posts http://opentuition.com/forum/f7-financial-reporting/feed Sat, 25 May 2013 18:18:47 +0000 http://bbpress.org/?v=2.3.2 en-US http://opentuition.com/topic/acca-f7-modified-past-exam-questions-free/#post-127045 <![CDATA[Reply To: ACCA F7 modified past exam questions – free]]> http://opentuition.com/topic/acca-f7-modified-past-exam-questions-free/#post-127045 Fri, 24 May 2013 11:24:56 +0000 tenjinsmith For information, I updated Tenjin to include modified ACCA F7 INT December 2012 questions and solutions.

Hope this is helpful.

]]> http://opentuition.com/topic/f7-int-exam-tips-june-2013-bpp-kaplan-etc/#post-127034 <![CDATA[Reply To: F7 Int exam tips – June 2013 (Bpp, Kaplan ..etc)]]> http://opentuition.com/topic/f7-int-exam-tips-june-2013-bpp-kaplan-etc/#post-127034 Fri, 24 May 2013 10:38:46 +0000 ansi updated

]]> http://opentuition.com/topic/questions/#post-127023 <![CDATA[Reply To: Questions]]> http://opentuition.com/topic/questions/#post-127023 Fri, 24 May 2013 10:21:44 +0000 str1 Thank u very much, i`ll do ur suggestion

]]> http://opentuition.com/topic/questions/#post-127018 <![CDATA[Reply To: Questions]]> http://opentuition.com/topic/questions/#post-127018 Fri, 24 May 2013 09:47:46 +0000 Sangria9 Why do you want to do that? :) I think you won’t be penalised for not attempting that questions.
But try them!! You can earn couple of marks that may work for you as PASS or FAILED. Search for easy marks there!!

]]> http://opentuition.com/topic/treatment-for-deferred-revenue-over-several-years/#post-127017 <![CDATA[Reply To: Treatment for deferred revenue over several years]]> http://opentuition.com/topic/treatment-for-deferred-revenue-over-several-years/#post-127017 Fri, 24 May 2013 09:45:15 +0000 Sangria9 I think exam question will give you instructions whether time value for money is needed to be applied.
See as an example December’12 exam (I think it is question #2).

]]> http://opentuition.com/topic/cash-flow-interpretation/#post-127016 <![CDATA[Reply To: Cash flow interpretation]]> http://opentuition.com/topic/cash-flow-interpretation/#post-127016 Fri, 24 May 2013 09:42:17 +0000 Sangria9 skokst,
Check past exams answers and examiners’ reports – they indicate what examiner want to see in your answers

]]> http://opentuition.com/topic/separating-current-and-non-current-liab-in-loans-and-leases/#post-127012 <![CDATA[Reply To: Separating current and non current liab in loans and leases]]> http://opentuition.com/topic/separating-current-and-non-current-liab-in-loans-and-leases/#post-127012 Fri, 24 May 2013 08:30:13 +0000 saaninaani So it means if u pay in advance only d installment is d current liab n if u pay in arrears d intrest part is deducted from d installment to get d current liab?hope i gt it ryt..thanx nwez..

]]> http://opentuition.com/topic/cash-flow-interpretation/#post-126907 <![CDATA[Reply To: Cash flow interpretation]]> http://opentuition.com/topic/cash-flow-interpretation/#post-126907 Thu, 23 May 2013 15:21:21 +0000 Rajiv @skokst
I can only give you some pointers as this area can get highly analytical and far from what you could expect in the exam:

The overall purpose of the cash flow statement is to enable users to understand and assess the company’s ability to generate cash from its activities viz. operating, investing and financing. It must be analysed together with the SFP and IS
in order to get the full picture.

Tips:
Consistent pattern of greater inflows than outflows indicates strong cash position and may signal that the company can increase its dividend payments, repurchase its shares, reduce its debt or acquire another firm.
The cash flow from operating activities should always be positive and greater than zero as this indicates whether the company is generating cash from its operations and is a positive sign of future growth.
If the company consistently reports growth on its income statement, but has negative cash flow, it may be lacking the ability to translate its growth into cash and are more likely to face liquidity problems, or even default on their short term liabilities.

The cash flow from investing activities indicates a firm’s ability to invest in non-current assets. If the company generates enough cash to invest continually in property, plant and equipment as well as other fixed assets this is good for future prospects.
High deficits in investment may be normal especially when it is compensated for in a high operating surplus.

The cash flow from financing activities should be carefully evaluated when interpreting cash flow statements. Investors should compare current debt financing with past periods to determine if the firm has reduced its debt over the years.

Cash flow statements disclose how a firm raises capital and how it spends funds during a given period. The current standard IAS 7 is flimsy and therefore preparation and classification rules are weak and open to manipulation. This adds to the problems of interpretation.

]]> http://opentuition.com/topic/ias-37-provisions-contingent-assets-liabilities-2/#post-126897 <![CDATA[Reply To: IAS 37 PROVISIONS ,CONTINGENT ASSETS & LIABILITIES]]> http://opentuition.com/topic/ias-37-provisions-contingent-assets-liabilities-2/#post-126897 Thu, 23 May 2013 14:53:21 +0000 Rajiv @saajidh
Great Post!
Provisions used to be a favourite way to manipulate performance and smooth income because of the flimsy principles.
The new standard IAS 37 has solved many of these problems.
As you correctly mentioned all provisions are liabilities of uncertain timing or amount subject to a 3 point criteria. Provisions for bad debts and depreciation fail the criteria and are not the type of provisions mentioned in IAS 37.
They are contra accounts or adjustments to the carrying value of assets and are dealt with in other standards like
IAS 36, IAS 39 & IAS 16.

]]> http://opentuition.com/topic/separating-current-and-non-current-liab-in-loans-and-leases/#post-126889 <![CDATA[Reply To: Separating current and non current liab in loans and leases]]> http://opentuition.com/topic/separating-current-and-non-current-liab-in-loans-and-leases/#post-126889 Thu, 23 May 2013 14:22:37 +0000 Rajiv Here is an example to illustrate the method in leasing:
Company A has a lease contract given below:

Machine cost -$500
Life of contract and machine- 5 years
Instalments – $130
Interest- 10%

IF INSTALMENT PAID IN ADVANCE:
Opening $500
Instalment ($130)
Interest $37(10%*500-130)
Closing $407
Split into:
Current – $130
Non Current(balance) -$277
Total- $407

IF INSTALMENT IN ARREARS DO TWO YEARS:
Opening $500
Interest $50 (10%*500)
Instalment ($130)
Closing $420
Opening $420
Interest $42 (10%*420)
Instalment ($130)
Closing $332
Split into:
Current(balance) – $88
Non Current -$332
Total- $420

]]> http://opentuition.com/topic/treatment-for-deferred-revenue-over-several-years/#post-126886 <![CDATA[Reply To: Treatment for deferred revenue over several years]]> http://opentuition.com/topic/treatment-for-deferred-revenue-over-several-years/#post-126886 Thu, 23 May 2013 13:56:44 +0000 Rajiv Revenue received not earned should be treated as a liability(deferred income) and recognised over the period in a way which
reflects how its earned eg.straight line method. For a period of 3 yrs, time value would be material so discounting would apply.

]]> http://opentuition.com/topic/f7-lecture-notes-mini-exercises-q5-part2/#post-126882 <![CDATA[Reply To: F7 Lecture notes – mini exercises – Q5 part2]]> http://opentuition.com/topic/f7-lecture-notes-mini-exercises-q5-part2/#post-126882 Thu, 23 May 2013 13:40:26 +0000 uttinge Now I understand!

Thank you for the explanation.

]]> http://opentuition.com/topic/questions/#post-126873 <![CDATA[Questions]]> http://opentuition.com/topic/questions/#post-126873 Thu, 23 May 2013 13:16:54 +0000 str1 Hi, everyone.
ALL FIVE questions are compulsory and MUST be attempted. Could i do all 3 questions, but not rest 2 ?

]]> http://opentuition.com/topic/cash-flow-interpretation/#post-126863 <![CDATA[Cash flow interpretation]]> http://opentuition.com/topic/cash-flow-interpretation/#post-126863 Thu, 23 May 2013 12:13:58 +0000 skokst Please help me with technique on how to interpret/ comment on the financial performance and statement of cash flow.

]]> http://opentuition.com/topic/f7-lecture-notes-mini-exercises-q5-part2/#post-126859 <![CDATA[Reply To: F7 Lecture notes – mini exercises – Q5 part2]]> http://opentuition.com/topic/f7-lecture-notes-mini-exercises-q5-part2/#post-126859 Thu, 23 May 2013 11:13:52 +0000 MikeLittle It’s residual value was re-assessed at the date of transfer to 20,000. So, if it had not been sold, depreciation would have been (60,000 – 20,000) / 5 = 8,000pa

When it is sold and residual value reassessed, the depreciable amount becomes 65,000 – 20,000 = 45,000 and that’s the figure we are now depreciating over 5 years = 9,000 pa

So, unrealised profit of 5,000 less (excess) depreciation of 1,000 gives a net pup adjustment of just 4,000

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