Interpretation of Financial Statements part b – ACCA Financial Accounting (FA) lectures
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(NOT important) video duration is shown as 29 mins in index. its only 26 mins.
Good evening Mr Moffat, You Rock! A message of thanks for making the online lectures nicely progressive, and good to follow. Today passed my FA at the Online Exams centre in Peterborough! Tomorrow my boss will ask when I’m sitting the next one… but today was great! Cheers!
Thank you for your comment, and congratulations on passing your exam – that is great news 馃檪
Hi John, a quick question.
If inventory’s realisable value is lower than the cost, are we still to going to put Cost of sales in the denominator to calculate inventory days?
It would be better to use the cost of the inventory for this purpose (although I would be surprised if you were given that information in the exam).
Noted. And thank you for responding!
Dear John,
In case the question has provided both opening & closing Inventory for Both Years, Which one should we use to calculate Inventory Turn Over?
Thank You!
The closing inventory
Thank You for the response! 馃檪
Hi Sir,
My name is Arjun
I have passed my f3 paper with the help of your classes and notes along with BPP revision kit.
Thank you so much for supporting me.
That is great news. Many congratulations on having passed the exam 馃檪
hello sir, is it possible to explain how to calculate the avg of the receivables? ( i suppose the same will be valid for inventory and payable)
As always, to get an average you add the amount at the start of the year to the amount at the end of the year, and then divide the total by two.
Sir, in gearing and leverage ratios, are reserves also included in share capital?
They are included in equity. Equity is share capital plus reserves.
Hi Sir,
Bit confused about the inventory days formula. why is it inventory divided by cost of sales to be accounted as the inventory percentage of the year? instead of inventory divied by the total value of cost of sales plus inventory showing the percentage of inventory unsold for the financial year?
because we are calculating how many days it is taking to sell the goods
These formulae are not provided in the exam.
Hi Sir,
Quick question : Are these formulas provided in the exam or are we expected to memorise them?