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Interpretation of Financial Statements part b - ACCA Financial Accounting (FA) lectures

VIVA Subject Guide
YouTube video

18 Comments

  1. Jonathan
    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!
  2. John MoffatTutor
    Thank you for your comment, and congratulations on passing your exam - that is great news :-)
  3. Ziggy
    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?
  4. John MoffatTutor
    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).
  5. Ziggy
    Noted. And thank you for responding!
  6. Thenuka
    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!
  7. John MoffatTutor
    The closing inventory
  8. Thenuka
    Thank You for the response! :)
  9. Arjun
    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.
  10. John MoffatTutor
    That is great news. Many congratulations on having passed the exam :-)
  11. Ermal
    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)
  12. John MoffatTutor
    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.
  13. Sabyasachi
    Sir, in gearing and leverage ratios, are reserves also included in share capital?
  14. John MoffatTutor
    They are included in equity. Equity is share capital plus reserves.
  15. Richard
    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?
  16. John MoffatTutor
    because we are calculating how many days it is taking to sell the goods
  17. John MoffatTutor
    These formulae are not provided in the exam.
  18. Azim Shaikh
    Hi Sir,

    Quick question : Are these formulas provided in the exam or are we expected to memorise them?

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