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focus means only segment of the the market – only women between 18-25 yrs unmarried, cost leadership means – they try to have the lowest costs and the cheapest products.
Focus differentiation – when you identify specific needs of your focus group and you try to give something different. Think about mobile phones – they try to differentiate and one has better camera, other is better for music, next is easy in use, some are big for movies etc. They all are mobile phones but each is designed for different group of people who have different needs. – so instead of doing all the same they try to find the segment of the market which would let them gain the advantage.I think they have one book for all students from different countries and exams have national variants. I would learn only these which are relevant for me.
Because if acquired part – way through it means that the profit from the period before acquisition does not relate to group. Think what does it mean acquisition – somebody has to sell his shares in the company and somebody is buying them. And imagine that the company pay out all profit as dividends to sharteholders.
So the person selling shares has the right to dividends from the profits up to the sale. And a new owner has the right to dividends from the purchase of shares up to the end of the year. It is the same with say selling car – you pay for costs and have a right to income (eg.if you rent your car) until you sell it. Since sale the new owner has right to income.Is the ACCA forum really the place to make comments about religion…I understand for some people it is the most important part of their lives but the forum are read by people around the world who may believe in thousands of different things and I really do not think we need to bring it in to every post.
F5 is actually pretty easy paper. I don’t think there is anything complicated in the syllabus. But everything depends what background do you have. For me it was really simple. And linear programming was my favourite but I am very mathematical person. Just don’t ask me to write long essays in English which is not my first language;-)
I prefer BPP, have studied from Kaplan, but bought BPP as well. I think it depends what stage of studying you are on – I am resitting and wanted to do more. Kaplan did not explain things in such an easy way as BPP. I found BPP easier and better structered but it is the true what others say it is hard to pick up these really important pieces. As it is my second time I know already what to focus on and know where I went wrong it the first sitting.
I did not appreciate how hard is this paper. Seems to be not, but it is really hard paper. At the exam I had the feeling that I knew so much I did not know what to chose to say about…you will get mark even if you made a mistake say in calc. But you must put right adjustments in right workings. The workings format is in open tuition notes, kaplan and bpp. Sometimes they may slightly differ but the sense is the same. I would strongly recommend to remember workings as they are tought and stick to it. It gives you the logical structure for your answer and it should be automatic process – no thinking ”’aaaa what am I supposed to do now”. There is no time for this at the exam. Of course hardly anybody is able to square balance sheet ot cash flow. Don’t worry this does not matter so much. Your logical and technical approach matters. If you don’t know what to do with something – make assumption and move on or ignore. You will lose mark or two but more important is to finish paper. To attend all parts of all questions. To pass you need to do 75% of the paper and of this what you have done 75% must be right – easy!;-) (75% x 75%= 56.25%)
As you say ” trading loss” therefore not including profit of £23,835 because it is not loss.
$ 23835 from 1 is a profit. You can’t accumulate it with loss. Trading loss can be off set against profits back 3 years – so you can’t include it in the loss calc but you are going to off set loss against profits from previous years. In 2. all are losses it is why they have been accumulated – if not carried back at the year they occured they are carried forward automatically. In 2014 you are allowed to off set 20000 of loss from previous year against 2014 profit, but there is no profit but again loss – it is why you are adding them together39, but passed P6 at the same sitting, so still happy, I knew I wasn’t doing good,
For me very hard, ran out of time, did not finished here and there, very theoretical, not sure if will score 50% 🙁 feel really bad…tomorrow advanced taxes…
For sure not leases, sales and marketing, depreciation, aircraft maintenance, office accomodation, cost of goods sold(if not relating to goods offered for sale on the plane), amortisation
Gross margin = sales less cost of sales (direct cost of sale). I don not what is the business and sale but I am quessing is air line, so sales are flights, direct cost – jet fuel, employee-only crew in the airplain, in flight catering. I am not sure about handling, oveflying, landing and parking – don’t know what these are. If they relate directly to the flight should be deducted.
Definition of ‘Negative Assurance’
A representation that particular facts are believed to be accurate since no contrary evidence has been found. Negative assurance is normally used by auditors in situations where it may not be possible to positively confirm the accuracy of financial reports. Since fully auditing a public company in accordance with generally accepted accounting standards is an extremely large task, a positive assurance is normally issued only when legally requiredThe difference may be due to the fact that I told you what I do on the daily basis when preparing the financial statement and in the book you may have something like a model entries appropriate for F3.
I work in UK, in chartered accountants practice. In my ledger I have separate codes for Opening inventory in I/S, Closing inventory in I/S and Closing inventory in Balance sheet.
It is hard to me to think at F3 level – I am studying for P6:-) Instead they want you to use the Income statement account where I talked about Inventory in Balance sheet.
In my entries:
Opening balance b/f 10,000- this is ok I would have it on the same side in IS || Income statement 10,000- this would be my reversal of Inventory BS
Income statement 12,000- this is the other side of my entry of Closing inventory to BS || Closing balance c/f 12,000-this is ok, I would have the same
It seems like they don’t want you to mess up with the balance sheet codes for now. So forget my explanation and stay what they want from you.See how it works: Sale Cr 80 000
Less Cost of sale calculated: (28000)
Opening stock 10 000 Dr
plus purchases 30 000 Dr
less closing stock (12 000) Cr
Gross profit 52 000Inventory there are two separate codes with the same name – one is in profit and loss and is part of the cost of sale calculation, the second is in balance sheet.
Let’s start with year 1 – inventory from previous year nil.
At the year end you have let say £1000 goods of closing inventory:
Entry Inventory Dr (balance sheet) £1000
Inventory Cr (P+L) £1000Remember Cost of sale is opening inventory + purchases less closing inventory – so your closing inventory in P+L will be part of this calculation.
Then we have next year.
What was closing inventory now is your opening. Numers from P+L are now all nil as we start new year of trading.
So we need to Cr Inventory (BS) Dr Opening inventory (P+L) – in other words reverse previous year entry but not to closing inventory in P+L but to opening.
Then at the end of the year 2 will be stock taking and let’s say inventory now is £800
And you need entry to bring in closing inventory to P+L and BS again
Dr Inventory BS £800
Cr Inventory P+L £800
So it would look:
P+L
Dr Opening inv £1000
DR Purchases £x
Cr Closing inv £800BS
Dr Inventory £800Ok I think I know. It is receivables control account so it means refund given to customers would be:
Dr sale
Cr Receiv Control A/cbut then you need to allocate it to the right customer in sales ledger so would be:
Dr Receiv Control A/c
Cr Firm XYZWhat exactly you don’t understand – Suspense is a ”junk” nominal code – usually during posting I put there items I don’t know what to do with them. For example when posting bank transaction I cannot find who paid, I don’t have a debtor to match with payment, so I would post it to Suspense to be able post my journal and later on I would investigate. It is temporary place to post things which require further investigation. For example I paid insurance as one amount but then need to allocate it to different departments. So my entry would be Cr Bank Dr Suspense, Then after doing some workings I would post Cr Suspense Dr Insurance Dep1, Dr Insurance Dep2. At the end of the period the suspense must be nil. So all items must be identified and re-allocated to right codes.
Accounting figures – I am not sure, but would assume it means figures from the financial statement plus potentially ratios.
Wierd question – accounting figures give the info about the company, if they are from financial statements – they relate to historic data, if from forecast they try to predict future. In profit and loss Debits are expenses, Credits are incomes. Dr up means more expensive, Dr down may mean smaller scale of activity or cheaper suppliers, Credits up – more sale at the same prices or the same level of sale but charged higher prices.
Balance sheet account – Debits are assets – what company owns, Credits how these were financed.
You can talk for hours about implications. Every change has a meaning, may provide some important information about the business. I don’t know what paper you are doing – see your books for what may be required here as it is very broad topic and at different leveles in your study different level of details may be needed1. The basic entry everything starts with is credit sale – sale which will be paid later: invoice would be posted Cr sale(net), Cr VAT(if applicable) Dr Debtors(or receiveables control a/c).
Then when the cheque from client is received and you record it : Cr Debtors Dr Bank
But cheque has been bounced/returned it means you need deduct bank and post back this debtor previously cleared- in other words reverse previous entry Dr Debtors Cr Bank2. interest on overdue accounts – you have had a debtor and because it has not been paid you have charged interest. In other words the client needs to pay not only the invoice as in point 1 but also your interest. The entry would be Interest income Cr, Debtor Dr
3. refund given to customers – it should not be on debit side of Debtor/Receivables a/c. I would say discount given goes to Sale Dr ( or discounts given) and Debtors Cr. Actually it means it is not debtor anymore but creditor – now you are due money to customer, it is liability, Could be shown as decrease in debtors or increase in creditors.
It could be on debit side if it is discount received from supplier – check your question again.operational controls – can be everything re: operations of the business, depending on the business, controls over labour (time management, efficiency etc), materials usage, processes, answering to complaints, etc. but operational managers may don’t have control over financial aspects.
For example the production manager may send request to procurement dep. to purchase some materials, but does not negotiate prices, does not carry out the transaction, does not sign the contract, does not pay etc. Production manager may want to hire more people and will take part in interviews, but it is not him who would say the financial conditions. It would be somebody from HR following the internal policies previously authorized by directors.
Financial controls would be linked to the money spending safety – from petty cash – how it is handled, to authorization of the purchases of new machinery. It would be looking how these decisions are made. If the person was authorized to spend money, if not exceeded the limit allowed, if it was best choice(for example requirement to keep evidence that you had 3 offers and choose the best etc.) or the purchase was from family member and not the best for the entity.
In small entity often you can’t see so distinguished roles.If you are from London – I would just buy a book either from Kaplan or BPP(maybe used on amazon or e-bay).You could buy just on-line book for this – is cheaper I think. There are just additional pages after each chapter. The questions for UK are not very difficult. Usually there is one requirement to describe how presentation of such transaction would differ if it was under UK GAAP. There would not be a lot of computation involved. May be some, but not a lot. For example when i sat F7 there was only one question re: assets held for sale – how it would be presented under IFRS and UK GAAP.
There is also link from ACCA web re: IFRS vs UK GAAP
