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Negative figures in SPL

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Negative figures in SPL

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by AvatarP2-D2.
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  • February 16, 2024 at 9:13 pm #700520
    Avatartules
    Participant
    • Topics: 13
    • Replies: 19
    • ☆

    In most model answers for section C questions on SPL they tend to put expenses such as Cost of Sales as negative figures, but this is not how expenses are presented in real world SPLs and also not how I am used to working. I prefer to put all expenses as positive figures and then simply subtract them to calculate profit.

    Would I be penalized for this style in the exam?

    February 26, 2024 at 9:25 pm #701231
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Yes, you could be penalised if it isn’t clear that the amounts have been deducted. I’d therefore look to follow the sign convention seen in the model answers.

    Thanks

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