Ac330 Exam Notes

AC330 1) Comprehensive Income Statement & Balance Sheet Income Statement PS000 Sales Revenue Cost of Goods Sold: Opening Inventory + Purchases - Closing Inventory Revenues/Turnover as in TB TB TB Additional Information: Listed Closing Inventory - Damaged Goods + Recoverable Amount on Damaged Goods Gross Profit Sales Revenue - COGS Profit/Loss on Contracts Contract Price - Total Costs (Cost of Work Done + Cost Paid for Future Work) + Estimated Cost to Completion Expenses: Depreciation - L&B (Only Leasehold Land!) - PME - Lease Depends on method stated - use standard straight line or reducing balance Fair Value/UEL; if FV not given calculate (rental payment x annuity) Selling & Administration Costs TB - bad debt +- change in provision for doubtful debt + audit fees; if additional indicates charged to S&A remove development costs, cost of share issues, interest, lease rentals Operating Profit Gross Profit - Expenses Finance Charges: - Interest on Debenture - Lease *Note when payment made!! - Exchange Loss (usually on loans) Fair Value x Effective Interest Rare (IRR not coupon rate!); Fair Value = Net Proceeds = (Coupon Payment x Annuity Factor) + (Nominal Value x PV Interest Rate) Rental Payment x Annuity Factor (Number of Payments, Interest Rate) x Interest Rate (Loan Amount x Exchange Rate at Current Date) (Loan Amount x Exchange Rate at Date of Loan) Net Profit Before Tax Operating Profit - Finance Charges Tax Estimated Corporation Tax +- Over/Under Provision Net Profit After Tax Net Profit Before Tax - Tax Revaluation Gain Remember to consider past + current depreciation expense!! Can't just use value at cost Analysis of Valuation: Land = Revalued Amount - Book Value Buildings= Revalued Amount - (Book Value (Depreciation Provision + Depreciation Expense) Total Comprehensive Income Net Profit After Tax + Revaluation Gain AC330 Statement of Financial Position Cost Acc. Depr NBV NCA Land & Buildings TB (Provision + Expense) PME (Provision + Cost - Accumulated Ex) Depreciation Depreciation of lease on IS - Lease Development TB FV Lease (Rental Payment x Annuity) TB/Additional Comments Cost - Accumulated Depreciation (unless revalued!) Sum for Total NCA CA Inventory Closing Stock TR BS - Debt Written Off + Provision for Doubtful Debt Cash TB (adjustments from extra info) Prepayments Check Adjustments (interest/ electricity etc.) Gross Amount Due from Customers for Contract Work Contract Costs Incurred +- P/L Progress Billings (In CA if +ve; if -ve in CL) Sum for Total CA CL TP TB +- Adjustments Current Lease Arrear: Rental Payment/(1+r) Advanced: Rental Payment Accruals Adjustments (interest, audit fees etc.) Tax Listed in adjustments Net CA TA - CL Sum for Total CL Total CA - Total CL (NCA + CA) - CL NCL Debentures Nominal Value Leases (Rent x Annuity Factor)/(1+r) Foreign Loans (Loan Amount x Exchange Rate at Current Date) Net Assets Sum for Total NCL TA - TL AC330 Equity Share Capital TB Share Premium TB - Cost of Issuing New Shares Revaluation Reserve TB + Revaluation Gain Retained Earnings TB + NBAT - Dividends Sum for Total Equity = NA 

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