P2 STUDENT NOTES

[Vivienne]

HI, I AM ATTEMTING PAPER P2 IN JUNE 2008.I WANT ALL AVAILABLE RESOURCES ON THIS PAPER INCLUDING STUDENT NOTES BUT I CANT SEE ANY.DOES IT MEAN THERE IS ONLY MATERIAL FOR THE FUNDAMENTAL LEVEL

[Jiten]

P2 material has not been released yet. It will be available mid February.

Please do NOT type in FULL CAPITALS as this means SHOUTING on forums.
& please do NOT post the same message twice, it will get answered in due course. I have deleted 1 copy!

[Acid]

HI, I AM ATTEMTING PAPER P2 IN JUNE 2008.I WANT ALL AVAILABLE RESOURCES ON THIS PAPER INCLUDING STUDENT NOTES BUT I CANT SEE ANY.DOES IT MEAN THERE IS ONLY MATERIAL FOR THE FUNDAMENTAL LEVEL


:eek: Take it easy! You will have all the resources available for P2 in Mid Feb , as said above.


Take a chill pill !

[lmunalula]

I've been doing group cash flows in P2 but seems cant get to the grips of it. Can someone tell me how to approach cash flow statements questions especially on acquisition and disposal of non-current assets. I'd be greatful for the response.

[chioma]

I've been doing group cash flows in P2 but seems cant get to the grips of it. Can someone tell me how to approach cash flow statements questions especially on acquisition and disposal of non-current assets. I'd be greatful for the response.

Dear Imunalula, I wld just give u a brief insight on how to treat c/flow questions, as much as I have studied so far.
1. Go thru all the activites that occurred within the coy for the year in question, comparing the two yrs figures given.e.g 2006 & 2007.
2. Open a T account for each transaction, putting the bal b/f (opening amt for the 1st yr) & bal c/f (closing amt for the 2nd yr), on debit or credit sides, depending on if it is an asset or a liability.
3. Check for finances, investments & operations that took place during the year in question and post them to their respective accounts.
4. Get a balancing figure for each account, representing , taxes paid,dividends paid,non current assets purchased or acquired during the yr,disposals, new finance lease arrangements entered, etc
5. Use these figures in preparation of ur c/flow statements. Note that activities are grouped into operating,investing and financing,check which activites fit into each group and post.
6. KEY: all inflows are credited, while all outflows are debited to the statement of Cashflows.
7. Depreciations,Amortisations, loss or profit from investments are treated as non cash movement, so add back to PAT figure.
8. To know if u did the right postings all thru ur calculations, ur cash & cash equivalent @ end of the yr shd tally with the amt given in the question, after adjustments for bank balances & overdraft.
9. I hope this helps in a little way, as practice makes perfect. Any one who can ff up with examples or citicisms is welcome. Thks.:D

[Vivienne]

this is a continuation to what Chioma said

1.To find whether there are any dividends paid,make a T account for the retained earnings.Put b/f on credit side(2006) and c/d on the debit side(2007)Post the retained earnings from statement of income on the credit side.balance it up.balance on debit side shows that there were dividends paid and these should go under financing activities as an outflow.

2.Where there is an acquisition of a non current asset,the double entry is Debit asset a/c(T account) with the cost and credit bank with the the same.

3.where there is a disposal of a non current asset.Debit its depreciation to the depreciation a/c and credit the same to the disposal a/c.

4.As for the cost of the disposed asset.Debit the cost to the disposal a/c and credit the same to the Non current asset(T account).

6.For Minority interest , do a T account as usual with the 2006 amount on the credit side and the c/d 2007 on the debit side.the minority interest for any new acquisitions in the year should be credited to this account.the balancing figure should go under the investing activities as an outflow.


Comments and corrections are welcome