F7 Study text is up to date!

[Acid]

Hi all,

Due to many changes that took place this September 2007 in the IFRS (International financial reporting standards) there is an uncertainty about which Studytexts have recognised these changes and which have not.

I did some research into this and found out that the GTG F7 Study text is up to date and is perfect for exams in June 2008 Session.

F7 (INT)


For exam purposes, the following applies to all companies, partnerships,
and sole traders:



‘Balance sheet’ will become ‘statement of financial position’ from the June 2008 exam sitting onwards.


‘Cash flow statement’ will be ‘statement of cash flows’ from the June 2008 exam sitting onwards.



(All this information can be verified from the ACCAs Website)

So note there that the changes would take effect after the June 08 session. And hence GTG F7 Studytext are up to the mark.



Regards,

Acid

[Snehal P]

Hi,

The titles of the components of financial statements have been revised by the new IAS1.

However immediately after mentioning the new titles in Para 10, the standard states the following:

"An entity may use titles for the statements other than those used in this Standard".

This means that we can continue calling ‘a balance sheet’ … ‘a balance sheet’ and so on.....

Snehal P

[Vandana]

Dear Trace and others,

Please do not panic too much about this issue of changing names of financial statements. Yes, the names are changing, but I have spoken to ACCA about this and in their opinion, the change is not a HUGE one! Although in future exams, the statements will be renamed, it will be quite clear from the question that the statement is assets, liabilities and equity etc etc (i.e. an old balance sheet). They have a 1 page article in the Feb Student accountant which will explain the change in terminology.

At GTG, we want students to pass the exams, so we will be producing a bulletin in Feb, which will highlight the changes.

PLEASE NOTE (information from ACCA):

‘Balance sheet’ will become ‘statement of financial position (balance sheet)’ in the June 2008 and December 2008 exams. From the June 2009 exams onwards, ‘balance sheet’ will become ‘statement of financial position’.

‘Cash flow statement’ will be ‘statement of cash flows’ from the June 2008 exam sitting onwards.

Income statements will continue to be examined in the existing format throughout 2008. From June 2009 onwards, examiners may choose to use a single ‘statement of comprehensive income’

Trace, I am sorry if you are upset, but we have no intention of letting our students down. We do ensure the correct information is given, but in this case, it is not such an important issue.

Kind regards - Vandana

[krishna3898]

Hi all,


changes does not change the meaning,,,how its make difference??
please reply any one?? if mention old form is it they not giving markes???
Thanks.
krishna

[Acid]

Hi all,


changes does not change the meaning,,,how its make difference??
please reply any one?? if mention old form is it they not giving markes???
Thanks.
krishna

Hi Krishna,

Yes , If changes are made in any year than you have use those new speicified terms. Not the old ones. However when the changed would be applied is the question at hand.

Regards

Acid

[krishna3898]

Hi Acid,

Really you act very fast,great to be a member of this forum,thanks for update.
Regards.
krishna

[Vandana]

Hi,

Trace is correct - for financial papers, it will be called "Statement of Financial Position". However, remember in SUBSTANCE, it is exactly the same as a balance sheet and you are unlikely to get marked down for using the old name in the next sitting.

The next GTG F7 Bulletin will be covering this area, so please do not panic. It is NOT a big deal.

What our GTG author has said is also true - in the standard, it does state that the statement can be continued to be called a balance sheet.

Hope this clears things up once and for all

Regards - Vandana