Studying Guide for Dip IFR

[Vandana]

:D Hi guys,

OK - the exam is JUST around the corner so you should be WELL into your revision. For those of you who are not, this is what you have to do to take the exam in December:

Firstly, STOP reading your text books. That time is now over. What you must do from now on is practice as many past questions as you can, UNDER TIMED CONDITIONS. This is because timing is so important in these exams. If you remember 1.8 minutes per mark (180 minutes for the full exam and a maximum of 100 marks), then you know that each 25 mark question should take you a maximum of 45 minutes. You must not overrun, as you will end up not answering all questions in the real exam. If you can get used to doing a question in 45 minutes and choosing the bits to concentrate on, it gives you a better chance in the real exam.


1) Practice Consolidation - it is the first question on every paper and the adjustments are similar every time. You must be comfortable with Holding Co and Subsidiaries and also associates. Ensure you can do the following:
a) Goodwill calculation
b) Fair Value adjustments
c) minority interests
d) intragroup cancellations
e) provisions for unrealised profits
f) for income statements, mid year acquisitions
at a minimum.

Remember, you do not have to get the whole question completely right. If you concentrate on just the above and then consolidating the balance sheets/income statements, you should get sufficient marks. Please practice as many past exams Q1's as you can.

2) Q2 is a trial balance with a number of adjustments and you must prepare a balance sheet, income statement and statement of changes in equity usually. You should practice as many of these as you can, as it will also help you revise different areas of the syllabus. Ensure you know the format of a BS, IS etc from IAS 1. Also ensure you are comfortable with revaluations and depreciation as this is commonplace here.

3) Generally ensure you are comfortable with tangible and intangible assets. This will include revaluations, depreciation, investment properties, treatment of goodwill and intangibles. You should also be comfortable with impairment.

4) Remember much of the paper is explanations as opposed to calculations. So it is important that you understand why a standard was created or can explain how to apply a standard. There are many marks going for explanations

5) IFRS 8 operating segments is new, so ensure you understand the provisions of this. Also understand the basics of IFRS 6 exploration and evaluation of mineral resources.

If you need any further help, then please post something here on the forum and we will assist!

Good luck and GET THROUGH!

Vandana:)

[anuradhabose]

Hi Vandana,

I am going to appear in the exam in June08. Can you pls tell me some critical points that should be kept in mind while preparing consolidation of accounts.

Secondly some quick notes that can help us.

Thanks & regards

Anuradha

[Vandana]

5Hi Anuradha,

There is a summary in your text book on how to tackle consolidation questions - I do not have the book with me, but it is in the chapter on Associates. It tells you the workings that are needed and the general approach. This is the pattern to follow.

Basically do workings for the following:

1) Retained Earnings/consolidated reserves
2) Goodwill
3) Fair value adjustments
4) Minority interests
5) Associates (if present)

Remember to do separate calculations for intragroup eliminations etc and ALWAYS cross reference your workings!!!

Good luck

[anuradhabose]

Hi Vandana,

I am just writing one question to be solved by you as I find it difficult to understand why urp is calculated on 14000 instead of 7000 which is the inventory of lying with the portly co.

Question

Portly co acquires 60% share in slim co on 1st june2006 the sales of slim co includes $40000 sold to portly co at a mark up of 25% over the cost. the inventory of portly co as at 31 dec 2006 is $14000 & half of this inventory is made up of goods purchased from slim co.
Portly Slim
Turnover 120000 54000
Cost of sales (40000) (20000)
Gross Profit 80000 34000
Administrative Exp (22500) (12500)
Profit befor tax 57500 21500
tax (15400) (4000)
profit after tax 42100 17500

[Ian]

Can you please let us know the further details where the question is asked, along with page number, chapter no etc.

[anuradhabose]

Hi Ian,

Question number Test Yourself 5 Page Number 10.17 of above mentioned chapter.

[Ian]

As stated correctly by you, URP in the above case has to be calculated on 7000.

However we could not trace the question in our books, there is some error in posting the querry at your end. please check it and let us know if you need further help.

[ksrirama]

Halo Vandana

I have paid the fee for Dip in IFR and should get in guides anytime. Pls let me know where can i get the Past question papers of Dip in IFR exam ???????? Like may be the Question Bank ????????

Thanks
Srirama

[India20031]

Hi,

I am interested in taking the IFRS diploma exam, not sure if I am eligible for it. I am an MBA , CFA level three candidate and my work involves equity research. ACCA says that you need to get some kind of certificate to be eligible to take the exam.
Do you think I am eligible? if yes, what kind of certificate I need to get?

[Annie]

Hi,

The eligibility for taking Diploma in IFRS exam is:
1. Graduate in any stream with three years experience in F& A
2 Post graduate or professional qualified in accordance with national accounting standards with 2 years experience in F&A

Please check whether you have the relevant work experience.

If you have then you have to send attested copies of your qualification (certificate / marksheet) and a certificate of your work experience along with your ID proof, photograph etc etc