FAC1502 Financial Statements Notes

8/16/2019 FAC1502 Financial Statements Notes

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GROUP 3E

FAC1502-SEMESTER 1-2016

UNISA

FINANCIAL STATEMENTS[STUDY UNIT 15]

PREPARED BY E-TUTOR – MR RAMASHAU ALUWANI

2016-05-14 UNISA E-TUTOR: RAMASHAU - FAC1502-S1-16-GROUP3E 1


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MENU

• INTRODUCTION

• FINANCIAL STATEMENTS

•

INTEGRATED EXAMPLE• MUST DO EXERCISES

• SELF ASSESSMENT

• INSPIRATIONAL QOUTES



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INTRODUCTION

Dear Honourable Members

Financial Statements is one of the critical topic which isintegrated in the exam and it is important that you master thisstudy unit.

Let me know if you need clarity on any issues

Kind regards

Mr. Ramashau Aluwani

E-Tutor: FAC 1502 (Group 3E)

"The only place success comes before work is in the dictionary."- Vince Lombardi



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FINANCIAL STATEMENTS

(STUDY UNIT 15)

• The Statement of Comprehensive

Income (Financial Performance)

• The Statement of Changes in Equity

• The Statement of Financial Position



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STUDY UNIT 15-FINANCIAL STATEMENTS

The Statement of comprehensive income (Financial performance)

• The statement of comprehensive income is prepared from information in the trading accountand profit or loss account

The Statement of changes in equity

• This statement shows all the changes in equity which have occurred during the financial

period.

•The purpose of the statement of changes in equity is to reconcile the equity at the beginningof the financial period with the equity at the end of the financial period.

• The balance at the end of the financial period is then shown in the statement of financial

position.

• The profit increases equity and loss decreases equity

• Only the balance at the end of the year will be shown in the Statement of Financial Position

The Statement of financial position

• The statement of financial position is in fact nothing but detailed version of the accounting

equation (Assets = Equity + Liabilities) which shows the financial position of an entity

• Note the structure of Statement of financial position



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TIPS

• In the exam you are expected to know the Structure orFormat of the financial statements.

• You may find integrated questions in exams, Adjustments &Financial Statements (Study Unit 6 & 15).

• Before you prepare the financial statements, you may beasked to pass journals (adjustments) or to take adjustmentsinto considerations. Refer to Previous Exam paper.

• There is a similar integrated example in the study guide and

also answer the previous question papers.

• NB. You will be required to answer all questions in examwithin two hours. Prepare yourself now!!!



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INTEGRATED EXAMPLE:

EX.2 - STUDY GUIDE (PAGE 293)

ADDITIONAL INFORMATION:

(a) Stationery on hand at 28 February 20.1, R150.

(b) An allowance for credit losses of R405 on

outstanding trade debtors' balances must be created.(c) Rent income amounts to R1 500 per month and the

rental has been charged for the full financial year.

(d) Provide for interest still outstanding on mortgage

bond.(e) Provide for depreciation on furniture and fittings at

15% per annum on cost price.



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REQUIRED

(1) Prepare the Statement of ComprehensiveIncome of Peter Pumpkin for the year ended 28February 20.1

(2) Prepare the Statement of Changes in Equity ofPeter Pumpkin for the year ended 28 February20.1

(3) Prepare the Statement of Financial Position ofPeter Pumpkin for the year ended 28 February

20.1(4) Show the Notes for the year ended 28 February

20.1



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MUST KNOWIN EXAM YOU MAY BE EXPECTED TO PREPARE THE FOLLOWING:

• STATEMENT OF PROFIT AND LOSS & OTHER

COMPREHENSIVE INCOME

•

STATEMENT OF CHANGES IN EQUITY• STATEMENT OF FINANCIAL POSITION

• NOTE TO FINANCIAL STATEMENT: PPE

“PRINCIPLES, PRINCIPLES & PRINCIPLES”



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MUST DO EXERCISES

TUTORIAL LETTERS

• TUTORIAL LETTER 102-QUESTION 3

STUDY GUIDE

• 6.5 REVISION EXERCISE (PG 110-111)

• INTEGRATED EXAMPLE (PG 143 -144)

• REVISION EXERCISE 5 (PG 157)• REVISION EXERCISE 8 (PG 163)

• EXERCISE 15.2 (PG 290)



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MUST DO EXERCISES

PREVIOUS EXAM QUESTION PAPERS

• QUESTION 1 (MAY-JUNE 2013)

• QUESTION 3 (OCT-NOV 2013)

• QUESTION 1 (MAY-JUNE 2014)

• QUESTION 3 (OCT-NOV 2014)

•

QUESTION 2 (MAY-JUNE 2015)• QUESTION 3 (OCT-NOV 2015)



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SELF ASSESSMENT

NO. TOPIC STATUS

1. STUDY UNIT 1 -5 Done

2. STUDY UNIT 6- ADJUSTMENTS Done

3. STUDY UNIT 7- CLOSING OFF PROCEDURES Done

4. STUDY UNIT 8-BANK RECONCILIATION Done5. STUDY UNIT 9-DEBTORS CONTROL Done

6. STUDY UNIT 11-PPE Done

7. STUDY UNIT 13- CREDITORS CONTROL Done

8. STUDY UNIT 15-FINANCIAL STATEMENTS Done9. ASSIGNMENT NO.1 Done

10. ASSIGNMENT NO.2 Done



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INSPIRATIONAL QUOTES• Would you like me to give you a formula for

success? It’s quite simple, really. Double your rate of

failure. Thomas J. Watson

• “ The way to get started is to quit talking and begindoing” Walt Disney

•

“Follow Your Passions and Success Will Follow” Joao Alhanati

• "Start where you are. Use what you have. Do whatyou can." Arthur Ashe

• "All our dreams can come true if we have thecourage to pursue them." Walt Disney

• “ Hard work beats Talent when talent fails to workhard-Kevin Durant



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COUNTDOWN TO EXAMS!

ALL THE BEST!!!


Documents

FAC1502 Financial Statements Notes