F7-Exam tips are out! Enjoy but do not rely on them. BPP Question 1 • Consolidated statement of profit or loss and other comprehensive income and/or consolidated statement of financial position with one subsidiary plus associate (including usual adjustments – fair values, PUP on inventories/PPE, intragroup trading, goods/cash in transit). May include adjustment on another syllabus area, e.g. change in value of financial instrument. Discursive part (b) on reasons for adjusting for eliminating intragroup trading, unrealised profit, ‘negative’ goodwill or other group topic. Question 2 • Accounts restatement or preparation from trial balance (statement of profit or loss and other comprehensive income, statement of financial position and may include statement of changes in equity) with the usual adjustments for depreciation, revaluation and current/deferred tax (including deferred tax on revaluations) plus a mixture of adjustments (e.g. leases, substance over form issues, financial instruments (change in fair value or amortised cost), share issues, government grants, inventory valuation or revenue recognition). May include earnings per share or statement of changes in equity with a prior period adjustment. Question 3 • Whole question on interpretation or cash flows and interpretation, which may include discussion of how aims of not-for-profit organisations are different. Interpretation may focus on limited ratios and their interpretation (e.g. liquidity). Sections of a statement of cash flows (rather than whole statement) may be tested Questions 4 and 5 • One question in context of conceptual framework; other containing one or two discrete topics Possibilities: inflation, deferred tax, provisions, leases, intangible/tangible assets, government grants, earnings per share or financial instruments Becker Professional Education Construction contracts. Revenue recognition. Substance vs form. Convertible instruments (IAS 32/IFRS 9). Accounting for taxation, as part of Q2. Accounting for assets, particularly IAS 16. Provisions and contingencies. Accounting for taxation. Lease accounting. Events after the reporting period. Kaplan Q1: Consolidated statement of financial position with possible statement of profit or loss. Adjustments to include PURP, share exchange, current accounts, impairment, fair value adjustment. Q2: Published accounts to include statement of profit or loss, statement of financial position and statement of changes in equity from trial balance. Possible adjustments to include revenue recognition, depreciation, revaluation, tax & deferred tax, convertible loan, construction contract. Q3: Statement of cash flows, being asked to analyse the cash flow. Potential ratio-style analysis question. Q4/Q5: Qualitative characteristics, finance leases, intangible assets, events after the reporting date, earnings per share. First Intuition Q1: Consolidated SFP, with associate, deferred consideration, Pups and fair value adjustment. Q2: Single company accounts question, including taxation, lease, and intangible assets. Q3: Statement of cash flow and comments thereon with no ratios. Q4: The framework with computation for non current asset. Q5: Provisions. LSBF Q1: Consolidated P/L with Associates or CSFP + CPLA. Discounting & unwinding, Contingent consideration. Q2: Published Accounts with at least 15 marks on Standards such as Contracts, Leasing, Financial Instruments, SOCIE, Revaluation & Depreciation, Tax, Substance, Revenue Recognition, etc Q3: Interpretation and / or Statement of Cash Flow, with 5 marks on Standards Q4 & Q5: Mixed Standards covering Provisions, EPS, Intangibles, Impairment, etc (see Q2 above) – remember obscure topics such as Investment Properties and Capitalisation of Borrowing Costs have produced full questions recently, so no topic is safe to leave out. Opentuition • Consolidated Statement of Financial Position AND Statement of Income, mid-year acquisition, share for share exchange, nci value based on share price, fair value upward adjustments, intra-group sales and pups, goodwill impairment • Statements of Financial Position, Income AND Changes in Equity, list of balances, problems with revenue recognition (consignment goods), inventory adjustment, TNCA revaluation, depreciation straight line and reducing balance, loan interest accrual, tax provision and deferred tax movement • 20 mark cash flow (last time there was a question WITHOUT interpretation was December 2011) with a part b 5 mark chat • 15 mark question covering 2 or 3 IAS with short, relatively straight- forward calculations. Possibles? Could be anything, but here are 3 wild guesses:- subsequent events, leasing and borrowing costs • 10 mark question – could be something like development expenditure, complex depreciation question or (relatively easy) earnings per share. De Monfort * Ratios relating to financial position eg liquidity and gearing. * Complex non-current asset. * Conceptual framework – qualitative characteristics. * Provisions, contingent liabilities and contingent assets. * Intangible assets – development costs.
Posted on: Fri, 29 Nov 2013 06:54:40 +0000
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