BPP ACCA F7 Exam Tips for June 2016
Twenty 2 mark multiple choice questions on a wide range of topics including several on consolidation and interpretation of financial statements
Expect a few questions on non-core areas (e.g. inflation, specialised entities)
Q1 & 2: Two 15 mark questions
One likely to be an interpretation or statement of cash flows, the other may be a consolidation question if Q3 is not a consolidation.
Other possibilities: conceptual framework, intangible/tangible assets and impairment, provisions and contingencies, revenue and grants, financial instruments discontinued operations/assets held for sale or earnings per share.
Q3: 30 mark financial statement preparation question. Could be for a single entity or a consolidation (statement of profit or loss and other comprehensive income and/or statement of financial position). Will include adjustments on other syllabus areas.
May include a short separate part, e.g. with a statement of changes in equity, statement of cash flows extract, earnings per share calculation or linked written topic.
A consolidation question would include one subsidiary and often an associate, with adjustments, e.g. fair values, deferred/contingent consideration, PUP on inventories/PPE, intragroup trading and balances, goods/cash in transit.
A single entity question could be preparation from a trial balance or restatement of given financial statements with the usual adjustments for depreciation, revaluation and current/deferred tax (including deferred tax on revaluations) plus a mixture of adjustments on other syllabus areas, e.g. leases, substance over form issues, financial instruments (change in fair value or amortised cost), share issues, government grants, inventory valuation, revenue recognition or construction contracts.