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      • avatar says

        Dear Mike,

        Please kindly help me out.

        I am currently studying for my ACCA Paper F7 which book will you recommend with your online lectures except the OT Lecture Notes.

        And secondly whenever I get out of class and come to my room I eventually forget the lecture which I got in the classroom, any tips for this to remember and how to study effectively.

      • Profile photo of MikeLittle says

        Hi Ahmad

        I’m not prepared to recommend any text in preference to any other – sorry

        As for forgetting the lecture as soon as you walk out of the lecture room ….. are you taking notes in the lecture? Is your mind on the subject or are you being distracted? Do you read the course notes that the lecturer was using as soon as you get back to your room? Are you doing any practising on the relevant exercises?

        And besides, what’s the matter with the opentuition notes? The particular topic covered in this thread is not a topic that is ever likely to be worth more than MAXIMUM 10 marks in an F7 exam

        There are so many almost guaranteed topics which WILL (probably) be asked in F7 that it seems that you are aiming to use your available time in a totally ineffectual way.

        Read these ‘mini’ topics ….sure.

        But get totally on top of consolidations, preparation of financial statements from base records / trial balance, cash flows, interpretation and ratio analysis.

        Those are areas to put in your major effort

        When you’ve mastered these major areas, then start looking at the less important / less likely to be examined topics

      • avatar says

        Thanks Mike, for the reply yes I do take notes of the Lecture when I come to my room I can’t understand the question and the I can’t remember the Lecture.

        Thats why I have asked for you tips and OT notes are best I was just thinking there might be other notes as well that you would prefer for you F7 students

        I do practice but if I can’t remember anything how can I practice for example a sample question of IAS 16 Complex Asset in question it has a different structure and in notes it has some thing else

      • Profile photo of MikeLittle says

        Then maybe a thorough audit of the answer will tie the course lecture, the notes and your bits of retained memory together.

        Try that and let me know if it works – I have no other learning material that I am prepared to recommend

  1. avatar says

    Come on guys. You know that opentuition cannot be your ultimate tool for passing this exam. I’m sure that your text book/exam kit includes one or two of such exercises and thus there is no reason to moan. Mike and the other OT members are doing their best…..for free.

  2. avatar says

    If a grant is received for the construction of an asset and after a year of use the asset is no longer being used and is held for sale. The grant was being amortized over the useful life of the asset. The asset is no longer being depreciated. What would be the best possible way to treat the grant????

    • Profile photo of MikeLittle says

      I suppose that the answer to that would really depend on the terms under which the grant was given. But, in the real World, I imagine that the grantor would have insisted on including the term that “if the granted asset is sold or classified as held for sale, the remaining part (or even the whole) of the grant so far not amortised should be repaid to the grantor”

      But it really must come down to the specifics of the terms which lie behind the awarding of the grant

    • Profile photo of MikeLittle says

      For what? It’s enough for you to be able to deal with a sub-question concerning government grants but it’s not enough for you to use as a guide for ethics in a corrupt world.

      Does that help? Or would you like to be more specific with your question?

      • Profile photo of MikeLittle says

        No! Absolutely not. There are 100 marks in the paper and I can almost guarantee that they will not all 100 be based on government grants. I’m expecting questions on consolidations, preparation of financial statements and either a cash flow question, an interpretation question or a combination of the two. And that’s just 75%.

        I don’t even believe that the remaining 25% will be entirely government grant based. In fact, I’d be surprised if it were more than 10 marks maximum.

        So, in answer to your much more specific question “is this lecture enough for me to pass tha paper ???” the answer I’m sorry to have to give you is an EMPHATIC NO!!!!

        Now, let me answer the question you didn’t ask (and how many times have I warned students NOT to do that?)

        “Is the lecture on government grants sufficient for me to make a reasonable attempt at a part question which could potentially be in the exam for a maximum of 10 marks?”

        IF that were the question you had intended to ask, then the answer would be “Probably, yes” And if you ever were to want to know more about the accounting treatment of government grants, you could always research it in a study text or even on line. But what’s in the notes SHOULD be sufficient

      • Profile photo of absylum007 says

        Is the lecture on government grants sufficient for me to make a reasonable attempt at a part question which could potentially be in the exam for a maximum of 10 marks?”

        this was my question ….
        thankyou
        i should learn to phrase my questions more specifically

  3. Profile photo of marilynlojikim says

    Opentuition is more than a jackpot, as it doesnt cost you anything! If any of you need more than whats been offered, maybe you can look and moan in another site. Pls respect other students and the tutor esp. Thanks ( sorry admin… Just get annoyed with someone) cheers ;)

    • Profile photo of MikeLittle says

      Credit Cash, debit Deferred Credit

      If the amount to be paid back exceeds the amount in the deferred credit account, we’ll need to debit either the expense account which was credited with the grant or the TNCA account.

      If it’s a TNCA grant, then we need to recalculate depreciation to date because we will have been charging depreciation on a reduced figure

  4. avatar says

    Could anyone help me, it is confusing for me. what is the treatment if GG is income related or asset related? Generally what is the main difference between the income and asset related GGs?

    Thank you so much

    • Profile photo of MikeLittle says

      It surely doesn’t need any deeper explanation! I gave this lecture (as a scientific experiment) to the troop of chimpanzees at Frankfurt zoo. Admittedly, they are an extremely bright group of chimpanzees. However 18 out of the 23 indicated that they had fully understood and wanted to move on to something more difficult like “What is the journal entry to record the purchase of a banana on credit?”

      My comment below is still relevant – this lecture was recorded because there had been feedback comment that not all chapters had recorded lectures to support them so Admin persuaded me to record this and one or two others. Against my better judgement, I complied.

      But, as always, if you don’t lke it, don’t listen

      :-)

      • Profile photo of MikeLittle says

        @Miss A.., For Heaven’s Sake!! There’s nothing to the subject – it’s a straight-forward choice of two methods! I wasn’t going to even record it because it’s so bl**dy simple but I was persuaded to because not all the chapters were covered by lectures.

        READ IT FOR YOURSELVES – THERE REALLY IS NO MORE BASIC SUBJECT. Here, pass me a tissue and I’ll wipe your nose for you too!

      • Profile photo of Miss A.. says

        @MikeLittle, hmmm…….but my rose is not running Mr.Mike.

        soory…but i found response rude.It was kinda of suggestion from all students & i agreed to that.I know a 25 mark question cannot appear from this area, but a small part of question can carrying 2 to 5 marks can appear.In exam even I mark matters if one gets 49.It oks if not all chapters are covered by lectures.I still appreciate your efforts :)

      • Profile photo of MikeLittle says

        @Miss A.., Ok, here’s a response to Sharlene’s original post. Now concentrate REALLY hard because it’s a very tricky area!

        “I thought I would have seen and excercise ( sic ) on how to record the gov’t grant”

        Here we go!

        Debit cash, Credit either TNCA or Deferred Income ( if it’s an asset related grant or…
        the related expense account

        Is that one whole lot better?

  5. avatar says

    I agree to the earlier comments. This lecture is useless because I can read the text myself :). More valuable would be to have explanation of this text with some practical example on how to record these transactions in Financial statements

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