F7 INT Group study sessions – Dec 2011

SESSION 1

We will start from Conceptual Framework. The text of official document can be found here : https://dipifr.info/lib_files/standards/eng/eng_ifrs_010109/83_Framework%20BV2009.pdf

Please do not mix this document with new Conceptual Framework that was issued by IASB on 28th September 2010 and is now available at http://www.ifrs.org

This new conceptual Framework will not be examined in 2011!
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Topics of this session:

1. A conceptual Framework for financial reporting

2. Understandability, relevance, reliability and comparability

3. Recognition and measurement
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For your studies please do benefit of the following FREE resources:

1. OT lectures and notes : https://opentuition.com/acca/f7/

2. IAS plus learning modules : https://www.deloitteifrslearning.com/
(absolutely amazing modules to my opinion. All standards will seem easy if u you use them).

3. Official texts of standards availalbe at IFRS foundatiton website (registration is required, but it’s free):
https://www.ifrs.org/IFRSs/IFRS.htm

4. EXP group notes and video lectures: https://www.theexpgroup.com/expand/11-f7_financial_reporting_int.html

5. Emile Wolf free books: https://emilewoolfpublishing.com/

6. PassACCA resources (free registration required):
https://www.passacca.net/free-downloads/view-category.html
Please check : Fundamental level for F7 podcasts and Good/bad answer for latest developments from F7 examiner. Information is not so fresh ,but absolutely applicable.

7. Last but not least
Technical articles available at ACCA global, specially those written by examiner.

Please note that for F7, ACCA created a separate page, where all articles are grouped together to reflect the structure of syllabus. Access it here:
https://www2.accaglobal.com/students/acca/paperf7/ .

For session 1 please read the following technical articles:

1. Examiner’s approach to paper F7:
https://www2.accaglobal.com/pubs/students/publications/student_accountant/archive/scott0207.pdf

2. IASB’s Conceptual Framework for Financial reporting:
https://www2.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_mar11_f7p2.pdf

3. Examinable documents for F7:
https://www2.accaglobal.com/pubs/students/acca/exams/f7/examinable/f7p2int_examdocs2011.pdf

See you in session!

SESSION 3

Nice job was done during last session, however many issues are yet not covered. Specially chapter 4 and 5.
Regular revision is needed. I think it’s a good idea to include small questions about framework to each session from now till end. This regular revision will definately make us memorize it by November. Otherwise, even if we manage to learn it by heart now, in some months after tough computation questions, it will all be forgotten.

For the moment we need to move on and during our 3rd session will concentrate mainly on Regulatory Framework as it’s mentioned in the schedule above.
Here , I might be repeating what i said before, but i beleive that it’s important for those who sit F7 for the first time:

Regulatory framework is not a separate document that u can download at ifrs.org or wherever. And it is not THE FRAMEWORK that we studied before.

To understand , what regulatory framework is, all you need is to take a look at syllabus.
You will see that regulatory Framework is about the Body issuing standards and about everything that regulates their issue and application : national laws, EU directives, security exchange rules.

According to past paper questions layout, this area was not tested previously. But it doesn’t mean that it is not going to be tested in the future.
And topics like role of IASB or standard setting process seem to have the biggest chance to be examined.
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Topics of this session

1. The need for a regulatory Framework

2. The standard setting process
Questions to practice:
Kaplan kit: Q10 (a),(b)
BPP kit: Q4 (a), (b) same as kaplan Q10

3. Specialised, not-for-profit and public sector entities This one hardly can be found in any book (though i don’t have access to BPP 2011 yet), however, i failed to find it in Kaplan. The only book where i found it is Emile Wolf Chapter 4.
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You can read about IASB and standard setting in my blog: https://www.dipifr-blog.blogspot.com/ .
I have already provided all the relevant links inside each post. Don’t relly want to copy them here.

I started blog at the end of June, but unfortunately didn’t have chance to post there again. However, I hope that I won’t just abondon it and new posts will appear.

see u in session!

SESSION 5

Finally we start studying something “meanginful” , as many will think i’m sure. Well, responses of many student showed that sadly regarding framework there is a common statement : “you can pass without it”. Well okay, guys, go ahead and pass without it!

Now it’s time for standards. And i decided that we can’t touch statements before we study IAS 1, which outlines requirements for presentation of financial statements.

That’s on the base of this standard that you can prepare proformas for your documents.

Again, there will be no calculations, so many guys who claim that they can do calculations only, will skip it.. well, good luck to those 🙂

As for others, please study IAS 1 from all possible resources.

Syllabus doesn’t clearly mention any standard, it rather gives names of topics.
But for IAS 1 you can only find some topic in Module C, chapter 10, part a.

Official text of updated IAS 1 is available here (don’t forget that registration at ifrs.org is required in order to access this document) :
https://eifrs.iasb.org/eifrs/bnstandards/en/ias1.pdf

I suggest you to study IAS 1 , from

– Deloitte’s learning module. It’s a bit huge, but contains many examples of financial statments which might be useful further;
– EXP videos, they have separate chapter for IAS1, it goes right after Framework.
– OT notes , chapter 3 “Published financial statements” , unfortunately there are no OT lectures for it.
– Kaplan , chapter 6 “Inroduction to published accounts”;
– BPP relevant chapter.
– LSBF , that will be chapter 4, and a small part of chapter 14.
and all other notes that you can find.

see u in session!

SESSION 7

We are going to continue with IAS 16.

Last time we left one important and relatively big part of this standard , concerning revaluation of PP&E.

We are also going to cover standards that are very related to IAS 16 and very often examined all at once, those are :

– IAS 20 – Accounting for Governement grants and disclosure of Government Assistance;
– IAS 23 – Borrowing costs;
– IAS 40 – Investment property

Those standards are small and we don’t need to know them in full.
Ideally we should cover it all in one session.

Questions to practice:

– IAS 16
Past papers : Pilot paper – Q2, Dec’07 – Q2 , June’08 – Q2, Dec’08 – Q2, Q5, June’09 – Q2, Q5, Dec’09 – Q2, Q4
Kaplan kit: 13, 14

– IAS 20
Past papers:
Kaplan kit:

– IAS 23
Past papers: June’10
Kaplan kit: Q 29

– IAS 40 :
Past papers: Pilot paper – Q2
Kaplan kit: Q 29

see u in session!

SESSION 9

Well during this session no matter what happens, we must finish with tangible assets.

So our plan is to finish discussing IAS 23 – Borrowing costs
and to discuss full IAS 40.

We started discussing borrowing costs last time, but hardly anyone was prepared, so attempt wasn’t successful.
As for IAS 40, it’s not a small standard actually, but only it’s basic and most important concepts will be needed for exam.

You need to be able to distinguish between investment property and PPE, and to know the difference of accounting treatment between those.

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Topics for discussion:

IAS 23 – Borrowing costs
see text of standard here (don’t forget that preliminary registration is required): https://eifrs.iasb.org/eifrs/bnstandards/en/ias23.pdf

Questions to practice:
Past papers : June’10 – Q5
Kaplan kit: Q29
BPP kit : Q21

IAS 40 – Investment property
see text of standard here (don’t forget that preliminary registration is required): https://eifrs.iasb.org/eifrs/bnstandards/en/ias40.pdf

Questions to practice:
Past papers :
Kaplan kit:
BPP kit :

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Not many past paper questions to practice on those.
Usually some rules of those standards are tested as small parts of Q2.
or there is always a chance that any of them will be examined separately as Q4 or Q5, so needless to say that none of them can be ignored.
There are many small practical questions in books, plus there are IAS learning modules with lots of tests and exercises.
So no excuse for lack of material.

As for articles, there was a good one written by our examiner, on Investment property,
now it became a bit too old (dated 2001), however you might still check it :
https://www2.accaglobal.com/students/student_accountant/archive/2001/18/57482

SESSION 11

In previous session we discussed IAS 2, however this standard is very often examined together with another one,

that is IAS 11 – Construction contracts

This standard is examined really often, and as pilot paper shows us, there is always a risk that it will be examined as separate question : 4 or 5.

And for those of you working in construction industry, it might be even helpful 😉

Text of standard is available here (don’t forget that preliminary registration is required):
https://eifrs.iasb.org/eifrs/bnstandards/en/ias11.pdf

Questions to practice:
Past papers : Pilot paper – Q5
Kaplan kit: Q15
BPP kit : Q48, 49, 50

There is a seprate technical article for this standard :
Construction contracts
https://www2.accaglobal.com/students/acca/paperf7/syllabus_c/3346649

There are many practical questions in all books. I recommend you to check those in this article and in Emile Wolf book . And of course to practice that question from pilot paper.

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