FR*** ACCA F7 June 2017 Exam was.. Instant Poll and comments ***

Then what was the profit/loss on disposal of the subsidiary? Anyone remember the answers of their MTQS?

Q32- how did you treat the inventories? I have adjusted 20X4 retained earnings increased them by the 300K. In 20X5 i have deducted the difference -150K- from Cost of sales

I got 850 , and I apportioned the profit between the disposed and existing operations

For the inventory figures I treated it retrospectively and I did it for 2004 by adding opening inventory and deducting closing inventory, I added 150 to retained earnings for change in accounting policy

what about overstated inventory in mcqs? does it reduce RE and GP or not? i said it would reduce both of them.

Yes you reduce both

Hmm... but why it reduces RE? To get the RE you need to adjust as well prior year results - so the change is overall 0..... Am I wrong?

section A & B was not all that hard section c was ok in some cases 32 was a little bit tricky but 31 was the worse for me

I'm not sure but since we changed the profit of prior period we change the same to present retained earnings to show a consistent comparison

I found the last question too easy as well. I thought I need to spend a little more time in the question. But i feel like the exam was okay, Hope it was my last time sitting

my answer was .7426 so I chose .75

Think the afternoon CBE exam had different questions... Q36 was on a single entity with adjustments to make to prepare a statement of profit or loss & other comprehensive income and a statement of changes in equity & extracts from the cash flow. Q37 was on a group with two subsidiaries where one is disposed, had to work out the profit/loss and calculate ratios.

Section C Q32 what should be done for the tax adjustment?

well, i think since the goods were overstated the cos was understated, which means we need to reduce Re and profit to reflect this.

Multiple choice Ps questions not in order 1. FV of Investment $300,000 FV of NCI $80,000 Net Assets Stated Capital $150,000 Retained Earning $150,000 Answer - Goodwill $80,000 2. What would be reviewed for impairment Answer - Goodwill and Patent with indefinite life 3. Which qualitative characteristic is linked to IAS 8 changes in accounting policy, estimates and errors Answer - Comparability 4. Which one of the following is correct according to IAS 8 Answer - Changes in depreciation and changes in inventory valuation (FIFO) would be treated prospectivly 5. What is the definition of Inventory according to IAS 2 Answer - purchase cost, conversion cost and costs incurred to bring the asset to its present condition and location The other option is wrong i believe purchase cost, conversion cost and costs incurred to bring the asset to a saleable condition 6. Which of the following would be treated as discountinued under IFRS 5 A. Plant which stops buying and selling car parts B. They only have one plant the produces rims. They buy another plant to produce rims Answer - A only 7. State the Enhancing Characteristics of Financial Information A. Substance B. Prudence C. Materiality D. Timely, verifiable, comparable & understandable Answer - D 8. Basic eps 9mil ÷ 10 mil = .90 Diluted earnings 5mil × % × 70 % If anyone knows this % pls tell me Diluted Shares 5mil ÷ 500 × 250 shares = 2,500,000 Answer = .74 Thats all the MCQ i can remember sorry guys

Got the feeling CBE questions are different for every person orbat least every a few different persons? Q36 was ratios, i think i did ok there. Q37 was a consolidated FP which I didn't finish but did most of the workings. Secn B left a couple unanswered, no time to go back. Answered all Secn A which I think was OK too

Let's cross check our multiple choice answers C C A B A B A D D B D C D C A B A C C C C D B B C C A B C B

How do you people have time to memorize what your MCQ answers were?? I barely have enough time during the exam to read each requirement once lol

I think it would be relevant not comparability

Exam was a disaster for me. Missed the bus and rain all to gather I am finished.

Does anyone remember the section B questions or anymore section A

I found interpretation very difficult. Also I think there was an adjustment needed in Q32's retained earnings in accordance with IAS 8 (valuation of inventory had changed and this requires a retrospective change)? I think other questions were okay. Also I got PAT of 2915.

I got tax adjustment to be 1400+390 , my PAT was 4445 , not sure hoping for listing and method marks

Mcqs as far as i can remember 1-A ratio not used by non profit entities -R0CE 2-goodwill in the consolidated statement: 80000(3.8-3) 3-unrealised profit to be adjusted - 6000 (150000/5 unsold inventory,25% mark up) 4- item not included in the definition of an asset -benefits measured reliably. 5-yearly impairment review- goodwill and patent. 6-which of the following are subsidiaries- i marked option B and C,i opted out option A as at the point of time the parent company held only 40% of the other company, i highly doubt if it's right. 7-reason for increase in gp margin : option D (debtor going bankrupt) Section B and C were really tricky for me. Only luck can get me through now.

But debtor went bankrupt in December 2008 and I think the gp was of December 2007. I think that understatement of closing inventory would be correct since it will result in a higher COS and thus lower gp

@aaradhya33 said: But debtor went bankrupt in December 2008 and I think the gp was of December 2007. I think that understatement of closing inventory would be correct since it will result in a higher COS and thus lower gp

Wasn't it understatement of OPENING inventory? If not you're right.

@surajnair said: Wasn't it understatement of OPENING inventory? If not you're right.

oh my god,the more we discuss the more we lose confidence?

@aaradhya33 said: oh my god,the more we discuss the more we lose confidence?

Haha very truee.

It was closing inventory, I remember it well

@23123fd said: It was closing inventory, I remember it well

There goes my two marks.