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

@surajnair said: 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.

I concur with all except for 2...i know this particular question.....subsidiary sold to parent and URP would have been deducted from subsidiary's post acquisition RE or profit for the year....The effect and implication of this on group retained earnings would have been 60% × 6000 = 3600

What about the discontinued operations MCQ Were they both discontinued??

@hayor said: Got a profit of $850k on disposal......subsidiary is 100% owned

I got the same. Thats great

I had an issue with interpretating what Q31 was asking ref the ratios. The question stated 'using the financial statements provided' but was I meant to adjust for the 3 months of spectra that were included? I knew the formulas and wrote them down so may get some credit for that. I feel the question was a bit misleading if you were meant to adjust the figures, which I could have done quite easily but chose to follow what the question said. Anyone else have a similar dilemma or just me? :-(

@hayor said: For the issue cost did you deduct 200 from proceeds of issue of loan and as well deducted it out of admin expenses? Also for investment income how did you treat it.....since 300 is credited initially of which 200 is related to gain on equity investment I deduct 200 from and show it under OCI making investment income just 100

I did the same, got total oci of 6440 something like that. Hope that would be correct.

@cossie1990 said: I had an issue with interpretating what Q31 was asking ref the ratios. The question stated 'using the financial statements provided' but was I meant to adjust for the 3 months of spectra that were included? I knew the formulas and wrote them down so may get some credit for that. I feel the question was a bit misleading if you were meant to adjust the figures, which I could have done quite easily but chose to follow what the question said. Anyone else have a similar dilemma or just me? :-(

Question specifically asked how the interpretation would be misleading with the disposal. This is what I thought so wrote something in line. But i didn't have a clue on how to separate the number from consolidated

I got 0.93 here :|

@nataliam2 said: my result was the same but I chose .74

talking about deps? :D

@nataliam2 said: Does anyone remember the question on the borrowing costs? 10 mil$ was the cost. he took a 10 mil$ loan 6% on 01 feb. between 01 feb and 01 apr he invested 2 mil $ at 4.5%. The construction finished on 01 november same year. It didnt matter how I tried to solve it, I couldnt get a result that matched any of the answer options. Does anyone know how to solve this MCQ ?

yes natalia.You had to capitalize the borrowing cost from feb to October. but also since it had been invested elsewhere for 2 months (2m*4.5%*2/12) this should be deducted. i think the answer was 10435000

@aaradhya33 said: yes natalia.You had to capitalize the borrowing cost from feb to October. but also since it had been invested elsewhere for 2 months (2m*4.5%*2/12) this should be deducted. i think the answer was 10435000

Yes 10435000. Atleast we have one common answer :p

Both won't be discontinued only the second one for the first one he completely changed his business stream, that's how I saw it

@aaradhya33 said: yes natalia.You had to capitalize the borrowing cost from feb to October. but also since it had been invested elsewhere for 2 months (2m*4.5%*2/12) this should be deducted. i think the answer was 10435000

I also select the same answer for capitalization.

@surajnair said: Yes 10435000. Atleast we have one common answer :p

yes suraj,finally!! lol

When ACCA will be publishing the answer as past paper, will it be before July 17.

@nataliam2 said: I know the rules but I couldnt get to any answer. THis is how I calculate: 10m*6%*7/12 = 350 2m*4.5%*2/12 = 15 10m+350-15 = 10335 so how do you get 10435? where is my mistake?

its 10m*6%*9/12. because it runs from feb to October last day. that's where your error occurred!!

@nataliam2 said: I know the rules but I couldnt get to any answer. THis is how I calculate: 10m*6%*7/12 = 350 2m*4.5%*2/12 = 15 10m+350-15 = 10335 so how do you get 10435? where is my mistake?

I calculated like 10m*6%*9/12 = 450 2m*4.5%*2/12 = 15 10m+450-15

For two fill in the blanks to complete the definitions, anyone remember those. Just to get some confidence so that at least some answers are correct.

@denny1 said: For two fill in the blanks to complete the definitions, anyone remember those. Just to get some confidence so that at least some answers are correct.

Huh? Which part?

@surajnair said: Huh? Which part?

One was to credit the bargain purchase goodwill and other I think it was definition of assets or something like that.

@denny1 said: One was to credit the bargain purchase goodwill and other I think it was definition of assets or something like that.

I cant recollect Goodwill question. Asset one if you're referring to the section A mcq question,the right option is C(which says future benefits should be measured reliably) - not in the asset definition.

Denny1 did the CBE i think we had no fill in the blanks Anybody remember any of the section b questions

@laughingcoffin said: Denny1 did the CBE i think we had no fill in the blanks Anybody remember any of the section b questions

Sorry not fill in the blanks, it was to complete a given sentence with appropriate drop down answer.

Guys does anyone remember the answer in MCQ with foreign currency? The goodwill was increased or decreased in MCQ with liability (was it overstate or understate?? i dont remember...) Any other answers in theoretical MCQs of part b?? like revenue recognition on combined products.. any thoughts??

@phil1990 said: Guys does anyone remember the answer in MCQ with foreign currency? The goodwill was increased or decreased in MCQ with liability (was it overstate or understate?? i dont remember...) Any other answers in theoretical MCQs of part b?? like revenue recognition on combined products.. any thoughts??

I selected A,dr. 86111,dr. 225000(or sth. like that)

Did anyone choose any Answer A's for the MCQ'S on revenue recognition question 25-30?

I chose opition C for the MCQ with foregin currency.

Which option did you guys pick for inventory valuation or something. Was it A which ended along the lines of bringing it to its present location and condition. or option C bring inventory to its saleable condition?

@feroz1234 said: Did anyone choose any Answer A's for the MCQ'S on revenue recognition question 25-30?

I marked all A's except the last question (30th)which i chose B.i got 4 A's. :/

@feroz1234 said: Which option did you guys pick for inventory valuation or something. Was it A which ended along the lines of bringing it to its present location and condition. or option C bring inventory to its saleable condition?

A. Bringing inventory to present location. Not saleable.

@nataliam2 said: I say yes. they both were discontinued to me. One was major line of business and the other one was major geographical area.

I also chose them both.