FR*** ACCA F7 June 2018 Exam was.. Instant Poll and comments ***

Overall ... My paper based exam was kind of okay.. I was tested on final accounts with an adjustment on short term leases.. But it mentioned that it was 5 years .. so how is that supposed to be short term.. And anyways i didnt know hw it would affect the balance sheet and profit.. Interpretations was also confusing.. Since i was not getting points on how to comment on performance.. they had provided very less info MCQ were good (as far as those options were available for which i think are correct) Just hoping to pass.. How it was for you all guyzz??

Section A was a disaster for me, only got like 2 answers shaded in 15 mins and I started panicking, winging the answers. Calmed down around Section B and finished strongly in Section C. That being said, even with my generous marking, I was only getting an estimate of 46/100. It's in God's hands now. Hope I can make it. #Believe

So basically your section c was good ?? For me sectuon c was baadd..did you get question on short term leases in section c ??

@nykkw said: Section A was a disaster for me, only got like 2 answers shaded in 15 mins and I started panicking, winging the answers. Calmed down around Section B and finished strongly in Section C. That being said, even with my generous marking, I was only getting an estimate of 46/100. It's in God's hands now. Hope I can make it. #Believe

@mohdafzal said: So basically your section c was good ?? For me sectuon c was baadd..did you get question on short term leases in section c ??

Hi mate, I really have no idea to be honest, as I've seen people say they did terribly come out with high pass while people who said they did great have failed. I much preferred Section C over the MCQ's though. I think I did well on the ratios and the Single entity question. And yeah, think I got the lease one as well. I had 2 leases in that question. As the other answer has said I accounted the 2nd one as a operating lease and sent it through the profit and loss (I had to to a statement of changes to profit or something) and then a statement of Financial position. Honestly, I'm going to be practicing the syllabus again because it's probable (lol) that I won't pass, I hope I do though. Also, is everyone's Section C the same or is that even different?

@vesela538 said: I sat the paper based and I had the same in section C - simple consolidated PnL adjustments + ratios and comments and single entity SOFP with profit adjustments.

That's good to hear. What were your conclusions from the interpretations question? I said that the Knope Group did a good purchase at the time but has suffered a lot since the main creativity of Wyatt seems to have been the founders, as they had said most of the games were made by them, and also the key suppliers and customers seem to know this. They did well to get an increase in consolidated GP% despite the poor performance of Wyatt, but that Knope has to come to a decision fast as to what to do with Wyatt, continue gambling for them to land a hit game development despite Knope not having any valuable expertise in the area or get rid. That's a rough draft of what I wrote, what about you?

I sat the exact same paper.. the point with me was that i was unable to get the points on how to comment on it.. i just wrote that wyatt is not doing well now because of its founders.. since they opneed up new company similar to wyatt... and moreover the founders obviously would be having good relations with suppliers and customers of wyatt before acquisition as they were performing good before... and i couldn't frame the answer well.. since i was under time pressure and english is not my first language... hope that i did well..

@nykkw said: That's good to hear. What were your conclusions from the interpretations question? I said that the Knope Group did a good purchase at the time but has suffered a lot since the main creativity of Wyatt seems to have been the founders, as they had said most of the games were made by them, and also the key suppliers and customers seem to know this. They did well to get an increase in consolidated GP% despite the poor performance of Wyatt, but that Knope has to come to a decision fast as to what to do with Wyatt, continue gambling for them to land a hit game development despite Knope not having any valuable expertise in the area or get rid. That's a rough draft of what I wrote, what about you?

@mohdafzal said: I sat the exact same paper.. the point with me was that i was unable to get the points on how to comment on it.. i just wrote that wyatt is not doing well now because of its founders.. since they opneed up new company similar to wyatt... and moreover the founders obviously would be having good relations with suppliers and customers of wyatt before acquisition as they were performing good before... and i couldn't frame the answer well.. since i was under time pressure and english is not my first language... hope that i did well..

Those are all relevant points mate, I'm sure we should get the marks for them, if I recall one mark per valid point. Well, here's hoping haha! I think it was a good thing that we didn't have too much information though? Because of that it was left to our imagination and we could really explore many different routes on why it has happened the way it has. In my opinion anyways, for me, the little info was better. Just hope to God we pass, I've passed ACCA F1 to F5 and this has been the HARDEST exam ever. I don't get how people have told me F7 is ONE OF THE MOST EASIEST exams in skill level. Maybe it was easier back then, when there were'nt all that many MCQ's and OTQ'.s If we got a full consolidation question for Section C I would be pretty hopeful too of a pass. Good luck everyone! All we can do now is hope.

Section A was a disaster for me.I was confuse with the deferred tax mcq. In section C, I had confusion in lease as they say that the initial payment was made and charge in cost of sales so I removed 2m from the present value and then calculated the current and non current liability value. In interpretation , I wrote that the gross profit margin of the company is good because of the merger of the revenues of both the companies but on the other hand they have more inventory turnover days because they have lost the customer as the founder of the wyates company has left the company . The quality of the games are not good as the founders produce most of the games. I hope I get the marks as my English is poor and I am nervous because my section A and B were also not upto the mark.

Btw.. i guess.. due to syllabus changes .. now there is no difference between operating lease and finance lease.. but still i have no idea on how to account for that short term lease.. I don't know but my MCQs were pretty good i guess.. may be the questions were different..

Hmm.. even i felt that info was too less.. but yea this was it.. there cant be anymore points to comment on.. I just hope to pass this.. even for me this was the hardest exam ever Anyways.. EVERYONE GOOD LUCK

@nykkw said: Those are all relevant points mate, I'm sure we should get the marks for them, if I recall one mark per valid point. Well, here's hoping haha! I think it was a good thing that we didn't have too much information though? Because of that it was left to our imagination and we could really explore many different routes on why it has happened the way it has. In my opinion anyways, for me, the little info was better. Just hope to God we pass, I've passed ACCA F1 to F5 and this has been the HARDEST exam ever. I don't get how people have told me F7 is ONE OF THE MOST EASIEST exams in skill level. Maybe it was easier back then, when there were'nt all that many MCQ's and OTQ'.s If we got a full consolidation question for Section C I would be pretty hopeful too of a pass. Good luck everyone! All we can do now is hope.

Are the mcq’s random for each candidate?

Sort of disaster...in sec C i forgot that other plant which was disposed at fv..to removed from st of fp and oci...OL also confused me..sec a n b were manageable..hope god hlp..

Anyone have any idea on the seeded questions? I presume that they were in section A

I agree very much with your answer in section c Pzeel! I also found section A a disaster, but B and C a little easier.

@snell123 said: Anyone have any idea on the seeded questions? I presume that they were in section A

Yes must have been in section A as there was 20 mqcs rather than 15? Wouldn't have a clue which they were, hopefully the only ones I didn't know anyway!

One of section b questions was ‘if nci is valued at fair value, what of the following two is not effected: Share capital Retained earning Goodwill Nci Surely retained earnings, goodwill and Nci would be effected

Yes. You are right mostly. but this question was surely not in my exam. Did you give CBE or PAPER based? Mine was paper based.

@snell123 said: One of section b questions was ‘if nci is valued at fair value, what of the following two is not effected: Share capital Retained earning Goodwill Nci Surely retained earnings, goodwill and Nci would be effected

I took the cbe

Hmmm.. that's the reason. How was it for you?

@snell123 said: I took the cbe

Not great to be honest - section c was tough. How was it for you?

I messed up Section C, especially where they asked about short-term leases in single entity financial statements. Section A was Okay, not that bad. And expecting great from Section B. Lets hope for the best.

Can any let me know where did you take the paper-based exam please, as my self-took CBE and was a disaster. I am used to paper-based and could not concentrate at all. Thank you

@luti35 said: Can any let me know where did you take the paper-based exam please, as my self-took CBE and was a disaster. I am used to paper-based and could not concentrate at all. Thank you

I took the exam in Bahrain. But I GUESS it doesn't matter where the exam took place in case of paper based exam. In case of CBE the questions vary I GUESS.

Thank you for quick respond, I took it in London and it's no longer paper-based here as much as I know. However, reading the comments made me doubt myself: I thought it might be somewhere which I don't know. From the comments here, I can see no difference I did have the same question I just wasn't familiar with the CBE.

Oh ok.. so all the questions discussed here were there in the CBE?? Just curious.

Looking at the comments it looks like there are some crossover between paper and cbe. Did you have the wyatt and knope question?

@shaonan you gotta be kiddin me... That was what you got for section C? WOW I WISH I got that, sounds so easy :( Really wanted consolidations because its like a free 20 marks for me. Anyways I thought section C was same for paper and Cbe? Kinda unfair if they aren't to be honest.

@shaonan said: I did CBE in Dublin m, my section C was quite easy tho I calculated Gearing ratio wrong.. first question is ratio analysis- company sells luxury cheese to supermarket ? 2nd question is very easy, to prepare consolidated statement of financial position 20 marks. There are a few notes: FV adjustments, gain on equity share, intra group trading URG.. section B was very hard, IAS 23 borrowing cost, IAS 16, IAS 15 revenue.. Section A : 20% consolidated questions, 1 non for profit company, 1 deferred tax ect.. overall , section C was ok, section A and B were very hard..

Hey, I sat this exact paper. For the first question section C, I had the ratio calculations as well which were okay. My commentary on on the company about the cheese, I said stuff like: - Operating & GP margins may have decreased due to the new contracts they have acquired and the fees that have been spent on them maybe. I said they may have faced increased costs on the new contracts, and it may take a while for economies of scale to be achieved in order to keep the costs low... - ROCE increased because of the good Asset turnover ratio. (OP margin x asset turnover) = ROCE so I said as asset turnover increased it means they are managing the use of their working capital more efficiently...also the CEO comments I said inc ROCE may not necessarily mean it’s doing well because they value their assets at cost. So means their assets are understated...which would distort ROCE. - Gearing - Hope my calculation was right but oh well. Hearing increased by a smidgen for me. Just said the standard & they should aim to reduce this especially if it is above sector average...just said CEO should seek to issue equity rather than borrow because future investors could be wary & see it as risky. How did you do on the second question about the SFP? I couldn’t work out what the share exchange was :( the questions I’ve practiced always stated what they were so I found it hard to work out goodwill. Didn’t know what to do about the other equity instrument that was revalued. I don’t think I was supposed to include that in SFP but I did anyway..oh well! Also intra- sales did you adjust TR & TP? I went to do it but I read on the notes the balances were ‘cleared’ >.> I hope that meant already done??? Really wish the examiner would’ve made it clearer there. Section B - Mixed bag for me. Topics I thought I knew came up but the options made it confusing. Annoyed that I could know the answer to one but I have to pick two options. Section A - Mixed bag also but I think I did okay with the consolidation questions. The others, not sure. I’m REALLY not sure about this paper. 6 long weeks to wait and this is my last F paper. I’ll start on P2 as it’s the same syllabus sort of. That way I can kinda move on but not in the meantime...

For the ratios, did you guys get comments made by the ceo?

@nykkw said: @shaonan you gotta be kiddin me... That was what you got for section C? WOW I WISH I got that, sounds so easy :( Really wanted consolidations because its like a free 20 marks for me. Anyways I thought section C was same for paper and Cbe? Kinda unfair if they aren't to be honest.

The only people who got an easy section c were the ones who had terrible section A and B. So terrible that for each question i was thinking id gotten it wrong. And its not like i wasnt prepared. The multiple complex options caught me by surprise