AAA*** ACCA P7 June 2018 Exam was.. Instant Poll and comments ***

Can someone remember what they write in question 2 ?

Time is a real issue in this exam. Just hope for a pass!!!

Hi every one, The paper was tough as compared to others. Q1.i wrote business risks.5 ROMM.i missed government grant . The one for sale of division IAS40 but it should be inventory as it was his normal course of business.procdures was good. Ethicas portion was ok not good due to time.Q2 was Quality controle and good attempt 85%.Q4 was also attempted good 85% and miserably only wrote EOMp. And time up.please comment.

@vikar said: Hi every one, The paper was tough as compared to others. Q1.i wrote business risks.5 ROMM.i missed government grant . The one for sale of division IAS40 but it should be inventory as it was his normal course of business.procdures was good. Ethicas portion was ok not good due to time.Q2 was Quality controle and good attempt 85%.Q4 was also attempted good 85% and miserably only wrote EOMp. And time up.please comment.

i agree with you...it shouldnt be classified as investment property.not meets criteria.

Colleagues, There was no grants. It was tenders. Government gives no money but give the orders/work to do.

@anastassiya777 said: i agree with you...it shouldnt be classified as investment property.not meets criteria.

Wow I didn't realise that too.. However to my understanding it did say he purchased the land on speculation.. which means there is undetermined use for the land therefore meets the criteria of IAS40. Construction for customers was his ordinary course of business, not selling land. Correct me if I'm wrong.

@gnom71 said: Colleagues, There was no grants. It was tenders. Government gives no money but give the orders/work to do.

I knew it!! I thought I was blind to not spot the grant... Now that I can recall, it's just normal construction contracts with the government therefore falls under IFRS15, not IAS20. Question did not talk about any conditions attached to the funding anyway.

provision made for customer rebate, i wrote that the provision can not be made. because think this is similar to early payment discount etc for which provision we never recognized provision ... is this correct

@sujawahab said: provision made for customer rebate, i wrote that the provision can not be made. since this is similar to early payment discount etc for which provision is never recognized ... is this correct

On second thought, I think you're right... we don't have to pay rebate until they actually buy the specified amount .. Which question was this again?

There was too much write and time was not enough.... the paper was a little bit tougher

Question 4 - matter to consider evidence expect to find question

@sujawahab said: Question 4 - matter to consider evidence expect to find question

Ohhh I didn't answer that question. Had a heart attack for a moment there, thought I misread other questions

Hei mate: There was no grant inside question 1, the fund receive from gov is a genuine transaction or sales relating to construction. Grant is anything that subsidy or sponsor receive from gov but in the case the gov just give funding to the mgt to build a construction.

I personally think the only circumstance to mirror my disappointment on leaving the exam hall yesterday will be watching England's performance in this summer's world cup. Question 1 blew me away in trying to identify the sufficient number of business risks and RoMM's. Panic set in and poor exam technique followed. Coupled with a poor choice of one of the optional questions (why oh why did I choose the question containing a lump of Financial Instruments?!?!). I felt it prudent to delay issuing a response until today to let the "dust settle" as very emotional after a bottle of Prosseco yesterday afternoon! The only positive was the KAM question but certainly not enough to get me through. Passed every other paper at first attempt. I'll be fortunate to get low 40's on this. I'll take this week "off" (if nothing else then to give my hand a rest) and then back to revision again from next Monday. I genuinely wish everybody the very best of luck and hope all your hard work and effort is rewarded with a pass in July. 3rd September booked as annual leave already.... Best wishes to all.

@chris1975z said: I personally think the only circumstance to mirror my disappointment on leaving the exam hall yesterday will be watching England's performance in this summer's world cup. Question 1 blew me away in trying to identify the sufficient number of business risks and RoMM's. Panic set in and poor exam technique followed. Coupled with a poor choice of one of the optional questions (why oh why did I choose the question containing a lump of Financial Instruments?!?!). I felt it prudent to delay issuing a response until today to let the "dust settle" as very emotional after a bottle of Prosseco yesterday afternoon! The only positive was the KAM question but certainly not enough to get me through. Passed every other paper at first attempt. I'll be fortunate to get low 40's on this. I'll take this week "off" (if nothing else then to give my hand a rest) and then back to revision again from next Monday. I genuinely wish everybody the very best of luck and hope all your hard work and effort is rewarded with a pass in July. 3rd September booked as annual leave already.... Best wishes to all.

do not be so negative and pessimistic!come onnnn:) we are all were in time presure and stress...you are not alone)

I'm not sure it's pessimism...more realism!! My only positive is that I did complete the paper...albeit I feel for the poor marker traipsing their way through it! :)

Question 1 was very demanding in terms of time. If I remember correctly, it asked for business risk, risk of material misstatements, Audit procedures for restructuring and ethical issues with regards to providing advice on the business plan. I used the same structure as previous past papers. I’m sure I got the professional marks that were available. Started off with a brief intro, went on to business risks ( I chose to identify risks individually for each division), the same structure for RMM, could only remember for a few procedures such as enquiring of Management of how they came up with provision etc. Ethical issues identified were intimidation threat, advocacy and self review. Explained each and provided safeguards were applicable. For question 2 I was able to move past it fast. Required an explanation of quality control, prof/ethical issues and audit evidence. For QC, referred to ISQC1, and how audit work done was not sufficient. Professional issues spoke of integrity objectivity etc. Audit evidence was subjective. For my options I selected Q 4 and Q5. Question 4 was tough but I found it harder than 3. So opted for it. Required to speak about audit procedures. Was subjective too. Question 5 I enjoyed! Sped through it. Key audit matters and critique of a an audit report. Was able to scrape 10/11 issues/problems with wording and layout of the audit report. For KAMs, mentioned a few benefits such as giving users of the audit report a more detailed view of the organisation. Also stated that it allows the report to be tailored to each organisation rather than being vague and general. Please share your thoughts. Wishing you all the success.

Was wondering - if you do all three optional questions will the marker give you marks for the best two?

@dennis98 said: Was wondering - if you do all three optional questions will the marker give you marks for the best two?

you had time to finish all three optional????

@chris1975z said: I'm not sure it's pessimism...more realism!! My only positive is that I did complete the paper...albeit I feel for the poor marker traipsing their way through it! :)

I feel you. I think we are all in the same situation due to time pressure. Just barely read thru the question in Q2 and optional question

I sat the UK variant last time and then found that the International version was pretty much identical but they breakout the marks for some the questions - so I sat the International variant this time! It allowed me to structure my answers better knowing the breakdown and also think separately about each of the requirements rather than being lost in a single line of two requirements.

@lesbella said: I feel you. I think we are all in the same situation due to time pressure. Just barely read thru the question in Q2 and optional question

Just seems odd when you look at the overall pass rates for this paper that it's consistently so low...is it really all down to us students/tuition providers or is there a common denominator...time pressure maybe...crazy paper! Hoping the syllabus doesn't change too much for the Sept 18 sitting now...time to start researching!

Hello Reading the comments made my fellow colleagues, I do recall the paper, and I am not satisfied with what I have written. The paper was really time pressure and I failed to attempt all the questions as expected. But any way just waiting for the outcome as this is my second attempt. Just keeping my fingers crossed as lucky to smile as I am run out of words. Wishing you all best of luck.

Hi all, Yesterday was my third attempt at this paper and this time round was a dream paper for me and really optimistic for a good pass here.

@chris1975z said: I personally think the only circumstance to mirror my disappointment on leaving the exam hall yesterday will be watching England's performance in this summer's world cup. Question 1 blew me away in trying to identify the sufficient number of business risks and RoMM's. Panic set in and poor exam technique followed. Coupled with a poor choice of one of the optional questions (why oh why did I choose the question containing a lump of Financial Instruments?!?!). I felt it prudent to delay issuing a response until today to let the "dust settle" as very emotional after a bottle of Prosseco yesterday afternoon! The only positive was the KAM question but certainly not enough to get me through. Passed every other paper at first attempt. I'll be fortunate to get low 40's on this. I'll take this week "off" (if nothing else then to give my hand a rest) and then back to revision again from next Monday. I genuinely wish everybody the very best of luck and hope all your hard work and effort is rewarded with a pass in July. 3rd September booked as annual leave already.... Best wishes to all.

Chris was this the part of the question with the derivatives? I think you will do better than you think if you've stated the obvious i.e complex area etc!!

@stevo82 said: Chris was this the part of the question with the derivatives? I think you will do better than you think if you've stated the obvious i.e complex area etc!!

From memory I think it's the part where it stated hedge criteria has been met. Sub worked under non-IFRS framework so I suggested risk that parent co IFRS policy not used - i.e. perhaps gains were shown in P&L rather than OCI (as I concluded a cash-flow hedge) and that the consolidation process would not pick up error. Gains only recycled to P&L when the hedged item "matures", thus profits/losses may be overstated depending on gain/loss on instrument at year end if not correctly presented in OCI etc.

@chris1975z said: From memory I think it's the part where it stated hedge criteria has been met. Sub worked under non-IFRS framework so I suggested risk that parent co IFRS policy not used - i.e. perhaps gains were shown in P&L rather than OCI (as I concluded a cash-flow hedge) and that the consolidation process would not pick up error. Gains only recycled to P&L when the hedged item "matures", thus profits/losses may be overstated depending on gain/loss on instrument at year end if not correctly presented in OCI etc.

well your memory is better than mine! what did you write about the investment property in Q1? in my haste and panic of thetime I think I went off on a completely different tangent!!

@stevo82 said: well your memory is better than mine! what did you write about the investment property in Q1? in my haste and panic of thetime I think I went off on a completely different tangent!!

Can't remember much about investment properties in q1 at all? I think I mumbled on that properties as part of construction activities should be recorded in WIP - i.e. profits released as contract progresses using input method (% of profit as costs) or output method (profit released as a % of work complete). In hindsight - I should have pointed to the risks as incorrect classification from the outset and changes in accounting policy (maybe?) - Like I say - Q1...disaster! The only part I was happy with was the provision (retraining costs not allowed) and also procedures (inspect sample contracts for redundancy entitlements, recalculate and verify accuracy to client schedule, inspect offer letters of further employment for those not being made redundant - test completeness, re-cast client schedule - accuracy, inspect board minutes for any legal claims arising from "incorrect dismissal costs". How about you?

@chris1975z said: Can't remember much about investment properties in q1 at all? I think I mumbled on that properties as part of construction activities should be recorded in WIP - i.e. profits released as contract progresses using input method (% of profit as costs) or output method (profit released as a % of work complete). In hindsight - I should have pointed to the risks as incorrect classification from the outset and changes in accounting policy (maybe?) - Like I say - Q1...disaster! The only part I was happy with was the provision (retraining costs not allowed) and also procedures (inspect sample contracts for redundancy entitlements, recalculate and verify accuracy to client schedule, inspect offer letters of further employment for those not being made redundant - test completeness, re-cast client schedule - accuracy, inspect board minutes for any legal claims arising from "incorrect dismissal costs". How about you?

i was rushing to read the question and think i missed the bit where it mentioned a fv gain being recorded (someone mentions this earlier on in the thread) so I talked about incorrect classification etc...suppose its only a couple of marks! i think i talked about most of the business risks and mentioned about revenue being overstated and about the provision as you mentioned I overran this question by about 15mins which meant I was chasing the rest of the paper a little...although i didnt mind the section B questions think I answered Q3 and Q4 and then went back and rushed the last 25 mark question in about 25 mins! The 25 mark question was by far the worst for me just hope i picked up the easy marks! its quite frustrating trying to write enough to make sure you pick up enough marks but at the same time making sure you don't waffle!!!

@stevo82 said: i was rushing to read the question and think i missed the bit where it mentioned a fv gain being recorded (someone mentions this earlier on in the thread) so I talked about incorrect classification etc...suppose its only a couple of marks! i think i talked about most of the business risks and mentioned about revenue being overstated and about the provision as you mentioned I overran this question by about 15mins which meant I was chasing the rest of the paper a little...although i didnt mind the section B questions think I answered Q3 and Q4 and then went back and rushed the last 25 mark question in about 25 mins! The 25 mark question was by far the worst for me just hope i picked up the easy marks! its quite frustrating trying to write enough to make sure you pick up enough marks but at the same time making sure you don't waffle!!!

It's certainly a familiar story - good luck to you, hope it was enough to see you through.