FR*** F7 December 2013 Exam was.. Post your comments ***

My cashflow in Q3 was highly positive (7000 or so?). But the bank balance went from plus 200 or so to an overdraft of 200 or so... so cashflow must have been extremely negative. Can someone comment on that? I must have made some major mistake in Q3.

@frank that's exactly what I said for q5. But for q4ii because they were asking for YE Sept 13, and the sale of the property occurs on 1 oct 13 with a profit on disposal of $1.5m does this not mean an adjusting event and events after reporting period? Restate so next year no profit occurs and then deal with the sale next year. Not a sale and re purchase as they are making a profit and also that it is available on the open market if they reject to buy it after 5 years.

none of mine balanced. i tried many papers before bt this was just the longest. i failed knowing the answers.

@tbm13 Cash and cash equips on cash flow statement Net cash outflow for the year (500) Cash and cash equivs at start of year 300 Cash and cash equivs at end of year (200)

That was hard, note nought time. Q1, took the bargain price off profit and did not put the consideration on the balance sheet in liabilities even though I noted it.. Pup 600 tricky way of putting the question on pup and took of cos and revenue the intercompany sales. I did time apportion months of profit and loss, but I know I made load of mistakes Needed more time to think about it. Q2, not too bad, insurance I reversed the allocation of the insurance cost posted to the provision and put the 250 to admin costs and left the provision at 400k. Leases was ok worked out current and long term liability Spent so long on q1 And q2 I only had an hour left for q3/4/5 my writing got messing as I rushed through, q3 was ok, q4 substance over form, sale and repurchase and factoring company, my answer was so messy, not sure I will get any points, q5 did not answer. Overall allot to think about if you 4 hours the paper would have been more achievable, hope it passed.

@anuj428 do you remember what caused net cash flow to be negative? What were the major outflows? I remember one property that was purchased, but another one was sold for about the same price. Some money must have been raised by selling shares (since ordinary shares went up). I don't see any huge outflows. But obviously I must have missed some...

My cash flow didnt balance by $100 . Otherwise...briefly there were equity dividends paid of 2800. Acquisition of ppe 3500 Acquisition of inv property 1400 Issue of shares 2200 Plz sm1 explain on the accrued interest from 50 to 100

@cosmic89 now i know why my cash flow did not balance it was due to the equity dividends, where was that info given??? we also had to add back 700 on fair value valuation as it was a non cash transaction. for the interest we needed to create a T- account

When can we get to see the December 2013 paper online? Do they put it online after a couple months or will it be in the coming weeks?

@acca a couple of days

I think the accrued interest was to do with the finance costs so b/f accrued + finance costs - c/f accrued = paid in year

This Paper was hard...time pressured.. Well, its done now...we can only cross fingers and hope for a miracle! lol Am moving to my next paper...and, hopefully its gonna be much better :) Goodluck guys xx

@acca paper should be up in the next couple days. NOT couple of months. @tbm13 of the top of my head I know there was a dividend paid around 2k, there was purchase of so e ppe of I think 3.5k. Can't remember what else!

I didn't spot the equity dividends either but mine didn't balance by exactly that amount so hopefully just that one error in my CF. I kept forgetting dividends in all practise questions, I have written all over my notes in capitals "don't forget to look for dividends" & I still forgot!

@acca oops sry typing error @anuj428 is ryt

Yeah as @vishali says it done now! Should really move on to my next paper...

@wajiman should compare retained earnings 2012 + profit year 2013 to retained earning 2013. Difference means equity dividend paid

I had cash flow from ops of 3,400, investing (6,100) and financing 2,200 leading to (500) for the year, factor in the positive bank balance b/f of 300 and was left with (200).

That was a hard paper. How many marks do you lose for each adjustment? Does anyone know?

I got the purp 600 , and negative goodwill 11950 is it right?

what u ppl did with construction contract profit?

Q1, Got a negative value for goodwill which was expected and profit realised in the P/L. PUP was 600 which was taken out of Southstar's profits and therefore the NCI. Eliminated 4000 out of both P and S (Revenue and COS), 200k loss went through the P/L and the investment less cash investment in S went down by 200k in the SOFP. Time apportion all of S's figures (6/12), Q2, construction contracts with revenue and cost matched based on work certified / agreed price (40%), the revaluation for buildings increased by 400k, ie this increase the carrying amount by 400k and the inc. dep charge by 400k/remaining life. Land reval was ok no depreciation for land. The finance lease was a tricky one in this exam, finance lease was recorded at cost (35m), however, the present value of the payments (9.2m) per year amounted to 34.875m so it should be recorded at this amount, this also slightly changed the depreciation amount, owned plant and machinery was easy depreciation. Q3 Quite straight forward, part b especially, mentioning a few profitability ratios and confirming what the operations manager thought Q4, part a, faithful rep, ensuring free of error and complete, difference is that fundamental characteristics ensure the information is accurate and representative of the business and gives a true and fair view of the status of the business, enhancing characteristics such as comparability increase the value of information for users. part b, the amount due depends on finease retrieving the monies, which is not in control of the company in question, therefore, disclose as a contingent asset is it is probable that money will be received and if not then dont disclose. the 10k and 2% charge would usually be a provision but since none of the receivables were recovered at the end of the year, the money due is an obligation and therefore a financial liability. part c, since the property is being used solely to earn rentals on, it will be capitalised as an investment property even though they are not the legal owner of the building (substance over form) Q5, the operating lease - another tricky one, this one ceased to be an operating lease because the lease term was 20 years and UEL was 8 years, ridiculous, most people would have put down 2.4m rentals to the P/L every year. That restructuring of 7m is specific to the building and company using it, so once again supports the notion of a finance lease , however, the 5m would have to be provided for against this 7m. That's what I made of it. Decent paper overall

Price of contract = 25,000 Costs to date = 14,000 Certified work = 10,000 Total revenue = 25,000 Total costs = (14,000) Estimated costs to complete (6,000) Total profit = 5,000 % of work done = 10,000 / 25,000 = 40% Revenue recognised = 10,000 Costs = (14,000 + 6,000) x 40% = 8,000 Recognised profit = 2,000 (P/L) SOFP: Costs to date = 14,000 Attributable profit = 2,000 Amounts recoverable on contract = 16,000 (SOFP current asset) That's what I make of it.

operation 3000 investing ( 2900) finance (600) cash (500) opening cash = 300 answer (200) as bank was in liability so bank od

in Q1... i made mistake in unrealisd prft. hw many marks will b deducted for dis. and in Q2 made mistake construction contract. whether i will get marks or not. ??? or my whole answer is going to b wrng ??? em hell worried... kindly guide me

Not an easy paper though. Had lots of workings to be completed in that limited short period of time. Question 1 and 2 took a lot of time, at some instances in past exam papers, there has not been such a demanding preparation of financial statements as seen on this paper. Not so friendly adjustments, "nasty little tricks' and Steven Scott is very good at that. If they had asked for one financial statement on qn2, it was going to be a normal exam. Question 4 and 5 were very tricky and I have done what MikeLittle says..something is better than nothing...at some point I though of scribbling something and again I debated the idea that this might be too off track and the examiner will laugh.....but I wrote it anyway. Time pressure exam, the examiners have to understand our handwriting to that effect. God bless, hope to pass!

Q1 got negative goodwill - added back to RE, depreciated difference revalued asset, pup is 600, reduced revenue and cost of sales by 9 and 4, over all everything balanced Q2 got profit of 2 on contract, revaluation on asset was reduced by deferred tax, normal depreciation of 5 on leased asses, lease is divided into long term (something like 16 (don' remember) and short term (6.5 i think), i didn't recognise insurance costs of 400 (not probable) and increased costs by 250 (as already incurred), deferred tax were split into two parts - revaluation and normal, so finally i had to distract it from normal tax. again everything balanced Q3 got 0.5 negative Q 4 all of the activities i suppose were loans Q5 left it as operational lease with rentals, capitalised expenditure over 8 years, 5 treated as provision, with finance cost of 400 pa did anyone get something something similar?

This was pretty time pressured, I managed to get Q1 done in about half an hour, and it balanced, I got negative goodwill of 3,400 and put it in non current liabilities, don't know if this is correct, but I did the UK paper and I didn't have a clue on the difference between UK GAAP and IFRS treatment for negative goodwill. Did anyone eliminate both the 4m goods transfer and 9m sales? I got a 600 PUP Question 2 was the most difficult, I spent about an hour or so in this, so question 3, 4 and 5 was rushed. Hoping I scraped enough to pass. Hope everyone else done well :) on to F8 tomorrow!

Apart from q1 I found the rest tougher than previous years papers and really time pressured, went way over my 45mins for q2.

Hoping for a pass , Q3 was easy , Q1 and Q2 hoping to get 30 out of 50 in those question .... Now it's f9