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Thought the mcq’s were very manageable but the long Qs threw me a bit :\ Q1 looked super easy but I must have made a mistake because I ended up with negative goodwill which I don’t think was right 🙁 Q2 ROCE was straight forward, the second part was pretty nice but I’m not sure I referenced the discontinued operation enough in my analysis. Q3 I got very muddled on unfotunately, just hope I scrapped enough to pass!
this paper was very hard. i can be happy if i can manage to score 50%pass. qn 3 was very tricky. and i also got negative goodwill
I found that exam pretty brutal. MCQ’S were ok and I didn’t take the allocated 72mins to do them, I never balanced on question 3, question 2 – I only noticed the 5 marks question 2 mins before the end and question 1 I did workings about 80% but never completed.
If I get 50% i will be happy but I am doubting I will.
The multiple choice questions were uncharacteristically fair. Question 3 was difficult. The question with the Comprehensive Y statement, Cons SFP and change in Equity was mind blowing even though notes were not required. The Consolidation extract adjustments were also a tricky. I got a negative goodwill …. was NCI FV $5.4?. I think as usual the main problem is time. I prepared well enough but time is of the essence! The interpretations question with the 10 ratios was not too bad. Overall it was a difficult paper vis a vis time.
What was the mcq about how inventory should be recorded? Where is showed the selling price, labour, direct costs, v o/h etc? I thought it would be all costs except selling costs and the fixed o/h but that wasn’t there, what was it supposed to be?
I found this exam to be a disaster and don’t think it was a very good test for the syllabus especially seeing as none of the questions in section B asked for a consolidated financial statement
What performance ratios did everyone use in question 2? I went for gross, net and operating profit margin and ROE but then reread the question and realised that i needed to make reference to discontinued operations so i completely messed Q2 up!
For question 3 i am comfortable that i got the right values for the covertible loan, for the revenue i added $2.5m as only $16m had been recognised for the sale of product with service agreement but i really struggled with the contract asset! I didn’t know if we were suppose to increase revenue because of this or just add it to the SOFP as the question didn’t specify! What did everyone put in P&L regarding contract asset?
I found 3/4 of the MCQ’s relatively easy, one of them didn’t make any sense, can’t remember the question number but it asked to calculate NCI share of profits of $2.1m, i calculated the amount to be way more than any of the 4 options
Lower of Cost and NRV ie.. I think the Sales price / unit had a commision/expenses rate of 3.5% of SP. This had to be subtracted from the SP and compared with the cost build up. both were 17…. but one was slightly lower. you had to chose the lower.
I thought this exam was very hard I found even the mcq difficult, several times there were two I knew where right and one maybe right and of course it gives you the options of 2 or 3. Im not a fan of the mcq, it is not fair to not award marks for workings.
Question 2, I am generally good with ratios but in this I didn’t know which numbers to use to calculate it said the continued operation only? So was that the profit at the top part, did you have to take the discontinued operation from the capital employed. So I then done my commentary based on what I calculated, do you get marks for valid comments based on incorrect ratios?
Also I had planned to come back at the end and reference all my workings, however ran out of time, do you lose marks for this? my workings are all there and clearly layer out but just not referenced to each number on the statements. 🙁
It was a bit naughty that one of the questions brought absoprption costing into it, i don’t believe that should have been in the F7 exam
I thought Q3 was ok, could be completely wrong of course.
For the 16m sale I got that 1.2 should be deferred income as it relates to the support so reduced income.
Contract asset I increased revenue and the asset by 3.75m.Didn’t like Q1, was confused by it asking for extracts and what was the deal with that deferred tax asset? I didn’t get any negative goodwill so maybe I mess up but it’s not the end of the world.
Q2 I did gearing, interest cover, gross profit and I think the current ratio but can’t remember. Probably didn’t relate enough to the discontinued.
Multiple choice seemed OK, I got a LOT of Bs though!
It was obvious that today the question for 30 marks will be for Single entity. Because if you read last five examiner’s reports will notice that the examiner is very consistent, on march 2016 the big question was for Consolidation, dec 2015 Single entity, sept 2015 Consolidation, june 2015 Single entity. And small question was logical to test goodwill, consolid statements…and ratio always appear on f7.
@aimeer85 said:
I thought Q3 was ok, could be completely wrong of course.
For the 16m sale I got that 1.2 should be deferred income as it relates to the support so reduced income.
Contract asset I increased revenue and the asset by 3.75m.Didn’t like Q1, was confused by it asking for extracts and what was the deal with that deferred tax asset? I didn’t get any negative goodwill so maybe I mess up but it’s not the end of the world.
Q2 I did gearing, interest cover, gross profit and I think the current ratio but can’t remember. Probably didn’t relate enough to the discontinued.
Multiple choice seemed OK, I got a LOT of Bs though!
I got a positive goodwill too, so maybe I made a mistake too, ah well at least there is error carried forward. I got a lot of bs too, it made me laugh though as a tutor said if your not sure got for B.
I thought question three was pretty good tbf, I think I was only 170k from it balancing.
I thought you had to recalculate the contract asset, and got 8750 if I remember correctly.Poor time management costed me 17 marks.. I also forgot to do the ‘other comprehensive income’ part of the SOPL and OCI.
In general it was a nice paper.. I found most mcqs to be straight forward.. messed up on ratios in section B question 2.. and the last 5 marks question in question 3 (didnt attempt at all)..
Otherwise it was ok..
Think I got same on contract. I put 1.5m of servicing to deferred income and took one year of it (500) in this years revenue. Q3 wasn’t too bad but my page was a mess with crossing out figures etc.
Q2 I done Prof Margins, Curr Ratio, Gearing and ROE .. Done a few ration for the discontinued too to show how it effected the accounts .. Was my last question so fairly winging it on the analysis.
Q1 looked easy but was a bit iffy .. I got positive gw but I think it was something like 7m which couldn’t be right … What’s the story with reduction in FV,s of acquired assets – do you add back excessive dep for retained earnings .. Consol usually my fav q but messed this up a bit cos it seemed to easy.
MCQ were sweet enough .. Hopefully got 30 marks at least.
Yup 8750 is what I got for the contract asset, so increased it by 3750 as the balance was 5000 on the tb
@gavin23 said:
Think I got same on contract. I put 1.5m of servicing to deferred income and took one year of it (500) in this years revenue. Q3 wasn’t too bad but my page was a mess with crossing out figures etc.Q2 I done Prof Margins, Curr Ratio, Gearing and ROE .. Done a few ration for the discontinued too to show how it effected the accounts .. Was my last question so fairly winging it on the analysis.
Q1 looked easy but was a bit iffy .. I got positive gw but I think it was something like 7m which couldn’t be right … What’s the story with reduction in FV,s of acquired assets – do you add back excessive dep for retained earnings .. Consol usually my fav q but messed this up a bit cos it seemed to easy.
MCQ were sweet enough .. Hopefully got 30 marks at least.
I think with the fv of acquired assets you adjust them in their relative retained earnings. I think the sub fell 200 after acquisition so there would be a fall of 200 in post acq reserves of the sub and I think there was a gain of 600 in the parent so that would increase group retained earnings by 600.
The contract asset said that the balance (of $5m) in assets was relating to costs incurred TD and that $10m had been received from customer already so total costs TD were $15m and total expected costs were $24m and total expected revenue was $30m so 15m/24m = 62.5% and 62.5% of $30m = $18.75m
That would mean to add $18.75m revenue, add $15m to cost of sales?
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