*** F7 June 2016 Exam was.. Instant Poll and comments ***

As far as i remember, there were no dividends either

What am i missing then lad?

There was mcq which had an option: gain on revaluation is recognized st the disposal of assets. This statement is wrong, right?

@almasha said:
Could you,please, give any hints and advises to those who is going to have this exam paper F7? Thanks!

Sacrifice one 15 points question that u know worse than the other, do other 15 points whole and 30 points whole

@accastudent1986 said:
From the revenue recognition for the product with 4 year service agreement? The product was already sold for $18m and only $16m recognised TD so increase by $2m plus additional $500K for the first year of service element the remainder wouldn’t be deferred would it? If it were then a corresponding asset would also need to be setup

The sale relates to a single product and includes ongoing servicing from Downing Co for four years.

So, 16m inludes already those 4 years

@accastudent1986 said:
Where are you getting those values from?

2m is total for four years, 500 of which is recognized this year in addition to 18m

@accastudent1986 said:
Haha this is confusing me now!

So you’re saying revenue from this sale should be $14.5m ($16m – $1.5m)? and that the $1.5m should be the deferred income liability?

16 includes 2000, but should only include 500. So deduct 1500
16 includes other 14000, but it should be 18000. So add 4000

167900-1500 plus 4000 is equal to 270400

1500 is deverred income

Anyone know the correct approach for question 2? I estimate I’m sitting on about 40-45% excluding question 2 so I wish I could put my mind to rest that I’ve scrapped a pass or not, really could do without resitting this one lol but fear I may have to. Also anyone know the format of computer exams? Is it just going to be the same but with a computer?

@accastudent1986 said:
I’ve just read the revenue chapter and i think we’re both wrong! Should be as follows;

Total standard cost = $20m
Actual sale price = $16m
Discount = 20% (($20m-$16m)/$20m)

Therefore;
Recognition of product = $18m-($18m x 20%) = $14.4m
Recognition of service rev = ($2m-($2m x 20%)/4) = $400K

So current allowable recognition = $14.8m
Current deferred = $400K
Non-current deferred = $800K

We used the correct rate of 62.5% which comes from 15/15+9

@kevikraze said:
Anyone know the correct approach for question 2? I estimate I’m sitting on about 40-45% excluding question 2 so I wish I could put my mind to rest that I’ve scrapped a pass or not, really could do without resitting this one lol but fear I may have to. Also anyone know the format of computer exams? Is it just going to be the same but with a computer?

https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/specimen-exams.html

There a link here showing a specimen f7 Acca paper for the computer based method. Hopefully this will help you get a better idea.

@emo777 said:
Kevin, how much for mcqs?

Not certain until I can see them all with options but I think maybe 10 or 11 on mcq.

@samirrules said:
https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/specimen-exams.html

There a link here showing a specimen f7 Acca paper for the computer based method. Hopefully this will help you get a better idea.

Thanks sami

@kevikraze said:
Not certain until I can see them all with options but I think maybe 10 or 11 on mcq.

Optimistic u are about q1 and q3 then!