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

@emo777 said:
There is no such a thing like discount. And our approach is right. There is something wtong with kaplan

No I used the Kaplan notes too and got the 62.5%. I think the person is mixing up topics. As there would be a discount for the issue of financial liabilities for example.

@samirrules said:
No I used the Kaplan notes too and got the 62.5%. I think the person is mixing up topics. As there would be a discount for the issue of financial liabilities for example.

Yeah, i mean but not for this case

@accastudent1986 said:
You’re missing the point, the 62.5% related to the contract asset and we were just discussing the revenue recognition element of the product sale with 4 years servicing so the 62.5% has nothing to do with that! My statement said that only $14.8m would be recognised on the sale due to 20% discount whereas you had stated that it should be $15.5m

Im referring to what u mean. The first note. Even there our approach is right go and check specimen december 2014

@emo777 said:
There is no disvount in this type of question concerning revenue

Yes there is, revisit your study text. It clearly states that if a ‘bundle’ is sold at a discount and the information does not state which element is sold below par then the discount must be applied to every element therefore the product and the service revenue should be discounted!

Think about it if the sale totalled 16m but would usually total 20m then a discount has been given of 20%

@kelvin469 said:
Hey there. i have seen your working, they r looking pretty but u haven’t put deferred income for ongoing services of $ 1500000 for both non current n current liabilities n why did u put deferred tax of $3700 on current liabilities? And on income tax expenses figure is ($1550 under provision + $11400 provision – $1100 from deferred tax = $11850 and no need to include deferred tax on OCI coz no need it due to last comment said “Ignore deferred tax on the revaluation”. so only $9200($2000 for land n $7200 for building) gain on revaluation of land and building will appear on oci.

The deferred tax i probably should have offset from current year’s tax charge rather than putting in OCI but regarding the deferred income my comment above applies, deferred income would be 1.2m not 1.5m otherwise you are saying that the 4m discount was given on the product and not the servicing element which the question does not confirm. But yes i messed up the question as i misread it but now i fully understand what is being asked.

I put deferred tax as non current liability in the exam if i remember rightly but messed it up earlier when i attempted the hybrid paper 🙁

But the acquisition revals will not be included in OCI only post evaluations. The reval of the financial instruments would have gone through p&l

@kelvin469 said:
best tips ever . if you want pass acca f7 you better start watch lecture from little Mike n do a lot of past exams papers and if you have enough time then start from 2007 onward and do it atleast twice get used to it coz the more u practise past paper the more chance you increase to pass even with higher mark.Good luck

I’m hoping i won’t have to, although i feel i did badly this time i felt like i did much worse on my first sitting and scored 49%

This exam i find the hardest yet out of F4-F8

i know exams was crazy even i messed up with contract figures both revenue n cost recognised plus amount due frm customer other that that i hope will be enough to pass.

@kelvin469 said:
why $1.2m while they says $500000 pa times 4yrs is 2000000,so from 1 april to 31 march we only recognised $500,000 n remain figure will be deferred liabilities n account entry is debit sales revenue n credity liability ie non current of $1000,000 n current $500,000 .would be easy to discount it but there wa no discount factor ,so how did you get 1.2 as deferred income?

Because the usual sale price of the product + 4 years servicing was 20m but the sale was made for 16m which means a 20% discount was given on the sale so discount product by 20% (18,000,000 x 80% = 14,400,000) and discount service revenue (500,000 x 80% x 4 = 1,600,000) so totalling 16,000,000 per the question

Accastudent1986, i think u totally misunderstood this question

@christa316 said:
But the acquisition revals will not be included in OCI only post evaluations. The reval of the financial instruments would have gone through p&l

Christa, what are you writing? 😀

Where is the Opentuition F7 tutor?:) He would help us:)

Watch your words, buddy! I didn’t insult you!