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

hahaha. its called passion.

@alanjp101 said:
For the contract asset you had to recognize revenue and cost of sale based on the amount of cost incurred to date over the total experience expected cost. The difference being the profit would then be added to the 5000 for contract asset in the sofp

It should not have been added from what I recall

@alanjp101 said:
Yeah. I did that and the gain of 3750 is added to the asset in the sofp

Jonathon is correct – contract asset at reporting date = $8.75m

@zubairakhtar said:
2 friends who sat the F7 paper said they also got negative goodwill and panicked as a result. Looking at peoples comments here it appears many got negative goodwill so that may be the correct answer.

Its positive.

Anyone got 3.25 million as grant balance in mcq?
354000 as fonsolidated revenue?
93400 as profit to parent shareholders in consolidation?
51600 as value of inventory?

@brenda112 said:
Seriously, that paper was messed up.Question 3 adjustments threw me off a bit and l calculated Convertible loan note on 300k instead of 30 k only noticed my mistake after failing to balance off and realising the unusually big difference, trying to go back to make corrections was a nightmare l messed up, not sure the marker will see anything clearly. l was not expecting Q1 to be extracts. The deferred Tax asset l think is part of the Subsidiary Net assets at acquisition and at reporting date. My Goodwill was positive.
That paper was just difficult

300k or 30k makes no difference as long as your method is correct

@cene89 said:
I calculated the Roce: PBIT/ (Total asset-Current liabilities)

I think different methods are acceptable.

My calc was;
operating profit/(equity + long-term debt)

@cene89 said:
But I didn’t deduct with 9000.

I didnt either. But even if we had to, in vase you wrote the formula and calculated other figures correct (besides 9000) i think we should get partial credits

Negative goodwill ? I don’t think so. The deferred tax was unknown for me, so I recognise it in the RE of consolidated, since it was asking GW on acqn date and the deferred tax was still unknown until reporting date. The question with contract asset I found that it was a loss making ie onerous and recognize it immediately in P/L. Also I had huge difference in my balance sheet due to NCA where there were far less than NCL. About the revenue I confused, I deducted the revenue included and add up the service and the sale of product /4. Mcqs I didn’t had time to do it so I put some in luck.

What’s the 9000 people are referring to for Q2 .. I used PBIT over NCA less CL and wrote out the formula I was using .. Think you had to add back int to get PBIT.

The gave four ratio’s:

Profit Margin – showed it with and without the Dis Op and commented.

ROE – dropped because of lower profits.

Gearing – was up. Think there was a new loan note. Commented that this was prob used to restructure and seen as a better option than issue shares and diluting shareholding.

Current ratio – showed the effects of holding the “assets held for sale”

Concluded by saying that company looking to rectify the situation and possibly taking in the hits this year .. Would need a longer term view blah blah.

Was last question so was fighting the clock.

Thought the paper was okay initially but starting to doubt myself on a lot of the MCQ’s. How do people remember their MCQ selections? Do they write them in attendance docket?

The total cost is 24, not 39, first I was confused as well but after reading it again, I realized that it said “total expected cost”, not “expected cost to complete.”

Yea, Billy, you’re right on the contract asset note… total cost was 24 while revenue was 30

@ gavin23, I have also wondered how people remember their MCQ selections… they probably look through & memorise towards the end of d exam & write out thereafter or as u said, they probably scribble it on the exam docket… #justpondering

@michael01 said:
I also added 2.5 to revenue and increased AR by same amount… additionally, I added the profit from the contract and put a note that I have included the profit in the Revenue since there was no clear direction on where to add it (I mean, we could have added the whole contract revenue to Revenue and then add the whole contract cost to Cost of Sales- to still arrive at the same effect of the profit from the contract…) My statement of financial position was balanced as well, tho’ that does not mean I treated all the notes as expected.

Got a positive goodwill of 1.4m or so in Q1… the revaluation loss in the asset reduced the net assets by 2.5m (I have heard quite a good number of students saying they increased the net assets with this value).

Q2… used current ratio, net profit margin and expenses/revenue ratio. I think I did not use gross profit margin as I couldn’t link it to the discontinued operations…

And yea the MCQs, kinda came easy (at least, way easier than F8)… buh there was that question of computing NCI or so, which I don’t understand where the options came from…lol

Well, I thank God for seeing me through this paper.

Remember any of mcqs to discuss?