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

@pinkyjovin123 said:
So you chose second one

Something like liability understated…

In the 6th a Mcq parent co and subsidiary co ….I don’t remember the q full..

Is it must subsidiary must prepare additional statements unless it is umpractical to do so

pinkyjovin. as per MCQ parent & Subsidiary co. 3&4 are my choice. as per 3rd q. chance of lossing is 55% not 50% as such the outflow is probable thus need to be provided

I dont remember about the rest but regarding the taxes I think in I/S was 4,500 because you already had 2,200 in the trial balance regarding DT

@essien13 said:
Sounds right to me!

sounds right for me as well 🙂

@slibrahim50 said:
in statement of financial position, Deferred tax 4500, Current tax 2300. I/S tax 2600 revaluation surplus 6000. share capital 28000. share premium 3200.
capitalised dev. exp.6600. after depreciation.
any one got same?

I dont remember about the rest but regarding the taxes I think in I/S was 4,500 because you already had 2,200 in the trial balance regarding DT

@yentam said:
yeah magnitude and nature I thought.

me too 🙂

Guys what about thew dividends? I was a bit confused with that… I think that was the hardes from question 3…
On the other had what about the development expenditure should it be amortised for 3 months only so 18/5 or 4 dont remember the time then /12 then times 3?
Any help folks?

Question 1, requirement a (If I remember correctly)

Depreciation of plant…….3000
Expensed development..6000
Decrease of Inventory……..700
Amortisation of lease…. can’t remember the figure

If I remember correctly, this requirement asked for a schedule of events affecting the profit before tax… so I didn’t include taxes adjustments and OCI revaluations…

I couldn’t agree the Financial Position (pretty sure it was due to taxes), but both Assets and Equity&Liabilities sections were in the 60,000s. I do recall the Assets being somewhere in the 69.000 region.

This is my 3rd attempt at F7 and it’s the first time I completed the 30marks Q and I feel confident that I passed. And I always pass when I feel confident after the exam, as F7 is the only paper I failed so far.

MCQ 01: Chose D

MCQ XX: This was probably the #2 question. It asked for the valuation of WIP at year end, giving info about the estimated costs to complete and sell. I think this was a trap question, as the WIP was given at year end, so I didn’t include any future completion costs and selling costs and went with the given WIP as year end valuation. But can’t remember the exact figures.

MCQ XX: This was probably the #3 question, regarding provision, contingent liabilities and assets. I chose the legal case with 55% probability of losing and the outstanding environmental cleaning.

MCQ XX: This was probably the #6 question, regarding parent and sub. I was between 3&4 and ended up choosing the option which had both 3&4 as answers, as they compliment each other and just make sense.

MCQ XX: About what characteristics are associated with materiality (or something like that), I choose Nature and Magnitude.

MCQ 20: I was between “Dividend paid” and “employees/directors” but I chose the latter in the end. Surely they do care about the acquired Co’s profitability (dividends)? After all, if they acquire 100% of the Co, they can replace all employees and directors if they wish to…

Consolidated I/S Q… Share Capital 28000, Share Premium 3200
Adjusted the Investment Income by removing the dividends of associates and putting them in the OCI section instead. Also put the additional FV increase (400k?) of the Sub at year end to OCI. Anyone remember the figure they got as Profit after tax and Comprehensive Income?

When are the results out?

@dipatil said:
the P & L in question 3 was for 9 months?

I adjusted the Sub’s P&L lines to 9/12… yeah.

Anyone else got the unrealised profit at 300K?

Q.3) adjustments for part b p and l.
Add $500000 for fall in provision of contingent consideration.
Ded. $600000 for depreciation on fv adjustment.
Ded. $300000 for unrealised profit
Ded. dividends from associate and subsidiary and gain on equity investment(goes to OCI)
Add. Share of associates profits $120000
Ded. $10800k from both sales and cost of sales
Add. $120000 as set off of provision in part(provided for on acquisition)
Add. $400000 reval. To land and gain on equity investment in OCI.

@abdulbasit16 said:
Q.3) adjustments for part b p and l.
Add $500000 for fall in provision of contingent consideration.
Ded. $600000 for depreciation on fv adjustment.
Ded. $300000 for unrealised profit
Ded. dividends from associate and subsidiary and gain on equity investment(goes to OCI)
Add. Share of associates profits $120000
Ded. $10800k from both sales and cost of sales
Add. $120000 as set off of provision in part(provided for on acquisition)
Add. $400000 reval. To land and gain on equity investment in OCI.

the first 500k you added in P&L right?

what do you mean with this ? Add. $120000 as set off of provision in part(provided for on acquisition)