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Hi mike
I only use open tuition to study and it has been great so far helping me pass 8 of 9 foundation papers but have failed F7 twice now and will sit it again in September.
Any advice how to get third time lucky? I mainly just use the videos but you have no videos for the first five chapters leaving me vunerable if they ask me anything on them. I find the notes to chapter three impossible to understand without a video.
In addition I went into last exam having perfected chapters 6-9, easily being able to do the long comprehisive example in chapter nine but then the question on this topic had so many swerve balls in it was hardly like anything from chapters six to nine. Any tips here as even if I perfect these chapters again the same may happen again.
Thanks
Paul
You make no mention of trying the mini-exercises. These are a MUST
I had one student in tears when, on the fourth morning, I asked whether there was anyone that had not done the first 4 mini-exercises (homework set on each of the previous 3 evenings and STRONGLY emphasised as a compulsory piece of work to be completed)
She admitted that she hadn’t done the work because she didn’t think it was important
Do those mini-exercises – start to finish.
Practice mcqs until you are totally sick of the sight of them and then practice them some more
Practice the old style questions 2 (preparation of the financial statements for a single entity) after you have completed the mini-exercises
And post on here when you come up against something that you don’t feel on top of
Thanks Mike have taken your advice and doing the mini exercises.
I am not working so just doing it all at the library with open tuition.
Part five excess depreciation and pup I do not understand question three. Yes you sell it for a million more but how do you work out the depreciation part as answer has 200k 1000-800 I’m baffled where the 800 and 1000 comes from. Thanks for any help here.
Paul
If the sale realised a $1 million surplus and the asset has a remaining useful life of 5 years then can you not see that there is now additional depreciation being charged on that $1 million spread over the 5 year period?
Does that answer it for you?
Hi mike sorry I do not understand where you are getting 5 year period from, the question below only says 2.5 years left
Question 3
.Immediately after the acquisition of the subsidiary on 1 October 2010, P transferred an item of plant with a carrying amount of $4 million to S at an agreed value of $5 million. At this date the plant had a remaining life of two and half years. P had included the pro t on this transfer as a reduction in its depreciation costs. All depreciation is to be charged to cost of sales in the statement of pro t or loss for the year ended 31 March, 2011You’ve just written out where the 5 bit comes from
My previous post assumed a 5 year remaining life. You have corrected me by telling me about the 2.5 year remaining life
On what date did the PPE transfer take place?
And what year end are we working to?
Does that answer it for you?
PPE transfer took place in October 2010
we are working to the year end 2011.
Sorry still do not see how we get five as it says at this date there is 2.5 years left. So still do not understand where 800 and 1000 come from.
I understand that 5-4 is 1 million but for deprecation why are we dividing it by five.Because the period that we are looking at is 6 months and 6 months is one fifth of 2.5 years
OK?
Thanks Mike for your help. I will crack on with part six non current assets of the mini exercises tomorrow.
Hi mike
I am going over chapter 19 videos statement of cash flows. At the start In the introduction you said a very high chance of coming up as a question in the exam. Have flicked through three past papers and not seen it in Dec 2014 or the hybrid Sep/Dec 2015 past paper and just four marks worth in question 3e in the June 2015 past paper. seems a very chunky chapter to learn for 0-4 marks or have I missed something.
Paul.
No, you’ve not missed anything
When that lecture was recorded, cash flows were a 50 / 50 chance of coming and interpretation was also 50 / 50
In more recent times the examiner has gradually moved to interpretation questions involving ratios and analysis of results
But cash flows is still examinable and, were it to come up, it could be extremely easy marks … so long as you’re comfortable with the topic!
All these questions are easy … if you know the answer 🙂
Hi Mike
Only two weeks are remaining before the F7 exam and I have not even read through half of the syllabus. What advise would you give to me? Should I abandon the study text and concentrate on questions?
Yes, and yes!
Get heavily stuck into mcqs, mini-exercises at the back of the course notes, questions 2 from past exams before the new format was introduced and lots of consolidations and interpretation questions
You’ve certainly left yourself with a mountain to climb but it’s doable – dependent upon any other demands on your time and, of course, your own motivation
Put your study text away … but keep it handy in case there is something on a high shelf that you cannot reach and you need something to step on
Doing question five of chapter seven. So when goodwill is impaired you take it off at end of working three and working four. However if it is proportionate share then it all goes to working three. So I am just learning this parrot fashion if I see the word proportionate I do it all in working three. I guess this will suffice but can you shed some light on all of this what does it mean? I understand what goodwill is and I understand over time it needs to be impaired but I don’t understand why or how it’s decided who gets impaired, why is it sometimes just the parent and other times also the NCI?
the examiner may say either:
• the parent company policy is to value the non-controlling interest as their proportional share of the subsidiary’s fair valued net assets at date of acquisition, or
• the parent company policy is to value the non-controlling interest on a full or fair value basis
• the key is the use of the word “proportional” or “proportion” or “proportionate”I illustrate this issue in the video lectures!
If nci is proportionate – their share / investment value if their percentage of the fair valued net assets as at date of acquisition
So their investment does NOT include any goodwill
On a full fair value basis, the nci share / investment value WILL include some goodwill
OK?
I know if I see the word proportionate then the steps to follow and if I see full value basis the steps to follow but I am just learning it parrot fashion.
Why have both options?
If ladbrokes bought 80% of shares in a Scottish bookmaker, would it benefit ladbrokes to do it the proportionate way or the fair value way or in the long run it makes no difference? Is the majority of acquisitions in the uk proporportiobate or fair value?
Hi mike
I have got my head round chapters six to ten but this was the case last year when I scored 42%. There is 30 chapters so having a solid grasp of a sixth of them isn’t much! I’m not an accountant so it’s really all Japanese to me, I have passed all the other foundation papers but been very tough and if I pass this one will try and get the honours degree from Oxford brookes then go back to working in the betting industry. so is there any other key chapters I should try and grasp as I won’t be able to get my head round all 30. Chapter 20 has many ratios I’m guessing these need to all be memorised before exam?
Thanks
Paul.
‘proporportiobate’ – I hope not – no-one would be able to pronounce it!
Get stuck in to:
mini-exercises at the back end of the course notes
mcqs from whatever source you can find
old-style questions 2 from the F7 exam before mcqs were introduced
And keep posting!
Hi mike
I can do the first five sections of the mini exercises well, section six is non current assets, it looks like Japanese to me the questions are fairly chunky and I’m totally lost by them. Can you refer me to which of the 30 chapters in the notes should I read before I tackle section six please?
Thanks
Paul
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