【ExamTips】ACCA F7 Financial Reporting

MCQson the whole syllabus.

Q1:Interpretation of accounts, including a statement of cash flows.

Q2:Extracts from consolidated SFP or SPL with associate, PUP and fair valueadjustments.

Q3:Single company accounts question (SPL, SOCIE and SFP), including non-currentassets and taxation.

Section A

20two-mark multiple choice questions on a wide range of topics including severalon consolidation and interpretation of financial statements. Expect a fewquestions on non-core areas (e.g. inflation, specialised entities)

Section B

Q1& 2: Two 15 mark questions

Onelikely to be an interpretation or statement of cash flows, the other may be aconsolidation question if Q3 is not a consolidation.

Otherpossibilities: conceptual framework, intangible/tangible assets and impairment,provisions and contingencies, revenue and grants, financial instruments discontinuedoperations/assets held for sale or earnings per share.

Q3:30-mark financial statement preparation question could be for a single entityor a consolidation (statement of profit or loss and other comprehensive incomeand/or statement of financial position). It will include adjustments on othersyllabus areas.

Mayinclude a short separate part, e.g. with a statement of changes in equity,statement of cash flows extract, earnings per share calculation or linkedwritten topic.

Aconsolidation question would include one subsidiary and often an associate,with adjustments, e.g. fair values, deferred/contingent consideration, PUP oninventories/PPE, intragroup trading and balances, goods/cash in transit.

Asingle entity question could be preparation from a trial balance or restatementof given financial statements with the usual adjustments for depreciation,revaluation and current/deferred tax (including deferred tax on revaluations)plus a mixture of adjustments on other syllabus areas, e.g. leases, substanceover form issues, financial instruments (change in fair value or amortisedcost), share issues, government grants, inventory valuation, revenuerecognition or construction contracts.

Section A

20two-mark MCQs can be on any area of the syllabus. If the 15 marker is onConsols then many of the MCQs will also be on Consols; likewise, if 15 markeris on Published, then many MCQs will be on Standards.

Section B

Q1(15 marks): Could be ratios and interpretation, statement of cash flow or mixedstandards.

Q2(15 marks): Will be on consolidations or published accounts.

Q3(30 marks): Will be on published accounts (or consolidations).

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