These ACCA F7 Exam Tips are just guidelines from exam point of view. After introduction of MCQ’s in ACCA F7 and skill level papers of ACCA, it is now important that you should prepare each and every area of syllabus.
These acca exam tips will help you in questions other than MCQ’s while MCQ’s can come up in exam from any area so in order to get success you must cover the breadth of every topic.
ACCA F7 Exam Tips:
ACCA Exam Tips for paper F7 Financial Reporting for June 2015 session are given as follows by famous tuition providers
ACCA Exam Tips are no longer relevant for F7, due to the paper now consisting of 40% OTs, however it is essential to know the wide variety of accounting standards and concepts, as well as being able to construct sets of financial statements.
Twenty 2 mark multiple choice questions on a wide range of topics including several on consolidation and interpretation of financial statements
Expect a few questions on non-core areas (e.g. inflation, specialised entities)
Q1 & 2: Two 15 mark questions
One likely to be an interpretation or statement of cash flows, the other may be a consolidation question if Q3 is not a consolidation.
Other possibilities: conceptual framework, intangible/tangible assets and impairment, provisions and contingencies, revenue and grants, financial instruments discontinued operations/assets held for sale or earnings per share.
Q3: 30 mark financial statement preparation question. Could be for a single entity or a consolidation (statement of profit or loss and other comprehensive income and/or statement of financial position). Will include adjustments on other syllabus areas.
May include a short separate part, e.g. with a statement of changes in equity, statement of cash flows extract, earnings per share calculation or linked written topic.
A consolidation question would include one subsidiary and often an associate, with adjustments, e.g. fair values, deferred/contingent consideration, PUP on inventories/PPE, intragroup trading and balances, goods/cash in transit.
A single entity question could be preparation from a trial balance or restatement of 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, substance over form issues, financial instruments (change in fair value or amortised cost), share issues, government grants, inventory valuation, revenue recognition or construction contracts.
20 two-mark MCQs can be on any area of the syllabus. If the 15 marker is on Consols then many of the MCQs will also be on Consols; likewise, if 15 marker is on Published, then many MCQs will be on Standards.
– Q1 (15 marks): Could be ratios and interpretation, statement of cash flow or mixed standards.
– Q2 (15 marks): Will be on consolidations or published accounts.
– Q3 (30 marks): Will be on published accounts (or consolidations).
MCQs on the whole syllabus.
– Cash basis.
– Opening years/basis periods.
– Corporation tax/income tax losses.
– Corporation tax – long accounting periods.
– VAT invoice content and annual accounting.
– CGT: principal private residence and entrepreneur’s relief, chattels.
40 marks MCQ anywhere from the syllabus
In addition to the 20 mcqs, there are 2 questions worth 15 marks each and will likely be based on one or more IAS / IFRS and or recent articles from Student Accountant.
Possible topics and related articles include:
– IAS 18 Revenue and the article “Revenue Recognition”
– IAS 17 Leasing and two articles “Accounting for Leases” and “Leases – Operating or Finance”
– IAS 41 Agriculture
And the last question for 30 marks – cash flow with maybe a bit of comment on financial situation (last two exams have had financial performance evaluation / commentary)
– Construction contracts.
– Revenue recognition.
– Substance v form.
– Convertible instruments (IAS 32/IFRS 9).
– Accounting for taxation, as part of final accounts.
– Accounting for assets, particularly IAS 16.
– Provisions v contingencies.
Manchester Metropolitan University MMU