TM
F7 EXAMINER’S COMMENTS SUMMARY
This summary has been made to assist ACCA students around the world with their forthcoming exams. GTG has
tried to summarise important points from discussions with examiners; exam paper analysis and examiner’s
comments. We hope this will help you. Please feel free to email us at enquiries@GetThroughGuides.com or visit
our website at www.GetThroughGuides.com. In addition our GTG forum provides FREE support to students on
their ACCA studies – have a look at www.GetThroughGuides.co.uk/forum
1. Format of paper:
All questions are compulsory.
It is a computational as well as discursive paper.
The paper contains 3 questions x 25 marks and 1 x 15 marks and 1 x 10 marks.
Questions may be scenario based, and the requirements may be divided into more than one part.
Question 1: on preparation of consolidated financial statements
Question 2: usually on preparation of financial statements of a single entity
Question 3: on performance analysis either statement of cash flows or calculate ratios and analyse the
performance
Question 4 and 5: Based on conceptual issues
Time: 3 hrs writing + 15 minutes reading
2. How to use the 15 minutes reading and planning time efficiently?
RAPT gives you the opportunity to make sure you are clear about what the examiner is assessing. It also allows you
valuable extra time for thinking and planning. To use this additional 15 minutes most effectively:
carefully read and understand all question requirements, making an informed choice about which optional questions to
attempt where applicable
read through and highlight relevant information and financial data, noting why it is included
take note of the marks awarded for each question and the allocation of marks between different requirements within a
question
start to plan your answers, particularly for discursive questions
think about the order in which to attempt questions
make preliminary calculations.
For more details on how to use reading time effectively, follow the link:
http://www.accaglobal.com/students/publications/student_accountant/archive/2007/78/
3. Examiner interview 2009 (general points):
Common difficulties faced by Possible areas where majority
What was good in the answers
students made mistakes, etc
Computational elements. Consolidation Financial instruments:
According to the examiner, first discounting of deferred candidates often use the nominal
© Get Through Guides
two questions (i.e. on consideration interest rate rather than the
consolidation and preparation of calculation of pre and post effective rate to calculate the
financial statements) are highly acquisition profit. finance cost and gain relating to
scoring. Single entity financial financial instruments described at
statements fair value through profit and loss is
Consolidation: candidates have Calculation of depreciation on frequently taken to reserves.
a good understanding of most of revaluation Deferred tax: inability to
the basic principles and have an Use of nominal interest distinguish between temporary

TM
appropriate approach to answer. instead effective interest rate differences or identifying the
Preparation of financial Statement of changes in change (or movement) in the
statements: equity deferred tax provision as opposed
Most candidates have mastered Performance appraisal to charging the whole of the
the approach of taking figures Ratio analysis – poor deferred tax provision to the
from a trial balance, making analysis of ratios income statement.
appropriate adjustments, and Cannot spot clues in the Some students do not debit the
preparing the required question deferred tax related to the
statements. Analysis and discursive areas revaluation to revaluation reserve
Performance analysis: Cash flow statement (via. Statement of comprehensive
calculation part is very good. Format of statement of cash income) but to the income
flows statement.
Showing inflows as outflows Areas where accounting
and vice versa standards are tested such as
revaluation of non-current assets.
The timing of the revaluation is
often misinterpreted by candidates,
as is the future depreciation
charge.
Statement of changes in equity:
in spite of being an easy topic,
students do not prepare this
Leases
EPS
Substance over form
4. Focus Points:
Planning
Use first 15 planning minutes effectively and efficiently to read, understand and plan the question.
You should decide in advance which question you want to solve first (i.e. where you are fully confident)
Spend some time on presentation of the answer.
See next point on effective use of first 15 minutes.
Steps in the case of calculation based questions
Must read, understand and plan the question before you start answering it and follows the following steps:
Read through the whole question carefully and highlight important bits,
Understand the implications of the important points and plan your answer accordingly.
If required, draw the proforma.
Read through the question once again and give the effects or solve it line by line (keeping in mind the implications of
all the points in the question)
Once again ensure that you have dealt with all the adjustments etc.
Time management
As stated above, the total time allocated for the paper is 3 hrs + 15 minutes
Plan your time properly
© Get Through Guides
Allocate time to each question
Do not spend more time on one question and wind it up within the time limit, if you know that you can answer all the
questions
First attempt only the question where you are very confident
General
Try to improve on the weak areas mentioned in this document
If you are stuck at any question which you have not at all studied, you should try to attempt it. You may get some
marks. Therefore you should complete the questions where you are confident and then instead of dwelling too
much on any question, try to work on all the remaining parts a little even if you cannot complete it.

TM
Candidates need an all round knowledge of the breadth of the syllabus. Therefore study all the topics.
In the pre-exam period, practice as many past questions as you can (do not just read the answers but solve them
under exam conditions).
5. Major pitfalls
Do not attempt all questions
Do not attempt discursive questions well
Poor question planning and time allocation
Lack of confidence to attempt written questions or questions on topics not fully studied
not enough practice of past questions
Bad handwriting
6. How to improve:
Attempt all the questions
Write in legible handwriting
Most of the time, there are clues in the question. You should read the question carefully and should try to spot the clues
Read the questions i.e. requirement carefully and understand the meaning of the verb used in the question.
Students must provide supporting calculations, referenced workings and written explanations in the case of
numerical answers.
Preparation of Statement of changes in equity gives easy marks but many students do not attempt it.
7. Examiners reports
What was good in the Possible areas where
Exam Recommendation
answers majority made mistakes, etc
Dec 2008 Candidates know basic Q1 Consolidation: calculation As due to revision of IFRS 3,
principles of consolidation. of non-controlling interest, calculation of goodwill and
Generally well answered by particularly in the income minority interest has been
most candidates with a number statement changed, examiner is most
achieving full marks likely test the knowledge on
this. Full goodwill calculation
is the most likely area.
Therefore study hard for this
topic
Preparing statements of cash Q3 Performance analysis: Read the question carefully
flow required the comparative and understand the
performance of two separate requirement. Know the
companies from the format of the statement of
perspective of a possible cash flows.
acquisition. Most candidates
treated this as if it was the
comparative results of
the same company over two
years and performed
a trend analysis and not
© Get Through Guides
considered the information in
the scenario.
June 2008 Candidates know basic Q1 Consolidation: a common It is necessary to understand
principles of consolidation error for all of the intra group what actually happens in the
sales (and profits) to be consolidation (theory and
eliminated from the logic behind consolidation) to
consolidated figures. It should deal with intra-group
only be the post-acquisition transactions etc.
sales that are eliminated.

TM
a downward revaluation of a
property required as part of the
fair value exercise had been
accounted for by the
subsidiary in the post-
acquisition period. The effect
of this was that the loss should
have been treated as an
adjustment between the
subsidiary's pre- and post-
acquisition profits. Many
candidates ignored this
treatment and instead
accounted for the write down
again, effectively double
counting the fall in value.
Know how to approach the Q2 Preparation of financial Should have knowledge of
question and as a much statements: for an adjustment the accounting standards.
expected question, practiced a to profit for some goods made
lot. on a sale or return basis. Many
candidates adjusted for the
whole of the sales rather than
the amount covered by the
right to return, and many
deducted the sales revenue as
the adjustment rather than just
the profit element. I often
attribute this type of error to
careless reading of the
question.
The errors made in the SOCIE is a very simple
recalculation of the profit for statement. Candidates
the year were carried on to the should study it and avoid
SOCIE or/and the statement of losing easy marks.
financial position
Calculation of ratios Q3 Performance analysis: Practice more and more
the acquisition had had a questions on performance
substantial beneficial effect on analysis. Can also try the
the results of year 2, but questions from paper F5 or
candidates failed to P5 to develop the analytical
understand and comment on skills.
this. Indeed, without the
acquisition the company’s
results would have been poor,
but many candidates believed
the company’s underlying
performance had improved. In
addition, very few candidates
© Get Through Guides
could ‘see through’ the
selective ratios quoted by the
Chief Executive when praising
the company’s performance.
Many did not even address Candidates should know that
this issue despite the only the cash inflows and
requirement clearly asking for outflows are recorded in the
it. statement of cash flows.
Movements in reserves and They should be able to
provisions were often reported distinguish between the cash

TM
as cash flows. and non-cash flows.
Dec 2007 Calculation of ratios Q3 Performance analysis: Students should improve the
analysis was not well analytical skills e.g. writing
‘current ratio has decreased
from 2.5 to 1.4’ is describing
the facts but not analysing
them. Examiner expects you
to write something like
‘decrease in current ratio
shows that the liquidity of the
entity has been decreased’
and according to the
circumstances in the
question, you can say
whether it is good or bad
Q5 Lease: candidates could Students should study all the
not distinguish the effect on topics. F7 being the base for
financial statements if lease is P2, the examiner does not
treated as a finance lease recommend studying only the
compared to an operating topics on which a question is
lease highly expected but also
recommends studying all the
topics.
Produces world class learning materials at affordable prices
A full range of ACCA and CAT materials
Books 40% cheaper than other ACCA publishers
Gold Approved by ACCA
Books approved by ACCA and on their reading list
The only books that follow ALL the ACCA learning outcomes and syllabus
Visually appealing and easy to learn form
Used by many prestigious institutes and colleges in the UK, Singapore, Germany, Middle East, the Caribbean and
South Asia
GTG's materials include:
Study Text: GTG's study text exactly follows the syllabus prescribed by ACCA and covers ALL learning outcomes. They
are rich in examples, diagrammatic representations, illustrations and mind maps. We follow the principles of instructional
design so that concepts are explained in the easiest possible way for students to understand and master. An added
benefit is a comprehensive glossary at the end.
Question Bank: Exam standard questions have been put together in this book. Detailed explanations have been given
for right and wrong answers, to enhance students' awareness.
Key Notes: These pocket size revision aids help ensure students have understood the most important parts of the
© Get Through Guides
syllabus. Being full colour and more detailed than others on the market, they are diagrammatic, concise and memorable!
For free downloadable samples please visit www.GetThroughGuides.com
Quality + Cost effectiveness = GTG!