how did you guys do

I didnt do well in Q2 financial statements and last question plus my cashflow got a bank overdraft of 10!!!!

Was always going to be a struggle and it really was. Made especially worse by leaving out cash flow statements to concentrate on ratio analysis. Looks like that will cost me pretty badly.

Answered the rest ok, naturally balance sheet didn't balance but considering the exceptionally low amount of study that I have done for this it is probably as would be expected.

My thoughts are worst case 40, best case low 50's.

Anyone else at west london? What was the hold up? Took well over half an hour before they let us go.

Hope everyone else went better than me! :)
Matt

The same with me question 2 is done poor.
Qustion 1 is much better, got goodwill, consolid income statement and commented on associate ceasing to qualify as such.
Question 3 (cash flow) was so so, maybe a lttle better than Q2 (i also commented a liuttle bit on working capital changes and clever use of equity as cheaper finance source instead of debt w/o ratios).
Q4 i did good, gave all the definitions and examples, for inventory i listed 4 possible method, one being disallowed under IAS2.
Q5 convetertable loan I computed PV of both loans and PV of convertable loan turned a higher than that of non-convertabke loan and concluded that conv.loan is preferrable option as it will cost company less (less interests payable)
At the end gave j.entries for loans:
DR Cash 10000
CR Convert LOan 10000

Dr INterest Exp 300
Cr Interest Payable 300

Dr Conv Loan 10000
CR Equity shares 10000 (at 31/03/10)

as opposed to
Dr Nonconv Loan 10000
Dr Interest Exp 800
Cr Cash 10800 (at 31/03/10)
MY WORSE CASE IS 40-55 marks. Hopefully it will be a passing score.
This is beacuse i started late (just one week before the exam) + got the worse study text ever (GTG - do to buy them, better pay more for BPP THE STUDY TEXT for F7 from GTG is twice as thick as both my BPP f4+f6 combined, 1/3 of it are just cartoons and cheap MS cliparts, a lot of repititions, mistakes, mistypes, errors.). And their Practice kit is 3 times thinner than usual BPP's and contains only past exam papers from paper 2.5 with no marks allocation scheme and analysis given as in BPP's. You can get all the pervious past exams from acca website for free!
If I don't pass it, I am definately going to throw away the GTG sheise and buy some decent stuff (how is Kaplan, is it better than BPP, and does anybody use i-learn and i-pass - how good are they for F7?)

I was going into this exam this morning thinking that I would surely fail but as I worked through the paper I realised that I was able to attempt most things (and my cash flow balanced!!). Still don't know if I passed or not and got a blank on the convertables shares, only worked out the PV and equity share but didn't do a P&L excerpt for it. I guess I'll know in August.

As for study texts. I think BPP is much better than Kaplan.

My first post here....

It was a very long paper as we all knew it would be.

I started of with the q1 followed by q3, 4 and 5....left q2 for the end.

Think the theory was ok....didnt really know what was expected with the examples on stock would help if you can tell me what you wrote

Cash flow - operating was positive and total there was a decrease in cash?? company paid off the loan and overdraft...talked about how it is not such a bad thing blah blah and the gearing being better now that there is no debt.

how did you handle the 20 million penalty?

on the q5...

i used cost of capital8% and worked out that debt component of hybrid bond was approx 8600 and equity was 1400....so financial asst comments were not correct about gearing but right about profit being better as interest rate on a 3% bond would be better than an 8% bond.

q 2 was a night mare would help if anyone who remembers this questions tell me what you did...i think my result is hangin on this question


Cheers


Ash

hey hey
i thought the whole thing was easier than i expected, although i wasn't all that confident as i seem to have developed a real F7 fear for an unknown reason, despite working really hard.

The only thing that made me draw a blank was the treatment of the penalty re. redemption of loan on cashflow question, they said there was a 20 million penalty included in admin expenses but admin expenses only totalled about 300k. Please would someone enlighten me as to whether i totally misread this, but it drove me crazy. I ended up ignoring it and writing a note to the marker! Nobody else has mentioned this which makes me think i made a cock up. I did the UK version, perhaps this makes a difference as i believe the uk paper is similar to international but minor changes.

Let me know!!

otherwise i liked the consolidated question and the one on convertible loan particularly, and the one on accruals stock and concepts etc was much more pleasant than it could have been!

thank god they are over.

i was not sure about the penalty ...got mixed up with the figures did not even check back the admin expenses...i added the 20 back in the operating cash flow and included this as part of financing - redemption of loan penalty.

man i Knew how to do Q5 but in exam I got completely blank. I gave my self rest but nothing worked out . So ill only get few marks maybe 2 or 3 in that.

Also wat was your Profit for year in Q1 ???

Q2 was such a big blow! too man adjustments!

goodwill was ...25..

profit was 45...i think

45?????????????????

you must be kidding . it cant be 45 !

It was not such a difficult paper but there was not enough much time.
Question 2 was the most difficult one so I left it for the end.
I liked question 5 although I made a minor mistake and I increased the new debt by 8% but I forgot to deduct the current interest paid - this amount should be recorded in the balance sheet.
Question 1 was OK but I got wrong at the end of the I/S and I forgot to deduct the tax expense of the associate.
What was the decrease/increase of the cash in Q3?? I didn't check whether my cash flow statement balanced

what did u guys get the profit figure as....

I did well on question 1, don't know about q2 I did something but was never able to check.
Q3 got cash flow right and wrote some comments. I ignored 20 million penalty
Q5 got debt and equity figures as required

Q4: I explained five concepts as required in part a but I was not sure what to do in part b therefore I wrote whatever was in my mind ........ can anybody tell me what really examiner wanted in part b

Zahid

I'm with you on that one Zahid. I did part (a) but with part (b) I couldn't think how the principles related to stock.

me too...

i waffled along the lines of .....for matching talked about FIFO.....also mentioned FIFO/LIFO for another one....comparability i think...saying that we can't change measurement basis and if we need to restate to get like for like comparison etc.

heyy guys..if u read in a previous topic

this guy Muhammad Amir put out his tips on what was coming..and guess what? he Nailed it on the head..everything he said came..he even said to forget ratios and do cashflows coz the examiner doesnt bring ratio's two times in a row.

well done Mr. Muhammad Amir..WELL DONE!!!

Well, genius, isn't he?

i don't think so - well if put in F4 terms i'd say that there might be some sort of "insider dealing", hope this guy will be tipping us for next session as well for other papers as well

I thought that this penalty is actually for 20K not 20M - it cannot be so high so I just deducted 20 from admin expenses (300K smthg) this was definately one of the trickest part in the exam (or maybe a mistype?)

I used 20K in q3 as well... but because I didn't even notice that the figure was in millions!!!!!!
I think I forgot to include the cash received from the tax asset... hope the rest in the question is OK.

can anybody please tell me, if they remember that is ! .... how much did they calculate for their CASH consideration for the consolidation question?

i hope you guys remember the figure.

As far as I remember... I got $2per share... but I forgot the number of shares acquired...
DF(10%), paid in 2 years, 2.42 --> PV 2
After you had to include the unwinding of the discount for 8 months in the I/S as a finance cost...

i got the total consideration as £105 mill ....and net assets as £78 mill giving a goodwill of £27 mill at acquisition

tHE SAME WITH ME I REMEMBER IT WAS A PERFECT ROUND NUMBER ( WHEN YOU GET SUCH NUMBERS YOU'PRETTY SURE THEY ARE RIGHT!)

was the URPS - 500K?

i think so yes it was 500

URP was 600

1250 sales per month, total of 8 months, total figure 10,000.

total profit was 20% on that, which is 2,000.

now only 3 m left in stock, so the profit attributale was 600.

i myself got the consideration at 2 $ per share. lets see.

mkmk bro u ve just give me a heart attack! i didnt time apportion the unwinding of discount, i thought i had scored atleast 18-19 in I/S, but i guess i lost those two marks..... NO!!! :/

I am really sorry mate...but you don't need 100% to pass... isn't it? ..so take it easy

Your sales calc is correct it was £10 mill in 8 months but the 20% is not calc correctly it is 10/1.2 which is 8.33 ...thus the cost of £3 mill is £2.5 giving you a URPS of 500K.

Hope this makes sense.

Hey, guys, the questions are already uploaded on the ACCA site.. let me see what I've got wrong...

They have corrected the mistake!!!
The figure of the penalty is $20 THOUSAND!!!

Sorry I just saw... it has already been announced in the forum..

mkmk,

Can you post the answers once you have done it....i am going to solve the paper tonight ....and see how bad i did!

guys,

when do you think the answers are posted on the ACCA site

I've done Q1 and Q3 only.. and I didn't want to continue because I didn't want to know what other stupid mistakes I've made....You must be a genius or a mad scientist if you calculate all of the figures correctly for such a short time...

Q1
a)goodwill $27m
b)profit before tax $40m (associate not included)
net profit $29m
Q3)
operating activities-$970
investment activities- $(1270)
finance activities - $430

Please let me know if I've got any of these figures wrong.

[quote:f93b2b0927="mkmk"]

I've done Q1 and Q3 only.. and I didn't want to continue because I didn't want to know what other stupid mistakes I've made....You must be a genius or a mad scientist if you calculate all of the figures correctly for such a short time...

Q1
a)goodwill $27m
b)profit before tax $40m (associate not included)
net profit $29m
Q3)
operating activities-$970
investment activities- $(1270)
finance activities - $430

Please let me know if I've got any of these figures wrong.