How to analyse ACCA FR Section C question Print Co 2022 past paper | ACCA Financial Reporting Exam
Summary
TLDRThis video tutorial guides viewers on how to tackle a financial reporting question for the ACCA F7 exam, focusing on the statement of financial position and the income statement. The presenter offers insights on exam techniques, the importance of timelines, and adjustments, and emphasizes the necessity of detailed workings to secure marks. Exclusive notes and further resources are available through the provided link, aiming to streamline preparation and enhance exam performance.
Takeaways
- 📚 The video is a tutorial on analyzing and preparing for an ACCA F7 exam question, focusing on the Statement of Financial Position and the Income Statement.
- 🔍 The presenter suggests downloading a classic financial reporting mock paper from the ACCA study hub to practice.
- ⏰ The recommended time to spend on the question is 36 minutes, based on 1.8 minutes per mark, with a maximum of 40 minutes including adjustments for human marking.
- 📝 The presenter recommends starting with Section A, then Section C, and finishing with Section B to manage time effectively.
- 📈 The importance of creating a timeline when preparing financial statements is emphasized, to track events before and after the accounting period.
- 🧐 The presenter advises using Excel or the CBE platform to layout the Income Statement and Statement of Financial Position for exam preparation.
- 📊 Carrying forward figures correctly, especially net profit or loss to the Statement of Financial Position, is crucial for scoring marks.
- 📋 The presenter suggests making notes on adjustments and using them to review mock papers and past questions for exam technique.
- 💡 Understanding the accounting equation (Assets = Equity + Liabilities) is fundamental for balancing the Statement of Financial Position.
- 🔑 The video highlights the importance of 'workings' in exam technique, as they help the marker understand the candidate's thought process and award marks accordingly.
- 🚨 The presenter warns about the potential for the examiner to use bold or highlighted terms to test candidates' attention to detail, such as a tax refund being a cash inflow.
Q & A
What is the main focus of the video?
-The main focus of the video is to guide viewers through the process of analyzing and preparing a financial reporting classic ACCA question, specifically on the statement of financial position and the income statement, which could appear on the F7 exam.
What is the significance of the timeline in the context of the video?
-The timeline is significant as it helps to distinguish between transactions that occurred before the accounting period and those that occurred afterwards, ensuring accurate adjustments are made in the financial statements.
What is the recommended approach to tackling the ACCA F7 exam questions?
-The recommended approach is to first work on section A, then section C, and finally section B, ensuring no more than 40 minutes are spent on the task. It is also suggested to use workings carried forward figures and to practice with mock papers and past exams.
Why is it important to carry forward figures in the exam?
-Carrying forward figures is important as it helps in maintaining consistency across the financial statements and ensures that the marker can follow the candidate's thought process, which can lead to easier marking and potentially higher scores.
What is the purpose of the notes provided in the video?
-The notes provided in the video are meant to serve as a guide and a template for candidates to follow when preparing their own financial statements, highlighting key components and adjustments that need to be made.
How does the video suggest candidates should approach the income statement and statement of financial position in the exam?
-The video suggests that candidates should use an Excel spreadsheet or the CBE platform to layout the income statement and statement of financial position based on the answers, ensuring they understand where each component fits within the financial statements.
What is the significance of the accounting equation in the context of the video?
-The accounting equation, which states that assets equal equity plus liabilities, is significant as it is the basis for ensuring that the balance sheet balances and reflects the correct financial position of the company.
What should candidates do when they encounter adjustments in the exam?
-Candidates should carefully consider the adjustments, noting the date of each transaction and its impact on the current accounting period, and make the necessary adjustments in their financial statements accordingly.
How does the video address the issue of a non-current asset being sold after the year end?
-The video explains that a non-current asset sold after the year end needs to be reclassified in the statement of financial position as a current asset held for sale, reflecting the change in its status.
What is the importance of 'workings' in the exam according to the video?
-The importance of 'workings' in the exam is emphasized as it helps candidates to demonstrate their understanding of the financial reporting process, making it easier for the marker to award marks and follow the candidate's reasoning.
What is the final tip provided by the video for candidates preparing for the financial reporting exam?
-The final tip is to imagine marking one's own work, which encourages candidates to be thorough and detailed in their workings, ensuring that even the simplest aspects of the financial statements are correctly accounted for.
Outlines
📊 Introduction to Financial Reporting Exam Preparation
In this video, the presenter guides viewers through the process of analyzing and preparing for a financial reporting exam, focusing on a classic ACCA question from the March and June 2022 papers. The question covers both the statement of financial position and the income statement. The video provides insights and tips on creating effective notes and offers access to exclusive notes through a link in the description.
🗓️ Creating Timelines and Preparing Statements
The presenter emphasizes the importance of creating a timeline for understanding the financial period in question, starting from the 1st of July, 2001, to the 30th of June, 2002. This section covers the preparation of statements of profit and loss and the statement of financial position, including how to handle different adjustments and transactions within the period. Tips for exam technique, such as using Excel or the CBE platform for layout, are also discussed.
📅 Adjustments and Exam Techniques
This paragraph delves into handling specific adjustments and transactions, such as interest on loans and sales of non-current assets. The presenter highlights the importance of correctly apportioning figures and ensuring that transactions falling outside the current accounting period are properly classified. The focus is on maintaining accurate records and understanding the implications of various financial events.
📝 Importance of Workings and Mock Papers
The presenter stresses the significance of detailed workings in the financial reporting exam. They advise students to practice with mock papers and past exams to familiarize themselves with the exam format and to help markers follow their thought process. Key points include understanding tax refunds, recognizing liabilities or assets, and ensuring all figures are carried forward correctly.
📚 Final Tips and Additional Resources
The video concludes with final tips and a reminder to check out additional resources through the provided links. The presenter encourages viewers to like the video, leave comments with questions, and watch related videos for further exam preparation. The goal is to equip viewers with the knowledge and techniques needed to pass their financial reporting exam.
Mindmap
Keywords
💡Financial Reporting
💡ACCA
💡Statement of Financial Position
💡Income Statement
💡Trial Balance
💡Adjustments
💡Timeline
💡Perforer
💡Retaining Earnings
💡Workings
💡Tax Refund
Highlights
The video guides viewers through analyzing and preparing a financial reporting classic ACCA question for the F7 exam.
Focuses on the statement of financial position and the income statement, which are key components of the financial reporting exam.
Provides insights on what to look out for in exam questions and encourages creating personal notes for better understanding.
Offers access to exclusive notes and other associated videos to save time and enhance exam preparation.
Suggests a time management strategy for the exam, recommending 1.8 minutes per mark and not exceeding 40 minutes for section C.
Advises starting with section A, then C, and finishing with section B for optimal exam performance.
Emphasizes the importance of understanding the timeline and adjusting entries based on events before and after the accounting period.
Recommends using a timeline to track the sequence of events and their impact on financial statements.
Discusses the use of Excel or the CBE platform for laying out income statements and statements of financial position.
Stresses the importance of carrying forward figures accurately to ensure consistency between the income statement and statement of financial position.
Details the process of adjusting non-current assets held for sale and their reclassification in the statement of financial position.
Provides a strategy for handling year-end purchases and their valuation in the financial statements.
Advises on the treatment of tax refunds in the statement of profit and loss, emphasizing their impact as a cash inflow.
Encourages thorough working calculations to assist markers in understanding the candidate's thought process and to secure marks.
Suggests that candidates imagine marking their own work to identify areas for improvement and clarity in presentation.
Reminds viewers to pay attention to details such as the treatment of tax refunds and their classification in the financial statements.
Ends with a call to action, encouraging viewers to like the video, leave comments, and explore related financial reporting videos for further assistance.
Transcripts
in today's video I'm going to take you
through how to analyze and prepare a
financial reporting classic Acca
question that could come up on your F7
exam all about the statement of
financial position and the income
statement which it's a financial
reporting exam they have to test you on
either one of them thankfully for you
the print code question from the March
and June 2022 paper actually has both of
them so that at the end of this video
I'm going to give you some insights what
look out for and then you can be able to
create some notes yourself that could
look like these if you'd like access to
those notes which are exclusive click
the link in the description of this
video and you can have a look at some of
the other videos associated with it to
save you tons of time and the answers
are all fully analyzed as well but let
me take you through now the printco
question so this is a classic
downloadable document you can get from
the Acca study Hub a financial reporting
mock paper classic P paper question
trial balance and we were asked if I
come down to the bottom right now to
prepare a statement of profit and loss
for printco for the year ended 30th of
June
2002 and also on that so eight marks for
the income statement and 12 marks for
the statement of financial position
again for the same year end 20 marks in
total you should be working on the basis
of 1.8 minutes per Mark altogether 36
minutes is the sort of usual Benchmark I
would say now some students like to go a
bit higher than that because section c
is marked by a person I would actually
say because it's marked by a person an
actual marker uh you get workings
carried forward figures I would be doing
your exam section A first then section c
and then section B to finish with
section c you can't spend any more than
40 minutes you might be able to pinch a
few minutes from section A and to have
that as a as a bid in hand to go through
these style of questions as what you
tend to see in these areas is you get
lots of little notes on here adjustments
that go through the actual question
itself but one thing that will help you
out when you're going through this style
of question is to actually draw a
timeline so let me pull up my notes on
here for you so you can see the top of
them what we actually were told exactly
from the requirement straight the way we
had the 30th of June 2002 as the year
end so in my mind when I was doing these
notes going through it the 1st of July
2001 is going to be my first day of the
year and that is absolutely critical for
me as I need to be checking what
happened anything before the start of
the accounting period and also
afterwards another key thing for your
little uh notes and tips for this is
doing a per forer now what that means is
is that you could use an Excel
spreadsheet or you can use the CBE
platform so that you would lay out based
on the answers how a income statement or
statement of financial position is laid
out so that when it came to your
financial reporting exam if it asked you
to produce a statement of profit and
loss you would go right I know where
we're going with this James Revenue less
cost of sales gives me my gross profit
deduct any other expenses such as admin
cost any other expenses we may be given
in the trial balance and then from that
we'll be having our sort of operating
profit dedu any tax and interest giving
me my net profit for the end and another
key thing for your notes really good for
exam technique especially in this
question because they asked for the
income statement and the balance sheet
the net profit or loss whatever your
figure is as long as you carry that
forward to the statement of financial
position in the retaining earnings
that's the key bit for your notes you'll
also see that in the notes of this video
if you click the link down there as long
as you carry forward your own figure you
will get the mark for it on that even if
it's incorrect so the key bits on here
are you can see on my screen that what
I've put down for you there is a little
B and a little a so when you're
reviewing mock papers and past questions
maybe from your provider I've also put
some uh financial reporting books down
in the comments below the ones I would
recommend I would actually do a little
note on there so that you can see that
Equity shares and other components of
equity the share premium they're only
falling under the statement of financial
position under the equity heading so in
your pro fora for the statement of
financial position you would have all
your assets are equal to your Equity
total Equity plus your total liabilities
that is the accounting equation for your
notes and also so why the balance sheet
balances the other thing to note down
here for your actual notes for this
video is from that timeline when you're
going through any of the sort of
adjustments as you see like we've got
plenty on here but when you actually see
it as if it was the real examination
like on there highlighting the 1st of
January 2002 in this case print Co raise
funds for $30 million in other words
what we're saying there referring back
to
that timeline is your figures up here
are for the 30th of June on there and
this transaction happened on or the
initial information happened on the 1st
of January so that is partway through
the year so again it doesn't matter in
the exam it's up to you but you could
simply go January February March April
May June count on your fingers it
doesn't matter as long as you get it
right that's the key thing so so that is
6 months into the actual trading period
that we're looking at here and therefore
you've got to be thinking like we're
being asked for interest on the loan
that is going to lead to some
apportioning as a result and therefore
you're going to have to take these other
aspects into account other things as you
go through you start to pick up on this
with a bit more exam technique you're
thinking right there's another year end
purchase at the end there we've got
different values so I've got to be
showing all of my working
uh We've also got on the 1st of July
2001 so again for your timeline picking
up on it actually fell in this year but
this is the key thing that that they
actually posed on this question was
notice on here the first of July
2002 so that is where the alarm bells
and exam technique should be ringing to
you as to look at that full sentence on
the screen that we have the machine was
sold for 1.4 1.1 million after selling
costs on the 1st of July 2002 so this is
not within the current accounting period
that we've been asked to actually
prepare the statement of profit and loss
and statement of financial position for
this is in the following period And this
is where we have different assets on
here so this is where it test your
financial reporting knowledge and those
technical articles on acca's website
where what we have here is we have an a
non-current asset within the statement
of financial position that we now need
to change and reclassify because it's a
non-current asset held for sale we know
it is going to be sold the day after the
year end of 31st uh sorry the 30th of
June 2002 and on the 1st of July 2002 it
will be sold on there so again that will
be when it comes to your state of
financial position your non-current
assets we're going to have some workings
that we need to adjust and then show
that on a separate line within your Prof
forer on there the final tips I want to
make sure I get across for this short
and sweet video for you to note down are
if you're going to be doing the
financial reporting exam which is
probably why you're watching at this
point is workings workings workings and
the best thing I can say to I today to
all my students is imagine you are
marking your own piece of work so this
is where the more mock papers you do the
more past exams the more things you do
on the CB platform the pro forers for
the income statement the statement of
financial position and also the workings
this is where you're going to pick up on
the marks and you're going to help the
marker to actually give you those marks
and to follow through how you've gone
about it also within this you've got to
go through the notes one by one and pick
up on even just the simplest things like
notice here how the examiner actually
put refund for you in bold it I think
this was to actually put students off
because they'd probably seen in so many
other past paper questions that the tax
or income tax on this was payable for
the year and estimated to be
2.53 the final things for you note is
that if it's a refund that means it's a
cash inflow to the business so instead
of it being d Ed in the statement of
profit and loss we actually need a
positive amount in there and the final
thing which a few students get mixed up
on and they throw away easy Mark at the
end there is that if a tax is a refund
or if it's a payment that happens in the
following accounting period so you
actually need to have either a uh
liability a provision for that tax to be
paid or in this case it was going to be
a current asset because we are going to
be due that tax refund in the next
period on there but if you follow the
tips and tricks that I've gone through
in this video check out the link in the
description so you can access the full
notes and exclusive videos and it can be
the difference in getting you that pass
for your financial reporting exam but
thank you very much for watching be sure
to give this video a massive like leave
me any comments below any questions you
have and I've put a couple of videos up
above here that are also relating to
financial reporting click on one of them
out they're definitely going to help you
to pass your exam so best of luck and
I'll see you on the other side for
another video thanks very much
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