ACCA F7: Approach to Questions 1-3
Welcome to the ACCA F7 blog. We’ll use this blog to give you a few tips and tricks to help you on the way to passing the F7 exam.
In this post, we’ll look at the approach to Questions 1-3.
Did you know that the approach to Questions 1-3 is exactly the same?
‘What an earth are you saying?’ I hear you ask.
First, let’s remind ourselves about the content of Questions 1-3 in the Paper F7 exam.
Question one is the consolidation question, either a consolidated statement of financial position, a consolidated statement of profit or loss and other comprehensive income, or both! Sometimes there is a short written part on a related topic.
Question two is the financial statements preparation question, generally just a statement of financial position and statement of profit or loss and other comprehensive income, but sometimes includes other things like a statement of changes in equity or earnings per share calculation.
Question three is the performance appraisal question, which could be a statement of cash flows or an interpretation of financial statements question or both together.
When I say that the approach to questions 1-3 is the same, that’s the case when question three includes a statement of cash flows.
The approach to all three questions, following the recommended approach at BPP is:
1. Set up a proforma for your answer.
2. Transfer the figures from the financial statements/trial balance in the question to the face of your answer (in brackets) or to a working (if they are likely to require more work).
3. Deal with the additional information regarding adjustments, in the order you find them easiest.
4. Balance off your workings and transfer the figures to the face of your answer, referenced back to your workings of course.
So this approach works whichever of Questions 1-3 you are tackling. Try it!
View further details on studying ACCA with BPP.