Furunkl

hi there,

I took F7 (INT) today and wanted to share some thoughts about the exam and see how you found it.
Q1: Was quite ok, although I expected that the NCI would have to be calculated with some share price given, I was not used to the fact that only the share of goodwill was given. I calculated a goodwill of 8,900. seemed a little high to me, but i couldn't find another way...
Did you make an adjustment on the inter company trading?

Q2: I hope I didn't get confused with all the adjustments and didn't forget to include them in all my calculations. I wasn't sure about the amortization of the development costs which occurred for 6 months (since April 08). I was wondering whether the $ 800 were to be amortized on a straight line basis apportioned for every month (800*20% for 6 monhts, the next 800 for 5 months, etc.) or just the total amount at year end * 6/12 * 20%.

Q3: Ratios were quite easy and on those I wasn't sure I was able to see the correct calculation from the ratios given for Grappa. I just forgot to add the 300 from current lease obligations in current assets to the capital employed initially, but saw the mistake fortunately. My basic assessment was that Merlot was quite a risky investment with questionable cash generation potential. b) was straightforward.

Q4: a) was also quite easy I would say as it came up in similar ways in past exams already. For b) I added the 15 mn to the 30 mn for the asset and depreciated it over its useful life ($ 4.5 mn was depreciation charge per year). I wasn't sure whether to take the discounted PV of the 15 mn. The provision was 6900 * 1.08 at year end with the 8% charged as finance costs, right? b ii) was the issue with constructive obligation or nothing.

Q5: excl. cash discount, training costs and service contract from costs.

Overall I have a good feeling, although i'm sure i made several mistakes, but hopefully it will be sufficient to exceed the 50% threshold. I'm confident though. I'd say the exam was pretty fair.

mandyglp

Hi....

It's been 3 days after the exam..Hence, i am not really remember all the adjustment.

For question 1,

The question is beautiful for me since there was no theory. Both part was calculation. It's seem easy since it didnt include associate...
I get the same amount of goodwill like your's..
For inter-co transaction, i eliminate the revenue,COS, add back unrealised profit of closing balance. Add back the unrealised profit of NCA (net of depreciation).

For question 2, i am feel abit hard since some adjustments abit hard for me.
Anywhere, i have finish it although i am not sure do i correctly do the correct adjustment.

For question 3,
I have to "thank" the examiner, i have use lots of my time in this question since i am very poor in ratio / theory question. It's kill my question 4 time.

For question 4,
I have manage to finish the part a since i have poor time management skill.

For question 5,
It's not easy and not hard. It's neutral for me.
The hard part...do the staff training expenses, we should expenses it or capitalised it.
I have expense this amt due to the question was silent, didnt mention that it's a must for the purchase.

tdcute

Finishing F7, yet don't really feel good. The question was not so difficult though.

All the best,

mandyglp

F7 is a past..We done our best
dont care easy or hard, as long as we pass the 1st attempt...
Good Luck