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Are compound financial instruments examinable in F7?

Yes. Candidates need to know the definition and treatment of debt and equity, including related finance costs. A compound instrument such as a convertible loan has both equity and debt components.

Candidates are expected to allocate the initial proceeds of a compound instrument to its debt and equity component, and calculate the finance cost of the debt based on its effective interest rate.

How are the F7 and P2 papers changing from June 2011?

From June 2011 onwards, the UK versions of papers F7 and P2 will:

  • be based on international accounting standards in the same way as the international versions of these papers
  • include relevant elements of UK legislation
  • include relevant elements of differences between international Generally Accepted Accounting Principles (GAAP) and UK GAAP
  • be written using $ (dollars) as the currency
  • be based on international terminology.

Further details of these amendments can be found within the attached reporting changes article. 

Are transfers from revaluation reserve to income still in the syllabus?

Yes, but candidates and tuition providers are advised to regularly review the syllabus guidance published on our website.

Is there any guidance that can be given on the allocation of marks between calculation and interpretation of ratios?

It will differ from question to question but the marking guide is generally weighted towards commentary that makes use of calculated ratios and the scenario details written by the examiner.

Candidates are encouraged to look at the marking guides for past exam papers where this point is illustrated.

Will discount factors be given if candidates are expected to determine present values?

Yes, the relevant discount factors will be given.

How will the examiner deal with the fact that examinable documents are adopted at different times in different countries?

The questions and suggested solutions are altered from paper to paper to take this into account. We aim to ensure that papers are being set of consistent and comparable standard.

If a candidate answers using the more recent version of the standard when the older version was examinable, markers will take this into account when awarding marks and appropriate credit will be given.

However, if according to the examinable documents a candidate should be using the most recent version but answers with an older version, markers will not give credit.

What if candidates are taught different methods of preparing consolidated accounts, for example journal entries or ledger accounts?

Appropriate credit will be given as long as the student has answered the question and their workings are clear.

Will IFRS9 be examinable within 2011 examinations?

IFRS9 Financial Instruments was issued November 2009. It deals with some aspects of accounting for financial assets and is a replacement to part of IAS39 Financial Instruments: Recognition and Measurement, which covers accounting for all types of financial instrument.

As IAS39 has not been replaced in its entirety, the standard has not yet been withdrawn. We made the decision to list IFRS9 as an examinable document as it was issued before 30 September 2010.

Therefore, any financial asset questions will use IFRS9 as the basis of the illustrative answer where relevant.

IAS39 is still examinable for the accounting of all other types of financial instrument and for certain aspects of accounting for financial assets not covered by IFRS9.

IFRS9 is listed as an examinable document within ACCA F7 Financial Reporting, P2 Corporate Reporting and the Diploma in International Financial Reporting Standards.


The International Accounting Standards Board (IASB) issued ”The Conceptual Framework for Financial Reporting” on 28 September 2010. Will this be examinable in the 2011 examination sessions?

IASB issued “The Conceptual Framework for Financial Reporting” on 28 September 2010 (two days before the ACCA cut-off date.

We will wholly rely on the existing ”Framework for the Preparation and Presentation of Financial Statements” within the 2011 examinations because the new conceptual framework is incomplete and would have had a far-reaching impact on learning materials if incorporated. 

Why is ACCA making amendments to the UK and Irish versions of Paper F7 and P2?

We are making changes to the UK and Irish versions of Paper F7 and P2 in order to meet the requirements of the Statutory Audit Directive, which governs all UK and Irish professional accountancy bodies.

Effective from the June 2011 examination session, anyone wishing to practise as a registered auditor within the UK or Republic of Ireland will need to sit P2 UK/ROI, if they have not already passed P2 before this date.

The revised Papers fully meet the regulatory and business environment requirements for those wishing to obtain the UK audit qualification. Although it is preferable that a candidate has studied F7 (UK), it isn't imperative and the progression to P2 (UK) will not be any more difficult.


How should candidates better prepare for the F7 and P2 exams?

We have evidence that many candidates do not practise exam questions prior to the exam but simply read the questions and model answers together. Candidates are advised to practise the papers as if they were sitting the exam.

If partial workings in the consolidated financial statements aren't referenced back to the financial statements, would they be marked?

Of course, anything in the answer booklet is marked.

To what extent does ACCA allow for candidates with English as a second language?

ACCA markers do not penalise candidates with English as a second language but they need to be able understand what candidates are trying to say.

In accordance with IFRS9 Financial instruments, an entity may elect to recognise subsequent re-measurement of investments in equity instruments within other comprehensive income. Is this within the syllabus?

Yes, this is within the syllabus. It is therefore examinable, but unless the question specifically mentions that the entity has made this election, candidates should assume the default position. Candidates should treat investments in equity instruments within the scope of IFRS9 that are not held for trading as fair value through profit or loss.

Last updated: 17 Dec 2013