Technical articles

Financial Reporting (FR) was previously known as F7 Financial Reporting. All technical articles listed as F7 can be used for studying FR.

Financial Reporting (FR)

Extreme makeover – IASB edition
The International Accounting Standards Board has now published a new version of the Conceptual Framework, and this article considers some of the more significant changes to the Conceptual Framework that the Board has made.

Financial instruments
International Financial Reporting Standard (IFRS®) 9, Financial Instruments, is a complex standard, especially for users and preparers of financial statements. It is relevant to the Financial Reporting syllabus, so this article takes a high-level review of its application to financial assets, financial liabilities, and convertibles.

The use of fair values in the goodwill calculation
A central part of the Financial Reporting syllabus is accounting for the acquisition of a subsidiary, which will test the concept of fair value; this is the value that the consideration paid for the subsidiary must be recorded. In addition to this, the assets, liabilities and contingent liabilities of the subsidiary must also be consolidated at their fair value. This article considers these values in each element of the calculation.

Analysing a statement of cash flows
A key part of the Financial Reporting exam is the ability to analyse a set of financial statements. The statement of cash flows is one of the primary financial statements, and Financial Reporting candidates must be able to explain the performance of an entity based on all of the financial statements including the cash flows given.

IAS 37 – Provisions, contingent liabilities and contingent assets
This article considers the aims of the IAS® 37, followed by the key specific criteria which must be met for a provision to be recognised. Finally, it will examine some specific issues which are often assessed in relation to the standard.

Tell me a story
This article looks at what the Financial Reporting exam is looking for in the answer to an interpretation question, along with the key weaknesses that are consistently noted in candidate answers. It then examines some of the different types of scenario that candidates might face in the exam, and some key recommendations of items to consider for each.

How to improve your answer to FR interpretation exam questions
This article contains useful advice to help improve your answers to analysis questions whether in the context of a group or a single entity.

IFRS 16, Leases
The purpose of this article is to summarise the key changes introduced by IFRS 16 from the perspective of the lessee and how these impact on the Financial Reporting exam.

Revenue revisited
This article considers the application of IFRS 15, Revenue from Contracts with Customers using the five-step model.

Accounting for property, plant and equipment
This article is designed to outline the key areas of IAS 16, Property, Plant and Equipment that you may be required to attempt in the Financial Reporting exam.

IFRS 3, Business Combinations
This article explains the relevance of IFRS 3 to Financial Reporting candidates.

Performance appraisal
Performance appraisal requires good interpretation and a good understanding of what the information means in the context of the question.

Impairment of goodwill
This article discusses and shows both ways of measuring goodwill following the acquisition of a subsidiary, and how each measurement of goodwill is subject to an impairment review.

Deferred tax
This article starts by considering aspects of deferred tax that are relevant to Financial Reporting, before moving on to the more complicated situations that may be tested in Strategic Business Reporting.

Property, plant and equipment – part 1: Measurement and depreciation
In the first of two articles, we look at the main features of IAS 16, Property, Plant and Equipment (PPE).

Property, plant and equipment – part 2: Revaluation and derecognition
In the second of two articles, we consider revaluation of property, plant and equipment and its derecognition.

Suspense accounts and error correction
Suspense accounts and error correction are popular topics for examiners because they test understanding of bookkeeping principles so well.

Study support videos

FR session CBE exam technique
Alan Lynch, head of education and content at learnsignal, provides advice on how to approach a Financial Reporting exam question.
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Advice for students retaking exams
This video is about turning your exam fail into a pass at your next attempt. It suggests ways to reflect on where you went wrong, how to draw up an effective study plan, and practising exam questions.

Exam technique

Read the mind of the marker
This article is intended to give you some real insight into the mind of the marker and to understand what they will be looking for when they mark Financial Reporting scripts. 

Financial Reporting - examiner's approach
This article should be read in conjunction with other related published material including the Syllabus and Study Guide, study support, examining team guidance, CBE past papers and specimen exam. 

How to approach performance appraisal questions
Guidance on how to approach performance appraisal questions.

F7 – A guide to using the examiner’s reports
Guidance to help you if you are taking the F7 exam for the first time as this takes you through how to use the examiner’s reports as part of your revision phase as directed by the self-study guides. This document will help you to understand how you should be using the examiner’s reports to make the best use of them.

F7 – A guide to reflection for retake students
Guidance to help you if you are retaking the F7 exam as this takes you through the process of reflection using the examiner’s reports as directed in the retake guides. This document will help you to understand how you should be using the examiner’s reports to make the best use of them.

Objective questions for session CBEs
What you need to know about the objective test questions for session CBEs for PM, TX, FR, AA and FM.

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