Technical articles

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

Financial Reporting (FR)

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.

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.

Cash flow statements
This article considers the statement of cash flows of which it assumes no prior knowledge and explains how to calculate cash flows and where those cash flows are presented in the statement of cash flows.

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

What is a financial instrument? – part 1
The first part of two articles considers the definition of accounting for financial instruments. It establishes how those issuing financial instruments need to classify these as either financial liabilities (for example, loans and bonds) or equity instruments (for example, ordinary shares).

What is a financial instrument? – part 2
The second part of this article considers accounting for financial assets, and includes a focus on debt instruments and equity instruments.

The need for and an understanding of a conceptual framework
The relevance and importance of conceptual frameworks, which are vital to the understanding of the many principles and concepts that underpin International Financial Reporting Standards (IFRS).

IASB's Conceptual Framework for Financial Reporting
This article takes a look at how the framework points the way for the development of new accounting standards.

How to account for property
This article outlines how you account for property, and was written specifically for students in Hong Kong. However, the article is relevant to all Financial Reporting and Corporate Reporting candidates and those studying for the DipIFR.

Accounting for leases
The accounting topic of leases is a popular Financial Reporting exam area that could feature to varying degrees in Questions 2, 3, 4 or 5 of the exam. This topic area is currently covered by IAS 17, Leases.

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.

Not-for-profit organisations – part 1
The first part of the article broadly describes the generic characteristics of not-for-profit organisations.

Not-for-profit organisations – part 2
The second part of the article takes a specific and deeper look at charities, which are one of the more important types of not-for-profit organisations.

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 Corporate Reporting.

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

Property, plant and equipment, and tangible fixed assets – part 2
In the second of two articles, we consider revaluation of property, plant and equipment and its derecognition, outlining the differences in international and UK perspectives.

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

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

Multiple-choice questions
What you need to know about the multiple-choice questions (MCQs) in the paper-based exams for F4, F5, F7, F8 and F9 from December 2014.

Examiner's approach to F7 
Approaching the financial reporting 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.

Exam support resources

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