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ACCA Approved

Study Text

PFFoianrpaFeenxrrcaFeima7elsRbienopSooerkpttisne.mgpbker 2016, December

2016, March 2017 and June 2017

Valid for both paper and

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FreeboAoCCkAsA.pPPkROVED CONTENT PROFVIrDeEeRbooks.pk

As the first accredited publisher of ACCA materials, BPP Learning Media has set the benchmark for producing exceptional study materials for students and tutors alike.

Our Study Texts, Practice & Revision Kits and i-Passes (for exams on demand) are reviewed by the ACCA examining team and are written by our in-house authors with industry and teaching experience who understand what is required for exam success.

EXAM SUCCESS SITE To help maximise your chances of succeeding in your exams, we've put together a suite of exclusive ACCA resources. Our Exam Success site provides you with access to a free digital version of this publication, as well as extra resources designed to focus your efforts on exams and study methods.

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Success site - eBook", including your order reference number and the name of the book you've bought (ie ACCA F5 Study Text) for your access code. Once you have received your code, please follow the instructions below:

To access the BPP ACCA Exam Success site for this material please go to:

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n Create a user account if you don't already have one. Make sure you reply to the confirmation email.

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n Enter the code you received when prompted. You will only have to do this once for each paper you are studying.

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BPP Learning Media is an ACCA Approved Content Provider. This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam. In this Study Text, which has been reviewed by the ACCA examination team, we: Highlight the most important elements in the syllabus and the key skills you need

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Provide lots of exam focus points demonstrating what is expected of you in the exam Emphasise key points in regular fast forward summaries Test your knowledge in quick quizzes Examine your understanding in our practice question bank Reference all the important topics in our full index

BPP's Practice & Revision Kit product also supports this paper.

FOR EXAMS IN SEPTEMBER 2016, DECEMBER 2016,

MAFRCreHe20b1o7 AoNkDsJ.UpNkE 2017

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First edition 2007

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ISBN 9781 4727 4424 1 (Previous ISBN 9781 4727 2676 6)

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We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The suggested solutions in the practice answer bank have been prepared by BPP Learning Media Ltd, unless

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Introduction

Helping you to pass .......................................................................................................................................................... v Studying F7 .................................................................................................................................................................... vii The exam paper.............................................................................................................................................................. viii Syllabus and study guide................................................................................................................................................. ix

1 The conceptual framework....................................................................................................................................... 1 2 The regulatory framework ...................................................................................................................................... 19 3 Tangible non-current assets .................................................................................................................................. 31 4 Intangible assets.................................................................................................................................................... 57 5 Impairment of assets ............................................................................................................................................. 71 6 Revenue................................................................................................................................................................. 81

Freebooks.pk Freebooks.pk 7 Introduction to groups.........................................................................................................................................107 8 The consolidated statement of financial position ................................................................................................. 117 9 The consolidated statement of profit or loss and other comprehensive income ................................................... 153 10 Accounting for associates.................................................................................................................................... 171 11 Financial instruments .......................................................................................................................................... 185 12 Leasing................................................................................................................................................................ 205 13 Provisions and events after the reporting period.................................................................................................. 217 14 Inventories and biological assets......................................................................................................................... 233 15 Taxation............................................................................................................................................................... 247 16 Presentation of published financial statements.................................................................................................... 267 17 Reporting financial performance.......................................................................................................................... 293 18 Earnings per share............................................................................................................................................... 313 19 Calculation and interpretation of accounting ratios and trends ............................................................................ 329 20 Limitations of financial statements and interpretation techniques........................................................................ 359 21 Statements of cash flows ..................................................................................................................................... 367 22 Accounting for inflation ....................................................................................................................................... 389 23 Specialised, not-for-profit and public sector entities ........................................................................................... 401

Freebooks.pk Freebooks.pk Practice question bank....................................................................................................................................411 Practice answer bank .......................................................................................................................................447 Index.......................................................................................................................................................................... 499

Review form

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Helping you to pass

Freebooks.pk Freebooks.pk BPP Learning Media ? ACCA Approved Content Provider As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examination team. By incorporating the examination team's comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Study Text provides excellent, ACCA-approved support for your studies.

The PER alert

Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER). To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the 'PER alert' feature. You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement. Your achievement of the PER should now be recorded in your online My Experience record.

Freebooks.pk Freebooks.pk Tackling studying Studying can be a daunting prospect, particularly when you have lots of other commitments. The different features of the Study Text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success.

Developing exam awareness

Our Study Texts are completely focused on helping you pass your exam. Our advice on Studying F7 outlines the content of the paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have. Exam focus points are included within the chapters to highlight when and how specific topics were examined, or how they might be examined in the future.

Freebooks.pk Freebooks.pk Using the syllabus and study guide You can find the syllabus and study guide on pages ix?xx of this Study Text.

Testing what you can do

Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt. We include Questions ? lots of them ? both within chapters and in the Practice Question Bank, as well as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content.

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Freebooks.pk Introduction v

FCrehaepbteor ofekastu.rpesk Freebooks.pk Each chapter contains a number of helpful features to guide you through each topic.

Topic list

Topic list

Syllabus r ef er ence

Tells you what you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus

references.

Introduction Study Guide Exam Guide

Knowledge brought forward from earlier studies

Freebooks.pk FAST FORWARD Examples Key terms Exam focus points Formula to learn

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Puts the chapter content in the context of the syllabus as a whole.

Links the chapter content with ACCA guidance.

Highlights how examinable the chapter content is likely to be and the ways in which it could be examined.

What you are assumed to know from previous studies/exams.

Freebooks.pk Summarises the content of main chapter headings,

allowing you to preview and review each section easily.

Demonstrate how to apply key knowledge and techniques.

Definitions of important concepts that can often earn you easy marks in exams.

Tell you when and how specific topics were examined, or how they may be examined in the future.

Formulae that are not given in the exam but which have to be learnt.

This is a new feature that gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER).

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chapter.

Provide real world examples of theories and techniques.

Chapter Roundup

A full list of the Fast Forwards included in the chapter, providing an easy source of review.

Quick Quiz

Practice Question Bank

vi

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A quick test of your knowledge of the main topics in the chapter.

Found at the back of the Study Text with more comprehensive chapter questions. Cross referenced for easy navigation.

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