[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-638595-105":59,"doc-detail-638595-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","fundamentals-level-skills-module-paper-f7-financial-reporting-september-2016-answers","Fundamentals Level – Skills Module, Paper F7 - Financial Reporting September 2016 Answers","","Financial Reporting September 2016 answers for Fundamentals Level Skills Module Paper F7, covering multiple sections of accounting computations and journal-based treatments. Includes guidance on grants repayment as a change in accounting estimate, depreciation and carrying amount adjustments, lease and impairment calculations, profit and equity effects, borrowing costs capitalisation, and revaluation with deferred tax through OCI. Section C provides detailed schedules for adjustments to profit, statement of financial position, and diluted earnings per share with workings for convertible loan notes, leased property, plant and deferred tax.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/fundamentals-level-skills-module-paper-f7-financial-reporting-september-2016-answers/638595/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/fundamentals-level-skills-module-paper-f7-financial-reporting-september-2016-answers/638595.png","ImageObject",300,407,{"name":92,"@type":93},"Dipper","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-31","2026-10-22",true,{"@type":102,"interactionType":103,"userInteractionCount":14},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How should the repayment of a grant be treated under the provided answers?","Question",{"text":112,"@type":113},"It must be treated as a change in accounting estimate, increasing the carrying amount because the netting off method was used. The resulting extra depreciation is charged immediately to profit or loss.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What drives the impairment calculation in the answers?",{"text":117,"@type":113},"The answers compare VIU to FV less costs to sell, using the lower value to determine the impairment loss. The loss is then allocated across specific assets including damaged plant, goodwill, and the remaining items proportionally.",{"name":119,"@type":110,"acceptedAnswer":120},"How is the statement of financial position for Triage Co constructed in Section C?",{"text":121,"@type":113},"It combines non-current assets (including PPE and leased property), current assets such as trade receivables adjusted for fraud, and equity components derived from workings. Liabilities include deferred tax and convertible loan notes, plus current tax payable based on the specified adjustments.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},638595,1792689578,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":14,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":39,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":129,"read_time":46},1374404997633,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","Answers  \nFundamentals Level – Skills Module, Paper F7  \nFinancial Reporting September 2016 Answers  \nSection A  \n1 B  \n2 A  \n3 A  \nThe repayment of the grant must be treated as a change in accounting estimate. The carrying amount of the asset must be increased as the netting off method has been used. The resulting extra depreciation must be charged immediately to profit or loss.  \nOriginal As if no grant Adjustment  \nCost 90,000 90,000  \nGrant (30 ,000)  \n60,000  \nDepreciation ( 10 ,000) [1 yr] (30 ,000) [2 yr] Dr Depn exp 20,000  \nCarrying amount 50,000 [1/1/X7] 60,000 [31/12/X7] Dr PPE 10,000  \nCr Liability 30,000  \n4 A  \n5 C  \n710,000 + (480,000 x 3/12)–(20,000 x 3) + (20,000 x 25/125) = $774,000  \n6 D  \n7 D  \n8 C  \nNet total being paid over four years (($5,000 x 4 years)– $1,000) 19,000  \nAnnual charge spread evenly over the lease term ($19,000/4 years) 4,750  \n9 A  \n10 A  \n3,250 + 1,940 + ((800 – 600) x 30%) = 5,250,000  \n11 C  \n12 D  \nFV of NCI at acquisition 1,100  \nProfit for year x 30% 3,200  \nDepn on FVA (1·5m/30) (50)  \nUnrealised profit  (550)  \n2,600 x 30% 780  \n1,880  \n13 B  \n14 B  \nRetained earnings = 300 + ((150 – 90) x 75%) = 345  \nTotal equity = 125 + 345 = 470  \n15 B  \n$’000  \nProduction cost of PPE 6,000  \nCapitalisation of borrowing costs:  \n$6m x 6% x 9/12 =  270  \nTotal cost capitalised (and carrying amount) at 30 September 20X2  6 , 270 Section B  \n16 D  \nDepreciation 1 January to 30 June 20X4 (80,000/10 x 6/12) = 4,000  \nDepreciation 1 July to 31 December 20X4 (81,000/9 x 6/12) = 4,500  \nTotal depreciation = 8,500  \n17 D  \n18 B  \nVIU is lower than FV (less costs to sell), so impairment is 60,750 – 43,000 = $17,750  \n19 D  \n20 A  \nThe impairment loss of $220m (1,170 – 950) is allocated: $35m to damaged plant and $85m to goodwill, the remaining $100mallocated proportionally to the building and the undamaged plant. The carrying amount of the plant will then be $262,500 .  \n21 B  \n22 C  \nYr 1 2,000,000 x 11·65% = 23,300  \nYr 2 (2,000,000 + 23,000 – 55,000) x 11·65% = $19,607  \n23 B  \n24 B  \n25 A  \nProfit on sale = 120,000 (370 – 250) spread over 5 yrs = $24,000  \n26 A  \n27 B  \n1,000/1,500 x 1,200 = $800  \n28 D  \n500/1,500 x 1,200 = 400/2 = $200  \n29 C  \n$30,000 (400 – 500 x 30%) .  \nRevaluation and deferred tax of headquarters goes through OCI.  \n30 B  \n$60,000 (200 x 30%)  \nDr Income tax expense Cr Deferred tax liability  \nSection C  \n31 (a) Triage Co – Schedule of adjustments to profit for the year ended 31 March 20X6  \nDraft profit before interest and tax per trial balance Adjustments re:  \nNote (i)  \nConvertible loan note finance costs (w (i))  \nNote (ii)  \nAmortisation of leased property (1,500 + 1,700 (w (ii))) Depreciation of plant and equipment (w (ii))  \nNote (iii)  \nCurrent year loss on fraud (700 – 450 see below) Note (iv)  \nIncome tax expense (2,700 + 700 – 800 (w (iii))) Profit for the year  \n$’000 30,000  \n(3,023)  \n(3,200)  \n(6,600)  \n(250)  \n(2,600)  \n 14 ,327  \nThe $450,000 fraud loss in the previous year is a prior period adjustment (reported in the statement of changes in equity) . The possible insurance claim is a contingent asset and should be ignored.  \n(b) Triage Co – Statement of financial position as at 31 March 20X6  \n$’000 $’000  \nAssets  \nNon-current assets  \nProperty, plant and equipment (64,600 + 37,400 (w (ii))) 102,000  \nCurrent assets  \nTrade receivables (28,000 – 700 fraud) 27,300  \nOther current assets per trial balance  9 ,300  36 ,600  \nTotal assets  138 ,600  \nEquity and liabilities  \nEquity  \nEquity shares of $1 each 50,000  \nOther component of equity (w (i)) 2,208  \nRevaluation surplus (7,800 – 1,560 (w (ii))) 6,240  \nRetained earnings (w (iv))  17 ,377  25 ,825  \n75,825  \nNon-current liabilities  \nDeferred tax (w (iii)) 3,960  \n6% convertible loan notes (w (i))  38 ,415 42,375  \nCurrent liabilities  \nPer trial balance 17,700  \nCurrent tax payable  2 ,700  20 ,400  \nTotal equity and liabilities  138 ,600  \n(c) Diluted earnings per share (w (v)) 29 cents  \nWorkings (","cbCaimdTkIc5ePnM","https://ap.wps.com/l/cbCaimdTkIc5ePnM","pdf",109127,"English","# Section A\n## Section B\n## Section C","[{\"question\":\"How should the repayment of a grant be treated under the provided answers?\",\"answer\":\"It must be treated as a change in accounting estimate, increasing the carrying amount because the netting off method was used. The resulting extra depreciation is charged immediately to profit or loss.\"},{\"question\":\"What drives the impairment calculation in the answers?\",\"answer\":\"The answers compare VIU to FV less costs to sell, using the lower value to determine the impairment loss. The loss is then allocated across specific assets including damaged plant, goodwill, and the remaining items proportionally.\"},{\"question\":\"How is the statement of financial position for Triage Co constructed in Section C?\",\"answer\":\"It combines non-current assets (including PPE and leased property), current assets such as trade receivables adjusted for fraud, and equity components derived from workings. Liabilities include deferred tax and convertible loan notes, plus current tax payable based on the specified adjustments.\"}]","Fundamentals Level – Skills Module, Paper F7 - Financial Reporting September 2016 Answers | PDF"]