Examiners’report F3Financial Accounting December2007




The following questions were chosen from the December2007F3INT examination to provide illustrations of areas in which students can improve their exam performance.


Jill and John are in partnership sharing profits in the ratio3:2.During the financial year the partnership earned $28,650profit.Jill is paid a salary of$5,000and partners were charged interest on drawings amounting to $200for Jill and$350for John.Jill’s current account had a credit balance of$15,614at the beginning of the year.

What is the net increase in Jill’s current account during the year?





The correct answer to this question is A($19,320)see working1at end of report.

Almost as many students selected B as the answer,as those who correctly selected A.

This demonstrates that candidates are still not reading the requirements of the question properly.The question asks for the net increase in the account,not the closing balance.Candidates who selected B performed all the calculations correctly,but missed out on the marks due to simply not reading the requirement.This is basic exam technique.It is imperative that candidates answer the question asked,not the one they presume will be asked, or the one they would have liked to be asked.


Which of the following provides advice to the International Accounting Standards Board(IASB)as well as informing the IASB of the implications of proposed standards for users and preparers of financial statements?

A The Standards Advisory Council

B The International Financial Reporting Interpretations Committee

The answer to this question is A(The Standards Advisory Council).

There was roughly an even split between candidates giving each of the two answers.This suggests that the regulatory framework and the role of accounting bodies is perceived as an area which is peripheral to the syllabus and so is not given adequate attention by students in their preparation for exams.It should be noted that this area is seen to be an important aspect of the F3syllabus.Due to the nature and structure of the examination, questions will be set every sitting across the breadth of the syllabus,and so students should revise across the whole of the syllabus.

Worryingly,some students answered C or D to this question.If an answer to a question is to be guessed,it is worth checking whether the question offers A,B,C and D as options before putting pen to paper.