Pilot Paper F7 (INT)
Marking Scheme
Financial Reporting (International)
This marking scheme is given as a guide in the context of the suggested answers. Scope is given to markers to award marks for alternative
approaches to a question, including relevant comment, and where well-reasoned conclusions are provided. This is particularly the case
for written answers where there may be more than one acceptable solution.
1 (a) 1
mark per relevant point
5
(b) Balance sheet:
property, plant and equipment
2½
goodwill
3½
investments – associate
3
– other
1
current
assets
2
equity shares
1
retained earnings
3
minority
interest
1½
8%
loan notes
½
10% loan notes
1
profit and loss account
1
20
Total for question
25
2 (a) Income statement
revenue
½
cost of sales
4½
operating expenses
½
investment income
1½
finance
costs
1½
taxation
1½
10
(b) Movement in share capital and reserves
brought forward figures
1
revaluation
1
profit for period
1
dividends paid
1
4
(c) Balance sheet
land and buildings
2
plant and equipment
2
investment property
1
inventory
and trade receivables
1
8% loan
½
deferred tax
½
lease obligation: interest and capital one year
1
capital over one year
1
trade payables and overdraft
1
accrued interest
½
income tax provision
½
11
Total for question
25
1
3 (a) one mark per ratio
10
(b) 1
mark per valid point
maximum
10
(c) 1 mark per valid point
maximum
5
Total for question 25
4 (a) 3 marks each for relevance, reliability and comparability
9
(b) 2 marks for each transaction ((i) to (iii))
or event
6
Total for question
15
5 (a) one mark per valid point to
maximum
4
(b) revenue (½ mark for each contract)
1
profit/loss (½ mark for each contract)
1
amounts due from customers (contract 1)
2
amounts due to customers (contract 2)
2
6
Total for question
10
