F2 is an exam with a focus on preparation of financial statements and their analysis - a subject that helps people in finance to deliver and perform their role.

But sometimes, we see candidates deviate from the core, which makes it difficult for them to show competence in the main areas of the exam. Ooops - that hurts!

Let`s have a look at some of the mistakes highlighted by the examiners.

1.       Students are rote learning in F2 and not understanding the principles which are absolutely vital.

2.       Problems with the narrative question indicate that language is an issue for the candidates.

See some free resources on Business English  

Let us have a look at individual questions in the exam.

Question1 covered accounting for JVs generally well attempted.

Question2 covered Substance over form not well answered by the candidates who struggled with the discursive nature.
See this article for more on understanding the meaning of verbs to handle discursive questions

Question3 Covered EPS generally well answered with some candidates making small mistakes for the initial bonus figure calculations.         

Question4 Covered measurement of financial liability & Pensions again, a well answered question. Students seem to have improved on section B
Here is an article for candidates who are not very comfortable in attempting a question on financial instruments.

Question5 Covered the section D of the syllabus not well answered by candidates outside UK with 15% of them not attempting it all. This suggests the students have been ignoring this section of the syllabus. In your next class, give it a serious consideration talk to your lecturers about it search the web.
CUseful articles on CIMA`s website to help enhance your knowledge

Overall, this section helped candidates to secure a pass mark, let us now look at section B

This is where the trouble starts., No one jumps in the water if they don’t know how to swim! This is what happens when you sit for F2 exam, though, and you have no grip on Section A Group Financial Accounts which is 35% and your section C Analysis and Interpretation of financial accounts which is also 35%.

Let me give you a simple guide for Section A group financial statements

1.       Learn the simple consolidation first.

2.       Learn calculations of goodwill.

3.       Calculation for fair value of acquisitions.

4.       Calculations for non controlling interest.

5.        Calculation for retained earnings.

6.       Learn all of the above when the company is acquired at once in stages or is sold during the year, learn the Principles & Practice as many questions as you can. There is no easy way out!!!!
When I am sitting around a group of people, they tell me finance people are well paid. I tell them nothing in life comes so easily - we work hard for it!

For the analysis of group financial statements, just one line:

Calculate appropriate ratios and read the scenario carefully. Please see the attached post exam guide for examiners comments on this.

See these articles to understand how to best answer a question on financial analysis.

Best of luck for your resit exams. I hope you will make good use of this post exam guide and the useful resources. Last but not least, have a look at examiner`s article.