FIA FFA/ACCA F 3

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FIA FFA/ACCA F3Financial Accounting

For exams from February 2014

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Syllabus

Technical content

Question to consider

Answer

Past exam question

Answer to past exam question

Real world example

Local example

Diagram

Key concept

Tackling the exam

Summary

Case study

Key to icons

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Syllabus

A The context and purpose of financial reportingB The qualitative characteristics of financial informationC The use of double entry and accounting systemsD Recording transactions and eventsE Preparing a trial balanceF Preparing basic financial statementsG Preparing simple consolidated financial statementsH Interpretation of financial statements

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Exam format

Exam format35 questions for 2 marks each 70

2 questions for 15 marks each 30

Total 100

Two hour exam – all questions are compulsory.

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Tackling multiple choice questions 1

The MCQs in your exam contain four possible answers, you have to choose the option that best answers the question.

• The three incorrect options are called distractors, these are included to test your understanding of the syllabus.

• The following slides detail how best to avoid the common pitfalls that most students fall into.

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Steps to follow when attempting MCQs:

Step 1: Skim read all MCQs and identify what appear to be the easier questions.

Step 2: Attempt each question:• Start with the easier questions• Read the question thoroughly • Try to work out the answer before looking at the options

OR you may prefer to look at the options at the beginning

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Step 3: Read the four options and see if one matches your own answer.

Be careful with numerical questions as the distractors are designed to match answers that incorporate common errors.

Check your calculation is correct. Have you followed the requirement exactly? Have you included every stage calculation?

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Step 4: What to do if your answer does not match the options?

• Re-read the question to ensure that you understand it and are answering the requirement

• Eliminate any obviously wrong answers• Consider which of the remaining answers is the most likely

to be correct and select the option

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Step 5: If you are still unsure make a note and continue to the next question

Step 6: Revisit unanswered questions. When you come back to a question after a break you often find you are able to answer it correctly straight away.

If you are still unsure have a guess. You are not penalised for incorrect answers, so never leave a question unanswered!

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After extensive question practice and revision of MCQs you may find that you recognise a question when you sit the exam.

Be aware that the detail and/or requirement may be different. If the question seems familiar read the requirement and options carefully – do not assume that it is identical.

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Chapter 8

Inventory

• Cost of goods sold• Accounting for opening and

closing inventories • Counting inventories• Valuing inventories • IAS 2

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Syllabus learning outcomes 1

• Recognise the need for adjustments for inventory in preparing financial statements.

• Record opening and closing inventory.

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• Identify the alternative methods of valuing inventory.• Understand and apply the IASB requirements for valuing

inventories.• Recognise which costs should be included in valuing

inventories.

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• Calculate the value of closing inventory using 'first in, first out' and 'average cost'.

• Understand the use of continuous and period end inventory records.

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• Understand the impact of accounting concepts on the valuation of inventory.

• Identify the impact of inventory valuation methods on profit and on assets.

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Overview

Accounting adjustments

Inventory

Valuation

Cost

Effects on profit

Net realisable value

Methods of estimating cost

FIFO AVCO

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Cost of goods sold 1

• Formula for the cost of goods sold$

Opening inventory value XAdd: purchases (or production costs) X

XLess: closing inventory value (X)Cost of goods sold X

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Carriage inwards• Cost paid by purchaser of having goods transported to his

business• Added to cost of purchases

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Carriage outwards• Cost to the seller, paid by the seller, of having goods

transported to customer• Is a selling and distribution expense

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Accounting for opening and closing inventories 1

Entries during the year• During the year, purchases are recorded by the following

entry.

DEBIT Purchases $ amount bought

CREDIT Cash or payables $ amount bought

• The inventory account is not touched at all.

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Entries at year-end• The first thing to do is to transfer the purchases account

balance to the statement of profit or loss:

DEBIT Statement of profit or loss $ total purchases

CREDIT Purchases $ total purchases

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• The balance on the inventory account is still the opening inventory balance. This must also be transferred to the statement of profit or loss:

DEBIT Statement of profit or loss $ opening inventory

CREDIT Inventory $ opening inventory

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• The exact reverse entry is made for the closing inventory (which will be next year’s opening inventory):

DEBIT Inventory $ closing inventory

CREDIT Statement of profit or loss $ closing inventory

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Counting inventories 1

Counting inventories• In order to make the entry for the closing inventory, we

need to know what is held at the year-end. We find this out not from the accounting records, but by going into the warehouse and actually counting the boxes on the shelves.

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Counting inventories 2

• Some businesses keep detailed records of inventory coming in and going out, so as not to have to count everything on the last day of the year. These records are not part of the double entry system.

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Valuing inventories 1

ValuationInventories must be valued at the lower of:• Cost• Net realisable value (NRV)

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CostCan use per IAS 2:• FIFO (First In Last Out)• Average cost• LIFO (Last In First Out) is not permitted

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NRVExpected selling price XLess: costs to get items ready for sale (X)

selling costs (X) X

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• Inventory forms a major part of the assets of some companies.

• So the value placed on the inventory can make a big difference to the profit or loss reported.

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Valuing inventories in China

• In the 3rd quarter of 2012, the Youngor Group Co had inventory valued at CNY 24 billion.

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IAS 2

IAS 2• Inventories should be measured at the lower of cost and

net realisable value – the comparison between the two should ideally be made separately for each item

• Cost is the cost incurred in the normal course of business in bringing the product to its present location and condition, including production overheads and costs of conversion

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IAS 2 (cont’d)

IAS 2• Inventory can include raw materials, work in progress,

finished goods, goods purchased for resale• FIFO and average cost are allowed• LIFO is not allowed

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IAS 2 (cont’d)

Inventories are assets:• Held for sale in the ordinary course of business• In the process of production for such sale; or• In the form of materials or supplies to be consumed in the

production process or in the rendering of services

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IAS 2 (cont’d)

Net realisable value is the estimated selling price:• In the ordinary course of business less the estimated costs

of completion and the estimated costs necessary to make the sale

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Tackling the exam

Understanding IAS 2 is a very important and you will be expected to apply it in the exam.

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Lecture example 1

According to IAS 2: Inventories, which of the following should not be included in determining the cost of the inventories of an entity?

(1) Labour costs (2) Transport costs to deliver goods to customers (3) Administrative overheads (4) Depreciation on factory machine

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Lecture example 1 (cont’d)

A All four items B 1 only C 2 and 3 only D 2, 3, and 4 only

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Answer to lecture example 1

C Transport costs to deliver goods to customers are an

example of carriage outwards and should not be included. Administrative overheads do not relate to production and cannot therefore be included.

The depreciation of the factory machine is a production overhead and should be included.

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Lecture example 2

Jessie is trying to value her inventory. She has the following information available:

$

Selling price 35

Costs incurred to date 20

Cost of work to complete item 12

Selling costs per item 1

Required What is the net realisable value of Jessie's inventory?

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Net realisable value is: $

Estimated selling price 35Less: costs of completion (12)Less: selling costs (1)

22

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Lecture example 3

On 1 January 20X7 a company held 200 units of finished goods valued at $10 each. During January the following transactions took place:

Date Units purchased Cost per unit10 January 300 $10.8520 January 350 $11.5025 January 250 $13.00

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Sales during January were as follows:

Date Units purchased Cost per unit14 January 280 $18.0021 January 400 $18.0028 January 80 $18.00

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Required Determine the valuation of closing inventories and cost of

sales using: (a) FIFO (b) Weighted average cost

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(a) Closing inventories (FIFO) PurchasesOpeninginventories

10 Jan 20 Jan 25 Jan

200 300 350 250Sales14 Jan21 Jan26 Jan

(200)

Nil

(80)(220)

Nil

(180) (80) 90@ $11.50= $1,035

250@ $13.00= $3,250

$4,285

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Answer to lecture example 3 (cont’d)

Cost of sales (FIFO)$

Opening inventories (200 × $10) 2,000Purchases 10,530

12,530Less: closing inventories (4,285)

8,245

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(b) Closing inventories and cost of sales (AVCO)

Units Cost$

AverageUnit Cost

$

TotalCost

$

Cost ofSales

$1.1.X2 b/f 200 10.00 2,000

10.1.X2 Purchase 300500

10.85(W1) 10.51

3,2555,255

14.1.X2 Sales (280)220

10.51 (2,943)2,312

2,943

20.1.X2 Purchase 350570

11.50(W2) 11.12

4,0256,337

21.1.X2 Sales (400)170

11.12 (4,448)1,889

4,448

25.1.X2 Purchase 250420

13.00(W3) 12.24

3,2505,139

28.1.X2 Sale (80)340

12.24 (979)4,160

9798,370

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(W1) $5,255/500 = $10.51(W2) $6,337/570 = $11.12(W3) $5,139/420 = $12.24

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Chapter summary 1

1 Introduction Inventories can be a significant figure in an entity’s

accounts and will impact both the profit figure and the net asset position. It is important therefore that it is recorded correctly.

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Chapter summary 2

2 Accounting adjustment As seen in chapter 6 the statement of profit or loss

matches the sales revenue earned in a period with the cost of sales incurred to generate that revenue. There are therefore two inventory adjustments: the opening inventory adjustment and the closing inventory adjustment.

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Chapter summary 3

3 Valuation Inventories should be valued at the lower of cost and

net realisable value.

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Chapter summary 4

4 Cost The cost of inventory includes the cost of purchase,

costs of conversion and any other costs necessary to bring the inventory to its present location and condition.

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Chapter summary 5

5 Net realisable value (NRV) Net realisable value is the estimated selling price less

the costs to completion and any selling and distribution costs.

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Chapter summary 6

6 Theoretical methods of estimating cost Methods available to estimate the cost of inventories are

first in, first out (FIFO) and average cost. Under FIFO the inventories held at the year end are the most recent purchases but under average cost the cost of all inventories purchased during the year is weighted to produce an average figure.

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Chapter summary 7

7 Valuation effects on profit In times of rising prices, using FIFO will mean the

financial statements show higher inventory values and higher profits.

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Chapter 9

Tangible non current assets

• Capital and revenue expenditure• IAS 16• Depreciation• Non-current asset disposals• Revaluations• Disclosure

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• Define non-current assets and recognise the difference between current and non-current assets.

• Explain the difference between capital and revenue items and classify expenditure accordingly.

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• Prepare ledger entries to record the acquisition, disposal, depreciation and accumulated depreciation of noncurrent assets.

• Calculate and record profits or losses on disposal of non-current assets in the statement of profit or loss.

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• Record the revaluation of a non-current asset and calculate its subsequent depreciation and profit or loss on disposal.

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• Illustrate how non-current asset balances and movements are disclosed in company financial statements.

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• Explain the purpose and function of an asset register.

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• Understand and explain the purpose of depreciation.• Calculate the charge for depreciation using the straight line

and reducing methods, identifying when each is appropriate.

• Calculate the adjustments to depreciation necessary if changes are made in the estimated useful life and/or residual value of a non-current asset.

• Record depreciation in the statement of profit or loss and statement of financial position.

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Overview

Capital versus revenueexpenditure Cost

Tangible non-currentassets

DisposalsDepreciationRevaluations

Straight linemethod

Reducing balancemethod

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Capital and revenue expenditure 1

What is capital expenditure?• Capital expenditure results in the acquisition of non-current

assets, or an increase in their earning capacity.

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Capital and revenue expenditure 2

What is revenue expenditure?• Revenue expenditure is incurred for the purpose of trade

or to maintain the existing earning capacity of the non-current assets.

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Tackling the exam

It is highly likely that some questions in your exam will focus on the distinction between capital and revenue expenditure.

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IAS 16

IAS 16• Initial measurement – at cost• Components of cost

— Purchase price (incl import duties, excl trade discount, recoverable sales tax)

— Initial estimate of dismantling and restoration costs— Directly attributable costs, eg site preparation, delivery

and handling costs installation, assembly costs, testing and professional fees

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Tackling the exam

Exam focus point:

Only staff costs arising directly from the construction or acquisition of the asset can be capitalised as part of the cost of the asset.

The costs of training staff to use a new asset cannot be capitalised because it is not probable that economic benefits will be generated from training the staff as we can’t guarantee that those staff will stay and use the asset. The costs of training staff should be expensed.

Watch out for this in your exam!

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IAS 16 (cont’d)

• Subsequent expenditure— added to carrying amount if improves condition

beyond previous performance

• Repairs and maintenance costs are expensed.

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Specimen exam question

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Specimen exam answer

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Depreciation 1

Depreciation – accruals concept• Is a process of spreading the original cost of a non-current

asset over the accounting periods in which its benefit will be felt

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Depreciation 2

Two methods• Straight line

dep’n =

• Reducing balancedep’n = cost × RB%

cost – RVuseful life

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Depreciation 3

• The double entry for depreciation is as follows:

DEBIT Depreciation expense (SPL)

CREDIT Accumulated depreciation (SOFP)

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Depreciation 4

Change in expected life• If after a period of an asset’s life it is realised that the

original useful life has been changed, then the depreciation charge needs to be adjusted.

• The revised charge from that date becomes:

CV at revised dateRemaining useful life

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Tackling the exam

Exam focus point:

If an exam question gives you the purchase date of a non-current asset which is part way through an accounting period, you should generally assume that depreciation should be calculated in this way as a ‘part year’ amount, unless the question states otherwise.

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Non-current asset disposals 1

Disposal• On disposal of an asset a profit or loss will arise depending

on whether disposal proceeds are greater or less than the carrying value of the asset.

• If proceeds > CV = profit• If proceeds < CV = loss

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Double entry for a disposal• Eliminate cost

DEBIT Disposals

CREDIT Non-current assets

• Eliminate accumulated depreciationDEBIT Provision for depreciation

CREDIT Disposals

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• Account for sales proceedsDEBIT Cash

CREDIT Disposals

or if part exchange dealDEBIT Non-current assets

CREDIT Disposals

with part exchange value

• Transfer balance on disposals account to the statement of profit or loss

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Revaluations 1

IAS 16 allows a choice between• Keeping asset at cost• Revaluing to fair valueFair value may give fairer view on business.

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Revaluations 2

Accounting for a revaluationA revaluation is recorded as follows:

DEBIT Non-current asset

(revalued amount less original cost)

DEBIT Accumulated depreciation

(total depreciation to date)

CREDIT Revaluation surplus

(revalued amount less carrying value)

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DisclosureDisclosure

With regard to disclosure, a proforma non-current asset note is shown here.Total Land and

buildingsPlan and

equipment$ 000 $ 000 $ 000

Cost or valuationAt January 20X7 160 100 60Revaluation surplus 20 20 -Additions in year 50 30 20Disposals in year (45) (15) (30)At 31 December 20X7 185 135 50

DepreciationAt 1 January 20X7 30 20 10Charge for year 7 5 2Eliminated on disposals (3) - (3)At 31 December 20X7 34 25 9

Carrying valueAt 31 December 20X7 151 110 41At 1 January 20X7 130 80 50

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Tackling the exam 1

Exam focus point:

There was a question on revaluations in the December 2012 exam. This asked for the depreciation charge and balance on the revaluation reserve at the end of the financial year, following a revaluation at the beginning of the year.

The examiner commented that this was one of the questions with the lowest pass rates that session. Students correctly calculated the balance on the revaluation reserve but failed to identify the correct depreciation charge for the year.

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Tackling the exam 2

As the revaluation took place at the beginning of the year, a whole year’s depreciation had to be calculated using the revalued amount over the remaining useful economic life.

The remaining useful life needed to be calculated by working out the original depreciation charge and comparing this to the accumulated depreciation brought forward to find out how long the asset had been held.

Students who answered the question wrongly had used the original useful economic life rather than the remaining useful economic life figure.

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Lecture example 1

Required What examples of tangible non-current assets can you

identify?

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• Examples include: (a) Land and buildings (b) Plant and equipment (c) Motor vehicles (d) Furniture and fittings, computers

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Lecture example 2

On 10 December 20X7 an entity bought a machine. The breakdown on the invoice showed: $ Cost of machine 20,000 Delivery costs 200 One-year maintenance contract 900 21,100 Further installation costs of $500 were also incurred.

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Required At what amount should the machine be capitalised in the

entity's records? A $20,000 B $20,700 C $20,200 D $21,600

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B The cost capitalised should include the purchase price

($20,000) plus all directly attributable costs (delivery and installation).

The cost of the maintenance contract should be shown as an expense in the statement of profit or loss.

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Lecture example 3

A business buys a machine for $2,500. It is expected to have a useful life of three years after which time it will have a scrap value of $250.

Required (a) Calculate the annual depreciation charge. (b) Calculate the cost, accumulated depreciation and

net book value (NBV) for each year of the asset's life. Note: NBV = cost – accumulated depreciation to

date.

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Straight line method:

2,500 ─ 250

3 years= $750 per

annumDepreciation charge=

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Year Cost Accumulated depreciation NBV

1 2,500 750 1,750

2 2,500 1,500 1,000

3 2,500 2,250 250

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Answer to lecture example 3 (cont’d)Graphical representation

$2,500

250

0 3Year

NBV

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Lecture example 4

A business buys a machine costing $6,000. The depreciation rate is 40% on a reducing balance basis.

RequiredCalculate depreciation expense, accumulated depreciation and net book value of the asset for the first three years.

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Year Dep’n rate

Dep’n expense

Acc’ddep’n NBV

1 40% 2,400 2,400 3,600

2 40% 1,440 3,840 2,160

3 40% 864 4,704 1,296

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Answer to lecture example 4 (cont’d)Graphical representation

$6,000

1 2 3 4 5Year

NBV

3,600

2,160

1,296

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Lecture example 5

Required Using the information in Lecture example 3, show: (a) The journal entry which would have been written

at the end of the first year. (b) The treatment of depreciation for all years in the

relevant ledger accounts. (c) The relevant statement of profit or loss and

statement of financial position extracts for each year.

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(a) Journal entry Debit Credit $ $

Depreciation expense 750

Accumulated depreciation 750

Being annual depreciation charged on machine

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(b) Accounting for depreciation:

Machine (SOFP)

$ $Cash 2,500 Bal c/d 2,500

2,500 2,500Bal b/d 2,500

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Depreciation expense (SPL)

$ $Year 1 Accumulated dep’nYear 2 Accumulated dep’nYear 3 Accumulated dep’n

750750750

Year 1 SPLYear 2 SPLYear 3 SPL

750750750

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Accumulated depreciation (SOFP)

$ $ Bal c/dBal c/d

Bal c/d

7501,500

1,5002,250

2,250

Year 1 Depreciation expenseYear 2 Bal b/d Depreciation expense

Year 3 Bal b/d Depreciation expense

750750

7501,5001,500 7502,250

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Statement of profit or loss (extracts): Year 1 Year 2 Year 3

$ $ $

Expenses

Depreciation 750 750 750

Statement of financial position (extracts): Cost Accumulated Net Book

Depreciation Value

$ $ $

(Year 1) Machine 2,500 (750) 1,750

(Year 2) Machine 2,500 (1,500) 1,000

(Year 3) Machine 2,500 (2,250) 250

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Lecture example 6

The machine costing $6,000 in Lecture example 4 is sold in year 3 for $3,000. No depreciation is charged in the year of disposal.

Required (a) Calculate the profit or loss on disposal of the

machine. (b) Complete the ledger accounts to show how the

disposal would be accounted for.

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(a) $ Sales proceeds 3,000 NBV at end of year 2 (2,160) 840

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(b)Machine (SOFP)

Bal b/d $ 6,000 (a) Disposal account

$6,000


(b) Disposal account $ 3,840 Bal b/d

$3,840

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Disposal account (SPL)

(a) Machine Balance = profit on disposal (SPL)

$ 6,000 840

6,840

(c) Cash

(b) Accumulated dep’n

$3,000

3,8406,840

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Lecture example 7

Assume in Lecture example 6 that instead of cash proceeds of $3,000, there is a part exchange allowance of $3,000 on a replacement machine costing $10,000.

Required (a) Calculate the profit or loss on disposal of the

machine. (b) Calculate the amount of cash paid for the new

machine. (c) Complete the ledger accounts to show both the

disposal and the acquisition.

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(a) The profit on disposal is still $840, the only difference is that the proceeds were not received in cash, but in the form of a part exchange allowance.

(b) Cash paid for the new machine is $7,000 ($10,000 – $3,000)

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Old machine (SOFP)

Bal b/d $ 6,000 (a) Disposal account

$6,000


(b) Disposal account $3,840 Bal b/d

$3,840

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New machine (SOFP)

(c) Disposal account Cash

Bal b/d

$ 3,000 7,00010,00010,000

Bal c/d $10,000

10,000

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Disposal account (SPL)

(a) Machine Profit disposal (SPL)

$ 6,000 840 6,840

(c) New machine (part exchange)

(b) Accumulated depreciation

$3,000

3,840

6,840

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Lecture example 8

A building costing $100,000 on which depreciation of $20,000 has been charged is to be revalued to $150,000.

Required (a) Show the double entry to record the revaluation

and make the postings to the ledger accounts. (b) What would be the depreciation charge for the

year if the building has a remaining useful life of 40 years?

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(a) The double entry is $ $

Dr Non-current asset – building (150 – 100) 50,000

Dr Accumulated depreciation – building 20,000

Cr Revaluation reserve (β) 70,000

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Building (SOFP) $ $

Bal b/d 100,000Revaluation reserve 50,000 Bal c/d 150,000

150,000 150,000150,000

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Accumulated depreciation (SOFP) $ $

Revaluation reserve 20,000 Bal b/d 20,000

Revaluation reserve (SOFP) $ $

Building 50,000Revaluation reserve 70,000 Accumulated

depreciation20,000

70,000 70,000Bal b/d 70,000

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(b) Depreciation charge is $150,000 / 40 years = $3,750

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Lecture example 9

1.1.X1 Asset cost $40,000 Estimated useful life five years No residual value 1.1.X3 Total useful life revised to four years.

RequiredCalculate the depreciation charge, accumulated depreciation and NBV for each year of the asset's life (year end 31 December).

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Review of useful life:Year Depreciation

charge$

Accumulateddepreciation

$

NBV

$20X1 40,000/5 =

8,0008,000 32,000

20X2 40,000/5 =8,000 16,000

24,000

20X3 24,000/2 =12,000 28,000

12,000

20X4 24,000/2 =12,000

40,000

40,0000

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Lecture example 10

1.1.X1 Asset cost $40,000 Residual value $1,500 Useful life five years Depreciation: 25% reducing balance 1.1.X3 Change depreciation method to straight line

RequiredCalculate the depreciation charge, accumulated depreciation and NBV for each year of the asset’s life (year ended 31 December).

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Change in method of depreciation: Dep’n

charge $

Accumulateddepreciation

$

NBV

$20X1 40,000 × 25% 10,000 10,000 30,00020X2 30,000 × 25% 7,500 17,500 22,50020X3 (22,500-1,500)/3 7,000 24,500 15,50020X4 7,000 31,500 8,50020X5 7,000

38,50038,500 1,500

BPP LEARNING MEDIA

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Chapter summary 1

1 Introduction Expenditure on non-current assets is often significant

and it is important therefore that it is accounted for appropriately.

BPP LEARNING MEDIA

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Chapter summary 2

2 Non-current assets Capital expenditure results in a non-current asset

being shown on the statement of financial position. Revenue expenditure, such as repairs and maintenance, is shown as an expense in the statement of profit or loss.

Tangible non-current assets should initially be recorded at cost. This includes the purchase price of the item plus any directly attributable costs to bring the item to its intended location and ready to use.

BPP LEARNING MEDIA

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Chapter summary 3

3 Depreciation Depreciation is an expense charged in relation to the

asset each year to reflect the using up of the asset. Land usually has an unlimited useful life and so is not depreciated.

BPP LEARNING MEDIA

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Chapter summary 4

4 Methods of depreciation Depreciation is usually calculated on a straight line or

reducing balance basis.

BPP LEARNING MEDIA

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Chapter summary 5

5 Straight line method This method is suitable for assets which are used up

evenly during their life time. The depreciation expense is the same each year.

BPP LEARNING MEDIA

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Chapter summary 6

6 Reducing balance method This method is suitable for assets which generate more

revenue in the earlier years of their life. The depreciation expense is higher in the initial years.

BPP LEARNING MEDIA

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Chapter summary 7

7 Accounting for depreciation Depreciation is recorded by way of a journal entry. The

expense is recorded as a debit entry and reduces profit. The credit is made to the accumulated depreciation account and reduces the carrying value of the asset in the statement of financial position.

BPP LEARNING MEDIA

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Chapter summary 8

8 Disposal of non-current assets On disposal of a non-current asset the sales proceeds

are compared to the net book value of the asset in order to calculate the profit or loss on disposal. Where an asset is given in part exchange for another asset, the part exchange allowance takes the place of the sales proceeds.

BPP LEARNING MEDIA

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Chapter summary 9

9 Revaluations An entity may choose to revalue its assets rather than

hold them at cost – this is a choice of accounting policy. Where an entity revalues, it must revalue all assets in the same class and the depreciation charge is based on the revalued amount.

BPP LEARNING MEDIA

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Chapter summary 10

10 Depreciation revisited If an entity changes the method of depreciation used

from straight line to reducing balance (or vice versa) or revises the useful life of an asset it should write off the asset’s net book value using the revised method or useful life.

Documents

FIA FFA/ACCA F 3