Talk to me, speak with me
Don't sink before you rise baby
Don't fade away
You hesitate, you seem to wait
For all the time we had feels a world away
'Cause who's to say we'll be okay
We will make it through the night
Don't want to wake up in this state
I just want us both to smile
'Cause we're the same and I know that will never change
Look I bought your favourite ice cream
I don't want to see it melt away
If you walk out now
I don't know if we could be the same
Baby, just talk with me
'Cause I want you to stay here with me
The memories, the things we did
Are locked inside my heart
Where I know I won't forget them now
Who's to say we'll be okay
We will make it through the night
Don't want to wake up in this state
I just want us both to smile
'Cause we're the same and I know that will never change
Look I bought your favourite ice cream
I don't want to see it melt away
If you walk out now
I don't know if we could be the same
Baby, just talk with me
'Cause I want you to stay here with me
By Ciara Newell
Wednesday, June 16, 2010
Saturday, June 5, 2010
Exam Tips for June 2010
TARC
Paper P3
* Internal/External analysis. A core area of the syllabus and could be based around a number of key models all of which may be used to analyse the current position of the organisation. This could be the main part of your section A. The value chain and BCG matrix are included so make sure you are able to work with these models. Ensure that you can undertake analysis of a business’ current position and performance using ratios as this is increasingly an element of P3.
* Generation and evaluation of strategic options. Leading on from an initial analysis of a business you may be asked to offer advice on the best options in light of the current position or having been informed of an issue an organisation is facing.
* Project management. Most business decisions result in projects being initiated. This is an important area of P3 and although we have seen this before there are a number of ways this area could be examined.
* Business processes and Change management. Although seen in previous sittings this could be part of a requirement. This could incorporate changes to both upstream and downstream supply chains.
* Quality. A popular area of the syllabus that has featured in a number of sittings. We have seen the key models examined in recent sittings. The importance of quality may see it included as a part requirement or underpinning a business decision.
* Marketing. Techniques and customer relationship could feature in section B. Competitive behaviour through lifecycle modelling could be an underpinning issue in either section A or B.
* Stakeholders. Identification of stakeholders has been examined previously although you may still see this as a part requirement.
Paper P4
* Role and responsibility towards stakeholders. Ethical issues continue to appear regularly as an optional discussion question, normally with practical financial issues from elsewhere in the syllabus. The discussion question is normally one of the easier optional questions.
* Advanced investment appraisal. The compulsory question often features an NPV question with an analysis of risk. Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing. Real options and adjusted present value are also popular themes, and are normally tested in section B of the exam.
* Acquisitions and mergers. Although this area was heavily examined in December, this exam normally contains a question involving valuations which the examiner sees as a crucial part of the syllabus.
* Corporate reconstruction. This is a topical area; a question could also ask you to evaluate a capital reconstruction e.g. a business that is considering offering its creditors shares in order to enable it to survive.
* Advanced risk management. We would expect to see a numerical risk management question featuring either interest rate or exchange rate hedging. Foreign currency derivatives are due to be tested numerically; the new examiner has indicated that questions may well ask you to compare the results of a hedge using a number of different hedging techniques.
Paper P5
* Scope of strategic performance measures in the private sector. Analysis of financial and non-financial performance; this could include the use of activity-based approaches or learning curves, and strategies to improve performance.
* Divisional performance and transfer pricing issues. ROI, RI , EVA or even ABC could feature here; transfer pricing could feature as an aspect of these questions.
* Problems with budgeting. Budgeting has been a favourite essay question with your examiner, especially an awareness of the problems of budgeting but was largely unexamined in 2009.
* Alternative views of performance measurement. The examiner often includes a question to evaluate an organisation against an established theoretical model. The balanced scorecard, performance pyramid and building blocks have all appeared in previous exams.
* Performance hierarchy. Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements that could easily include a simple NPV or profit analysis.
Paper P6
Income tax:
* Pension contributions – tax relief
* EIS/VCT schemes
* Income tax losses
* Accrued income scheme
* Personal service companies
* Termination payments
* Share schemes
* Overseas aspects for individuals
Capital gains tax:
* Small part disposal of land
* Takeover/reorganisations
* EIS reinvestment relief
* Damaged/destroyed assets
* Leases/wasting assets
Inheritance tax:
* Death estate, treatment of lifetime gifts
* Quick succession relief
* Gifts with reservation of benefit
* Variation of will
* Payment of IHT
* IHT implications of transferring property into a trust
Corporation tax:
* Research and development
* Intangible assets
* Liquidation/winding up
* Consortium relief
Value added tax:
VAT groups
* Imports/exports
* Partial exemption
* Treatment of VAT on disposal of buildings
Ethics
Paper P7
* A risk-based and/or planning scenario in the compulsory section
* Questions based on articles published in Student Accountant in the past six months – such as the article on Going Concern from February 2010
* A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues
* A practice-based scenario looking at professional, ethical and quality control issues
* A reporting scenario of some sort – probably testing either emphasis of matter or other matter paragraphs
* Legal and regulatory issues affecting assurance providers, especially in the context of firms’ professional liability and the UK Companies Act 2006
* Specific procedures for obtaining evidence (such as analytical procedures and other ISAs that have changed following the Clarity Project) and evaluating the quality of audit work carried out, both for components and groups
* The requirements of other forms of assurance engagement, such as Value for Money (VfM) studies or agreed upon procedures
* The correct treatment of more complex accounting issues (such as employee benefits and adoption of IFRS) than has been seen before
* Specific ISAs may be examined in sufficient detail to warrant learning the key elements for regurgitation in the exam, such as comparatives (ISA 710) other information (ISA 720) or opening balances (ISA 510)
* Discrete topics that we have not yet seen such as questions using the context of internal audit or examples of other non-audit engagements
* The need to understand current issues such as globalisation, the impact of the recession on auditors, corporate governance, risk management and auditor liability – especially relevant in the context of the going concern article from February 2010
other source
P4
1 Big NPV involving calculation of WACC using CAPM (gearing and ungearing betas),
possibly a foreign investment needing forecasting of exchange rates,
2 Financial appraisal of a business (from sets of accounts) and calculation of Z-score (in
which case formula will be given)
Section B:
3 Foreign exchange risk – futures and options
4 Either interest rate risk (futures and options), or possibly Option Pricing (share options
and delta hedge)
5 Written question – impossible to guess, but possibly – “Quantitative easing”. What is it?
Why do it? Risk involved in doing it?
Paper P3
* Internal/External analysis. A core area of the syllabus and could be based around a number of key models all of which may be used to analyse the current position of the organisation. This could be the main part of your section A. The value chain and BCG matrix are included so make sure you are able to work with these models. Ensure that you can undertake analysis of a business’ current position and performance using ratios as this is increasingly an element of P3.
* Generation and evaluation of strategic options. Leading on from an initial analysis of a business you may be asked to offer advice on the best options in light of the current position or having been informed of an issue an organisation is facing.
* Project management. Most business decisions result in projects being initiated. This is an important area of P3 and although we have seen this before there are a number of ways this area could be examined.
* Business processes and Change management. Although seen in previous sittings this could be part of a requirement. This could incorporate changes to both upstream and downstream supply chains.
* Quality. A popular area of the syllabus that has featured in a number of sittings. We have seen the key models examined in recent sittings. The importance of quality may see it included as a part requirement or underpinning a business decision.
* Marketing. Techniques and customer relationship could feature in section B. Competitive behaviour through lifecycle modelling could be an underpinning issue in either section A or B.
* Stakeholders. Identification of stakeholders has been examined previously although you may still see this as a part requirement.
Paper P4
* Role and responsibility towards stakeholders. Ethical issues continue to appear regularly as an optional discussion question, normally with practical financial issues from elsewhere in the syllabus. The discussion question is normally one of the easier optional questions.
* Advanced investment appraisal. The compulsory question often features an NPV question with an analysis of risk. Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing. Real options and adjusted present value are also popular themes, and are normally tested in section B of the exam.
* Acquisitions and mergers. Although this area was heavily examined in December, this exam normally contains a question involving valuations which the examiner sees as a crucial part of the syllabus.
* Corporate reconstruction. This is a topical area; a question could also ask you to evaluate a capital reconstruction e.g. a business that is considering offering its creditors shares in order to enable it to survive.
* Advanced risk management. We would expect to see a numerical risk management question featuring either interest rate or exchange rate hedging. Foreign currency derivatives are due to be tested numerically; the new examiner has indicated that questions may well ask you to compare the results of a hedge using a number of different hedging techniques.
Paper P5
* Scope of strategic performance measures in the private sector. Analysis of financial and non-financial performance; this could include the use of activity-based approaches or learning curves, and strategies to improve performance.
* Divisional performance and transfer pricing issues. ROI, RI , EVA or even ABC could feature here; transfer pricing could feature as an aspect of these questions.
* Problems with budgeting. Budgeting has been a favourite essay question with your examiner, especially an awareness of the problems of budgeting but was largely unexamined in 2009.
* Alternative views of performance measurement. The examiner often includes a question to evaluate an organisation against an established theoretical model. The balanced scorecard, performance pyramid and building blocks have all appeared in previous exams.
* Performance hierarchy. Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements that could easily include a simple NPV or profit analysis.
Paper P6
Income tax:
* Pension contributions – tax relief
* EIS/VCT schemes
* Income tax losses
* Accrued income scheme
* Personal service companies
* Termination payments
* Share schemes
* Overseas aspects for individuals
Capital gains tax:
* Small part disposal of land
* Takeover/reorganisations
* EIS reinvestment relief
* Damaged/destroyed assets
* Leases/wasting assets
Inheritance tax:
* Death estate, treatment of lifetime gifts
* Quick succession relief
* Gifts with reservation of benefit
* Variation of will
* Payment of IHT
* IHT implications of transferring property into a trust
Corporation tax:
* Research and development
* Intangible assets
* Liquidation/winding up
* Consortium relief
Value added tax:
VAT groups
* Imports/exports
* Partial exemption
* Treatment of VAT on disposal of buildings
Ethics
Paper P7
* A risk-based and/or planning scenario in the compulsory section
* Questions based on articles published in Student Accountant in the past six months – such as the article on Going Concern from February 2010
* A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues
* A practice-based scenario looking at professional, ethical and quality control issues
* A reporting scenario of some sort – probably testing either emphasis of matter or other matter paragraphs
* Legal and regulatory issues affecting assurance providers, especially in the context of firms’ professional liability and the UK Companies Act 2006
* Specific procedures for obtaining evidence (such as analytical procedures and other ISAs that have changed following the Clarity Project) and evaluating the quality of audit work carried out, both for components and groups
* The requirements of other forms of assurance engagement, such as Value for Money (VfM) studies or agreed upon procedures
* The correct treatment of more complex accounting issues (such as employee benefits and adoption of IFRS) than has been seen before
* Specific ISAs may be examined in sufficient detail to warrant learning the key elements for regurgitation in the exam, such as comparatives (ISA 710) other information (ISA 720) or opening balances (ISA 510)
* Discrete topics that we have not yet seen such as questions using the context of internal audit or examples of other non-audit engagements
* The need to understand current issues such as globalisation, the impact of the recession on auditors, corporate governance, risk management and auditor liability – especially relevant in the context of the going concern article from February 2010
other source
P4
1 Big NPV involving calculation of WACC using CAPM (gearing and ungearing betas),
possibly a foreign investment needing forecasting of exchange rates,
2 Financial appraisal of a business (from sets of accounts) and calculation of Z-score (in
which case formula will be given)
Section B:
3 Foreign exchange risk – futures and options
4 Either interest rate risk (futures and options), or possibly Option Pricing (share options
and delta hedge)
5 Written question – impossible to guess, but possibly – “Quantitative easing”. What is it?
Why do it? Risk involved in doing it?
Thursday, April 22, 2010
Thinking with EXCELLECE...
Well, what's excellence?
I have done research on it
It means to exceed a given standard that is ordinary, average, terrible or unworthy.
Excellence is to be superior in QUALITY
Excellence is to obtain greater in QUANTITY
Excellence is to TRANSCEND your job description
and lastly,
It's to OUTDO ourselves each time
Sound easy right?
not so tough to achieve right?
Let's enjoy being excellence!!!
I have done research on it
It means to exceed a given standard that is ordinary, average, terrible or unworthy.
Excellence is to be superior in QUALITY
Excellence is to obtain greater in QUANTITY
Excellence is to TRANSCEND your job description
and lastly,
It's to OUTDO ourselves each time
Sound easy right?
not so tough to achieve right?
Let's enjoy being excellence!!!
Tuesday, April 20, 2010
Finally i know..
Today i know something which i wanted to know all the while..
and finally i realised the fact that i cant change anything
if i know every single things on it...
so helpless???
can't i work hard on it?
why can't 2+2=4???
why 1+1=can be anything, other than 2?
and finally i realised the fact that i cant change anything
if i know every single things on it...
so helpless???
can't i work hard on it?
why can't 2+2=4???
why 1+1=can be anything, other than 2?
Thursday, January 21, 2010
Sunday, December 20, 2009
I miss you
We always gather together at the end of library
sometimes gossip about our lecturers
talking about what did they wear
'ling long' ear rings
We have common interest
talk about our hobbies
exchange info
(but most of the time KS was giving free lecture, haha)
when we feel boring to study
curi curi to go an empty class room
to .......
you may heard a screaming sound...
we listen songs and music
Beethoven, Mozart la...
we count timing together...
1 2 3 4 5 ...
remember that someone always climb up to the chair
just to see whether our food is come..
end up college used curtain to cover the windows
we took lots of pics in library too...
hehe..
that really my sweet memories
And we did study hard too...
Wednesday, November 11, 2009
ACCA Dec 2009 exam tips
From PQ Magazine
Paper F5
Interpreting financial and non-financial performance measures.
Throughput accounting techniques.
Short-term decision-making techniques.
Divisional performance measures .
Standard costing – variance analysis and operating statements.
Comparing the merits of different budgetary control systems.
ABC.
Forecasting - linear regression, or time series.
Transfer pricing.
Backflush costing discussion.
Limiting factors.
Paper F7
Consolidated
Statement of Comprehensive Income – possible transactions to include
depreciation, revaluation, investment property, IFRS 5.
Consolidated I/S and SFP for either 2/3 company groups..
Published accounts.
Cashflow question with report on company performance.
Financial statement interpretation.
Intangible non-current assets including research and development.
Liabilities including deferred tax.
Leasing – both numbers and written aspects.
IASB framework – elements or qualitative characteristics.
Paper F8
Payables – validation of period end balances and cut-off.
Acceptance of appointment – ethical and practical issues.
System evaluation and management letter extracts.
Audit of estimates including provisions and contingencies.
Understanding unmodified audit reports and modified opinions.
Closing review, subsequent events and threats to going concern status.
Payroll audit procedures.
Not for profit organisations.
Internal control weakness.
IAS 570 going concern.
Analytical review as a planning tool.
Threats to an auditors independence.
Inventories or non-current assets.
Paper F9
Economic environment and the impact on interest and exchange rates.
Working capital management – EOQ with discounts and lead time buffer stock.
Management of trade receivables, including settlement discounts and factoring.
Asset replacement cycles and capital rationing.
Risk management of foreign currency using internal and external hedging techniques.
Weighted average and marginal costs of capital and the CAPM.
Business valuations using geared betas and earnings based valuations.
Inventory management.
Complex NPV or IRR with tax.
Paper P1
Corporate Governance – risk management, director’s remuneration and non-executive director’s responsibilities.
Internal controls.
TARA risk model, ethics absolutist v relativism, separation of CEO and chairman powers (think M&S), ISO 14001.
Ethical dilemma – American Accounting Association decision model.
Stakeholder management Mendelow’s Matrix.
Risk audit - in house versus external provision. The need for internal audit.
The contents and process of a social/environment audit; the environmental footprint.
Enterprise risk management models
Paper P2
Complex group statement of comprehensive income incorporating a part disposal or stepped acquisition.
IFRS 3 revised aspects.
Principles and accounting treatment multi-scenario incorporating intangible non-current assets and impairment.
Deferred tax.
Management responsibilities for ensuring transparency of financial statements.
Impact of accounting policies on a financial covenant.
Accounting for environmental issues including provisioning.
Convergence of IFRS and US GAAP.
Discount activities.
Group topics – disposal of subsidiary and complex group. Other topics provisions, impairments, deferred tax.
Paper P3
The balance between controlling and encouraging emergent strategy.
E-business and supply chain management.
Scanning the macro-environment and competitive environment.
Project management and the capability maturity model.
Marketing techniques and customer relationship management.
Stakeholder analysis and corporate social responsibility.
Business analysis in not-for-profit organisation.
Paper P4
Corporate failure.
WACC/financing.
Business Valuation.
Black Scholes.
Paper P5
Impact of world, national and market trends on performance.
Current issues and trends in performance management.
The performance hierarchy, pyramid.
Behavioural aspects of performance management, forecasting.
Strategic management accounting and limitations of traditional management accounting techniques.
Learning curves.
From Opentuition...
Tips for ACCA Paper F5 "Performance Management"
Question 1
>Activity Based Costing / target costing
>Question 2
>Linear programming
>Question 3
>Variance analysis - planning and operational
>Question 4
>Budget preparation including regression and time series and/or
>> learning curves.
>Question 5
>Performance measurement - divisionalised + transfer pricing
Tips for ACCA F7 Financial Reporting (INT)
Question 1
Consolidated Statements of Financial Position and Statement of Comprehensive Income with a subsidiary and an associate
Question 2
Preparation of Statement of Income and Statement of Financial Position
from a draft set of financial statements of draft trial balance
Question 3
Statement of Cash Flows - maybe with an interpretation element
Question 4
Earnings per share calculation
Question 5
Chat about the Framework
Tips for ACCA Paper F8 Audit and Assurance (INT)
30 Mark question:
Analytical review
10 Mark question:
Computer assisted auditing techniques
20 Mark questions:
Audit of non-current assets
Not for profit organizations
Engagement and audit planning
Tips for ACCA Paper F9 Financial Management
Question 1
Weighted average cost of capital with CAPM / calculating an asset beta from an equity beta
Question 2
Forecasting
future exchange rate (purchasing power parity) / management of exchange
rate risk (forward contracts and money markets) / written on managing
interest rate risk
Question 3
NPV question - probably Capital Rationing / written on limitations
Question 4
Management of receivables / calculation and comment on some ratios
Tips for ACCA P1 Professional Accountant
Question 1
Identify and explain how a company can better comply with the Combined
Code on Corporate Governance, the role of a corporate and social
responsibility sub-committee, and something about the environment
Question 2
Importance and role of an Internal Audit department / function in the management of risk
Question 3
David Campbell's article in Student Accountant August 2009 about Internal and External Actors in a company
Question 4
A scenario question on ethics - different attitudes and appr
Tips for ACCA P2 Corporate Reporting (INT)
Question 1
Consolidated Statement of Income with
two subsidiaries - one part disposed but still a subsidiary, the other
part disposed becoming an associate - both with goodwill involved. Q
Base, Black and Zero but needs amendment to include the goodwill angle.
!5 more marks for chat about environment and or corporate governance
Question 2
A "Various IFRS" question - Lots of examples in section B of the BPP revision kit
Question 3
Write a report to directors about the acceptability of some dubious proposed accounting treatments
Question 4
An
essay question about the problems facing the IASB in their efforts to
reach acceptable standards which can be applied World-wide
Tips for ACCA Paper P3 Business Analysis
Part A - 50 mark case study
SWOT/PESTEL/Porter's 5 forces analysis
Foreign expansion/merger
Generic strategies
Parenting styles/Ashridge portfolio display
* Part B – 2 from 3 25 mark questions
* E-business and marketing
* Project management
* Business process change management/outsourcing/commoditisation of outsourcing services
From BPP.....
F5
Performance Management (possibly with transfer pricing)
Budgeting including objectives and behavioural aspects
ABC
Pricing
Variances including planning & operating variances
F6
Income
tax involving sole trader encompassing profit adjustment and capital
allowances and employed earner. Payment of tax details also required.
Corporation
tax involving capital allowance calculation for plant and machinery and
industrial building allowance. Double tax relief also tested.
VAT default surcharge liability.
Capital
gains tax from individual perspective testing gift relief,
entrepreneurs’ relief, part disposal, destroyed or damaged asset,
exempt assets. Calculation of CGT liability involving capital losses.
Property income
Corporation tax losses
F7
Q1
(25 marks): Consolidated statement of comprehensive income (P&L)
and/or statement of financial position (balance sheet) with one
subsidiary plus associate (including adjustments for fair values,
unrealised profit, intragroup trading, goods/cash in transit, other
syllabus area). Discursive part (b) on reasons for adjusting for
unrealised profit or other group topic.
Q2 (25 marks): Accounts
restatement/preparation with adjustments e.g. depreciation,
current/deferred tax, inventory (stock) valuation, leases, substance
over form issues, financial instruments (FV change or amortised cost),
revaluations, share issues or government grants. May include EPS
calculation or movement in share capital and reserves.
Q3 (25
marks): Interpretation and/or statement of cash flows, perhaps with
written part on not-for-profit entities. Interpretation may focus on
limited ratios and their interpretation (e.g. ROCE and its components).
Sections of a statement of cash flows (rather than whole statement) may
be tested
Q4 & Q5 (15 & 10 marks): One question in context
of conceptual framework; other containing one or two discrete topics.
Possibilities: regulatory framework, inflation, earnings per share,
government grants, impairment, substance over form issues, leases or
intangible assets
F8
Not for profit organisations
CAAT
Corporate Governance
Test of Controls
Substantive Testing
Audit Reports
F9
Working
capital: this has always been a favourite theme; questions on inventory
management and receivables management are likely here. Make sure that
you are comfortable with calculating the operating cycle and explaining
the concept of over-trading.
Investment decisions: this exam
normally contains a question involving net present value (NPV), often
with tax and inflation; discounted cash flow techniques can also be
applied to asset replacement, capital rationing and leasing as well and
one of these areas could well be tested this time. Remember that you
may need to calculate a weighted average cost of capital before you
calculate an NPV.
Sources of finance: this is a topical area, we
would expect a part question on financing problems covering gearing
issues and problems for small-medium sized companies. Ratio analysis is
likely to feature here.
Business Valuations: this area is commonly
tested and is a core syllabus area. You should note that in recent
sittings the examiner has looked to combine different syllabus areas
within the same exam question – for example asking you to calculate a
cost of equity and then use it to value a company.
Make sure that
you are also able to value debt. Finally, you need to be able to
explain the efficient markets hypothesis – recent stock market
volatility casts doubt on the ability of stock markets to price
securities in a rational way.
Financial environment & Risk
management: recent exchange rate and interest rate volatility could
impact on a company’s financial management plans – a part question on
this area could be set, with further discussion and calculations on
hedging techniques.
P1
Sarbanes Oxley - why a rules based system is suitable for corporate governance and comparing it to the UK combined code
CSR - benefits to organisations of engaging with stakeholders
Auditing processes - benefits of internal auditing, focussing on environmental auditing
Disclosure requirements under Turnbull report
Discussing an ethical issue using the American Accounting Association model
Explanation of some of the 9 principles of good governance
Features of an effective control system
Roles of different committees at board level
2 Tier v unitary board structure
P2
Section A
Compulsory
case study including preparation of a group statement of comprehensive
income (profit and loss account) (top tip) and/or statement of
financial position (balance sheet) including complex group structures,
continuing and discontinued activities or group disposals. This will
include other accounting complications such as financial instruments,
pensions, share-based payment and impairments.
There will also be
discursive requirements on a linked accounting adjustment and
social/ethical aspects of corporate reporting and the link between
morality and ethics.
Section B
Industry question (often Q3), testing range of standards (NB: no specific knowledge of the particular industry is required)
Discussion
question (Q4) looking at current developments in corporate reporting
such as proposals relating to fair values, success/issues on
implementation of IFRSs, treatment of gains and losses on pension
schemes, small and medium-sized entities, management commentary,
comprehensive income/presentation of financial statements, improvements
in performance measurement. May also include a related computational
part based on figures from a case study
'Multi-part' testing a range
of standards separately, such as related parties, pensions, changes in
accounting policies, recognition and/or impairment of tangible and
intangible assets, foreign currency transactions, leases, revenue
recognition, consistency of standards with the conceptual framework,
changes in accounting policies, the effect of accounting treatments on
earnings per share or ratios and deferred tax implications
P3
Organisational goals and culture
Environmental analysis
Business processes
Quality initiatives
Methods of organisational expansion
Strategies for competitive advantage
Portfolio analysis
P4
Role
and responsibility towards stakeholders: ethical issues continue to
appear regularly as an optional discussion question. This is an
important area to develop as a strength, since the discussion question
is normally one of the easier optional questions.
Advanced
investment appraisal: real options and adjusted present value are
popular themes and were not tested in the last two sittings. Cost of
capital calculations are regularly tested, make sure that you are
comfortable adjusting betas for differences in gearing.
Acquisitions
and mergers: this exam normally contains a question involving
valuations which the examiner sees as a crucial part of the syllabus,
and this area was not examined in June. To give this a topical twist
you might be valuing a company that is splitting itself up or selling
off a division.
Corporate reconstruction: this is a topical area; a
question could also ask you to evaluate a capital reconstruction e.g. a
business that is considering offering its creditors shares in order to
enable it to survive.
Advanced risk management: foreign currency derivatives are due to be tested numerically.
Emerging
issues: the January 2009 article by the examiner on ‘toxic assets’
indicates that this area may well be examined as a part of a question.
P5
Scope
of strategic performance measures in the private sector: you may be
asked to draw up an income statement or budget or to compare actual
performance against a benchmark. This could include the use of
activity-based approaches, learning curves or optimal pricing. Once the
financial data has been collated and compared, questions usually
include the need to comment on these and may require discussion of
non-financial indicators, additional information to improve assessment
or strategies to improve performance.
Divisional performance and
transfer pricing issues: this chapter has been a key issue in P5 exams
so far, often appearing as a compulsory question. ROI, RI, EVA or even
ABC could feature here. Transfer pricing has not yet been tested in a
full question but has appeared both as part of optional questions,
numerically, and part of the smaller compulsory question, discursively.
Current developments / trends in management accounting: modern
management and management accounting techniques have been examined here
with both JIT and TQM common topics in the previous syllabus. Knowledge
of these was used to discuss the impact they would have on information
systems / performance measures.
Alternative approaches to budgeting
for control: budgeting has been a favourite essay question with your
examiner, but missed out in 2008.
Management accounting and
information systems: a question on sources of information, relevance of
operational management accounting information in today’s business
environment or types of management information system is possible at
this sitting as it has not yet been tested in depth at P5.
Alternative
views of performance measurement: the examiner often includes a
question to evaluate an organisation against an established theoretical
model. The balanced scorecard, performance pyramid and building blocks
have all appeared in previous exams.
Performance hierarchy: linking
strategic decisions to mission statements or suggesting strategic
options using models such as Ansoff’s matrix or the BCG matrix lend
themselves to questions containing a mixture of financial and
discursive elements
Paper F5
Interpreting financial and non-financial performance measures.
Throughput accounting techniques.
Short-term decision-making techniques.
Divisional performance measures .
Standard costing – variance analysis and operating statements.
Comparing the merits of different budgetary control systems.
ABC.
Forecasting - linear regression, or time series.
Transfer pricing.
Backflush costing discussion.
Limiting factors.
Paper F7
Consolidated
Statement of Comprehensive Income – possible transactions to include
depreciation, revaluation, investment property, IFRS 5.
Consolidated I/S and SFP for either 2/3 company groups..
Published accounts.
Cashflow question with report on company performance.
Financial statement interpretation.
Intangible non-current assets including research and development.
Liabilities including deferred tax.
Leasing – both numbers and written aspects.
IASB framework – elements or qualitative characteristics.
Paper F8
Payables – validation of period end balances and cut-off.
Acceptance of appointment – ethical and practical issues.
System evaluation and management letter extracts.
Audit of estimates including provisions and contingencies.
Understanding unmodified audit reports and modified opinions.
Closing review, subsequent events and threats to going concern status.
Payroll audit procedures.
Not for profit organisations.
Internal control weakness.
IAS 570 going concern.
Analytical review as a planning tool.
Threats to an auditors independence.
Inventories or non-current assets.
Paper F9
Economic environment and the impact on interest and exchange rates.
Working capital management – EOQ with discounts and lead time buffer stock.
Management of trade receivables, including settlement discounts and factoring.
Asset replacement cycles and capital rationing.
Risk management of foreign currency using internal and external hedging techniques.
Weighted average and marginal costs of capital and the CAPM.
Business valuations using geared betas and earnings based valuations.
Inventory management.
Complex NPV or IRR with tax.
Paper P1
Corporate Governance – risk management, director’s remuneration and non-executive director’s responsibilities.
Internal controls.
TARA risk model, ethics absolutist v relativism, separation of CEO and chairman powers (think M&S), ISO 14001.
Ethical dilemma – American Accounting Association decision model.
Stakeholder management Mendelow’s Matrix.
Risk audit - in house versus external provision. The need for internal audit.
The contents and process of a social/environment audit; the environmental footprint.
Enterprise risk management models
Paper P2
Complex group statement of comprehensive income incorporating a part disposal or stepped acquisition.
IFRS 3 revised aspects.
Principles and accounting treatment multi-scenario incorporating intangible non-current assets and impairment.
Deferred tax.
Management responsibilities for ensuring transparency of financial statements.
Impact of accounting policies on a financial covenant.
Accounting for environmental issues including provisioning.
Convergence of IFRS and US GAAP.
Discount activities.
Group topics – disposal of subsidiary and complex group. Other topics provisions, impairments, deferred tax.
Paper P3
The balance between controlling and encouraging emergent strategy.
E-business and supply chain management.
Scanning the macro-environment and competitive environment.
Project management and the capability maturity model.
Marketing techniques and customer relationship management.
Stakeholder analysis and corporate social responsibility.
Business analysis in not-for-profit organisation.
Paper P4
Corporate failure.
WACC/financing.
Business Valuation.
Black Scholes.
Paper P5
Impact of world, national and market trends on performance.
Current issues and trends in performance management.
The performance hierarchy, pyramid.
Behavioural aspects of performance management, forecasting.
Strategic management accounting and limitations of traditional management accounting techniques.
Learning curves.
From Opentuition...
Tips for ACCA Paper F5 "Performance Management"
Question 1
>Activity Based Costing / target costing
>Question 2
>Linear programming
>Question 3
>Variance analysis - planning and operational
>Question 4
>Budget preparation including regression and time series and/or
>> learning curves.
>Question 5
>Performance measurement - divisionalised + transfer pricing
Tips for ACCA F7 Financial Reporting (INT)
Question 1
Consolidated Statements of Financial Position and Statement of Comprehensive Income with a subsidiary and an associate
Question 2
Preparation of Statement of Income and Statement of Financial Position
from a draft set of financial statements of draft trial balance
Question 3
Statement of Cash Flows - maybe with an interpretation element
Question 4
Earnings per share calculation
Question 5
Chat about the Framework
Tips for ACCA Paper F8 Audit and Assurance (INT)
30 Mark question:
Analytical review
10 Mark question:
Computer assisted auditing techniques
20 Mark questions:
Audit of non-current assets
Not for profit organizations
Engagement and audit planning
Tips for ACCA Paper F9 Financial Management
Question 1
Weighted average cost of capital with CAPM / calculating an asset beta from an equity beta
Question 2
Forecasting
future exchange rate (purchasing power parity) / management of exchange
rate risk (forward contracts and money markets) / written on managing
interest rate risk
Question 3
NPV question - probably Capital Rationing / written on limitations
Question 4
Management of receivables / calculation and comment on some ratios
Tips for ACCA P1 Professional Accountant
Question 1
Identify and explain how a company can better comply with the Combined
Code on Corporate Governance, the role of a corporate and social
responsibility sub-committee, and something about the environment
Question 2
Importance and role of an Internal Audit department / function in the management of risk
Question 3
David Campbell's article in Student Accountant August 2009 about Internal and External Actors in a company
Question 4
A scenario question on ethics - different attitudes and appr
Tips for ACCA P2 Corporate Reporting (INT)
Question 1
Consolidated Statement of Income with
two subsidiaries - one part disposed but still a subsidiary, the other
part disposed becoming an associate - both with goodwill involved. Q
Base, Black and Zero but needs amendment to include the goodwill angle.
!5 more marks for chat about environment and or corporate governance
Question 2
A "Various IFRS" question - Lots of examples in section B of the BPP revision kit
Question 3
Write a report to directors about the acceptability of some dubious proposed accounting treatments
Question 4
An
essay question about the problems facing the IASB in their efforts to
reach acceptable standards which can be applied World-wide
Tips for ACCA Paper P3 Business Analysis
Part A - 50 mark case study
SWOT/PESTEL/Porter's 5 forces analysis
Foreign expansion/merger
Generic strategies
Parenting styles/Ashridge portfolio display
* Part B – 2 from 3 25 mark questions
* E-business and marketing
* Project management
* Business process change management/outsourcing/commoditisation of outsourcing services
From BPP.....
F5
Performance Management (possibly with transfer pricing)
Budgeting including objectives and behavioural aspects
ABC
Pricing
Variances including planning & operating variances
F6
Income
tax involving sole trader encompassing profit adjustment and capital
allowances and employed earner. Payment of tax details also required.
Corporation
tax involving capital allowance calculation for plant and machinery and
industrial building allowance. Double tax relief also tested.
VAT default surcharge liability.
Capital
gains tax from individual perspective testing gift relief,
entrepreneurs’ relief, part disposal, destroyed or damaged asset,
exempt assets. Calculation of CGT liability involving capital losses.
Property income
Corporation tax losses
F7
Q1
(25 marks): Consolidated statement of comprehensive income (P&L)
and/or statement of financial position (balance sheet) with one
subsidiary plus associate (including adjustments for fair values,
unrealised profit, intragroup trading, goods/cash in transit, other
syllabus area). Discursive part (b) on reasons for adjusting for
unrealised profit or other group topic.
Q2 (25 marks): Accounts
restatement/preparation with adjustments e.g. depreciation,
current/deferred tax, inventory (stock) valuation, leases, substance
over form issues, financial instruments (FV change or amortised cost),
revaluations, share issues or government grants. May include EPS
calculation or movement in share capital and reserves.
Q3 (25
marks): Interpretation and/or statement of cash flows, perhaps with
written part on not-for-profit entities. Interpretation may focus on
limited ratios and their interpretation (e.g. ROCE and its components).
Sections of a statement of cash flows (rather than whole statement) may
be tested
Q4 & Q5 (15 & 10 marks): One question in context
of conceptual framework; other containing one or two discrete topics.
Possibilities: regulatory framework, inflation, earnings per share,
government grants, impairment, substance over form issues, leases or
intangible assets
F8
Not for profit organisations
CAAT
Corporate Governance
Test of Controls
Substantive Testing
Audit Reports
F9
Working
capital: this has always been a favourite theme; questions on inventory
management and receivables management are likely here. Make sure that
you are comfortable with calculating the operating cycle and explaining
the concept of over-trading.
Investment decisions: this exam
normally contains a question involving net present value (NPV), often
with tax and inflation; discounted cash flow techniques can also be
applied to asset replacement, capital rationing and leasing as well and
one of these areas could well be tested this time. Remember that you
may need to calculate a weighted average cost of capital before you
calculate an NPV.
Sources of finance: this is a topical area, we
would expect a part question on financing problems covering gearing
issues and problems for small-medium sized companies. Ratio analysis is
likely to feature here.
Business Valuations: this area is commonly
tested and is a core syllabus area. You should note that in recent
sittings the examiner has looked to combine different syllabus areas
within the same exam question – for example asking you to calculate a
cost of equity and then use it to value a company.
Make sure that
you are also able to value debt. Finally, you need to be able to
explain the efficient markets hypothesis – recent stock market
volatility casts doubt on the ability of stock markets to price
securities in a rational way.
Financial environment & Risk
management: recent exchange rate and interest rate volatility could
impact on a company’s financial management plans – a part question on
this area could be set, with further discussion and calculations on
hedging techniques.
P1
Sarbanes Oxley - why a rules based system is suitable for corporate governance and comparing it to the UK combined code
CSR - benefits to organisations of engaging with stakeholders
Auditing processes - benefits of internal auditing, focussing on environmental auditing
Disclosure requirements under Turnbull report
Discussing an ethical issue using the American Accounting Association model
Explanation of some of the 9 principles of good governance
Features of an effective control system
Roles of different committees at board level
2 Tier v unitary board structure
P2
Section A
Compulsory
case study including preparation of a group statement of comprehensive
income (profit and loss account) (top tip) and/or statement of
financial position (balance sheet) including complex group structures,
continuing and discontinued activities or group disposals. This will
include other accounting complications such as financial instruments,
pensions, share-based payment and impairments.
There will also be
discursive requirements on a linked accounting adjustment and
social/ethical aspects of corporate reporting and the link between
morality and ethics.
Section B
Industry question (often Q3), testing range of standards (NB: no specific knowledge of the particular industry is required)
Discussion
question (Q4) looking at current developments in corporate reporting
such as proposals relating to fair values, success/issues on
implementation of IFRSs, treatment of gains and losses on pension
schemes, small and medium-sized entities, management commentary,
comprehensive income/presentation of financial statements, improvements
in performance measurement. May also include a related computational
part based on figures from a case study
'Multi-part' testing a range
of standards separately, such as related parties, pensions, changes in
accounting policies, recognition and/or impairment of tangible and
intangible assets, foreign currency transactions, leases, revenue
recognition, consistency of standards with the conceptual framework,
changes in accounting policies, the effect of accounting treatments on
earnings per share or ratios and deferred tax implications
P3
Organisational goals and culture
Environmental analysis
Business processes
Quality initiatives
Methods of organisational expansion
Strategies for competitive advantage
Portfolio analysis
P4
Role
and responsibility towards stakeholders: ethical issues continue to
appear regularly as an optional discussion question. This is an
important area to develop as a strength, since the discussion question
is normally one of the easier optional questions.
Advanced
investment appraisal: real options and adjusted present value are
popular themes and were not tested in the last two sittings. Cost of
capital calculations are regularly tested, make sure that you are
comfortable adjusting betas for differences in gearing.
Acquisitions
and mergers: this exam normally contains a question involving
valuations which the examiner sees as a crucial part of the syllabus,
and this area was not examined in June. To give this a topical twist
you might be valuing a company that is splitting itself up or selling
off a division.
Corporate reconstruction: this is a topical area; a
question could also ask you to evaluate a capital reconstruction e.g. a
business that is considering offering its creditors shares in order to
enable it to survive.
Advanced risk management: foreign currency derivatives are due to be tested numerically.
Emerging
issues: the January 2009 article by the examiner on ‘toxic assets’
indicates that this area may well be examined as a part of a question.
P5
Scope
of strategic performance measures in the private sector: you may be
asked to draw up an income statement or budget or to compare actual
performance against a benchmark. This could include the use of
activity-based approaches, learning curves or optimal pricing. Once the
financial data has been collated and compared, questions usually
include the need to comment on these and may require discussion of
non-financial indicators, additional information to improve assessment
or strategies to improve performance.
Divisional performance and
transfer pricing issues: this chapter has been a key issue in P5 exams
so far, often appearing as a compulsory question. ROI, RI, EVA or even
ABC could feature here. Transfer pricing has not yet been tested in a
full question but has appeared both as part of optional questions,
numerically, and part of the smaller compulsory question, discursively.
Current developments / trends in management accounting: modern
management and management accounting techniques have been examined here
with both JIT and TQM common topics in the previous syllabus. Knowledge
of these was used to discuss the impact they would have on information
systems / performance measures.
Alternative approaches to budgeting
for control: budgeting has been a favourite essay question with your
examiner, but missed out in 2008.
Management accounting and
information systems: a question on sources of information, relevance of
operational management accounting information in today’s business
environment or types of management information system is possible at
this sitting as it has not yet been tested in depth at P5.
Alternative
views of performance measurement: the examiner often includes a
question to evaluate an organisation against an established theoretical
model. The balanced scorecard, performance pyramid and building blocks
have all appeared in previous exams.
Performance hierarchy: linking
strategic decisions to mission statements or suggesting strategic
options using models such as Ansoff’s matrix or the BCG matrix lend
themselves to questions containing a mixture of financial and
discursive elements
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