ACCA Exam tips for June 2008
NOTE: These exam tips should only be used in conjunction with proper studying.
We cannot guarantee that these tips will appear in the actual exam as we have
not seen the exam papers. The tips are based on Kaplans experience and
understanding of the ACCA exams.
F4 Corporate and Business Law
Tips include:
English Legal system
Law of Obligations
Contract Law
o Consideration
o Types of terms
o Remedies
Law of tort - Professional Negligence
Employment Law
Wrongful and unfair dismissal
Formation and Constitution of Business Organisations
Partnerships
o Authority of partners
o Dissolution
Capital and financing of companies
Loan capital and differences between fixed and floating charges Management, Administration and Regulation of Companies
Types of directors
Removal of directors
Insolvency
Differences between compulsory and voluntary winding up
Administrations
Governance and ethical issues relating to business
Fraudulent and wrongful trading
Kaplan Financial 2/6 June2008
F5 Performance Management
Tips include:
Performance measurements with both financial and non-financial indicators
Budgeting with learning curve or ABB
Variances Mix and Yield
Decision making either apply decision criteria or linear programming
F6 Taxation
Tips include:
Income tax
Employment Income, self employed, property income, Income tax computation and loss reliefs
Corporation tax
PCTCT, allowable expenditure, capital allowances, relief fro trading losses, VAT
Registration, accounting schemes, CGT
Part disposals, Chattels, Share identification rules for individuals, exemptions and reliefs
F7 Financial Reporting
Tips include:
Q1 Consolidated Statement of Financial Position / Balance Sheet plus Income Statement / Profit & Loss, subsidiary only, possible mid-year acquisition.
Q2 TB to financial statements, including non-current assets / fixed assets(possible sum of digits depreciation), deferred taxation.
Q3 Cashflow and related analysis report.
Q4 & Q5 Impairment
Framework / Statement of Principles
Construction contracts
Not-for-profit entities (3 Es: Effectiveness, Efficiency, Economy)
Kaplan Financial 3/6 June2008
F8 Audit and Assurance
Tips include:
Identify and explain / address risks in a scenario
Substantive tests on debtors/receivables, stock/inventory
Weaknesses in internal controls and recommendations (sales, payroll)
Types of assurance assignments
Completion overall review
Confidentiality and conflicts of interest
Role of internal audit, reliance by external auditors
F9 Financial Management
Tips include:
Investment appraisal.
NPV/IRR with tax and possibly inflation.
Payback, replacement analysis and capital rationing.
Working Capital Management.
Receivables and Payables.
Business Finance.
Gearing/capital structure calculations and comment thereon. Cost of Capital
CAPM theory, its advantages and disadvantages, and its use in calculating a cost of equity and a risk adjusted WACC.
Risk Management.
Hedging foreign exchange risk and interest rates and risk management Valuations
Asset and cash flow based values.
The Financial Management Function and the impact of the economic environment upon it.
Objectives in both the corporate and NFP sectors.
Kaplan Financial 4/6 June2008
P1 Professional Accountant
Tips include:
Governance problems and solutions.
Roles of directors.
Internal audit scope.
Risk analysis.
CSR policy decision.
P2 Corporate Reporting
Tips include:
Q1 Foreign entity Statement of Financial Position /IS (Comprehensive income)/
Reconciliation or cashflow. Revision of IAS 1 / ethics
Q2/Q3 Mixed transactional.
Financial instruments/ deferred tax/ actuarial gains and losses/ revaluation of assets/ forex gains/ losses.
Segmental reporting/related party transactions/revenue recognition.
Current issue.
Harmonisation of accounting standards (IFRS and US).
P3 Business Analysis
Tips include:
A fundamental appreciation of the key activities associated with strategic analysis, choice and implementation will always be required in interpreting the scenario.
Quality and six sigma.
The relevance of ethics and corporate governance to strategic decision making.
Issues related to globalization and international business management.
Be able to comment in general on how things like HR and IT can help underpin a strategic plan.
Also review the pilot paper and make sure you know what CMMI is
Kaplan Financial 5/6 June2008
P4 Advanced Financial Management
Tips include:
Section A
NPV or APV of a foreign investment project, with discussion of political risk
Business valuation for a takeover, using book plus model, and including discussion of defence tactics and ethical issues.
Section B
Interest rate management including a recommendation to the Board
Discussion question on stakeholder conflicts and dividend policy
Cost of capital and free cash flow for a valuation.
P5 Advanced Performance Management
Tips include:
Transfer pricing
Performance appraisal question (financial and non - financial measures, maybe benchmarking)
Strategy - missions & objectives
Gap analysis, pest or swot
Corporate failure (z score)
NPV & ROCE or RI
EMA
Kaplan Financial 6/6 June2008
P6 Advanced Taxation
Tips include:
Corporation tax including IBA, loss relief (S393A), group and consortium relief, overseas subsidiaries, group gains and VAT.
Key scenarios:
One or more of the following is likely to feature on the exam:
o CGT vs IHT for lifetime gifts
o Employed vs self-employed (IT and NICs)
o Badges of trade (IT vs CGT)
o Employee vs partner (IT and NICs)
o Extraction of funds from company: salary vs dividend (IT, NICs, Corp. Tax)
o Incorporation (IT, NICs, VAT, CGT), perhaps with incorporation relief vs gift
relief
o Comparison of employment packages and benefits (eg. cash vs car, share
options vs bonus)
o Corporation tax disposal of business: sale of shares vs sale of assets
Close companies - maybe a letter on this.
VAT cash accounting scheme, annual accounting scheme, due date for registration.
Financial planning sources of finance, lease versus buy, investments including EIS vs VCT, the Financial Services and Markets Act 2000, pensions
P7 Advanced Audit and Assurance
Tips include:
Risk Assessment / Risk Management / Audit Strategy
Audit Evidence
Practice Management - Obtaining professional work / tendering
Assurance Services - Prospective Financial Information / Due Diligence Reviews
Reporting/Application of GAAP
Professional conduct & ethical issues
ACCA Exam Tips from FTC-June 2008
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