kevingallagher

Just found the site today anyone any tips for the Dec08 F8 paper. Thanx in advance. Kev

Mohammad Nazmul Hoda

The exam is 100% compulsory which means that it is dangerous to rely on question spotting. The purpose of this analysis is to highlight areas that we would expect to be tested based on the December 2007 and June 2008 exams. Remember that no one knows what is in the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in your
revision, as the examiner aims to do in the exam.

Financial management function:

The examiner has not yet tested the objectives of a business; this could involve calculation of key ratios such as return on capital employed, gearing, return on equity, earnings per share, dividend per share and total shareholder return. Ratios can also be used to assess the impact of different sources of finance e.g. operational and financial gearing and interest coverage.

Financial management environment:

The examiner has not yet tested this area of the syllabus, and given the dramatic changes in the economy at the moment your understanding of the economic environment and its impact on financial management decisions is a topical area that could be tested as part of a question.

Working capital management:

This is a core syllabus area and has featured heavily in all exams to date. Areas that are due to be tested include: JIT, management of payables, preparing cash flow forecasts and working capital financing strategies. The sales revenue/ net working capital ratio has been specifically mentioned and can be used to forecast finance needs.

Investment appraisal:

This is also a core syllabus area, NPV has featured heavily in all exams to date and this is likely to continue, but discounted cash flows can also be applied to asset replacement, capital rationing and a financial assessment of leasing - these have not yet been tested.
Analysis of risk using probabilities and sensitivity analysis and non discounted cash flow techniques such as ARR and payback / adjusted payback are also due to be examined.

Cost of capital:

Your examiner has published 3 articles in 2008 on the use of the capital asset pricing model to create a project specific cost of capital, this area is likely to be examined.

Risk management:

This area has not been tested to date in a real exam sitting but did feature in the pilot paper as a 25 mark question. Types of foreign exchange risk and the use of currency risk management techniques such as forwards and money market hedging. Other topics that are likely to be tested here include interest rate parity theory, purchasing power parity theory and the purpose of currency futures and options (without numbers).

Useful Articles:

- on the ACCA website:

Author: Anthony Head (the examiner)
Date: January, April and July 2008
Summary: the CAPM and how it can be used to estimate a project specific cost of capital.

Mohammad Nazmul Hoda

The exam is 100% compulsory which means that it is dangerous to rely on question spotting. The purpose of this analysis is to highlight areas that we would expect to be tested based on the December 2007 and June 2008 exams. Remember that no one knows what is in the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in your
revision, as the examiner aims to do in the exam.

Financial management function:

The examiner has not yet tested the objectives of a business; this could involve calculation of key ratios such as return on capital employed, gearing, return on equity, earnings per share, dividend per share and total shareholder return. Ratios can also be used to assess the impact of different sources of finance e.g. operational and financial gearing and interest coverage.

Financial management environment:

The examiner has not yet tested this area of the syllabus, and given the dramatic changes in the economy at the moment your understanding of the economic environment and its impact on financial management decisions is a topical area that could be tested as part of a question.

Working capital management:

This is a core syllabus area and has featured heavily in all exams to date. Areas that are due to be tested include: JIT, management of payables, preparing cash flow forecasts and working capital financing strategies. The sales revenue/ net working capital ratio has been specifically mentioned and can be used to forecast finance needs.

Investment appraisal:

This is also a core syllabus area, NPV has featured heavily in all exams to date and this is likely to continue, but discounted cash flows can also be applied to asset replacement, capital rationing and a financial assessment of leasing - these have not yet been tested.
Analysis of risk using probabilities and sensitivity analysis and non discounted cash flow techniques such as ARR and payback / adjusted payback are also due to be examined.

Cost of capital:

Your examiner has published 3 articles in 2008 on the use of the capital asset pricing model to create a project specific cost of capital, this area is likely to be examined.

Risk management:

This area has not been tested to date in a real exam sitting but did feature in the pilot paper as a 25 mark question. Types of foreign exchange risk and the use of currency risk management techniques such as forwards and money market hedging. Other topics that are likely to be tested here include interest rate parity theory, purchasing power parity theory and the purpose of currency futures and options (without numbers).

Useful Articles:

- on the ACCA website:

Author: Anthony Head (the examiner)
Date: January, April and July 2008
Summary: the CAPM and how it can be used to estimate a project specific cost of capital.

amyzhangjie

F9 or F8,F9 or F8

louise_yun

if you have 30 posts, you can see the tips

tanyewmeng

HELP!!! I need F8 exam tips from BPP