ACCA Exam tips for December 2007

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 Kaplan’s experience and understanding of the ACCA exams.

F4 – Corporate and Business Law

English Legal system - Interpretation of statutes and Human Rights
Contract - Formation and remedies.
Tort - Negligence
Employment - Dismissal
Partnership - authority of partners
Company Law
- Doctrine and veil of incorporation,
- Memo and articles
- Capital Maintenance
- Directors
Corporate Governance
Fraudulent Behaviour

F5 – Performance Management

Variance analysis, including mix and yield and interpretation
Learning curves
Performance measurement, including NFIs, the balanced scorecard and Fitzgerald et al
Decision making

F6 – Taxation

Income Tax, Income from employment, Income from self, the computation of taxable income and income tax liability, the self assessment system
Corporation tax, Profits chargeable to corporation tax [in particular, the allowable expenditure in calculating the tax adjusted trading profit, capital allowances, property business profits, and relief for trading losses.]
Value Added Tax, the circumstances of registration, the computation of VAT, the annual accounting scheme.
Capital Gains Tax, Computation of capital gains, computation of the amount of allowable expenditure for a part disposal, computation of a chargeable gain on disposal of a chattel, computation of exemption when PPR is disposed, Share identification rules – Individuals, Computation of capital gains tax payable by Individuals, Exemptions and reliefs

F7 – Financial Reporting

CBS or, slightly more likely, CPLA
Published Accounts with mixed standards
Interpretations or CFS, with latter more likely, maybe with bits of Interpretation
Standards with concepts, such as Leasing, DT, Construction contracts, Impairment, Depreciation with Revaluation, etc
Standards with concepts (other standards, standard setting, human assets, conceptual framework, etc)

F8 – Audit and Assurance

Ethics – objectivity, conflicts of interest
Planning – identifying and explaining/addressing risks in a scenario
Internal controls – weaknesses and recommendations
Audit evidence – substantive tests, sales and debtors
Completion – overall review
Internal audit – role, reliance by external auditors

F9 – Financial Management

Investment appraisal – especially NPV with tax and inflation. Additionally make sure you know the advantages and disadvantages of each appraisal method.
Working capital management – especially cash operating cycle and associated calculations.
Finance – especially financial and operating gearing and financial and business risk.

P1 – Professional Accountant

Director Remuneration Packages
Roles / Problems with NEDs
Unitary v 2-Tier Boards
Criticism of a company's current Governance
How/whether companies should deal with stakeholders
Board - Performance Evaluation
Role of internal Audit + Audit Committees
Different Ethics Models in business
Identification + Management of risks in a company

P2 – Corporate Reporting

Group accounts - foreign currency or cash flow
Accounting standards set in a case study environment including - impairment, financial instruments, pension, retirement benefits
Discussion - conceptual framework

P3 – Business Analysis

A fundamental appreciation of the key activities associated with strategic analysis, choice and implementation will always be required in interpreting the scenario.
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

P4 – Advanced Financial Management

Business Valuation through acquisitions
Foreign exchange hedging
Investment Appraisal and risk
Cost of capital and sources of finance
Advantages and disadvantages of listing and corporate objectives

P5 – Advanced Performance Management

Corporate failure.
Performance improvement strategies.
Value based management approaches.
Environmental management accounting.
The changing role of the management account in today's business environment

P6 – Advanced Taxation

Corporation tax including IBA, loss relief (S393A), group and consortium relief, group gains and VAT.
Overseas aspects of corporation tax including controlled foreign companies and transfer pricing.
CGT vs IHT for lifetime gifts
Employed vs self-employed (IT and NICs)
Badges of trade (IT vs CGT)
Employee vs partner (IT and NICs)
Sole trader/partnership vs company (IT, NICs and Corp. Tax)
Extraction of funds from company: salary vs dividend (IT, NICs, Corp. Tax)
Incorporation (IT, NICs, VAT, CGT), perhaps with incorporation relief vs gift relief
Comparison of employment packages and benefits (eg. cash vs car, share options vs bonus)
Corporation tax – disposal of business: sale of shares vs sale of assets
Property business profits including conditions for FHL and the advantages.
Close companies - maybe a letter on this.
VAT – cash accounting scheme, annual accounting scheme, due date for registration, partial exemption for VAT
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

Audit Risk Assessment and Management
Matters and evidence
Professional conduct and ethics
Assurance Services - CDD