Use the Exam Tips below as important areas to cover but remember that no one knows what can come in your P4 June 2012 ACCA Exams, apart from Shishir Malde (P4 examiner for June 2012 ACCA Exams). Your safest bet is to achieve good syllabus coverage in your revision, as the examiner usually does in recent diets of P4 Advanced Financial Management Exams.
BPP June 2012 ACCA Exam Tips
Ethical issues continue to appear regularly as an optional discussion question,
normally with practical financial issues from elsewhere in the syllabus. Economic
value added and ratio analysis can also be used to appraise the performance of
Cost of capital calculations are regularly tested, make sure that you are
comfortable adjusting betas for differences in gearing. Real options are also a
very popular theme.
This exam normally contains a question involving valuations which the examiner
sees as a crucial part of the syllabus; valuations questions are also likely to cover
strategic and financing issues. This area was not tested in December 2011 and is
therefore more likely than usual in June 2012.
We would expect to see a numerical risk management question featuring either
interest rate or exchange rate hedging; interest rate hedging was tested in
For emerging issues – the European debt crisis is very topical.
Kaplan Important Topics for June12
Cost of capital
Interest rate hedging techniques (swaps and FRAs – see examiner’s recent article)
The Eurozone debt crisis (see recent Student Accountant article)
First Intuition June 2012 Hot Topics
• International investment appraisal techniques focusing on risk management tools.
• Impact on WACC following hedging of interest rate risk.
• Company valuation based scenario, possible MBO finance to structure.
• Adjusted present value with link to real options and Black Scholes option pricing model.