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ACCA P2 (International)

Tips for paper P2 by BPP for June 2011 Q1: group SOFP and/or SOCI including discontinued activities, acquisitions and disposals or foreign subsidiary, plus adjustments on other syllabus areas such as financial instruments, pensions, sharebased payment and impairments. Written part on of a linked accounting adjustment and social/ethical/moral aspects corporate reporting.

Q2 & Q3: 2 case study questions, one following a theme such as non-current assets, deferred tax, related parties, foreign currency, financial instruments, the other an industry-based question testing a range of standards such as accounting policies and the framework, leases, grants, IFRS for SMEs, reorganisations, provisions and events after the reporting period. Q4: discussion question e.g. revenue recognition, first time adoption of IFRSs, fair values, management commentary, improvements in performance measurement, including an application part with some computations.

ACCA P3
Tips for paper P3 by BPP for June 2011 Important areas to cover:
1. 2. Strategy models Analysis of the environment or internal factors has featured in most exams. Key models include PESTEL, Porters Five Forces and the value chain. Forecasting has come into the syllabus and may well be tested, including the interpretation of numbers. Evaluation of strategic options is usually tested one way or another, SAF can be a useful framework to generate ideas but dont feel you need to follow it slavishly. Strategic action (largely change management and organisational configuration) is often overlooked, but was heavily tested in the compulsory question in the last paper. Take this as a warning that you need to cover the whole syllabus!

3. 4.

Business

Process

Change

A popular area, which may be based around models such as Harmon, or completely unstructured, describing a process and asking for improvements. Expect to see some numbers coming in to questions in this area to help with decisions such as automation and outsourcing. Information Technology

A pervasive theme in many questions. Make sure you are comfortable with some of the more important recent concepts in technology such as cloud computing, viral marketing and how technology can be used in customer relationship management. Project Management

This was already a major topic and has expanded in the new syllabus. I would expect to see this tested in every sitting. Questions may well focus on analysis and realisation of benefits and again are likely to include a numerical element. Financial Analysis

Lots of management accounting knowledge from F5 is now assumed knowledge here, including budgeting, variance analysis and relevant costing. You may need to do calculations, but remember the

focus in this paper is on using the calculations for decision-making, not the calculations themselves. Ratio analysis is still examinable and often provides opportunities for easy marks. People Less important than it was in the previous syllabus. Most likely to be tested in conjunction with one of the other topics. Most importantly

Knowledge alone will not get you close to a pass on this paper. You need to be able to apply your knowledge to specific situations. Practice this using past questions and stories in the press or on the web as often as you can and you will be ready for whatever the exam throws at you!

ACCA P4
Tips Role for and paper P4 by BPP for towards June 2011 responsibility 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. Economic value added and ratio analysis can also be used to appraise the performance of a company. Advanced investment appraisal:

The compulsory question often features an NPV question with an analysis of risk and / or financing; it could easily be set in the context of an overseas investment. Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing. Real options are also a popular theme. Acquisitions and mergers:

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 2010. Corporate more if it splits itself up. Advanced risk management: reconstruction:

A question could also ask you to evaluate a management buy out i.e. whether a business will be worth

We would expect to see a numerical risk management question featuring either interest rate or exchange rate hedging; neither area was tested in December 2010. 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.

ACCA P5
Tips for paper P5 by BPP for June 2011

Performance

analysis:

The new examiner has indicated that his questions will require more skill in interpreting data and discussing strategies to improve performance rather than performing calculations. You may be asked to analysis performance vs budget to identify underlying problems that a company needs to address. This analysis could include the use of activity-based approaches, learning curves or non-financial performance question. Performance appraisal requires effective information systems, expect to be asked to identify the key strategic, tactical and operational information requirements of a business. Risk probabilities; but strategic frameworks such as PEST analysis could feature here. Strategic performance measures in the private sector: analysis: measures. Beyond budgeting is an important area that can be tested either as a discussion or a numerical

Analysis of the risk of a new proposal could include numerical techniques such as expected values and

Divisional performance measurement is another key area; ROI, RI , EVA, NPV or even cost of quality could feature here and transfer pricing could feature as an aspect of these questions. Modified IRR is new to the syllabus so make sure that you are comfortable with this area. Reward systems on performance management. Alternative views of performance measurement: systems:

HR issues are new to the syllabus from June 2011; the examiner is interested in the impact of reward

Questions are commonly set that require a good understanding of the balanced scorecard, the building blocks model and the performance pyramid. Questions will often require you to analyse data that has been collected using one of these models. These models were not tested in December 2010. Performance hierarchy:

Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoffs 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.

ACCA P6
Tips for paper P6 by BPP for June 2011
1. Section A will involve two case study questions covering around 60-70% of the marks. One will be from a personal tax perspective and the other from a corporate tax perspective. Both questions will cover a range of topics and taxes and will require the construction of professional documents like reports/letters. Section B will comprise 3 questions making up the balance of the marks. Topics that may appear this sitting are as follows: Liquidation Group/Consortium relief Partial exemption for VAT Close companies Sole trader/partnerships Inheritance tax versus capital gains tax

2. 3. 4. 5. 6. 7. 8. 9.

10. Property income 11. Enterprise investment scheme/venture capital trust

ACCA P7
Tips for paper P7 by BPP for June 2011 Despite the syllabus refresh for 2011, there are still a number of areas that candidates can expect to see in their exam, such as:
1. 2. 3. 4. 5. A risk-based planning scenario in the compulsory section Questions based on articles published in Student Accountant (although not necessarily from the last six months) 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 candidates knowledge of the various modifications to the standard audit report.

We would also recommend that candidates keep the following additional issues in mind as part of their revision:
1. 2. Aspects of brought forward knowledge from F8 (such as the terms of audit engagements, sampling and documentation) could easily fit into practice-related scenarios more at home in the P7 exam. The correct accounting treatment of complex issues, such as a newcomer for 2011 IAS 21 The effects of changes in foreign exchange rates or the associated issues of disclosure (such as IFRS 8 Operating segments or IAS 33 Earnings per share) could form part of either section in the exam. The examiner has reiterated that specific ISAs will be examined in sufficient detail to require learning more than just the headlines for regurgitation in the exam. Untested areas still include comparatives (ISA 710) written representations (ISA 580) and opening balances (ISA 510). ISAs created as part of the Clarity Project could also form part of either compulsory or optional questions examples include ISA 265 on reporting deficiencies in internal controls, ISA 320 on materiality and ISA 450 on evaluating misstatements identified during the audit. Candidates need to be able to both understand and debate current issues such as audit reform, globalisation

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