ACCA Exams 2009

ACCA December 2009 Exam Tips from Kaplan

2009-12-02T23:02:00.000-08:00

ACCA F4
Key Examinable Areas
for December 2009

English Legal System
Interpretation of statute
Delegated Legislation
Types of courts
Contract Law
Intention to create legal relations
Exclusion clauses
Offer and acceptance
Liquidated damages & penalty clauses
The Law of Tort
Elements of the tort of negligence
Duty of care
Employment Law
Wrongful dismissal
Unfair dismissal
Remedies
Common law duties
Company Law
Company formation
Private v public company
Charges
Types of meetings
Powers of directors
Directors’ duties
Types of business
Fraudulent and/or wrongful trading
Liquidation

ACCA F5
Key Examinable Areas
for December 2009

Specialist cost and management accounting technique
• ABC – this is arguably the most important costing technique and has only been
examined once
• or back- flush accounting has not been examined as yet. This probably won’t be a
whole question but could be combined with, say, target costing
Decision making techniques
• Linear programming
• or relevant costing
Budgeting
• Written question on budgeting, e.g. approaches to budgeting
• Forecasting, including linear regression
Standard costing and variance analysis
• Standard variances and planning and operational variances; calculation and
discussion
• Maybe a short requirement on standard costing, factors to consider when
investigating a variance or variance analysis in modern manufacturing
Performance measurement
• Transfer pricing
• or ROI/RI
• or a more general question on performance measurement (perhaps with a ‘not for
profit’ organisation)

ACCA F6
Key Examinable Areas
for December 2009

Income tax
– Husband and wife
– Joint investment income
– Some exempt income
– Gift Aid donations extending basic rate band
– Age allowance
– Furnished holiday lettings (treat as trading income)
– Adjustment of profits
– Capital allowances
– National insurance
Corporation tax
– Period straddling 31 March 2008
– Possibly a short period of account
– Capital allowances
– Rental profits with lease premiums
– Quarterly accounting for large companies
– Overseas aspect – DTR
VAT
– Separate part of question 1 or 2 or whole question 4 (as in June 2009)
– VAT return
– Compulsory registration – future test
– Control visit / misdeclaration

Capital gains tax
– Individual making disposals
– Disposal of a business with Entrepreneur’s relief
– Disposal of chattels
– Principal private residence relief
– Part disposal
– Rollover and gift relief
Sundry topics for questions 4 and 5
– Company losses
– Sole trader losses
– Badges of trade

Kaplan Financial December 2009
ACCA F7 INT
Key Examinable Areas
for December 2009

Question 1
Consolidated I/S and SFP for either 2 or 3 company group
Potential complications to include deferred consideration, share exchange and net asset fair
value adjustments, uniform accounting policy alignment, inter-co loan and PURP.
Question 2
Redraft statement of comprehensive income and statement of financial position - possible
transactions to include depreciation, revaluation, investment property, revenue
recognition/substance, IFRS 5 – discontinued operation OR asset held for sale, inventory
adjustment, convertible loan, income tax.
Question 3
Possible mixed interpretation question to include a calculation of an element of a statement
of cash flow and a report to include calculation of ratios and interpretation of the accounts
using the statement of cash flow and ratio results.
Question 4 and 5
IASB Framework (elements or qualitative characteristics), EPS, Impairment, Intangible assets
or changes in accounting policies, estimates and errors.

ACCA F8 INT
Key Examinable Areas
for December 2009

Question 1
Systems and audit procedures: inventory, purchases, payroll
Question 2
Facts/standards: ISA’s 200, 210, 260, 320, 560
Question 3
Risk & audit approach: ethics/acceptance and internal control weaknesses
Question 4
Specialist audit areas: not for profit organisations
Question 5
Collection of evidence and auditor’s report: ISA 570 going concern
Subjects of recent articles:
• Auditing in a Computer Based Environment
• The Clarity Project
The examiner will set 5 questions, which will all have multiple elements, so it is likely that
other topics than the ones noted above will be examined in the December 2009 exam.

ACCA F9
Key Examinable Areas
for December 2009

Investment appraisal
This is a key topic which seems highly likely to be examined every time.
Expect a more complex NPVor IRR with tax and possibly inflation and working capital.
Replacement analysis, capital rationing and lease v buy are areas which thus far he has
avoided.
Working Capital Management
Another key topic which is likely to examined every time. Exams to date have covered much
of this topic.
Receivables are traditionally the most popular topic, although inventory management may be
due a turn.
Valuations
This has been examined in every F9 exam to date so is clearly a favourite of the examiner.
Asset and cash flow based values have yet to be examined.
Business Finance
This topic has been heavily examined in each of the last three exams.
Financing ratios are an area the examiner likes.
Gearing/capital structure calculations and commentary are a favourite and so always worth
being on top of.
Cost of Capital
Following the string of articles on CAPM theory, each of the last three exams have featured
questions in this area. Although the examiner might choose to leave this topic alone this
time, you should still ensure you have a good understanding of this area.
Risk Management
Hedging foreign exchange risk seems popular with the examiner and didn’t feature
significantly within the last exam.
Interest rates and risk management were touched upon in 2008. Despite their recent
appearance, don’t rule out them coming up again.
The Financial Management Function and the impact of the economic environment
upon it
These topics have largely been ignored thus far although a discussion of agency theory was
called for in the December 08 exam. Despite the examiner’s assertion in his first article about
F9 that all topics carry equal weight, we can probably expect these topics to continue to take
a back seat. Having said that, the most examinable area here is probably that of objectives in
both the corporate and NFP sectors.

ACCA P1
Key Examinable Areas
for December 2009

Corporate governance: internal actors (trade unions, company secretary), external
actors (stock exchanges, auditors)
• Board structure: family / insider or unitary / two tier
• Normative / instrumental stakeholder views
• Management information in audit & internal control
• Environmental / risk auditing
• Social & environmental accounting and environmental footprint
• AAA model

ACCA P2 INT
Key Examinable Areas
for December 2009

Section A
Group accounts - probably income statement with IFRS 3 revised aspects, such as mid year
disposal to an associate
Other reporting standards such as:
Financial assets
Retirement benefits
Impairments
Section B
Current issue - perhaps convergence of IFRS and US GAAP, or IFRS for SME
Multi-topic questions - perhaps incorporating aspects associated with the credit crunch:
Impairments
Provisions
Financial instruments
Revenue recognition
Held for sale
Discontinued activities

ACCA P3
Key Examinable Areas
for December 2009

Students should be aware that both sections of this exam will combine all elements of the
syllabus:
Strategic analysis
Choice
Implementation
Topics could include:
• Business analysis in a not-for-profit organisation
• Marketing
• Managing change
• Stakeholder analysis
• E-business
• Organisational structure

ACCA P4
Key Examinable Areas
for December 2009

Section A
30 marks each
• Business Valuation
• Corporate Failure
Section B
20 marks each
• Black Scholes
• WACC/financing
• ‘wordy’ question, incorporating an ethical dimension

ACCA P5
Key Examinable Areas
for December 2009

• Forecasting & performance appraisal
• Transfer pricing
• Comparison of ROI, RI and/or EVA; or decentralised businesses with RI
• Beyond budgeting
• Learning curves
• Corporate failure
• Strategic aspects
• A topic from chapter 11, e.g. performance pyramid

Kaplan Financial December 2009
ACCA P6
Key Examinable Areas
for December 2009

Corporation tax
Group relief – tax planning; consortium relief, company losses
Capital allowances with AIA
CFCs
Research and development
Takeovers: pre acquisition trading and capital losses
Close companies
Admin
Capital gains
Reliefs: rollover relief, PPR and letting relief
Capital gains groups with degrouping charges
Share takeovers or reorganisations
Inheritance tax
Estate computations, possibly with income tax in year of death
Business property relief
Deed of variation
Gift with reservation
Income tax
Overseas aspects for employees: calculation of tax on overseas income using marginal rates;
arising vs. remittance basis
Sole trader/partnerships commencement of trade, possibly with losses
Benefits: car, loan, accommodation, share schemes

Personal financial planning
EIS
ISAs
VAT
Land and buildings, option to tax, capital goods scheme
Partial exemption
Scenarios
Lease vs. buy assets: net cost
Badges of trade: IT vs. CGT
Employee vs. partner
Sole trader vs. company
Ethics

ACCA P7 INT
Key Examinable Areas
for December 2009

Core areas likely to be examined in every paper:
• Engagement planning and risk assessment
• Engagement procedures (i.e. evidence)
• Ethics and professional issues
• Engagement reporting (ISA 700 audit reports in particular)
Subjects of recent articles:
• Auditing in a Computer Based Environment
• The Clarity Project
• Audit of employee benefits and discontinued operations
• ISA 560 Subsequent Events
• ISA 540 Audit of Accounting Estimates
Note: The latter three points were mentioned in an article by Lisa Weaver published in
November 2008. However they remain unexamined and are likely to appear in this or the
June 2010 sitting.
Peripheral areas yet to be examined:
• Regulatory framework
• Corporate governance
• Money Laundering
The examiner will set 5 questions, which will all have multiple elements, so it is likely that
other topics than the ones noted above will be examined in the December 2009 exam.

ACCA December 2009 Exam Tips from PQ Magazine

2009-11-14T06:17:00.000-08:00

What do our experts think is coming up in December’s exams? Here are top tips. More help coming here soon, promise

Paper F4

Contract law: exclusion clauses or intention to create legal relations.
Employment law: wrongful and unfair dismissal .
Partnership law: ostensible authority.
Company law: alteration of articles, or formation.
Combined Code on Corporate Governance: application and purpose.
Types/structure of court – the English Legal System.
Civil and criminal law – the differences.
Offer and acceptance – the agreement.
Directors’ duties.
Company formation.
Fraudulent behaviour.

Paper F5

Interpreting financial and non-financial performance measures.
Throughput accounting techniques.
Short-term decision-making techniques.
Divisional performance measures .
Standard costing – variance analysis and operating statements.
Comparing the merits of different budgetary control systems.
ABC.
Forecasting - linear regression, or time series.
Transfer pricing.
Backflush costing discussion.
Limiting factors.

Paper F6

Taxation of employment income.
Dealing with trading losses – loss reliefs for sole traders and companies.
Computing corporation tax liabilities.
Computing chargeable gains.
Self-assessment and payment of tax by companies.
Badges of trade.
Adjusted profit computation and capital allowances for sole trader.
CGT – principle private residence relief.
Personal tax: benefits, adjustment to profits, capital allowances, opening year rules.
Corporation tax: long period of account, capital allowance, property lease, gains of shares, VAT annual accounting.

Paper F7

Consolidated Statement of Comprehensive Income – possible transactions to include depreciation, revaluation, investment property, IFRS 5.
Consolidated I/S and SFP for either 2/3 company groups..
Published accounts.
Cashflow question with report on company performance.
Financial statement interpretation.
Intangible non-current assets including research and development.
Liabilities including deferred tax.
Leasing – both numbers and written aspects.
IASB framework – elements or qualitative characteristics.

Paper F8

Payables – validation of period end balances and cut-off.
Acceptance of appointment – ethical and practical issues.
System evaluation and management letter extracts.
Audit of estimates including provisions and contingencies.
Understanding unmodified audit reports and modified opinions.
Closing review, subsequent events and threats to going concern status.
Payroll audit procedures.
Not for profit organisations.
Internal control weakness.
IAS 570 going concern.
Analytical review as a planning tool.
Threats to an auditors independence.
Inventories or non-current assets.

Paper F9

Economic environment and the impact on interest and exchange rates.
Working capital management – EOQ with discounts and lead time buffer stock.
Management of trade receivables, including settlement discounts and factoring.
Asset replacement cycles and capital rationing.
Risk management of foreign currency using internal and external hedging techniques.
Weighted average and marginal costs of capital and the CAPM.
Business valuations using geared betas and earnings based valuations.
Inventory management.
Complex NPV or IRR with tax.

Paper P1

Corporate Governance – risk management, director’s remuneration and non-executive director’s responsibilities.
Internal controls.
TARA risk model, ethics absolutist v relativism, separation of CEO and chairman powers (think M&S), ISO 14001.
Ethical dilemma – American Accounting Association decision model.
Stakeholder management Mendelow’s Matrix.
Risk audit - in house versus external provision. The need for internal audit.
The contents and process of a social/environment audit; the environmental footprint.
Enterprise risk management models

Paper P2

Complex group statement of comprehensive income incorporating a part disposal or stepped acquisition.
IFRS 3 revised aspects.
Principles and accounting treatment multi-scenario incorporating intangible non-current assets and impairment.
Deferred tax.
Management responsibilities for ensuring transparency of financial statements.
Impact of accounting policies on a financial covenant.
Accounting for environmental issues including provisioning.
Convergence of IFRS and US GAAP.
Discount activities.
Group topics – disposal of subsidiary and complex group. Other topics provisions, impairments, deferred tax.

Paper P3

The balance between controlling and encouraging emergent strategy.
E-business and supply chain management.
Scanning the macro-environment and competitive environment.
Project management and the capability maturity model.
Marketing techniques and customer relationship management.
Stakeholder analysis and corporate social responsibility.
Business analysis in not-for-profit organisation.

Paper P4

Corporate failure.
WACC/financing.
Business Valuation.
Black Scholes.

Paper P5

Impact of world, national and market trends on performance.
Current issues and trends in performance management.
The performance hierarchy, pyramid.
Behavioural aspects of performance management, forecasting.
Strategic management accounting and limitations of traditional management accounting techniques.
Learning curves.

Paper P6

Taxation aspects of property and investment income.
Self-assessment for individuals and partnerships.
Taxation of group companies and consortia.
Computing trading losses.
Ethics and tax planning.
Rollover relief.
Lease vs buy for assets.
VAT capital goods scheme.
IHT death estate.

Paper P7

Prospective financial information linked to applications for debt funding.
Audit procedures looking at impairment of financial instruments and fair value.
Ethical scenarios/professional issues.
Auditor liability and good practice management.
Issues associated with the control weaknesses and collection of evidence for a not-for-profit organisation.
Audit challenges of determining going concern status and the impact on audit opinions.
The clarity prject.
ISA 700 engagement reporting.
ISA 540 accounting estimates.

ACCA December 2009 Exam Tips from BPP

2009-11-12T00:29:00.000-08:00

Court structures
Offer and acceptance
Contract breach
Employees v independent contractors
Agency relationships
Directors duties
Insolvency

Performance Management (possibly with transfer pricing)
Budgeting including objectives and behavioural aspects
ABC
Pricing
Variances including planning & operating variances

Income tax involving sole trader encompassing profit adjustment and capital allowances and employed earner. Payment of tax details also required.
Corporation tax involving capital allowance calculation for plant and machinery and industrial building allowance. Double tax relief also tested.
VAT default surcharge liability.
Capital gains tax from individual perspective testing gift relief, entrepreneurs’ relief, part disposal, destroyed or damaged asset, exempt assets. Calculation of CGT liability involving capital losses.
Property income
Corporation tax losses

Q1 (25 marks): Consolidated statement of comprehensive income (P&L) and/or statement of financial position (balance sheet) with one subsidiary plus associate (including adjustments for fair values, unrealised profit, intragroup trading, goods/cash in transit, other syllabus area). Discursive part (b) on reasons for adjusting for unrealised profit or other group topic.
Q2 (25 marks): Accounts restatement/preparation with adjustments e.g. depreciation, current/deferred tax, inventory (stock) valuation, leases, substance over form issues, financial instruments (FV change or amortised cost), revaluations, share issues or government grants. May include EPS calculation or movement in share capital and reserves.
Q3 (25 marks): Interpretation and/or statement of cash flows, perhaps with written part on not-for-profit entities. Interpretation may focus on limited ratios and their interpretation (e.g. ROCE and its components). Sections of a statement of cash flows (rather than whole statement) may be tested
Q4 & Q5 (15 & 10 marks): One question in context of conceptual framework; other containing one or two discrete topics. Possibilities: regulatory framework, inflation, earnings per share, government grants, impairment, substance over form issues, leases or intangible assets

Not for profit organisations
CAAT
Corporate Governance
Test of Controls
Substantive Testing
Audit Reports

Working capital: this has always been a favourite theme; questions on inventory management and receivables management are likely here. Make sure that you are comfortable with calculating the operating cycle and explaining the concept of over-trading.
Investment decisions: this exam normally contains a question involving net present value (NPV), often with tax and inflation; discounted cash flow techniques can also be applied to asset replacement, capital rationing and leasing as well and one of these areas could well be tested this time. Remember that you may need to calculate a weighted average cost of capital before you calculate an NPV.
Sources of finance: this is a topical area, we would expect a part question on financing problems covering gearing issues and problems for small-medium sized companies. Ratio analysis is likely to feature here.
Business Valuations: this area is commonly tested and is a core syllabus area. You should note that in recent sittings the examiner has looked to combine different syllabus areas within the same exam question – for example asking you to calculate a cost of equity and then use it to value a company.
Make sure that you are also able to value debt. Finally, you need to be able to explain the efficient markets hypothesis – recent stock market volatility casts doubt on the ability of stock markets to price securities in a rational way.
Financial environment & Risk management: recent exchange rate and interest rate volatility could impact on a company’s financial management plans – a part question on this area could be set, with further discussion and calculations on hedging techniques.

Sarbanes Oxley - why a rules based system is suitable for corporate governance and comparing it to the UK combined code
CSR - benefits to organisations of engaging with stakeholders
Auditing processes - benefits of internal auditing, focussing on environmental auditing
Disclosure requirements under Turnbull report
Discussing an ethical issue using the American Accounting Association model
Explanation of some of the 9 principles of good governance
Features of an effective control system
Roles of different committees at board level
2 Tier v unitary board structure

P2
Section A

Compulsory case study including preparation of a group statement of comprehensive income (profit and loss account) (top tip) and/or statement of financial position (balance sheet) including complex group structures, continuing and discontinued activities or group disposals. This will include other accounting complications such as financial instruments, pensions, share-based payment and impairments.
There will also be discursive requirements on a linked accounting adjustment and social/ethical aspects of corporate reporting and the link between morality and ethics.

Section B

Industry question (often Q3), testing range of standards (NB: no specific knowledge of the particular industry is required)
Discussion question (Q4) looking at current developments in corporate reporting such as proposals relating to fair values, success/issues on implementation of IFRSs, treatment of gains and losses on pension schemes, small and medium-sized entities, management commentary, comprehensive income/presentation of financial statements, improvements in performance measurement. May also include a related computational part based on figures from a case study
'Multi-part' testing a range of standards separately, such as related parties, pensions, changes in accounting policies, recognition and/or impairment of tangible and intangible assets, foreign currency transactions, leases, revenue recognition, consistency of standards with the conceptual framework, changes in accounting policies, the effect of accounting treatments on earnings per share or ratios and deferred tax implications

Organisational goals and culture
Environmental analysis
Business processes
Quality initiatives
Methods of organisational expansion
Strategies for competitive advantage
Portfolio analysis

Role and responsibility towards stakeholders: ethical issues continue to appear regularly as an optional discussion question. This is an important area to develop as a strength, since the discussion question is normally one of the easier optional questions.
Advanced investment appraisal: real options and adjusted present value are popular themes and were not tested in the last two sittings. Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing.
Acquisitions and mergers: this exam normally contains a question involving valuations which the examiner sees as a crucial part of the syllabus, and this area was not examined in June. To give this a topical twist you might be valuing a company that is splitting itself up or selling off a division.
Corporate reconstruction: this is a topical area; a question could also ask you to evaluate a capital reconstruction e.g. a business that is considering offering its creditors shares in order to enable it to survive.
Advanced risk management: foreign currency derivatives are due to be tested numerically.
Emerging issues: the January 2009 article by the examiner on ‘toxic assets’ indicates that this area may well be examined as a part of a question.

Scope of strategic performance measures in the private sector: you may be asked to draw up an income statement or budget or to compare actual performance against a benchmark. This could include the use of activity-based approaches, learning curves or optimal pricing. Once the financial data has been collated and compared, questions usually include the need to comment on these and may require discussion of non-financial indicators, additional information to improve assessment or strategies to improve performance.
Divisional performance and transfer pricing issues: this chapter has been a key issue in P5 exams so far, often appearing as a compulsory question. ROI, RI, EVA or even ABC could feature here. Transfer pricing has not yet been tested in a full question but has appeared both as part of optional questions, numerically, and part of the smaller compulsory question, discursively.
Current developments / trends in management accounting: modern management and management accounting techniques have been examined here with both JIT and TQM common topics in the previous syllabus. Knowledge of these was used to discuss the impact they would have on information systems / performance measures.
Alternative approaches to budgeting for control: budgeting has been a favourite essay question with your examiner, but missed out in 2008.
Management accounting and information systems: a question on sources of information, relevance of operational management accounting information in today’s business environment or types of management information system is possible at this sitting as it has not yet been tested in depth at P5.
Alternative views of performance measurement: the examiner often includes a question to evaluate an organisation against an established theoretical model. The balanced scorecard, performance pyramid and building blocks have all appeared in previous exams.
Performance hierarchy: linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements

P6
Section A

Q1 Case study scenario involving personal tax issues.
Covering overseas aspects of income tax, calculation of DTR, choice of remuneration package involving share schemes, property income, capital gains.
Q2 Case study scenario involving group of companies; group relief, capital gains groups implications including consequences of selling a subsidiary, VAT issues of a group

Section B

Q3 IHT and CGT consequences of gifting wealth in lifetime or on death
Q4 Purchase of own shares, close companies, liquidation
Q5 Unincorporated business versus company, involving loss relief

A risk-based and/or planning scenario in the compulsory section
Questions based on articles published in Student Accountant in the past six months - such as recent articles on the Clarity Project and Computer Assisted Audit Techniques (CAATs)
A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues (CAATs could also feature here)
A practice-based scenario looking at professional, ethical and quality control issues
A reporting scenario of some sort
Legal and regulatory issues affecting assurance providers, especially in the context of firms’ professional liability, money laundering and the UK Companies Act 2006 (even the IAASB Clarity Project)
The requirements of other forms of assurance engagement, such as Prospective Financial Information (PFI), Value for Money (VfM) studies or agreed upon procedures
The correct treatment of more complex accounting issues (such as employee benefits or first time adoption of IFRS) than has been seen before
As in June 2009 with ISA 315, specific ISAs may be examined in sufficient detail to warrant learning the key elements for regurgitation in the exam
Discrete topics that we have not yet seen such as subsequent events as part of evaluation and review, questions using the context of internal audit or advertising for certain engagements
The need to understand current issues such as globalisation, the impact of the recession on auditors, corporate governance, risk management and auditor liability.

Student Accountant Articles

2009-11-12T00:24:00.000-08:00

FUNDAMENTALS

Knowledge Module

Skills Module

PROFESSIONAL

Essentials Module

Options

Past exam papers - ACCA

2009-11-12T00:14:00.000-08:00

ACCA Qualification (New Syllabus)

Syllabus and Study Guide (All papers)
Pilot Papers (All exams)

Quick Links to ALL Past ACCA Exams

FUNDAMENTALS

PROFESSIONAL

OLD Syllabus - Professional Scheme

Paper
1.1	Preparing Financial Statements INT
1.2	Financial Information for Management
1.3	Managing People

2.1	Information Systems
2.2	Corporate and Business Law (English)
2.3	Business Taxation (GBR)
2.4	Financial Management and Control
2.5	Financial Reporting INT
2.6	Audit and Internal Review

3.1	Audit and Assurance Services
3.2	Advanced Taxation (UK)
3.3	Performance Management
3.4	Business Information Management
3.5	Strategic Business Planning and Development
3.6	Advanced Corporate Reporting INT
3.7	Strategic Financial Management

P7 - ACCA Exams December 2009 from BPP

2009-11-11T22:54:00.001-08:00

A risk-based and/or planning scenario in the compulsory section
Questions based on articles published in Student Accountant in the past six months - such as recent articles on the Clarity Project and Computer Assisted Audit Techniques (CAATs)
A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues (CAATs could also feature here)
A practice-based scenario looking at professional, ethical and quality control issues
A reporting scenario of some sort
Legal and regulatory issues affecting assurance providers, especially in the context of firms’ professional liability, money laundering and the UK Companies Act 2006 (even the IAASB Clarity Project)
The requirements of other forms of assurance engagement, such as Prospective Financial Information (PFI), Value for Money (VfM) studies or agreed upon procedures
The correct treatment of more complex accounting issues (such as employee benefits or first time adoption of IFRS) than has been seen before
As in June 2009 with ISA 315, specific ISAs may be examined in sufficient detail to warrant learning the key elements for regurgitation in the exam
Discrete topics that we have not yet seen such as subsequent events as part of evaluation and review, questions using the context of internal audit or advertising for certain engagements
The need to understand current issues such as globalisation, the impact of the recession on auditors, corporate governance, risk management and auditor liability.

P6 - ACCA Exams December 2009 from BPP

2009-11-11T22:52:00.001-08:00

Section A

Q1 Case study scenario involving personal tax issues.
Covering overseas aspects of income tax, calculation of DTR, choice of remuneration package involving share schemes, property income, capital gains.
Q2 Case study scenario involving group of companies; group relief, capital gains groups implications including consequences of selling a subsidiary, VAT issues of a group

Section B

Q3 IHT and CGT consequences of gifting wealth in lifetime or on death
Q4 Purchase of own shares, close companies, liquidation
Q5 Unincorporated business versus company, involving loss relief

P5 - ACCA Exams December 2009 from BPP

2009-11-11T22:52:00.000-08:00

Scope of strategic performance measures in the private sector: you may be asked to draw up an income statement or budget or to compare actual performance against a benchmark. This could include the use of activity-based approaches, learning curves or optimal pricing. Once the financial data has been collated and compared, questions usually include the need to comment on these and may require discussion of non-financial indicators, additional information to improve assessment or strategies to improve performance.
Divisional performance and transfer pricing issues: this chapter has been a key issue in P5 exams so far, often appearing as a compulsory question. ROI, RI, EVA or even ABC could feature here. Transfer pricing has not yet been tested in a full question but has appeared both as part of optional questions, numerically, and part of the smaller compulsory question, discursively.
Current developments / trends in management accounting: modern management and management accounting techniques have been examined here with both JIT and TQM common topics in the previous syllabus. Knowledge of these was used to discuss the impact they would have on information systems / performance measures.
Alternative approaches to budgeting for control: budgeting has been a favourite essay question with your examiner, but missed out in 2008.
Management accounting and information systems: a question on sources of information, relevance of operational management accounting information in today’s business environment or types of management information system is possible at this sitting as it has not yet been tested in depth at P5.
Alternative views of performance measurement: the examiner often includes a question to evaluate an organisation against an established theoretical model. The balanced scorecard, performance pyramid and building blocks have all appeared in previous exams.
Performance hierarchy: linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements

P4 - ACCA Exams December 2009 from BPP

2009-11-11T22:51:00.001-08:00

Role and responsibility towards stakeholders: ethical issues continue to appear regularly as an optional discussion question. This is an important area to develop as a strength, since the discussion question is normally one of the easier optional questions.
Advanced investment appraisal: real options and adjusted present value are popular themes and were not tested in the last two sittings. Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing.
Acquisitions and mergers: this exam normally contains a question involving valuations which the examiner sees as a crucial part of the syllabus, and this area was not examined in June. To give this a topical twist you might be valuing a company that is splitting itself up or selling off a division.
Corporate reconstruction: this is a topical area; a question could also ask you to evaluate a capital reconstruction e.g. a business that is considering offering its creditors shares in order to enable it to survive.
Advanced risk management: foreign currency derivatives are due to be tested numerically.
Emerging issues: the January 2009 article by the examiner on ‘toxic assets’ indicates that this area may well be examined as a part of a question.

P3 - ACCA Exams December 2009 from BPP

2009-11-11T22:51:00.000-08:00

Organisational goals and culture
Environmental analysis
Business processes
Quality initiatives
Methods of organisational expansion
Strategies for competitive advantage
Portfolio analysis

P2 - ACCA Exams December 2009 from BPP

2009-11-11T22:50:00.000-08:00

Section A

Compulsory case study including preparation of a group statement of comprehensive income (profit and loss account) (top tip) and/or statement of financial position (balance sheet) including complex group structures, continuing and discontinued activities or group disposals. This will include other accounting complications such as financial instruments, pensions, share-based payment and impairments.
There will also be discursive requirements on a linked accounting adjustment and social/ethical aspects of corporate reporting and the link between morality and ethics.

Section B

Industry question (often Q3), testing range of standards (NB: no specific knowledge of the particular industry is required)
Discussion question (Q4) looking at current developments in corporate reporting such as proposals relating to fair values, success/issues on implementation of IFRSs, treatment of gains and losses on pension schemes, small and medium-sized entities, management commentary, comprehensive income/presentation of financial statements, improvements in performance measurement. May also include a related computational part based on figures from a case study
'Multi-part' testing a range of standards separately, such as related parties, pensions, changes in accounting policies, recognition and/or impairment of tangible and intangible assets, foreign currency transactions, leases, revenue recognition, consistency of standards with the conceptual framework, changes in accounting policies, the effect of accounting treatments on earnings per share or ratios and deferred tax implications

P1 - ACCA Exams December 2009 from BPP

2009-11-11T22:49:00.000-08:00

Sarbanes Oxley - why a rules based system is suitable for corporate governance and comparing it to the UK combined code
CSR - benefits to organisations of engaging with stakeholders
Auditing processes - benefits of internal auditing, focussing on environmental auditing
Disclosure requirements under Turnbull report
Discussing an ethical issue using the American Accounting Association model
Explanation of some of the 9 principles of good governance
Features of an effective control system
Roles of different committees at board level
2 Tier v unitary board structure

F9 - ACCA Exams December 2009 from BPP

2009-11-11T22:46:00.000-08:00

Working capital: this has always been a favourite theme; questions on inventory management and receivables management are likely here. Make sure that you are comfortable with calculating the operating cycle and explaining the concept of over-trading.
Investment decisions: this exam normally contains a question involving net present value (NPV), often with tax and inflation; discounted cash flow techniques can also be applied to asset replacement, capital rationing and leasing as well and one of these areas could well be tested this time. Remember that you may need to calculate a weighted average cost of capital before you calculate an NPV.
Sources of finance: this is a topical area, we would expect a part question on financing problems covering gearing issues and problems for small-medium sized companies. Ratio analysis is likely to feature here.
Business Valuations: this area is commonly tested and is a core syllabus area. You should note that in recent sittings the examiner has looked to combine different syllabus areas within the same exam question – for example asking you to calculate a cost of equity and then use it to value a company.
Make sure that you are also able to value debt. Finally, you need to be able to explain the efficient markets hypothesis – recent stock market volatility casts doubt on the ability of stock markets to price securities in a rational way.
Financial environment & Risk management: recent exchange rate and interest rate volatility could impact on a company’s financial management plans – a part question on this area could be set, with further discussion and calculations on hedging techniques.

F8 - ACCA Exams December 2009 from BPP

2009-11-11T22:45:00.002-08:00

Not for profit organisations
CAAT
Corporate Governance
Test of Controls
Substantive Testing
Audit Reports

F7 - ACCA Exams December 2009 from BPP

2009-11-11T22:45:00.001-08:00

Q1 (25 marks): Consolidated statement of comprehensive income (P&L) and/or statement of financial position (balance sheet) with one subsidiary plus associate (including adjustments for fair values, unrealised profit, intragroup trading, goods/cash in transit, other syllabus area). Discursive part (b) on reasons for adjusting for unrealised profit or other group topic.
Q2 (25 marks): Accounts restatement/preparation with adjustments e.g. depreciation, current/deferred tax, inventory (stock) valuation, leases, substance over form issues, financial instruments (FV change or amortised cost), revaluations, share issues or government grants. May include EPS calculation or movement in share capital and reserves.
Q3 (25 marks): Interpretation and/or statement of cash flows, perhaps with written part on not-for-profit entities. Interpretation may focus on limited ratios and their interpretation (e.g. ROCE and its components). Sections of a statement of cash flows (rather than whole statement) may be tested
Q4 & Q5 (15 & 10 marks): One question in context of conceptual framework; other containing one or two discrete topics. Possibilities: regulatory framework, inflation, earnings per share, government grants, impairment, substance over form issues, leases or intangible assets

F6 - ACCA Exams December 2009 from BPP

2009-11-11T22:44:00.001-08:00

Income tax involving sole trader encompassing profit adjustment and capital allowances and employed earner. Payment of tax details also required.
Corporation tax involving capital allowance calculation for plant and machinery and industrial building allowance. Double tax relief also tested.
VAT default surcharge liability.
Capital gains tax from individual perspective testing gift relief, entrepreneurs’ relief, part disposal, destroyed or damaged asset, exempt assets. Calculation of CGT liability involving capital losses.
Property income
Corporation tax losses

F5 - ACCA Exams December 2009 from BPP

2009-11-11T22:41:00.000-08:00

Performance Management (possibly with transfer pricing)
Budgeting including objectives and behavioural aspects
ABC
Pricing
Variances including planning & operating variances

F4 - ACCA Exams December 2009 from BPP

2009-11-11T22:24:00.000-08:00

Court structures
Offer and acceptance
Contract breach
Employees v independent contractors
Agency relationships
Directors duties
Insolvency