F7 (Int) FTC Exam Tips for December 2008
F7 INT – Financial Reporting (international variant)
Consolidation possibly 3 company SFP or 2 company I/S and SFP
Question will probably include the update to IFRS 3 affecting Goodwill and NCI calculations
Preparation of published accounts from TB to include I/S, SOCIE and SFP - possible transactions, depreciation, revaluation, income tax and deferred tax, lease, development costs.
Possible mixed interpretation question to include calculation of a basic statement of cashflow and a report to include calculation of ratios and interpretation of the accounts using the cash flow and ratio results.
Question 4 and 5
Construction Contracts, IASB Framework (elements or qualitative characteristics), Impairment or Provisions.
F8 (FTC) Exam Tips for December 2008
F8 – Audit & Assurance (UK & International variant)
Q1 – Audit procedures: payroll, CAATs & substantive tests (30 marks)
Q2 – Facts/standards: engagement letters/acceptance (10 marks)
Q3 – Risk & audit approach: identification of risks in audit risk model (20 marks)
Q4 – Specialist audit areas: internal audit (20 marks)
Q5 – Collection of evidence/reporting: events after the reporting date (20 marks)
F9 (Ftc) Exam Tips for December 2008
F9 – Financial Management
• Investment appraisal - NPV/IRR with tax, inflation and working capital is a favourite topic of the examiner, although areas not examined to date include payback, replacement analysis, capital rationing and lease v buy.
• Working Capital Management - receivables are traditionally the most popular topic but payables and cash are due a turn.
• Cost of Capital – given recent articles CAPM, its advantages and disadvantages, and its use in calculating a cost of equity and a risk-adjusted WACC must be expected.
• Risk Management - hedging foreign exchange risk
• Business Finance - gearing/capital structure calculations and comment
• Valuations - asset and cash flow based values