December 2008 Exam Tips
This exam consists entirely of compulsory questions; this makes question spotting particularly
dangerous. The purpose of this analysis is to highlight areas the major syllabus areas that we
would expect to be regularly tested based on recent papers, comments made by the
examiner, and the sittings of the old syllabus 2.5 paper which was also examined by the same
examiner Steve Scott.
Use the following tips as important areas to cover but remember that no one knows what is in
the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in
your revision, as the examiner aims to do in the exam.
For each area described, please note the reference to useful questions from BPP’s Practice
and Revision kit (P&R kit) (2008 edition) for the International Stream or UK Stream. We
recommend you practise them all to get broad syllabus coverage.
All questions in the paper are compulsory
Question 1 (25 marks)
Section A will comprise one compulsory question that will examine group accounting. Group
accounting is a core area and this question could ask you to produce a consolidated
statement of comprehensive income/income statement (profit & loss account) and/or
consolidated statement of financial position (balance sheet) with one subsidiary and an
associate.
The question will include adjustments for items such as: fair values, unrealised profit on
inventories (stock) or tangible assets, cancellation of intragroup trading, goods/cash in transit,
pre-acquisition dividends.
Part (b) of the question will sometimes include a related discussion element, e.g. reasons for
adjusting for unrealised profit or other group topic.
2008 P&R Kit Questions: Q44 Pumice, Q41 Hapsburg (SOFP (B/S) with associate), Q40
Holdrite (I/S (P&L) with associate), Q36 Hydrate (I/S (P&L) and SOFP (B/S)), Q30 Highveldt
(group extracts).
Question 2 (25 marks)
Question 2 will be preparation/restatement of a statement of comprehensive income (profit &
loss account) and/or statement of financial position (balance sheet). This question will
normally require adjustments for current and deferred tax and depreciation.
Other adjustments may relate to inventory (stock) valuation, leases, construction contracts,
substance over form issues, financial instruments (amortised cost), leases, construction
contracts, substance over form issues, financial instruments (amortised cost), revaluations,
share issues or government grants. There may be further disclosure requirements such as
an EPS calculation or movement in share capital and reserves.
2008 P&R Kit Questions: Q10 Kala, Q6 Harrington, Q7 Petra, Q26 Tourmalet (also includes
discontinued operation)
Question 3 (25 marks)
Question 3 is likely to examine interpretation and/or statements of cash flows. There could
also be a discursive part on why, for example, profits are not the same as cash flows, or how
to analyse the financial statements of a not-for-profit organisation.
2008 P&R Kit Questions: Q71 Reactive (interps and not for profit), Q81 Tabba (SOCF), Q74
Comparator (interps), Q79 Bigwood (SOCF and interps).
Question 4 (25 marks)
Question 4 will often be a written question examining theoretical/conceptual areas or
accounting standards. This could be on provisions, inflation, government grants, accounting
policies or substance over form issues with reference to the Framework for the Preparation
and Presentation of Financial Statements (Statement of Principles).
2008 P&R Kit Questions: Q3 Porto (conceptual framework), Q51 Bodyline (provisions), Q59
Angelino (substance), Q84 Update (inflation). For other topics, see Question 5.
Question 5 (10 marks)
Question 5 has no specified format or content and will cover other areas of the syllabus. The
examiner may follow a 'mixed bag' question approach, examining two or three different
accounting standards.
Possibilities this sitting include: tangible/intangible assets, impairment, deferred tax,
governments grants, financial instruments, substance over form issues, construction/longterm
contracts or earnings per share.
2008 P&R Kit Questions: Q50 Beetie (construction/long-term contracts), Q13 Broadoak,
(tangibles), Q19 Dexterity (intangibles), Q21 Wilderness (impairments), Q62 Bowtock I
(leases) Q65 Bowtock II (deferred tax), Q2 Derringdo I (revenue and grants), Mock 1 Q2
Tintagel (accounts preparation & financial instruments), Q67 Savoir (EPS).
dangerous. The purpose of this analysis is to highlight areas the major syllabus areas that we
would expect to be regularly tested based on recent papers, comments made by the
examiner, and the sittings of the old syllabus 2.5 paper which was also examined by the same
examiner Steve Scott.
Use the following tips as important areas to cover but remember that no one knows what is in
the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in
your revision, as the examiner aims to do in the exam.
For each area described, please note the reference to useful questions from BPP’s Practice
and Revision kit (P&R kit) (2008 edition) for the International Stream or UK Stream. We
recommend you practise them all to get broad syllabus coverage.
All questions in the paper are compulsory
Question 1 (25 marks)
Section A will comprise one compulsory question that will examine group accounting. Group
accounting is a core area and this question could ask you to produce a consolidated
statement of comprehensive income/income statement (profit & loss account) and/or
consolidated statement of financial position (balance sheet) with one subsidiary and an
associate.
The question will include adjustments for items such as: fair values, unrealised profit on
inventories (stock) or tangible assets, cancellation of intragroup trading, goods/cash in transit,
pre-acquisition dividends.
Part (b) of the question will sometimes include a related discussion element, e.g. reasons for
adjusting for unrealised profit or other group topic.
2008 P&R Kit Questions: Q44 Pumice, Q41 Hapsburg (SOFP (B/S) with associate), Q40
Holdrite (I/S (P&L) with associate), Q36 Hydrate (I/S (P&L) and SOFP (B/S)), Q30 Highveldt
(group extracts).
Question 2 (25 marks)
Question 2 will be preparation/restatement of a statement of comprehensive income (profit &
loss account) and/or statement of financial position (balance sheet). This question will
normally require adjustments for current and deferred tax and depreciation.
Other adjustments may relate to inventory (stock) valuation, leases, construction contracts,
substance over form issues, financial instruments (amortised cost), leases, construction
contracts, substance over form issues, financial instruments (amortised cost), revaluations,
share issues or government grants. There may be further disclosure requirements such as
an EPS calculation or movement in share capital and reserves.
2008 P&R Kit Questions: Q10 Kala, Q6 Harrington, Q7 Petra, Q26 Tourmalet (also includes
discontinued operation)
Question 3 (25 marks)
Question 3 is likely to examine interpretation and/or statements of cash flows. There could
also be a discursive part on why, for example, profits are not the same as cash flows, or how
to analyse the financial statements of a not-for-profit organisation.
2008 P&R Kit Questions: Q71 Reactive (interps and not for profit), Q81 Tabba (SOCF), Q74
Comparator (interps), Q79 Bigwood (SOCF and interps).
Question 4 (25 marks)
Question 4 will often be a written question examining theoretical/conceptual areas or
accounting standards. This could be on provisions, inflation, government grants, accounting
policies or substance over form issues with reference to the Framework for the Preparation
and Presentation of Financial Statements (Statement of Principles).
2008 P&R Kit Questions: Q3 Porto (conceptual framework), Q51 Bodyline (provisions), Q59
Angelino (substance), Q84 Update (inflation). For other topics, see Question 5.
Question 5 (10 marks)
Question 5 has no specified format or content and will cover other areas of the syllabus. The
examiner may follow a 'mixed bag' question approach, examining two or three different
accounting standards.
Possibilities this sitting include: tangible/intangible assets, impairment, deferred tax,
governments grants, financial instruments, substance over form issues, construction/longterm
contracts or earnings per share.
2008 P&R Kit Questions: Q50 Beetie (construction/long-term contracts), Q13 Broadoak,
(tangibles), Q19 Dexterity (intangibles), Q21 Wilderness (impairments), Q62 Bowtock I
(leases) Q65 Bowtock II (deferred tax), Q2 Derringdo I (revenue and grants), Mock 1 Q2
Tintagel (accounts preparation & financial instruments), Q67 Savoir (EPS).
Gladys
Jane
