ATC International exam tips for ACCA papers F4 and F7 June 09

F4 (INT)

* Question 1 (and sometimes also question 2) of the paper is always based on the nature of law, its creation, interpretation and enforcement. Possible areas for testing at this sitting are the interpretation of law in different legal systems; and the resolution of disputes by way of court proceedings, and/or by arbitration.
* You can expect three or four questions on international business transactions and methods of payment, with two or three essay questions and one problem. Be ready to answer a question about aspects of the creation of contracts – offer and acceptance are regularly tested; as are matters relating to the rights and duties of parties, including the requirements of compliance of goods under Article 35 of the United Nations Convention on Contracts for the International Sale of Goods ('CISG').
* You should expect a question on breach of contract and the remedies available to the buyer and seller.
* Questions 4, 5 and 6 are usually essay questions about the law relating to companies and partnerships – their operation, financing and management. Tip number four, therefore, is for you to look at the matters to be considered by the business promoters during company formation; and at the comparison of companies, ordinary partnerships and LLPs.
* Capital maintenance and the loss or reduction of capital in companies are highly topical, and worthy of being examined at this time.
* The role of company directors is central to company law. Be ready to explain and apply the rules relating to directors' duties and the requirements of good corporate governance.
* Question 7 frequently addresses the management of transport, risk and payment in international business transactions. Be ready to answer a question on bills of lading and/or bills of exchange.
* Questions 8, 9 and 10 are always set as problems, requiring you to analyse a scenario and often to advise the parties. Question 8 is likely to be a about international business transactions - (see tips (2) and (3) above).
* Insolvency proceedings and the rights of creditors could form the basis of an essay or problem question, in a partnership and/or a company.
* Fraudulent business activity is another very topical subject. Consider fraudulent and wrongful trading and the various forms of money laundering.






F7 (INT)

* Q1 – Consolidation. Maybe a statement of financial position with an associate.
* Q2 – Final accounts. Preparation of final accounts from trial balance with a number of adjustments for various standards, which may include IAS 11, 12, 16, 17, 18, 32, 37 and IFRS 5.
* Q3 – Analysis question. Will be either a ratio or a cash flow question or a mixture of the two. The examiner has hinted that he may just require specified ratios or a part of the cash flow to be produced.
* Q4 and Q5 can be on any area of the syllabus. Areas that feature on a regular basis are Substance vs Form and the framework, IAS 11, IAS 17, IAS 36, IAS 38.