TOP ACCA JUNE EXAM TIPS
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* Throughput accounting/lifecycle accounting.
* Linear programming/decision tree analysis.
* Zero based budgets/flexible budgets.
* Sales variances/mix and yield variances.
* Performance evaluation in services/non profit organisations.
* Income tax computation and partnership.
* Corporation tax with trading losses.
* Capital gains tax with principal private residence relief.
* Overseas corporation tax with the election to exempt the profits of the overseas branch from UK corporation tax.
* IHT on lifetime gifs into a trust.
* VAT group registration and surcharges.
* Consolidated financial statements and/or consolidated income statement.
* Published accounts preparation or re-drafting with 15 marks for mixed standards adjustments.
* Statement of cash flow with some interpretation.
* Depreciation and revaluation, EPS, substance, leasing.
* Financial instruments, tax and deferred tax, etc.
* Wide reading is highly recommended and knowing a little about a lot!
* Audit of specific items especially non-current assets, receivables and payables.
* Internal controls-especially control environment.
* Audit planning and risk assessment especially audit risk issues.
* Audit reports especially emphasis of matter, final review especially evaluation of misstatements and/or subsequent events.
* Others, assurance, ethics and internal audit.
* Investment appraisal including tax and inflation possibly with lease or buy decision.
* WACC with some capital structure theory.
* Working capital maybe including cash budgeting and cash management.
* Risk including FC and MMH.
* Business finance with discussion of sources of finance.
* EMH discussion.
* Group income statement or cash flow statement.
* Possibly two mix questions with the usual suspects of goodwill provisions financial instruments and sbp and the rest.
* Current issues including leases Smes and jvs.
* Strategic analysis.
* Evaluation of a strategic option using suitability, feasibility, acceptability.
* Project management particularly the initial stages.
* Improvement of business processes.
* Strategic management accounting.
* International investment appraisal with adjusted present values or net present values.
* Cost of capital using the principles of Modigliani and Miller prepositions or geared and ungeared betas.
* Mergers and acquisitions - valuation using free cash flows, defensive tactics and regulations of takeovers.
* Capital reconstruction schemes - designing a capital reconstruction scheme or assessing the success of a given scheme.
* Option pricing theory. Real options, example, option to abandon, expand and delay. Valuation of company using the Black-Schole option pricing model and delta hedge.
* Hedging exchange rate and interest rate risk using futures, options and swaps.
* Islamic finance.
* Incorporation of a business including incorporation relief.
* Corporation tax including overseas aspects and controlled foreign companies.
* Rent a room relief.
* Inheritance tax including business property relief.
* Personal service companies or purchase of own shares.
* Investment in SEIS.
* Remittance basis charge.
* English legal system: Court structure, court vs tribunal.
* Contract law: Exclusion clauses, intention to create legal relations.
* Tort of negligence: Duty of care, professional misstatement
* Employment law: Common law duties, redundancy
* Agency/partnership: How agency relationship arises, liability of agents & partners
* Company law: Separate personality/lifting the veil, articles of association, treasury shares
* Fraudulent behaviour: Money laundering, market abuse.
• Pricing equations & pricing strategies.
• Environmental management accounting.
• Learning curves.
• Variances: sales variances, market size and market share.
• Decision trees.
* Income tax: Husband and wife, adjustment of profits, self assessment.
* Corporation tax: Property income, chargeable gains to calculate, with rollover relief,
quarterly instalment payments
* VAT: VAT return, including some discounts and impaired debts relief, deregistration, payment dates.
* Capital gains tax: Wasting assets or chattels, exempt assets, PPR, gift and entrepreneurs’ relief.
* Q1: Consolidated statement of financial position (with possible statement of profit or loss). Adjustments to include: PURP, share exchange, current accounts, impairment, revaluation, fair value adjustment.
* Q2: Published accounts to include statement of profit or loss, statement of financial position and statement of changes in equity from trial balance. Possible adjustments to include: revenue recognition, depreciation, revaluation, tax & deferred tax, convertible loan, share issue.
* Q3: Statement of cash flows with interpretation element.
* Q4/Q5: Qualitative characteristics, finance leases, intangible assets, events after the reporting date, earnings per share.
• Audit Framework: Confidentiality/conflicts of interest/audit committees.
• Internal Audit: Role and function.
• Planning and Risk: Audit risk including analytical procedures.
• Internal Control: Cash / purchases system (including tests of control).
• Audit Evidence: Purchases / payables; bank and cash; review engagements.
• Completion & reporting : Subsequent events (ISA 560) Auditor’s reports.
* Investment appraisal: The most common technique assessed is NPV with inflation and taxation,although be prepared for a twist.
* Working Capital Management: It’s been a while since we’ve seen the more numerical aspects surrounding cash management.
* Valuations: Cash flow based values have yet to be examined although the PE ratio and dividend valuation methods.
* Business Finance Calculation and interpret financial ratios.
* Cost of Capital: (WACC) and impact of the cost of capital on investments. CAPM based calculations.
• Teleological and deontological approaches to ethics.
• Contents of a corporate code of ethics.
• Insider trading.
• Internal controls – systems.
• Transparency in the context of corporate governance.
• Directors’ remuneration.
• Normative and instrumental view of stakeholders.
* Groups and ethics - financial instruments, joint arrangements, foreign currency.
* Ethical issue - accounting treatment in the group accounts question.
* IAS 19 Employee benefits.
* IFRS 2 Share-based payment.
* Entity reconstructions including accounting issues.
* IFRS 9 & IAS 39 Financial instruments – including hedging.
• Project management.
• Benefits management.
• Supply chain management.
• Business process change.
• Stakeholder analysis.
• Decision making techniques.
• Net present value – including foreign currency cash flows.
• Risk adjusted WACC.
• Discussion of financing options.
• Interest rate hedging – options, futures and FRAs.
• Divisional performance.
• BCG matrix and link to CSFs, KPIs.
• Public sector NFP - link between mission and CSFs, KPIs.
• Evaluate PM system.
• Evaluate format and content of a PM report.
• Building Block Model.
* Corporation tax: Capital gains groups, NGNL and rollover relief, group relief/consortium relief,
overseas aspects: branch vs sub/CFCs/transfer pricing.
* Capital gains: Reliefs: rollover, holdover, gift, PPR and letting, overseas aspects.
* Inheritance tax: valuation of shares, deed of variation, business property relief.
* Income tax: sole traders opening year rules, trading losses, benefits: car, accommodation, share incentive plans.
* VAT: Partial exemption, land and buildings, group VAT registration.
* Scenarios: Lease vs. buy assets: net cost, company purchase of own shares, IHT vs CGT for gifts.
• Engagement planning and risk assessment.
• Engagement procedures.
• Ethics and professional issues.
• Completion (matters to consider/evidence on file) and engagement reporting.
* Subsequent Events (ISA 560).
* Due diligence.
* Auditor’s responsibilities regarding fraud.
* Limited liability.
* Competition in the statutory audit market.
* Improving the audit report.
* UK variant is likely to include an aspect of insolvency.
* English legal system.
* Remedies for breach.
* Professional negligence.
* Veil of incorporation.
* Directors duties.
* Winding up.
* Fixed v floating charges.
* Throughput accounting.
* Environmental accounting.
* Limiting factors.
* Decision trees.
* Budgeting and learning curves.
* Variances (including sales mix and quantity) and budget flexing.
* Divisional performance and transfer pricing.
* Opening years and change of year end for sole traders.
* Capital allowances.
* Corporation tax losses.
* VAT default surcharge and VAT invoice content and annual accounting.
* CGT: Principal Private residence and entrepreneur’s relief, chattels.
* IHT lifetime and death transfers.
* Q1: Consolidated SFP, with associate, deferred consideration, pups and fair value adjustment.
* Q2: Single company accounts question, including taxation, lease, and intangible assets.
* Q3: Statement of cash flow and comments thereon with no ratios.
* Q4: The framework with computation for non-current asset.
* Q5: Provisions.
* Internal controls – deficiencies and recommendations.
* Scenario based ethics or corporate governance question.
* Substantive testing and audit evidence.
* Subsequent events.
* Audit reports.
* Discussion of the economic environment and the impact on interest and exchange rates.
* Working capital management.
* Investment appraisal & cost of capital.
* Business Valuations.
* 50 mark scenario question, to include: TARA risk model, ethics, absolutist v relativism, chairman and CEO powers need to be separate, also corporate social responsibility, ISO 14001
* Optional questions to include: Importance of internal control, NEDs and remuneration committee, business risks, Gray Owens and Adams.
* Bribery Act.
* Q1: Group question on disposals, piecemeal acquisitions or cashflow.
* Revenue recognition – current issue.
* Deferred tax.
* Share based payments.
* Environmental Analysis - people with financial analysis.
• Project management.
• Strategic action.
• Information technology – pricing strategy.
* International investment appraisal techniques focusing on risk management tools such as value at risk.
* Impact on WACC following hedging of interest rate risk.
* Company valuation based scenario, possible MBO finance to structure.
* Adjusted present value with link to real options and Black Scholes option pricing model.
* Critique an existing performance management system.
* Transfer pricing.
* ROI, RI and EVA.
* Activity based principles.
* Corporate failure prediction.
* Performance management models.
* Assess performance against financial and non-financial (incl environmental) targets.
* Business property relief.
* Use of second spouse nil rate band.
* Related property.
* Groups of companies, trading and capital losses.
* Double tax relief for companies.
* De-grouping charges.
* Incorporation relief.
* Furnished holiday lets.
* VAT partial exemption.
* Appeals and the four track tribunal system.
* Benefits in kind or extra salary, income tax and national insurance implications.
* Audit risks in a scenario.
* Identifying ethical and other professional issues in a scenario.
* Audit reports.
* Group audits.
* Money laundering.
Becker Professional Education
• Section A – throughput accounting and or environmental management accounting.
• Section B – decision trees.
• Section C – a calculation including activity based budgeting.
• Section D – mix and yield variances, along with discussion.
• Section E – performance measurement in non-profit organsiations.
• Taxation of benefits.
• Taxation of motor cars.
• Employment income.
• Different types of property income, including furmished holiday lettings, together with a personal income tax computation.
• Employment income, NICs.
• Relief for a trading loss of self-employed persons.
• A change of accounting date is due for examination.
• 12 month accounting period straddling 31 March, with a detailed adjustment of profit and detailed capital allowances computation (motor cars- see above).
• Capital gain with rollover relief.
• Capital gains tax computation for a personal taxpayer. Possible gain/loss calculations.
• VAT treatment of overseas trading.
• Class 1 and Class 1A NIC, in conjunction with employment income, benefits and PAYE.
• Tax appeals and penalties.
• IHT – unused nil rate bands from a predecessor spouse, stage 2 & 3 computations arising on death, applicable exemptions and due date of payment.
• Construction contracts.
• Revenue recognition.
• Substance vs form.
• Convertible instruments (IAS 31/IFRS 9).
• Accounting for taxation.
• Accounting for asset, particularly IAS 16.
Ignore exam tips that are a list of somebody’s favorite topics.
• Rights issues
• Dividend policy
• Lease vs buy decisions.
• Efficient markets hypothesis.
• Corporate governance concepts, underlying fundamentals and arrangements.
• CG in organisations such as public services and NGOs.
• Types and forms of CG.
• Agency theory.
• Board structures.
• Internal control and business risk, Turnbull.
• Ethical theories and business codes – Koihlberg, Gray, Owen and Adams, Tucker, AAA.
• Public interest.
• Corporate social responsibility – corporate citizen, footprints.
• Environmental and social ausiting.
• Consolidation in Q1.
• Disposals & complex groups.
• Step acquisitions.
• Cash flow.
• Foreign sub.
• Financial instruments (IAS 39/IFRS 9) including hedging.
• Employee benefits (IAS 19), amended in 2011.
• Leases (IAS 17).
• Share-based payments (IFRS 2).
• Impairment of assets (IAS 36).
• Deferred tax (IAS 12).
• Project management.
• Environmental analysis, using PESTEL or Porter’s 5 forces and the impact of change on all stakeholders.
• Business process change or improvements.
• Corporate level strategy perhaps involving Boston Consulting Group matrix.
• The role of management accounting in helping to achieve the strategic objectives.
• Strategy and people, perhaps looking at leadership qualities.
• Role and responsibility towards stakeholders.
• Domestic and international investment decisions.
• Mergers and acquisitions.
• Corporate re-organisatio strategies.
• Advanced treasury and risk management techniques.
• Impact of macro economics and international financial institutions.
• Emerging issues in finance and financial management.
• Environmental management accounting.
• Activity based management.
• Value chain analysis.
• Balanced scorecard or Fitzgerald and Moon building blocks model.
• New audits, tendering.
• Planning, materiality, sampling, analytical review.
• Audit, business or financial statement risk.
• Group audits, goodwill, joint audit, joint ventures.
• Assurance services, PFI, KPI, due diligence, forensic audit, reviews, insolvency.
• Ethics, practice management and other professional issues.
• Any audit matter covering IFRS.
• Close down procedures, opening balances, comparatives.
• Outsourcing, service providers, use of an expert.
• CG, internal audit (ethics/outsourcing), audit committees.
• Current issues.
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Tuesday, May 28, 2013
Posted by ken at 9:07 PM