ACCA JUNE EXAM TIPS

TOP ACCA JUNE EXAM TIPS

Brought to you in association with Reed Accountancy LSBF F5 * 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. F6 * 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. F7 * 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. F8 * 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. F9 * 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. P2 * 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. P3 * Strategic analysis. * Evaluation of a strategic option using suitability, feasibility, acceptability. * Project management particularly the initial stages. * Improvement of business processes. * Strategic management accounting. P4 * 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. P6 * Incorporation of a business including incorporation relief. * Corporation tax including overseas aspects and controlled foreign companies. * Partnership. * Rent a room relief. * Inheritance tax including business property relief. * Personal service companies or purchase of own shares. * Investment in SEIS. * Remittance basis charge. Kaplan Financial F4 * 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. F5 • Pricing equations & pricing strategies. • Environmental management accounting. • Learning curves. • Variances: sales variances, market size and market share. • Decision trees. F6 * 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. F7 * 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. F8 • 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. F9 * 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. P1 • 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. P2 * 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. P3 • Project management. • Benefits management. • Supply chain management. • Business process change. • Stakeholder analysis. • Decision making techniques. P4 • Net present value – including foreign currency cash flows. • Risk adjusted WACC. • Discussion of financing options. • Interest rate hedging – options, futures and FRAs. P5 • 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. P6 * 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. P7 • Engagement planning and risk assessment. • Engagement procedures. • Ethics and professional issues. • Completion (matters to consider/evidence on file) and engagement reporting. * Planning. * 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. First Intuition F4 * English legal system. * Consideration. * Remedies for breach. * Professional negligence. * Veil of incorporation. * Redundancy. * Directors duties. * Winding up. * Partnerships. * Fixed v floating charges. F5 * 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. F6 * Employment/self-employment. * PAYE. * 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. F7 * 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. F8 * Internal controls – deficiencies and recommendations. * Scenario based ethics or corporate governance question. * Substantive testing and audit evidence. * Subsequent events. * Audit reports. F9 * Discussion of the economic environment and the impact on interest and exchange rates. * Working capital management. * Investment appraisal & cost of capital. * Business Valuations. P1 * 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. P2 * Q1: Group question on disposals, piecemeal acquisitions or cashflow. * Ethics. * Revenue recognition – current issue. * Deferred tax. * Share based payments. P3 * Environmental Analysis - people with financial analysis. • Project management. • Strategic action. • Information technology – pricing strategy. P4 * 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. P5 * 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. P6 * 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. P7 * Audit risks in a scenario. * Identifying ethical and other professional issues in a scenario. * Audit reports. * Group audits. * Money laundering. Becker Professional Education F5 • 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. F6 • 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. F7 • Leases. • Construction contracts. • Revenue recognition. • Substance vs form. • Convertible instruments (IAS 31/IFRS 9). • Accounting for taxation. • Accounting for asset, particularly IAS 16. F8 Ignore exam tips that are a list of somebody’s favorite topics. F9 • Rights issues • IRR • Dividend policy • Lease vs buy decisions. • Efficient markets hypothesis. P1 • 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. P2 • Consolidation in Q1. • Disposals & complex groups. • Step acquisitions. • Cash flow. • Foreign sub. • Complex. • 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). P3 • 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. P4 • 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. P5 • Environmental management accounting. • Activity based management. • Value chain analysis. • Balanced scorecard or Fitzgerald and Moon building blocks model. P7 • 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.