ACCA DECEMBER 2008 EXAM TIPS
ACCA Paper F4
Corporate and Business Law
December 2008 Exam Tips and Useful Articles
This exam consists entirely of compulsory questions; this makes question spotting particularly dangerous. The purpose of this analysis is to highlight the major syllabus areas that we would expect to be regularly tested, based on the Dec 2007, pilot paper and the sittings of the old syllabus 2.2 paper which was also examined by your examiner David Kelly 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.
English Legal System:
This will always feature as the first question in the exam; the most examinable areas being Court Structures, Legal Precedent and the Interpretation of Statute.
The Law of Obligations:
At least two questions will be drawn from this wide ranging area – so expect an application as well as a knowledge style question. The basics of contract covering offer, acceptance, consideration and intention have been a frequent source of questions as well as remedies and breach of contract.
The law of tort is most likely to be examined in conjunction with auditors and accountants. Ensure you are familiar with the Caparo and Hedley Byrne cases as well as the new rules on limitation of auditors’ liability.
Agency and Partnerships
Most examinable in these areas are the rights and duties of agents and partners as well as the distinction between simple and limited liability partnerships.
Company Law
Given it sheer size in the syllabus at least 2 maybe 3 questions will be drawn from this area. Company formation and legal personality are core areas, along with the duties of directors and the rules governing meetings and resolutions. Questions may be of knowledge of application type. Ensure you have read the examiners article on the Companies Act 2006 – the links are given below.
Capital maintenance and Finance
Capital maintenance is highly unlikely to be tested frequently, however it is expected that either share or loan capital (including fixed and floating charges) will be tested at every sitting.
Employment Law
The examiner has stated that he would like to test this at every sitting; however it may occasionally be omitted due to the breadth of the syllabus. Likely areas to be examined are the distinction between employees and self-employed (including how their status is determined), and types of dismissal (wrongful, unfair and redundancy) including the remedies that may be awarded. Questions may be of knowledge or application type.
Ethics and Corporate Governance
Another new area for ACCA law the pilot paper question seems a likely template for questions in this area, focusing on the impact of Corporate Governance on listed companies in the UK and the role of Non-Executive Directors.
Insolvency
Likely to be tested every second or third sitting. The examiner has traditionally tested the distinction between compulsory and voluntary liquidation or; the differences between members’ and creditors’ voluntary liquidations.
Fraudulent Behaviour
It is likely there will always be a question in this area, and these could be of the application variety as well as knowledge questions. Alternate sittings are likely to test Money Laundering, Insider Dealing and Wrongful/Fraudulent Trading. In December 2008 Money Laundering is most likely.
Questions to expect in December 2008
• Professional negligence incorporating auditors capping their liability
• Termination of offers
• Employed v self employed workers
• Company formation
• Directors’ statutory duties
• Types of resolutions, focus on written resolutions in private companies
• Money laundering OR insider dealing
Useful Articles
Examiner's approach to F4
Companies Act part 1
Companies Act part 2
Useful Articles:
If you want to read around the subject or improve your understanding there are a number of
articles on the ACCA website. Scott Goddard (the examiner) has not written anything recently
although the following articles are still relevant to the syllabus.
Title: Examiners approach to paper F9
Author: Anthony Head (the examiner)
Date: 27 Feb 2007
Summary: the examiner outlines the structure of the F9 paper
[REMEMBER to Check TARC ACCA blog for more EXAM TIPS UPDATES]
ACCA Paper F5
Performance Management
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 key areas that we would expect to be
regularly tested
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.
Specialist Cost and Management Accounting Techniques:
Activity Based Costing & Target Costing have featured to date. Calculations may feature
regularly on areas such as ABC. Throughput accounting questions have not yet been
examined. Be prepared to discuss techniques such as target and lifecycle costing.
Remember the questions are likely to have a 50:50 split between discussion and calculations.
2008 P&R Kit Questions: Q4, Q5, Q6, Q8, Q9
Decision making techniques:
Relevant costing with further processing featured in the first sitting of this paper, with linear
programming in the second. Most likely this time round is probably pricing and risk and
uncertainty, however, do not neglect areas such as relevant costing as this is a very important
topic that could easily be examined again soon.
2008 P&R Kit Questions: Q11, Q12, Q13,Q16, Q17, Q18
Budgeting:
Learning curves featured on the pilot paper.
Discussion marks are likely to feature heavily here. Perhaps looking at the appropriateness of
budgeting types eg incremental vs ZBB.
Numbers elements in a budgeting question could include flexed budgets or time series
analysis.
2008 P&R Kit Questions: Q19, Q20, Q22, Q24, Q33
Standard costing & variance analysis:
Mix and yield variances were on the pilot paper, planning and operating variances in
December. In June you were asked to prepare an operating statement which included
budgeted idle time. Be prepared to discuss performance and whether the variances are an
indicative measure of good / bad performance. Other potential discussion areas could be
along the lines of interpretation or when to investigate variances.
2007 P&R Kit Questions: Q28, Q30, Q32, Q34, Q35
Performance Measurement and Control:
Questions here could frequently focus on interpretation of performance and a discussion of
financial vs non financial measures. These have featured on all papers to date. Questions
could also focus on performance evaluation in the public sector so perhaps featuring
calculations using the 3 Es. Alternatively they could focus on divisional performance
measures such as ROI / RI and a discussion of the impact on performance of various transfer
prices.
2008 P&R Kit Questions: Q38, Q39, Q41, Q42, Q45
Useful Articles:
Title: Analyse This
Author: Geoff Cordwell
Date: April 08
Brief Summary: How to interpret financial data (based on poor performance of
candidates in Dec 07 exam)
Title: Decision Time
Author: Geoff Cordwell
Date: March 08
Brief Summary: The article contains an example of a linear programming problem.
Title: Performance Management
Author: Geoff Cordwell
Date: Jan 07
Brief Summary: The article contains an overview of Geoff’s approach to F5, the pilot
paper and some of his views on the accountant’s role.
ACCA Paper F6 - Taxation
Core Areas & Relevant Questions
The areas that we would expect to see most regularly in the exam are:
Question 1
1. Income from employment, in particular assessable income, allowable deductions and benefits (a typical question from the August 2007 BPP Study Text is question 5)
2. Income from self-employment, in particular basis of assessment, allowable expenditure, assessable profits on commencement and cessation, capital allowances and relief for trading losses (see August 2007 BPP Study Text questions 9,10,11)
3. Property and investment income, in particular property business profits, savings income and dividend income (see August 2007 BPP Study Text question 8)
4. The computation of taxable income and the income tax liability (see August 2007 BPP Study Text question 3)
5. The self-assessment system
6. The time limits for the submission of information, claims and payment of tax (see August 2007 BPP Study Text question 26)
Question 2
1. Computing profits chargeable to corporation tax, in particular allowable expenditure, capital allowances, property business profits and relief for trading losses (see August 2007 BPP Study Text questions 33)
2. Computation of corporation tax liability (see August 2007 BPP Study Text question 31)
3. Groups and overseas aspects of corporation tax (see August 2007 BPP Study Text questions 34 and 36)
If VAT is included within Question 1 or 2 or on its own the following are the most regularly examined areas:
1. Circumstances in which a person must register for VAT (see August 2007 BPP Study Text question 38)
2. The computation of VAT liabilities, in particular the tax point, the valuation of supplies, non deductible input VAT, the relief for impairment losses on trade debts (see August 2007 BPP Study Text questions 39 and 40)
3.Cash accounting, annual accounting and flat rate schemes
Question 3
1. Computation of capital gains for an individual or company
2. Part disposals
3. Chattels (see August 2007 BPP Study Text question 21)
4. Principal private residence relief (see August 2007 BPP Study Text question 22)
5. Share identification rules for individuals and companies (see August 2007 BPP Study Text question 25)
6. Computation of capital gains tax payable for individuals in particular computing taper relief (see August 2007 BPP Study Text question 20)
7. Rollover and holdover reliefs (see August 2007 BPP Study Text question 23)
Other areas that we would expect to see in questions 4 and 5 are:
1. Partnerships (see August 2007 BPP Study Text questions 16 and 17)
2. Trading losses for individuals and companies (see August 2007 BPP Study Text question 15)
3. Commencement and cessation rules for self employed individuals (see August 2007 BPP Study Text questions 12)
Main Source - BPP
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