AAT December 2009 Exam Tips

All AAT December 2009 Exam Tips are provided by PQ Magazine!


Crystal ball time – PQ magazine gets you exam ready for December with PQ magazine’s hot tips for the December.

Unit 3: PLB

Section1: Processing Exercise
Using given information:
Transfer the opening balances from given information to the subsidiary (sales or purchases) ledgers and the main ledgers
Record additional information provided in the books of prime entry in the ledger accounts
Balance off the ledger accounts showing clearly both the balances carried down and brought down
Transfer these final balances to the trial balance and add up the two columns to ensure the trial balance balances
Section 2: Tasks and Questions
Perform a petty cash reconciliation, suggesting reasons for any differences between the ledger balance and the actual cash count
Calculation of VAT amounts, potentially involving discounts
Produce journal entries to correct errors and clear a suspense account
Reconciliation of purchase or sales ledger balance to the balance per the purchase or sales ledger control account, suggesting reasons for any differences
Perform a bank reconciliation

More PLB advice
You will need to:
Know your double entry and how to “balance off” accounts.
Understand the concept of control accounts and apply this to the sales or purchase ledgers and possibly wages and VAT.
Show how entries are made to the day books and be able to post transactions to the sales, purchase and general ledgers plus account for the VAT.
How to complete double entries in the cash and petty cash books and account for VAT.
Be able to communicate effectively via email, letter and memo.

Unit 5: FRA
You will need to know, understand and –
Apply “double entry” principles to depreciation, sole trader and partnership accounts the extended trial balance (ETB) and incomplete records for a business.
Ensure accurate records are maintained for fixed assets through the recording of the acqusition, disposal or part exchange of such assets. Record the details of this in the ledger accounts including depreciation.
Prepare suspense accounts and account for the errors in a trial balance through the use of the journal.
Prepare final accounts for sole traders and partnerships from a trial balance.
Identify and resolve discrepancies in the accounting records and communicate effectively your findings with possible solutions through emails, letters, memos and reports.

Unit 6: ECR

Section 1 of the exam mainly covers the following core areas:
Maintaining Stock records i.e. identifying what method is used in a prepared stock card i.e. FIFO, LIFO or AVCO and then preparing another using an alternative method. The impact of these methods on Stock valuation and profit is often tested too.
Journal entries for receipt and issue of materials, labour, or overheads in a cost book keeping system.
Process costing: preparation of a statement of equivalent units.
Calculation of labour costs, especially the treatment of basic labour cost and overtime premium.
Allocation, Apportionment & Reapportionment of overheads followed by the calculation and/or the explanation of any over/under absorption of overheads.
Section 2 covers the following core areas:
Understanding the behaviour of costs as activity changes ie how to identify variable, fixed costs and split semi-variable costs into variable and fixed elements using the high-low method.
Breakeven point and Margin of Safety calculation in units, expressed as a %, in revenue terms and/or discussion question. Students could be asked to calculate the level of units to sell to achieve a target profit.
Limiting factors with a strong understanding of contribution per unit and contribution per unit of limiting factor and using the appropriate contribution to rank the products and calculate the optimal production plan.
Project appraisal with calculations for NPV and simple payback. Only an discussion question on IRR is required but no calculations of it are examined.

Unit 6: ECR
You will need to know, understand and :
Calculate the closing stock value on a stock card using FIFO, LIFO or AVCO.
Be able to allocate, apportion and reapportion costs across departments. Calculate an overhead recovery rate to given data.
Show an understanding of double entry in relation to the under or over absorption of overheads. Be aware of ABC and Process Costing techniques.
Apply short term decion making techniques to the treatment of fixed and variable costs. Identify the limiting factor in a given situation to calculate the break-even point in £’s or units. Calculate and explain the margin of safety in relation to target profit and target contribution.
Explain long term decision making techniques, payback, DCF, NPV and IRR. Apply the techniques to given data and prepare a report on your findings.

Unit 8: PEV
Calculation of standard and actual costs.
Calculation and interpretation of materials, labour and fixed overhead variances (expenditure and volume, broken further into efficiency and capacity) including interdependence of variances.
Operating statement reconciling standard to actual costs.
Explain the difference between absorption costing and marginal costing variances.
Calculation of revised variances dealing with a change in a price index.
Forecast using time series analysis and explanation of trend (regression equation) and seasonal variations.
Ratio analysis – calculate and report on gross profit margin, operating profit margin, return on net assets, stock turnover in days, debtors days, gearing, interest cover, labour utilisation rates.
Revised profit and loss account and ratios with comments.
Calculation and explanation of lifecycle costs (including discounted lifecycle) and/or target costs and/or value analysis

Unit 9: PCR
Preparation of sales budget, production budget, materials usage budget, materials purchases budget, labour utilisation budget, cost of production budget.
Revised budgets considering restrictions which have been introduced.
How to overcome restrictions (e.g. subcontracting/alternatives).
Calculating costs per unit and selling price per unit (budgeted and actual) in order to initially draw up a flexed budget statement (including using the high-low technique for splitting mixed costs and flexing stepped costs).
Statement comparing actual and flexed budgeted costs and identification of total variances.
Report on reasons for total variances and action required to investigate variances.
Explain purposes of budgets (including capital budgets).
Explain steps required to motivate managers to achieve budgets.
Explain rolling and incremental budgets, ZBB, capital budgets purpose

Unit 18: BTC
The first half of the exam will be about an unincorporated business. The second half will address companies. You should expect to see the following key workings:
Adjustment of trading profit for a sole trader/partner or company.
Calculation of capital allowances for plant and machinery and industrial buildings for a sole trader/partner or company.
Calculation of Class 2 and Class 4 NIC for a self-employed trader.
Calculation of chargeable gains, most probably for a company. A disposal of shares with rights and/or bonus issues will probably feature here.
Calculation of profits chargeable to corporation tax.
Calculation of corporation tax, most probably for an accounting period straddling a financial year where rates have changed. Calculation may involve marginal relief, short periods of account and associates.

A number of the following will also appear:
Pages from the income tax or corporation tax return (corporation tax return has not featured for several sittings).
Discussion or calculation of capital gains reliefs (gift relief, replacement of business assets relief, entrepreneur’s relief). Entrepreneurs’ relief is new this year and topical but this was examined in the June exam.
Administration of tax and/or practice ethics – penalties for errors are new this year.
Opening year rules or closing year rules for a self-employed business – neither have been examined in detail for several years.
Other topics that could be examined are:
Discussion/application of the badges of trades.
Corporation tax losses.
Income tax losses.
Allocation of profit between partners.
Long periods of account for companies.

Unit 19: PTC
The examiner has commented that this unit is compact so you should expect to see virtually all of it examined at every sitting. Key workings are:
Calculation of employment income including benefits. Expect a wider range of benefits than have been examined in previous years. Cars and fuel normally feature, accommodation often appears.
Calculation of property income for more than one property. Expect furnished and unfurnished property and properties let for only part of the year.
Production of a taxable income working showing clearly non-savings, savings and dividend income. Savings and dividends should be grossed up at the appropriate rates and personal allowance deducted.
Calculation of income tax payable, usually for a higher rate payer.
Calculation of capital gains on disposal of a number of assets – shares will normally feature here. Expect matching rules, bonuses or rights.
Utilisation of capital losses of the current year and the prior year. Interaction of losses with annual exemption.
Capital gains tax payable.

A number of the following may also appear:
Pages from the tax return (employment, property, capital gains tax – this is the first year that the capital gains tax pages have been examinable and these were not tested in June so these could appear).
Administration of tax and/or practice ethics – penalties for errors is a new topical subject but this was tested in June.
Explanation of the tax calculation of other benefits, capital gains or property income rules.
Calculation/explanation of principal private residence relief.
Calculation/explanation of relief available for charitable giving and/or investing in a pension.

Unit 30: IAC
Section1: Double Entry Bookkeeping and Trial Balance
Write down the entries to record information in the purchase day book, purchase returns days book, sales day book and/ or the sales return day book in the subsidiary (sales or purchases ledger) and the main ledger
Perform calculations in relation to VAT when recording the above information
Write down the entries to record information in the cash book in the subsidiary (sales or purchases ledger) and the main ledger
Produce journal entries to correct errors and clear a suspense account
Draw up a trial balance from given information ensuring that debit and credit balances are placed on the appropriate side of the trial balance
Section 2: Tasks and Questions
Perform a petty cash reconciliation, suggesting reasons for any differences between the ledger balance and the actual cash count
Calculation of VAT amounts, potentially involving discounts
Explanation of documents used in the sales or purchase process and different methods of placing orders or making or receiving payment
Recording entries in the wages and salaries control account
Reconciliation of purchase or sales ledger balance to the balance per the purchase or sales ledger control account, suggesting reasons for any differences
Perform a bank reconciliation
Check documentation such as an invoice for accuracy
Produce a letter to a customer or supplier requesting payment or disputing an invoice

Unit 33: MAC
Preparation of sales budget, production budget, materials usage budget, materials purchases budget, labour utilisation budget and cost of production budget (including calculation of OAR and absorbed overheads).
Revised budgets considering restrictions which have been introduced.
How to overcome restrictions (e.g. subcontracting/alternatives).
Explanation of the purposes of budgets (including capital budgets).
Explain steps required to motivate managers to achieve budgets.
Explanation of rolling and incremental budgets.
Calculating percentage changes in costs and price index.
Calculation of standard and actual costs.
Calculation and interpretation of materials, labour and fixed overhead variances (expenditure and volume, broken further into efficiency and capacity) including interdependence of variances.
Operating statement reconciling standard to actual costs.
Explain the difference between absorption costing and marginal costing variances.
Calculation of revised variances dealing with a change in a price index.
Forecast using time series analysis and explanation of trend and seasonal variations.
Ratio analysis – calculate and report on gross profit margin, operating profit margin, asset turnover, return on net assets, stock turnover in days, debtors days, current ratio, gearing, interest cover and labour utilisation rates.
Preparation of a revised profit and loss account and ratios with comments.
Calculation and explanation of lifecycle costs (including discounted lifecycle) and/or target costs.
Explain value analysis/breakeven analysis

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ACCA Exam Tips December 2009 (P7)

I WILL TRY TO FIND ACCA EXAM TIPS DECEMBER 2009 FROM KAPLAN!


Paper P7 (PQ Magazine)

Prospective financial information linked to applications for debt funding.

Audit procedures looking at impairment of financial instruments and fair value.

Ethical scenarios/professional issues.

Auditor liability and good practice management.

Issues associated with the control weaknesses and collection of evidence for a not-for-profit organisation.

Audit challenges of determining going concern status and the impact on audit opinions.

The clarity prject.

ISA 700 engagement reporting.

ISA 540 accounting estimates.

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Tips for ACCA P7 December 2009 (OpenTuition)

All question numbers are from the BPP Revision Kit, December 2009 edition

Question 1
Audit risks ( 32 and 55 )

Question 2
Financial statement risks ( Bataleur Zoo Gardens Mock exam 2, Q1 )

Question 3
Assurance services engagement ( 31 )

Question 4
Comment on the matters you should consider and State the audit evidence you should expect to find ( Any of Qs 18 - 30 )

Question 5
Ethics ( 11 )

Question 6
Management letter, corporate governance etc ( 68 )

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Paper P7 (BPP)

A risk-based and/or planning scenario in the compulsory section

Questions based on articles published in Student Accountant in the past six months - such as recent articles on the Clarity Project and Computer Assisted Audit Techniques (CAATs)

A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues (CAATs could also feature here)

A practice-based scenario looking at professional, ethical and quality control issues

A reporting scenario of some sort
Legal and regulatory issues affecting assurance providers, especially in the context of firms’ professional liability, money laundering and the UK Companies Act 2006 (even the IAASB Clarity Project)

The requirements of other forms of assurance engagement, such as Prospective Financial Information (PFI), Value for Money (VfM) studies or agreed upon procedures

The correct treatment of more complex accounting issues (such as employee benefits or first time adoption of IFRS) than has been seen before

As in June 2009 with ISA 315, specific ISAs may be examined in sufficient detail to warrant learning the key elements for regurgitation in the exam

Discrete topics that we have not yet seen such as subsequent events as part of evaluation and review, questions using the context of internal audit or advertising for certain engagements

The need to understand current issues such as globalisation, the impact of the recession on auditors, corporate governance, risk management and auditor liability.

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Source:-
PQ Magazine
OpenTuition
BPP

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ACCA Exam Tips December 2009 (P6)

Paper P6 (PQ Magazine)

Taxation aspects of property and investment income.

Self-assessment for individuals and partnerships.

Taxation of group companies and consortia.

Computing trading losses.

Ethics and tax planning.

Rollover relief.

Lease vs buy for assets.

VAT capital goods scheme.

IHT death estate.

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Paper P6 (BPP)

Section A
Q1 Case study scenario involving personal tax issues.
Covering overseas aspects of income tax, calculation of DTR, choice of remuneration package involving share schemes, property income, capital gains.

Q2 Case study scenario involving group of companies; group relief, capital gains groups implications including consequences of selling a subsidiary, VAT issues of a group

Section B
Q3 IHT and CGT consequences of gifting wealth in lifetime or on death
Q4 Purchase of own shares, close companies, liquidation
Q5 Unincorporated business versus company, involving loss relief

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Source:-
PQ Magazine
BPP

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ACCA Exam Tips December 2009 (P5)

Paper P5 (PQ Magazine)

Impact of world, national and market trends on performance.

Current issues and trends in performance management.

The performance hierarchy, pyramid.

Behavioural aspects of performance management, forecasting.

Strategic management accounting and limitations of traditional management accounting techniques.

Learning curves.

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Paper P5 (BPP)

Scope of strategic performance measures in the private sector: you may be asked to draw up an income statement or budget or to compare actual performance against a benchmark.
This could include the use of activity-based approaches, learning curves or optimal pricing. Once the financial data has been collated and compared, questions usually include the need to comment on these and may require discussion of non-financial indicators, additional information to improve assessment or strategies to improve performance.

Divisional performance and transfer pricing issues: this chapter has been a key issue in P5 exams so far, often appearing as a compulsory question. ROI, RI, EVA or even ABC could feature here. Transfer pricing has not yet been tested in a full question but has appeared both as part of optional questions, numerically, and part of the smaller compulsory question, discursively.

Current developments / trends in management accounting: modern management and management accounting techniques have been examined here with both JIT and TQM common topics in the previous syllabus. Knowledge of these was used to discuss the impact they would have on information systems / performance measures.

Alternative approaches to budgeting for control: budgeting has been a favourite essay question with your examiner, but missed out in 2008.

Management accounting and information systems: a question on sources of information, relevance of operational management accounting information in today’s business environment or types of management information system is possible at this sitting as it has not yet been tested in depth at P5.

Alternative views of performance measurement: the examiner often includes a question to evaluate an organisation against an established theoretical model. The balanced scorecard, performance pyramid and building blocks have all appeared in previous exams.

Performance hierarchy: linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements

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Source:-
PQ Magazine
BPP

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ACCA Exam Tips December 2009 (P4)

Paper P4 (PQ Magazine)

Corporate failure.

WACC/financing.

Business Valuation.

Black Scholes.

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Paper P4 (BPP)

Role and responsibility towards stakeholders: ethical issues continue to appear regularly as an optional discussion question. This is an important area to develop as a strength, since the discussion question is normally one of the easier optional questions.

Advanced investment appraisal: real options and adjusted present value are popular themes and were not tested in the last two sittings. Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing.

Acquisitions and mergers: this exam normally contains a question involving valuations which the examiner sees as a crucial part of the syllabus, and this area was not examined in June. To give this a topical twist you might be valuing a company that is splitting itself up or selling off a division.
Corporate reconstruction: this is a topical area; a question could also ask you to evaluate a capital reconstruction e.g. a business that is considering offering its creditors shares in order to enable it to survive.

Advanced risk management: foreign currency derivatives are due to be tested numerically.
Emerging issues: the January 2009 article by the examiner on ‘toxic assets’ indicates that this area may well be examined as a part of a question.

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Source:-
PQ Magazine
BPP

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ACCA Exam Tips December 2009 (P3)

Remember to come back visit here again, more ACCA Exam Tips December 2009 which are P4, P5, P6 and P7 will be posted TOMORROW November 15, 2009! BOOKMARK US NOW!


Paper P3 (PQ Magazine)

The balance between controlling and encouraging emergent strategy.

E-business and supply chain management.

Scanning the macro-environment and competitive environment.

Project management and the capability maturity model.

Marketing techniques and customer relationship management.

Stakeholder analysis and corporate social responsibility.

Business analysis in not-for-profit organisation.

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Paper P3 (BPP)

Organisational goals and culture
Environmental analysis
Business processes
Quality initiatives
Methods of organisational expansion
Strategies for competitive advantage
Portfolio analysis

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Tips for ACCA Paper P3 December 2009 exam (OpenTuition)

Part A - 50 mark case study
SWOT/PESTEL/Porter's 5 forces analysis
Foreign expansion/merger
Generic strategies
Parenting styles/Ashridge portfolio display

Part B – 2 from 3 25 mark questions
E-business and marketing
Project management
Business process change management/outsourcing/commoditisation of outsourcing services

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Source:-
PQ Magazine
OpenTuition
BPP

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ACCA Exam Tips December 2009 (P2 INT)

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Paper P2 (INT) (PQ Magazine)

Complex group statement of comprehensive income incorporating a part disposal or stepped acquisition.

IFRS 3 revised aspects.

Principles and accounting treatment multi-scenario incorporating intangible non-current assets and impairment.

Deferred tax.

Management responsibilities for ensuring transparency of financial statements.

Impact of accounting policies on a financial covenant.

Accounting for environmental issues including provisioning.

Convergence of IFRS and US GAAP.

Discount activities.

Group topics – disposal of subsidiary and complex group. Other topics provisions, impairments, deferred tax.

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Tips for Paper P2(INT) December 2009 exams (OpenTuition)

Question 1
Consolidated Statement of Income with two subsidiaries - one part disposed but still a subsidiary, the other part disposed becoming an associate - both with goodwill involved. Q Base, Black and Zero but needs amendment to include the goodwill angle. !5 more marks for chat about environment and or corporate governance

Question 2
A "Various IFRS" question - Lots of examples in section B of the BPP revision kit

Question 3
Write a report to directors about the acceptability of some dubious proposed accounting treatments

Question 4
An essay question about the problems facing the IASB in their efforts to reach acceptable standards which can be applied World-wide

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P2 (INT) (BPP)

Section A
Compulsory case study including preparation of a group statement of comprehensive income (profit and loss account) (top tip) and/or statement of financial position (balance sheet) including complex group structures, continuing and discontinued activities or group disposals. This will include other accounting complications such as financial instruments, pensions, share-based payment and impairments.

There will also be discursive requirements on a linked accounting adjustment and social/ethical aspects of corporate reporting and the link between morality and ethics.

Section B
Industry question (often Q3), testing range of standards (NB: no specific knowledge of the particular industry is required)

Discussion question (Q4) looking at current developments in corporate reporting such as proposals relating to fair values, success/issues on implementation of IFRSs, treatment of gains and losses on pension schemes, small and medium-sized entities, management commentary, comprehensive income/presentation of financial statements, improvements in performance measurement. May also include a related computational part based on figures from a case study

'Multi-part' testing a range of standards separately, such as related parties, pensions, changes in accounting policies, recognition and/or impairment of tangible and intangible assets, foreign currency transactions, leases, revenue recognition, consistency of standards with the conceptual framework, changes in accounting policies, the effect of accounting treatments on earnings per share or ratios and deferred tax implications

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source:-
PQ Magazine
OpenTuition
BPP

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ACCA Exam Tips December 2009 (P1)

Paper P1 (PQ Magazine)

Corporate Governance – risk management, director’s remuneration and non-executive director’s responsibilities.

Internal controls.

TARA risk model, ethics absolutist v relativism, separation of CEO and chairman powers (think M&S), ISO 14001.

Ethical dilemma – American Accounting Association decision model.

Stakeholder management Mendelow’s Matrix.

Risk audit - in house versus external provision. The need for internal audit.

The contents and process of a social/environment audit; the environmental footprint.

Enterprise risk management models

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P1 (BPP)
Sarbanes Oxley - why a rules based system is suitable for corporate governance and comparing it to the UK combined code

CSR - benefits to organisations of engaging with stakeholders

Auditing processes - benefits of internal auditing, focussing on environmental auditing

Disclosure requirements under Turnbull report

Discussing an ethical issue using the American Accounting Association model

Explanation of some of the 9 principles of good governance

Features of an effective control system

Roles of different committees at board level

2 Tier v unitary board structure

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source:-
PQ Magazine
BPP


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ACCA Exam Tips December 2009 (F9)

Paper F9 (PQ Magazine)

Economic environment and the impact on interest and exchange rates.

Working capital management – EOQ with discounts and lead time buffer stock.

Management of trade receivables, including settlement discounts and factoring.

Asset replacement cycles and capital rationing.

Risk management of foreign currency using internal and external hedging techniques.

Weighted average and marginal costs of capital and the CAPM.

Business valuations using geared betas and earnings based valuations.

Inventory management.

Complex NPV or IRR with tax.

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ACCA Paper F9 December 2009 Exam tips (OpenTuition)

Question 1
Weighted average cost of capital with CAPM / calculating an asset beta from an equity beta

Question 2
Forecasting future exchange rate (purchasing power parity) / management of exchange rate risk (forward contracts and money markets) / written on managing interest rate risk

Question 3
NPV question - probably Capital Rationing / written on limitations

Question 4
Management of receivables / calculation and comment on some ratios

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Paper F9 (BPP)

Working capital: this has always been a favourite theme; questions on inventory management and receivables management are likely here. Make sure that you are comfortable with calculating the operating cycle and explaining the concept of over-trading.

Investment decisions: this exam normally contains a question involving net present value (NPV), often with tax and inflation; discounted cash flow techniques can also be applied to asset replacement, capital rationing and leasing as well and one of these areas could well be tested this time. Remember that you may need to calculate a weighted average cost of capital before you calculate an NPV.

Sources of finance: this is a topical area, we would expect a part question on financing problems covering gearing issues and problems for small-medium sized companies. Ratio analysis is likely to feature here.

Business Valuations: this area is commonly tested and is a core syllabus area. You should note that in recent sittings the examiner has looked to combine different syllabus areas within the same exam question – for example asking you to calculate a cost of equity and then use it to value a company.

Make sure that you are also able to value debt. Finally, you need to be able to explain the efficient markets hypothesis – recent stock market volatility casts doubt on the ability of stock markets to price securities in a rational way.

Financial environment & Risk management: recent exchange rate and interest rate volatility could impact on a company’s financial management plans – a part question on this area could be set, with further discussion and calculations on hedging techniques.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source:-
PQ Magazine
OpenTuition
BPP

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ACCA Exam Tips December 2009 (F8)

Paper F8 (PQ Magazine)

Payables – validation of period end balances and cut-off.
Acceptance of appointment – ethical and practical issues.
System evaluation and management letter extracts.
Audit of estimates including provisions and contingencies.
Understanding unmodified audit reports and modified opinions.
Closing review, subsequent events and threats to going concern status.
Payroll audit procedures.
Not for profit organisations.
Internal control weakness.
IAS 570 going concern.
Analytical review as a planning tool.
Threats to an auditors independence.
Inventories or non-current assets.

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Tips for ACCA Paper F8 Exam December 2009 (OpenTuition)

30 Mark question:
Analytical review

10 Mark question:
Computer assisted auditing techniques

20 Mark questions:
Audit of non-current assets
Not for profit organizations
Engagement and audit planning

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Paper F8 (BPP)

Not for profit organisations
CAAT
Corporate Governance
Test of Controls
Substantive Testing
Audit Reports
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source:-
PQ Magazine
OpenTuition
BPP

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ACCA Exam Tips December 2009 (F7)

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Stay Tune for tomorrow's ACCA Exam Tips December 2009.... Paper F8, F9, P1, P2 and P3 will be posted TOMORROW November 14, 2009!


Paper F7 (PQ Magzine)

Consolidated Statement of Comprehensive Income – possible transactions to include depreciation, revaluation, investment property, IFRS 5.

Consolidated I/S and SFP for either 2/3 company groups.

Published accounts.

Cashflow question with report on company performance.

Financial statement interpretation.

Intangible non-current assets including research and development.

Liabilities including deferred tax.

Leasing – both numbers and written aspects.

IASB framework – elements or qualitative characteristics.

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F7 (BPP)

Q1 (25 marks): Consolidated statement of comprehensive income (P&L) and/or statement of financial position (balance sheet) with one subsidiary plus associate (including adjustments for fair values, unrealised profit, intragroup trading, goods/cash in transit, other syllabus area). Discursive part (b) on reasons for adjusting for unrealised profit or other group topic.

Q2 (25 marks): Accounts restatement/preparation with adjustments e.g. depreciation, current/deferred tax, inventory (stock) valuation, leases, substance over form issues, financial instruments (FV change or amortised cost), revaluations, share issues or government grants. May include EPS calculation or movement in share capital and reserves.

Q3 (25 marks): Interpretation and/or statement of cash flows, perhaps with written part on not-for-profit entities. Interpretation may focus on limited ratios and their interpretation (e.g. ROCE and its components). Sections of a statement of cash flows (rather than whole statement) may be tested

Q4 & Q5 (15 & 10 marks): One question in context of conceptual framework; other containing one or two discrete topics. Possibilities: regulatory framework, inflation, earnings per share, government grants, impairment, substance over form issues, leases or intangible assets
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source:-
PQ Magazine
BPP

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ACCA Exam Tips December 2009 (F6)

Paper F6 (PQ Magazine)

Taxation of employment income.

Dealing with trading losses – loss reliefs for sole traders and companies.

Computing corporation tax liabilities.

Computing chargeable gains.

Self-assessment and payment of tax by companies.

Badges of trade.

Adjusted profit computation and capital allowances for sole trader.

CGT – principle private residence relief.

Personal tax: benefits, adjustment to profits, capital allowances, opening year rules.

Corporation tax: long period of account, capital allowance, property lease, gains of shares, VAT annual accounting.

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Paper F6 (BPP)

Income tax involving sole trader encompassing profit adjustment and capital allowances and employed earner.

Payment of tax details also required.

Corporation tax involving capital allowance calculation for plant and machinery and industrial building allowance.

Double tax relief also tested.

VAT default surcharge liability.

Capital gains tax from individual perspective testing gift relief, entrepreneurs’ relief, part disposal, destroyed or damaged asset, exempt assets.

Calculation of CGT liability involving capital losses.

Property income

Corporation tax losses
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Source:-
PQ Magazine
BPP

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ACCA Exam Tips December 2009 (F5)

Paper F5 (PQ Magazine)

Interpreting financial and non-financial performance measures.

Throughput accounting techniques.

Short-term decision-making techniques.

Divisional performance measures .

Standard costing – variance analysis and operating statements.

Comparing the merits of different budgetary control systems.

ABC.

Forecasting - linear regression, or time series.

Transfer pricing.

Backflush costing discussion.

Limiting factors.

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Paper F5 (BPP)

Performance Management (possibly with transfer pricing)

Budgeting including objectives and behavioural aspects

ABC

Pricing

Variances including planning & operating variances

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Exam Tips for Paper F5 December 2009 Exams (OpenTuition)

Question 1
Activity Based Costing / target costing

Question 2
Linear programming

Question 3
Variance analysis - planning and operational

Question 4
Budget preparation including regression and time series and/or
learning curves.

Question 5
Performance measurement - divisionalised + transfer pricing
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source :-
PQ Magazine
OpenTuition
BPP

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ACCA Exam Tips December 2009 (F4)

This is what you all been waiting for, I apologize for updating these tips so late. Hope it can guide you guys on the revision starting from today until December 2009 =)

Good Luck!

Paper F4 (PQ Magzine)

Contract law: exclusion clauses or intention to create legal relations.
Employment law: wrongful and unfair dismissal .
Partnership law: ostensible authority.
Company law: alteration of articles, or formation.
Combined Code on Corporate Governance: application and purpose.
Types/structure of court – the English Legal System.
Civil and criminal law – the differences.
Offer and acceptance – the agreement.
Directors’ duties.
Company formation.
Fraudulent behaviour.

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Paper F4 (BPP)

Court structures
Offer and acceptance
Contract breach
Employees v independent contractors
Agency relationships
Directors duties
Insolvency

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ACCA Paper F4 December 2009 (OpenTuition)

1 Hierarchy of the Courts and judicial precedence 3 and 5 or Delegated legislation / interpretation of statutes 9
2 Offer, acceptance and invitations 15
3 Tort of negligence 38 to 41
4 Employees' and employers' duties 45 and BPP study text pp 207, 208
5 Inheritance of shares and debentures 76 and 84
6 Meetings in companies 86
7 Remedies for breach of contract 31 and 32
8 A usual question 8 - contract law scenario lots!
9 Directors' powers and / or duties 90
10 Dissolution of partnerships 60 or Agents' powers and duties 52

(Numbers indicate Revision Kit Question from BPP Revision Kit)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Source :-
PQ Magazine
OpenTuition
BPP

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Biggest Investment Fraud in Wall Street History (2009)

I believe you all have heard of Bernard Madoff's auditor, David Friehling, age 49, is found guilty to many fraud charges on 5th of November 2009 and David has been auditing Madoff's account for 17 years (1992 to 2009).

The total amount of fraud is US$ 65 billions, the biggest investment fraud in Wall Street history!!

David Friehling told the US judge that he had no idea about the swindler's multibillion-dollar Ponzi scheme because he did not (never) contacted investors and never acted as a feeder to investors. Besides that, he as an auditor did not conduct any independent auditiing or verification of financial statements or tax returns provided by clients (ie. Madoff).

At any time we as the auditor should not fully trust upon the client, always practise scrutinity and have a questioning mind at all times!

Thus David is guilty in securites fraud, investment adviser fraud, making false statements to the US securities and Exchange Commission and breaking tax laws.

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Auditors face the biggest crackdown since Enron

Within the 10 years since the Enron collapse, the auditors are now getting back their way for fat fees, the Financial Reporting Council has warned the largest firms of auditors (especially the Big Four: PwC, KPMG, Deloitte and Ernst & Young) that they should not be doing internal audit work for clients whose accounts they sign off in the annual statutory external audit.

Recently the FRC, the regulator of Britain's accountants, appears to be pointing finger at KPMG as there might have a breaching of ethical standards upon getting new audit client, Rentokil Initial.

Auditors should not be facing serious conflict of interest while auditing the client. By offering advice on or running client internal audit services will be marked as 'extended assurance services'. This extended assurance services is should be avoided if possible because auditors supposedly to have independent when verifying a company's financial reports. But when auditors are auditing their own work, that is not showing independent!

The FRC is warning firms its Auditing Practices Board arm and the disciplinary body, the Public Oversight Board, are looking at a clampdown on ethical guidelines.
The APB is consulting on whether internal audit engagements or 'similarly constructed packages of services' comply with the principles of its ethical standards rule book.

The issue has come to a head after KPMG won a contract with Rentokil by promoting a new audit package which provided some services which would normally have been undertaken by Rentokil employees in the internal audit function. Such a package is banned in the US.

After news of the Rentokil arrangement broke in the summer KPMG's head of audit Oliver Tant boasted he had received 'phenomenal' interest from companies looking for 'extended assurance'.

The issue of accountants using the audit to win a client who they can then milk for huge fees for additional work was raised by MPs on the Treasury Select Committee as part of their investigation of the banking crisis.

Industry figures show auditors still earn another 70% of their audit billings from additional work for clients despite the Enron clampdown on such relationships.
Pre-Enron, auditors on average earned twice as much in non-audit fees than from the audit.

Full written Article via Pass Magazine
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