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More ACCA exam tips for June
26 May 2017
BPP EXAM TIPS FOR JUNE
Planning & operation variances.
Mix & yield variances.
Evaluation of the company (either as a whole or on a divisional basis).
Section A & B
Due dates for payment of income tax (payments on account).
Due dates for the payment of corporation tax (installments for large companies).
Filing dates for the income tax and corporation tax returns.
Penalties and interest for late payments and returns.
VAT rules on registration, impairment loss (bad debt) relief, and SME schemes relating to cash accounting, annual accounting and flat-rate schemes.
Inheritance tax due on lifetime transfers both in the donors life and on death.
Statutory residence tests for individuals.
Identification of groups of companies for corporate tax loss relief and gains.
Trading loss reliefs for both companies and sole traders.
Focus on income tax and corporation tax, including the following:
Relief for pension contributions.
Adjustments to profit to arrive at trading income.
Capital allowance computations.
10-marker on VAT, IHT or CGT.
Several on consolidation and interpretation of financial statements.
Non-core areas inflation, specialized entities.
One covering interpretations and the other preparation of financial statements.
One will be in the context of a single company and one in the context of a group so you could have a single company interpretation and a groups preparation or vice versa.
Accounts preparation questions may include extracts or stand alone calculations or full statements of profit or loss and other comprehensive income and/or statement of financial position.
Accounting for items from other areas of the syllabus.
Statement of changes in equity, statement of cash flows extract, earnings per share calculation or linked written.
Consolidation question fair values, deferred/contingent consideration, PUP on inventories/PPE, intragroup trading and balances, goods/cash in transit.
Single entity trail balance or restatement of given financial statements with the usual adjustments for depreciation, revaluation and current/deferred tax (revaluations). Plus a mixture of adjustments such as leases, substance over form, financial instruments, share issues, government grants, inventory valuation, revenue recognition or construction costs.
Audit risk identify and explain audit risk and explain the auditors response to each risk.
Internal controls deficiencies of internal controls and recommendations of suitable internal controls or description of tests of controls.
Audit procedures both substantive procedures and tests of controls.
The concept of shareholder wealth.
Fiscal & monetary policies.
The efficient markets hypotheses.
Working Capital management operating cycle, change in credit period or accepting a factors offer.
Business or security valuations methods of valuation.
Financial risk management currency risk, interest rate risk.
Working capital management.
Investment appraisal NPV with inflation and tax.
Business finance evaluation of financing options (interest coverage and gearing ratios) or cost of capital calculation.
You can expect to see the use of stakeholder, ethical and other CSR theories applied to the scenario.
Use of risk.
Control and governance board directors, remuneration and reporting.
Dysfunctional behaviour bribery and corruption, environmental risk and poor ethical stance.
Preparation of a statement of financial position and/or group statement of profit or loss and other comprehensive income or statement of cash flows, including foreign subsidiary, discounted activities, disposal and/or acquisition.
Discursive requirements on a linked accounting adjustment and social/ethical/moral aspects of corporate reporting.
Multi-part question testing fair value measurement, deferred tax, foreign currency transactions, financial instruments, pensions, share-based payment, non-current assets (recognition and/or impairment of tangible and intangible assets), borrowing costs, accounting treatments on earnings per share or ratios.
Industry based question testing a range of standards such as accounting policies and the framework, leases, grants, IFRS for SMEs, reorganisations, provisions, events after the reporting
period and related parties.
A discussion question looking at current developments in corporate reporting the definition and disclosure of capital, revision of the conceptual framework, classification in profit or loss vs OCI, leasing, improvements to disclosures, regulatory issues over adoption and consistent application of IFRSs, implementation issues, application of the definition of control and significant influence (equity accounting), improvements in performance measurement, integrated reporting, revenue recognition.
Q1 project appraisal (domestic or overseas).
Cost of capital calculations.
Risk management VaR, real options, hedging, risk mapping.
Risk management (currency or interest rate).
Data analysis using numerical techniques KPIs, EVA.
Analysis of quality related costs.
Performance management frameworks building blocks, performance pyramid, balanced scorecard.
Information reporting CSFs and KPIs.
Application of strategic models PEST, Porters 5 forces, the value chain.
HR frameworks reward and appraisal systems.
Groups of companies involving overseas aspects and losses.
Unincorporated business particularly loss relief or involving a partnership, basis period rules should also be expected.
Capital gains tax versus inheritance tax including availability of reliefs.
Overseas aspects of income tax, capital gains tax, IHT or corporation tax.
Personal service company.
Company purchase of own shares.
Enterprise investment schemes/Seed EIS/ venture capital trusts.
VAT partial exemption or land and buildings or transfer of a going concern or overseas transactions.
Transfer of trade versus sale of subsidiary.
Patent box, research and development expenditure.
Planning, risk assessment, evidence gathering & practice management.
Non-audit engagement prospective financial information (PFI).
Audit completion or consolidation groups.
Financial reporting issues.
Practice management ethics & quality control and reporting.
Reporting completion and communication.
Environmental management accounting.
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