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CIMA EXAM TIPS for May 2009 P1 -P9

MAY WE HELP YOU OUT WITH OUR TIPS? The examiners don't like it but we know you want them! So here are our top tips for the May exam from BPP.

P1 PERFORMANCE EVALUATION
* Variance analysis - calculations and interpretation (including mix/yield and planning/operational)
* Budgeting - preparation and discussion of behavioural impacts
* Transfer pricing - particularly the impacts on divisional performance
* Activity based costing - possibly compared with absorption costing
* Performance evaluation in the modern environment (TA ratios, balanced scorecard, JIT/TQM)

P2 DECISION MANAGEMENT
* Optimal pricing
* Learning curves
* Investment appraisal - NPV & IRR
* ABC
* Risk & uncertainty
* Relevant costing

P3 RISK & CONTROL STRATGEY
* Identification of risks
* Evaluation of, and improvement to, controls currently in place
* Risk management systems
* Internal audit process and work to review controls
* Costs and benefits of a particular internal control system including management accounting control systems
* Information strategies – systems, technology and management and the risks and controls inherent in this process
* Interest rate risk management (discursive as well as numerical)

P4 ORGANISATIONAL MANAGEMENT & IS
* Hardware and software feature regularly in section A – possibly also changeover methods and systems development
* Change management with change triggers
* Within operations management quality is regularly examined, inventory management could feature
* HR planning, recruitment and selection feature regularly across all sections of the paper
* Marketing covering marketing mix, segmentation and buyer behaviour are key topics

P5 INTEGRATED MANAGEMENT
* Managing conflict
* Stages of project management
* Critical path analysis
* Control issues
* Organisational goals and stakeholders Management skills and their importance in an organisational context
* Project management, possibly with a focus on the benefits of using tools such as software and appropriate techniques
P6 BUSINESS STRATEGY

* NPV or some type of cost benefit
* Strategic choice question approached via Johnson and Scholes 'Suitable, Acceptable and Feasible' framework. Your numerical analysis will support the acceptable element of this analysis.
* The role and potential impact of IT/IS on an organisation
* Performance management featuring techniques such as RI and ROI, Economic Value Add and Shareholder Value Analysis
* Internal analysis – how and why this would be performed by an organisation

P7 FINANCIAL ACCOUNTING & TAX PRINCIPLES

* Sections A and B will almost certainly contain yield calculations.
* Section C is most likely to contain an accounts preparation question requiring an income statement and balance sheet.
* In addition it is likely that the section C question will require a time consuming element such as a PPE note.
* It is likely that the regulatory framework will appear in both section A and B
* In general principles of tax it is important that candidates know definitions (e.g. hypothecation)

P8 FINANCIAL ANALYSIS

Section A
* Expect at least 3 or 4 on groups issues such as profit on disposal, cash paid to minority interest, goodwill, retained earnings, unrealised profit etc

Section B
* Written question, e.g. US GAAP versus IFRS, or environmental accounting
* Short consolidated I/S, B/S or a SOCIE calculation
* Recognition, measurement and/or classification of financial instruments
* Pension accounting
* Ratio calculation and interpretation
* Inflation accounting /asset valuation explanation/ comparison

Section C
* Group financial statements e.g. complex group or disposal of subsidiary, B/S and/or I/S
* Two questions with an interpretation angle, one including ratio calculations, perhaps with EPS calculation or analysis, segment analysis or the effect on ratios of changes in accounting treatment and/or limitations of financial analysis

P9 FINANCIAL STRATEGY

* Forecast to assess the achievement of objectives
* Dividend policy and inter-relationship between dividend, financing and investment policy
* Cost of capital calculation
* Discussion of gearing levels
* Valuations – intangibles, post merger valuation, post merger enhancement strategies
* Overseas investment appraisal
* Adjusted present value

HEALTH WARNING
These tips should be used in conjunction with proper study and revision. They are not a substitute for in-depth revision. We cannot guarantee that everything we mention will be on the paper. These tips are only a rough guide.

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