TARC ACCA 2005

Tips for paper2.5

tips from BPP
Paper 2.5 Exam Tips
ACCA paper 2.5Part 2 - Financial Reporting
December 2004 Exam Tips
For each area described, please note the reference to useful questions from BPP’s Practise and Revision kit (P&R kit).
Section A will comprise of one compulsory question that will examine group accounting. Group accounting is a core area and this question could ask you to produce a consolidated balance sheet and/or profit & loss account and usually includes a related discussion element. (P&R Kit Q43, Q1 mock exam 1, Q44, Q48, Q53).
Section B will comprise four questions out of which candidates should select three questions. The examiner, Steve Scott has stated that the style of the paper would remain fairly static:
• The first question will be preparation/restatement of a profit & loss account and balance sheet. This question normally requires adjustments for depreciation, tax and dividends. Others may relate to debt factoring, finance leases, capital instruments and stock (P&R Kit Q4, Q5, Q2 mock exam 2).
• The second question will be a written question examining theoretical/conceptual areas or accounting standards. FRS 5 and SSAP 21 could feature in this question this sitting (P&R Kit Q30, Q5 Mock exam 2).
• The third question is likely to examine interpretation and/or cash flow statements. There could also be a discursive part on the need to disclose related parties and transactions. (P&R Kit Q58. Q4 mock exam 1, Q4 mock exam 2, Q26, Q28).
• The fourth question has no specified format or content and will cover other areas of the syllabus. The examiner frequently includes a mixed bag question, which examines three or four different accounting standards. Possibilities this sitting are: FRS 3 & 4 and SSAP 4 & 13. (P&R Kit Q9, Q17, Q32, Q34).
The examiners deliberately try to avoid question spotting. Just because a question featured last time, doesn’t mean it won’t feature this time. Use the tips for areas to have a good look at, but remember that no one know what’s in the exam apart from the examiner. Your safest bet is to ensure good syllabus coverage in your revision, as the examiner aims to do in the exam.
ACCA paper 2.5
Part 2 - Financial Reporting
Relevant Articles
How to approach performance appraisal questions Steve Scott April 2004

tips from LCA
Paper 2.5 (International)

1. Consolidated income statement
2. Prepare financial statements
3. Accounting policies, changes in accounting estimates & errors (IAS 8)
4. Non current assets held for sale & discontinued operations (IFRS 5)
5. Interpretation of financial statements
6. Earnings per share (IAS 33)

Tips from FTC
paper 2.5
1. CBS & CP&L
2. Published account EPS
3. FRS 11 / Fixed assets
4. Interps and cashflow
5. FRS5 /FRS8

2.5 Financial Reporting ( FTMS )

• Consolidated Balance Sheet with Consolidated Income Statement - including fair value adjustment, unrealised profit on intra-group sale, goodwill and minority interest computation etc.
• Redrafting/preparation of financial statements including adjustments on various FRSs
such as FRS 8 (changes of accounting policies), FRS 12 (deferred tax adjust), FRS 16
(revaluation reserve), FRS 38 etc.
• Theoretical issues on two/three FRSs with mini cases to test understanding. Including
FRS 36, FRS 37, FRS 38, etc.
• Performance appraisal - ratio analysis with report

posted by Unknown @ 1:00 AM