TARC ACCA 2005

exam guidance from BPP ~ paper 2.5 (Int)

ACCA paper 2.5 - Part 2 - Financial Reporting
December 2005 Exam Tips

Section A

Question 1

Section A will comprise 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 income statement (profit & loss account) with one subsidiary and possibly an associate or joint venture.

It usually includes adjustments for items such as:
fair value
unrealised profit on inventories (stock) or tangible assets
cancellation of intragroup trading
goods/cash in transit
pre-acquisition dividends.

Part (b) of the question usually includes a related discussion element.

2005 P&R Kit Questions:
Mock Exam 1 Q1 (Horsefield),
Mock Exam 2 Q1 (Hydrate), Holding, Augment, Hanford.

Section B

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 will remain fairly static:

Question 2

Question 2 will be preparation/restatement of an income statement (profit & loss account) and/or balance sheet. This question normally requires adjustments for depreciation, tax and dividends. Other adjustments may relate to debt factoring or other substance over form issues, finance leases, financial/capital instruments, share issues and inventory (stock) valuation. There may be further disclosure requirements re discontinued operations or an earnings per share calculation.

2005 P&R Kit Questions:
Mock Exam 1 Q2 (Deltoid),
Mock Exam 2 Q2 (Bloomsbury), Larcher, Telenorth.

Question 3

Question 3 will be a written question examining theoretical/conceptual areas or accounting standards. This could be on tangible or intangible assets, impairments, accounting policies or leases with reference to the Framework for the Preparation and Presentation of Financial Statements (Statement of Principles).

2005 P&R Kit Questions:
Broadoak ('FRS 15' in the UK Variant kit),
Q3 Mock Exam 2 (Atkins).

Question 4

Question 4 is likely to examine interpretation and/or cash flow statements. There could also be a discursive part on why, for example, related party or discontinued operations disclosures are useful.

2005 P&R Kit Questions:
Charmer, Q4 Mock Exam 1 (Judicious),
Q4 Mock Exam 2 (Nedberg).

Question 5

Question 5 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 include:
deferred tax, construction contracts,
segment reporting,
events after the balance sheet date,
governments grants,
financial/capital instruments,
discontinued operations or substance over form issues.

2005 P&R Kit Questions:
Multiplex,
Deferred tax,
Diversity,
Myriad,
Dawes,
Jedders.

Relevant Articles (www.accaglobal.com/students)

How to approach performance appraisal questions 28 April 2004

First time adoption of International Financial Reporting Standards 4 January 2005

Health Warning! 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 as areas to have a good look at, 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.

posted by Unknown @ 11:28 PM