TARC ACCA 2005

Tips?ACCA December 2006 Exam Tips?

WARNING: Tips are no substitute for revision!

thanks to ching.. i know the tips are flying here and there around the net... just that whether i have any time to get everything she already compiled and re-post it here...

sorry for those who visit here to look for tips.. hope this is not too late.. but just praying hard for you guys... and hoping that luck is on your side and please do not just reply on tips itself :)

Paper 1.3 Managing People

Primary Tips:

* Counseling
* Individual, Groups and Team behaviour
* Motivational Theories
* Objective setting; performance indicators
* Effective Communication
* Management of Diversity/Equal Opportunities

Secondary Tips:

* Leadership Theories
* Recruitment and Selection
* Management by Objectives
* The Learning Process Mumford and Kolb

ACCA Paper 1.3-BPP
Managing People
December 2006 Exam Tips

In Section A there is a compulsory Scenario Question worth 40 marks, which is usually broken down into between 4-8 discrete parts. It is difficult to predict whether the examiner will remain in a mainstream core area of the syllabus or examine somewhere less obvious. However he has written an article in Student Accountant prior to most exam sittings, and often based Question 1 upon it, so it is important to keep a look out for articles right up until the exam.

In Section B there is a requirement to undertake 4 from 5 questions, each worth 15 marks. It is difficult to make tips of which areas he might examine, however, it would be worth reviewing the following topic areas:

Recruitment and Selection – a question in every exam to date

Culture – absent for three sittings

Health and Safety – long overdue, only ever examined once

Effective Communication Practices – a favourite area

Each question is broken down into 2 -3 parts. Be careful to only answer what the examiner has asked for.

Health Warning! Please note the examiner, Dr John Ball, deliberately tries to avoid question spotting. Just because a question featured last time, does not 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 this in the exam.



Paper 2.1 IS
Managing Information Systems

* Business strategy and IS/IT strategy
* IS cost allocation methods
* Feasibility study
* Legacy systems
* Accounting for IS/IT costs
* Staff roles and responsibilities
* Project management and control
* Centralisation/decentralisation

Designing Information Systems

* Methodologies
* Analysis,CASE
* Modelling
* External design: data capture
* Invitation to tender
* Prototyping and 4GL

Evaluating Information Systems

* Security/legislation
* Implementation
* Post-implementation review
* Quality
* Documentation
* Maintenance

Source: Lecturer Parminder Singh (KSA)

1. HCI (specially on GUI n Screen), IS personnel, flat structures
2. Data capture
2. IS/IT/IM strategy
4. Cross-charging, seperate company, centralization/decentralization of IS function
5. SLDC (training, testing, maintenance, fact finding/documentation, TOSE, software packages, change control procedure, data conversion/creation)
6. V model
7. Prototyping, CASE, Spiral model
8. Project management (project plan, network diagram, grantt chart, risk management process)
9. SAD (ERM, decision tables/trees, DFD)
10. Quality (project quality plan)
11. Security (features, malicious software, disaster planning)
12. Legislation (DPA, CMA)

Paper 2.1 Exam Tips
Exam Tips and Relevant Articles
The key issue about the exam format is that each section will have just one question on each major section of the syllabus.
The three key areas are: -

1. Managing information systems,
2. Designing information systems,
3. Evaluating information systems.

Overall there will therefore be 2 questions on each key area; one compulsory (section A) and one chosen (section B).
The section A questions are often in two parts, with the marks split evenly across the two parts: -

Part 1 - State the theory
Part 2 - Apply the theory to the scenario

It therefore follows that unless students learn the scenario approach of extracting information from the scenario and applying this to their answers they will have difficulty in gaining a pass mark from section A.

Managing information systems

There will be a maximum of 40 marks on offer applicable to this area.

Business Strategy and IS/IT alignment (Q1 and Q70)
Delivering information systems – accounting issues (Q9 and Q91)
Project planning – Gantt charts (Mock Exam 1 Q4 and Q81 )
Organising IS – End user computing

Designing information systems

There will be a maximum of 40 marks on offer applicable to this area.

External design – User friendly systems and Prototyping (Q40 and Q83)
The information systems development process – Waterfall and Spiral models (Q24, Q25 and Q26 )
Modelling user requirements – data flow diagrams (Q85)
Developing solutions – Bespoke systems (Q83)

Evaluating information systems

There will be a maximum of 40 marks on offer applicable to this area.

Quality assurance in the management and development process – V model (Q47 and Q87)
Relationship of development processes and quality (Q94 and Q80)
Implementing security – physical security (Q53)
Implementation issues – training (Q!07)



Paper 2.2 Corporate & Business Law
Source: Lecturer Viknes 1v37 (KSA)

Advices:

*Never mention the section if ur unsure as mistake to the section numbers implies serious matter n the whole answer will be voidable at the option of the marker to implies NIL mark for the whole said section or some 'sympathy marks' for u. However, as the fact given, putting down the section number indicating student of well-readness n extra bonus marks might be given to ur overall performance, hereby, again at the option of the marker.

*leading decisions of case law must not be omitted in ur answer. Elaborate all your answer by giving defination (quoted from the act/case law/own defination is acceptable), stating any illustration from the act (if any), n followed by relevant case laws (preferably m'sian case).

Contract law
1. Offer vs ITT & acceptance vs counter offer (D01 Q8)
2. Consideration (executory, executed, past)
3. Frustration S57(1)(2)
4. For problem-solving (mixture of coercian, Specific performance, certainty, exclusion clause)

Company law
1. Turquand (ESSAY)
1. Shares (read all plus preference share/redeemable)
2. Receiver (liability)
4. Directorship (dun spot, read all especially duties, S132C/S132E/S133)
5. Meeting
5. SLP lifting veil by parliment
6. Promoter (only Glucstein's case on recovery profit)
6. Auditor (removal)

Agency
1. Duties of Agent to principal

Partnership
1. termination
2. liability

Malaysian Legal System
1. Subsidiary legislation
2. How law is made
3. common law

Employment law
1. constructive dismissal

Paper 2.3 Malaysia Taxation
1. company tax marks targeted: 20/30
- memorize all d expenses whether allowable, not allowable or double deduction n their explanations
- d explanation must b specific. try to avoid explanations like 'wholely and exclusively incurred in d production of income' or 'incurred in d normal course of biz'
- capital allowance is expected to b examined

2. personal tax marks targeted: 15/25
- S13(1)(a) and (b) r expected to b examined in details. must b able to distinguish which benefit falls under which section
- small value asset, repairs vs maintenance, royalty income, child relief (new changes)

3. sales n service tax marks targeted: 8/15
- bad debts
- mostly theories
- sales tax (credit sys)
- service tax (imposition of service tax, failure of non-compliance, evasion of service tax)

4. RPGT marks targeted: 10/15
- memorize d RPGT computation n isi tempat kosong laugh.gif
- NGNL especially transfer of asset from individual to co controlled by him/her [para 3(b)]
- private residence exemption (new changes)

5-7. others: marks targeted: 3/15
1. CA [HOT!!!]
2. resident status
3. individual tax planning
4. SAS for co
5. case law R or E
*FYI s108 not targeted

ACCA 2.4 Financial Management and Control

 Investment Appraisal; NPV to include relevant costs, tax and inflation, and possibly capital rationing and/or sensitivity analsysis, determinants of the discount rate
 Raising Finance
 Ratio analysis
 Replacement policy
 Working capital management, possibly to include stock
 Costing systems (ABC ?)
 Budgeting and Budgetary control
 Divisional Performance appraisal and strategic performance measures
 Long term finance and gearing

FTMS CKT Tips

CaseStudy : Investment Appraisal (NPV)

section b
-Sources of Finance : Ratio -Debt Valuation (calculate & discuss)
-Financial Risk & Investor Ratio
-Standard Costing : Mix & Yield Var**

ACCA Paper 2.4 – Financial Management & Control

Section A: One compulsory question worth 50 marks

Question 1
investment appraisal & about 10 marks management accounting.
Section B: Two out of 4 questions each worth 25 marks

Question 2 to 5

2 of section B questions will be in the area of financial management and the other 2 questions on management accounting. Of these, one question will be purely theory. In the last exam paper, the pure theory question was on aspect of financial management. This time may be financial management as well.

Possible topics:

1. Last Paper Lack Investment Appraisal. Focus on - Investment App :: Appraisal Techniques , evaluation decision with relevant cost, inflation, tax adjustment(might incorparate probability and expected value) , capital rationing & replacement policy.

2. Working capital management. Focus on debtors ( assessing credit worthiness and cash discount), Cash Mgmt ( miller-orr model & operating cycle) also likely.

3. Sources of finance. Focus on debentures( convertible debenture) valuation. Theory on methods of issuing share. Every Exam there is Question on Investment Ratios.

4. Flexible budget,Incremental Budget, ZBB and rolling Budget.Forecasting techniques : Regression Analysis.

5. Performance Measurement

6.There is a question on variances in each exam. So look out! *Mix & Yield Var*

ACCA Paper 2.4-BPP
Financial Management and Control
December 2006 Exam Tips

Anthony Head is the examiner for FMC. He has set exams, which are fair and focused on the core areas of the syllabus.

The references after each topic are to questions in the 2006 Practice and revision kit:

Section A
Section A is a compulsory 50-mark question based on a case scenario of about 1½ - 2 pages. It tends to contain questions on investment appraisal and sources of finance.

· Investment appraisal – Q86 Water supply services, Q95 Springbank, Q98 Sassone
· Sources of finance – Q65 Newsam, Q66 Sources, Q69 Collingham, Q72 Raising finance, Q74 Tirwen
· Performance measures – Q95 Springbank, Q38 Investment Group

Remember that the more complete case scenarios you attempt the better prepared you will be. The Case scenarios in our practice and revision kit are questions 88 to 98.

Section B

In section B of the exam there will be two questions on Financial Management – if investment appraisal does not appear in section A then it will definitely appear in section B, the examiner has never set a 2.4 exam which does not have an investment appraisal question. The other two questions will be on areas from the Management Accounting section of the syllabus.

· Working capital (probably stock management but possibly debtor management) – Q59 JIT and EOQ, Q56 PCB, Q55 Special gift suppliers, Q61 Velm
· Modern costing techniques – Q7 Throughput accounting, Q10 Abkaber
· Variance analysis – Q19 Hairdressers, Q22 Woodeezer, Q23 Carat, Q24 Linsil
· Capital rationing - Q83 Filtrex, Q84 PI, Q85 Basril
· Sensitivity analysis, risk and uncertainty – Q80, Q81 Forex risk, Q82 Umunat



ACCA Paper 2.5

Paper 2.5 does not change. You must work through the last 6 exams. The style and content of the questions remains very much the same.

Q.1 is consolidation and you can expect another balance sheet but be prepared for an income statement. You must be able to include an associate (or a joint venture) in the consolidated accounts using the equity method.

Q.2 is the “list of balances” question – practise on the last 6 exam questions – they cover the same ground. There are two approaches. Either go for workings to start with and then prepare the financial
statements asked for, or prepare pro-forma financial statements first and fill in the numbers as you work through each note in the question. This is a good question to choose in Section B. It is not difficult, but it is time consuming.

Q.3 is the single-standard question together with accounting principles – focus on impairment,provisions, eps, leases, contracts, discontinued operations. Consider the principle of substance over form and the principles of revenue recognition.

Q.4 usually includes a cash flow statement – work through the last 6 question 4s from past papers.You should get some financial analysis in December. Remember your ratios and the key points for comment.

Q.5 is the “multi-standard” question – of course you need to know all examinable standards.

ACCA Paper 2.5 (Global)
Part 2 - Financial Reporting
December 2006 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 values, 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.



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 current tax, depreciation, interest and dividends. Other adjustments may relate to debt factoring or other substance over form issues, leases, financial/capital instruments, revaluations, share issues, inventory (stock) valuation, government grants or deferred tax. There may be further disclosure requirements such as discontinued operations, movement in reserves or an earnings per share calculation.


Question 3

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



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.


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, segment reporting, events after the balance sheet date, governments grants, financial/capital instruments, discontinued operations or substance over form issues.

ACCA 2.6 Exam Tips

 New Client Appointment / Conflicts of Interest
 Practical Audit Risk
 Engagement Letters
 Materiality
 Management Letter - purchases / computer controls
 Sampling
 Substantive Testing of Receivables / Payables
 Audit Report scenarios
 Role of Audit Committees
 Responsibilities for fraud

McOrange Sheila's 2.6 Tips [NEWLY ARRIVED!!!]

1. Ethics
- conflict of interest
- what to do when fraud/ defaults & unlawful acts are discovered
- new client appointment/ considering whether to continue wif client

2. Identifying business risk & how to manage the risks identified/ internal review

3. Internal controls & tests of controls (payrolls function or purchasing function)

4. Role of EA & IA in risk management

5. Internal audit

6. Identifying audit risk - scenario

7. External review - theory - ISRE 2400

8. Substantive procedures
- audit of trade receivables and ISA 505 direct confirmation (incl. use of CAATs)
- audit of bank/ overdraft/ loans (incl. use of CAATs)
- audit of accounting estimates (provision for bad debts, prov for damages)

9. sampling

10. materiality, summary of audit differences

11. analytical review

12. audit automation, CAATs

13. audit report - theory or scenarios

14. going concern (symtoms, audit procedures & audit reports)

15. misc audit stds:
- ISA 260, 510, 720, 230, 700

16. Corp governance- role of audit committee

Paper 2.6i Exam Tips
ACCA Paper 2.6
Audit & Internal Review
December 2006 Exam Tips

The following list is an idea of the type of questions that may come up in the coming exam. The list highlights areas of the syllabus and how they may well be tested.

Suggested practice questions from the BPP Practice and Revision Kit (2006 edition) are shown after the relevant area. It is also worth reviewing the past exam questions mentioned to give you an idea of how a topic has been examined recently. These are easily available on the ACCA website (www.accaglobal.com/students).


Internal audit/ Internal review – Following the new examiner’s article on how the internal audit department can assist in corporate governance and risk management, this area has been frequently tested. (In all papers, June 2006, December 2005 and June 2005). Note that in addition to a specific question on internal audit or reviews conducted by internal or external staff, questions could be in the form of a report to management on control weaknesses with recommendations, very similar in substance to that produced by an external auditor (see Systems and Controls below) (P&R kit practice: Q6 Internal Auditors, Q8 Roxy Hotels)


Substantive testing – This will be in the exam, but what will be tested? In June 2006 Fixed (Non current) assets were tested. December 2005 covered inventories (stock). In June 2005 sales and tangible assets were tested. In December 2004 substantive testing of payroll balances was tested (Q4). In June 2004 inventories (stock) (Q3) and payables (creditors) and accruals (Q4) came up. In December 2003 payroll audit was tested (Q2). In June 2003, Inventories (stock) (Q2) and provisions were tested (Q3). In the December 2002 exam, payables (creditors) (Q3) and inventories (stock) were tested (Q5). In June 2002 cash was tested (Q2) and in December 2001 receivables (debtors) were tested (Q4). That would appear to leave bank/cash and receivables (debtors) and possibly another appearance of inventories as likely candidates for examination this time round. (P&R kit practice: Q42 Springfield Nurseries, Q49 Goodfoot & Q51 Villawood Computers)


Systems and controls – Again this topic will be included in the exam in some format. In June 2006, the question covered the objectives of internal controls. In June 2005 Q3 was centred around a complex computer system. The examiner has warned that computers will be expected to feature in scenarios. In December 2004 Q3 risks from a scenario had to be spotted, and controls recommended. In June 2004, they came up in the context of outsourced catering and payroll (Q5). In December 2003 controls over payroll were tested in Q2 and Q1 included controls over business risks in the areas of human resources, procurement and marketing. In June 2003, controls over non-current (fixed) assets were tested (Q6). In the December 2002 exam the sales system was tested (Q2). In June 2002 the cash system was tested (Q2) and in December 2001 Purchases/ capital expenditure were tested (Q3). Any of these could come up again: the purchases/payables and sales/receivables systems looking the most likely. (P&R kit practice: Q36 Cosmo & Q34 Internal Control)


Planning and risk assessment (from a scenario) – risk in one form or another comes up at most sittings. It is one of the key stages of the audit, but can also be examined in the context of a company's business risk as it was in June 2004. In December 2005, an audit planning memorandum, or audit strategy, was required. In June 2005 Q1 was a straightforward question looking for risks from a simple scenario. In December 2004, Q2 was centred around planning and the information you require, and Q1 was about spotting the risks of fraud and error. (P&R kit practice: Q20 EWheels & Q25 Nepco)


Professional ethics – This is a core area examined in June 2006 (confidentiality) after a period away from the exam frm the previous 4 sittings. It is still a topical issue with all of the recent corporate collapses bringing the independence and professionalism of their advisors into question. Confidentiality came up again in December 2003 (Q6), conflicts of interest in June 2003 (Q3) and objectivity in December 2002 (Q1). Independence issues are still important and likely to be examined again at this sitting. (P&R kit practice: Q10 Billington Travel & Q11 Manly).


Audit/ Assurance Reports – This is a very important area of the syllabus, it is deliverable from the end of all assurance engagements. You also need to be aware of the differences between internal audit reports/ external audit reports and other assurance reports such as review reports. It was tested in June 2005 as an unpopular optional question asking for errors in a given audit report. It has been tested in December 2003 (Q3 b and c), June 2003 (Q3c and Q5), June 2002 (Q3b) and December 2001 (Q5), but not in the last few sittings. (P&R kit practice: Q62 Audit Reports, Q65 Cremorne)


Parts of questions – The following topics could form discrete parts of questions at this sitting: fraud, management representations, audit regulation, materiality, e-technology (see article below) so make sure you are up to speed on these areas.

ACCA 3.1 Exam Tips

 Risk Appraisal, Risk Management and Audit Strategy
 Assurance Services - PFI and Performance Measurement
 Matters and Evidence - usual GAAP favourites - Intangibles, Provisions, Impairment etc.
 Audit Reports - ISAs 570 & 720
 Ethics/Professional Conduct/Practice Management
 Current Issues - 'Yesterday's News'

ACCA Paper 3.1 (Global)
Audit and Assurance Services
December 2006 Exam Tips

Suggested practice questions from the BPP Practice and Revision Kit (2006 edition) are shown after the relevant area. We recommend you tackle all of them to get broad syllabus coverage.

Section A

Questions 1 and 2

Scenario questions in the context of audit risk/business risk/financial statement risk.

May also include:

Control suggestion and/or evaluation
Audit evidence on Paper 2.5 accounting areas (see also Q3 suggestions)
Group audit issues (including audit work on fair values)
Planning/practice management/quality control issues
Assurance services, e.g. performance measurement or prospective financial information
2006 P&R Kit Questions: 10 Azure, 17 Signet, 22 Alakazam, 26 Hydasports, 47 Ferry, 55 Imperiol, Mock Exam 1 Q2 (Plaza)

Question 3

Audit evidence. Comment on the matters you would consider and the audit evidence you would expect to find as audit manager conducting a review of audit files.

Likely to be several scenarios covering various Paper 2.5 level accounting standards, e.g:

Events after the balance sheet date
Provisions
Impairments
Earnings per share
Segment information
Related party disclosures
Deferred tax
Discontinued operations
Standard costing
Intangible assets
Revenue recognition
Borrowing costs
2006 P&R Kit Questions: 33 Phoenix, 34 Aspersion, 35 Visean, 40 Verdi, 42 Data

Section B

Question 4

Part (a): Any syllabus area. Part (b): A related question on reporting.

2006 P&R Kit Questions: 59 Delphinius,60 Avid, 61 Cinnabar Group, 65 Kite Associates

Question 5

Ethics, professional and quality control issues scenario question.

2006 P&R Kit Questions: 3 Aventura International, 4 Corundum, 5 Isthmus, 9 Ebony

Question 6

Discussion question on current issues, e.g:

Fraud and auditor liability
International convergence
Audit exemption for small companies
Risk-based auditing
Related parties
Corporate governance
Laws and regulations
The discussion question often covers a scenario on a topic where the examiner has written an article in your Student Accountant magazine in the months prior to the exam. You should check the magazine/ACCA website for new articles in the months leading up to your exam.

Paper 3.2(MYS)

3.2

1. Investment Holding Company
-definition, 80% test, Computation -Listed/unlisted

2. Individual
-wife claim child relief
-join assessment
-settlement s65 anti aviodance
-relationshop wif small scaled co on tax planning(directors' fee/remuneration, div payment,19% Epf planning)
-personal finance(deposits,shares,reits,landed prop)
-self assessment for inv
-residense status of ind

3. islamic finance
-BBA
-ijara
-AL-wadiah vs al-mudharabah

4.Trade associtation,club, charitable inst

5. RPGT
-rpc,exchange of prop, para12,3(b),17,19,administrative

6.Incentives,
-exemption on export
-labuan
-R&D, contract R&D, R&D co, PR5/2004
-acq of foreign owned co
-OHQ &emplyees' exemptions

7. Tax planning for co
-50% sustantial shareholding test
-surrendering loss
-interest restriction
-div-credit,s108
-extraction of capital gain

8. employers' responsb
-tax evasion s114
-tax avoidance
-incorrect return s113
-record keeping
-directors' resposb s75A
-self assessment for co

9. s4A withholding tax PR4/2005
-s107A witholdung tax




ACCA 3.3 Exam Tips

 Contribution based decision-making – possibly involving expected values, maximax, maximin & minimax regret.
 Performance evaluation – ROI/RI and the conflict between performance evaluation and investment appraisal.
 The strategic framework – specifically a question based around the examiner’s recent article on “Business Strategy and Performance Models” (Student Accountant – April 2006). This is likely to focus on Porter’s 5 Forces and/or Ansoff’s matrix
 Decision making, focus on calculations of contribution and/or throughput
 Pricing decisions (discussion of traditional vs. strategic pricing decisions,maybe something on bowman's strategy clock)
 Modern developments. JIT, TQM and a discussion of activity based
management (ABC, ABB etc)
 Strategic planning models...value chain analysis or porters 5 forces
 Performance measurement. Divisional performance measurement and transfer pricing
 Benchmarking
 Maybe small question on MIS

ACCA Paper 3.3
Performance Management
December 2006 Exam Tips

Suggested practice questions from the BPP Practice and Revision Kit (2006 edition) are shown after the relevant area. Remember also that questions drawn from the 2003 and 2004 exam sittings, which are not contained in the 2006 P&R Kit but can be taken off www.accaglobal.com, are also an excellent source of preparation.

General: The exam is often time pressured and careful planning is required to ensure marks are maximised in time allowed. The examiner has examined some of the key topic areas in a very practical way but this has often looked unusually challenging on first read through.

There were some be new areas in the syllabus from June 2006;

Ansoff's growth vector matrix
BCG matrix
Porter's five forces model

Section A

To date the large question in this section has contained some elements of budgeting (short term planning). This will be heavily numerical with a small written element.

2006 P&R Kit Questions: 66 Privmed, 65 Motor Breakdown Services

The shorter question has often tackled some element of performance measurement with the majority of the marks being for numerical analysis.

2006 P&R Kit Questions: 43 Eatwell Restaurant, 37 Management Accounting and the Public Sector

Section B

There is usually a high discursive element in this section with 2 questions being wholly or almost wholly discursive. If it has not made an appearance in Section A performance measurement will make an appearance here.

Many of the modern management and management accounting techniques have been examined here;

2006 P&R Kit Questions: 11 Costs and Quality, 50 Activity Based Budgeting

Numerical topics do still appear in this area, topics that have not appeared for a little while include transfer pricing (which can also include qualitative issues) and uncertainty in decision-making.

ACCA 3.4 Exam Tips

 Porters five forces
 Macfarlan/Peppard
 Earls 3 leg
 PEST
 EIS
 Data management and data mining
 Soft systems methodology
 Impacts of the use of ecommerce
 Software selection – web site design

FTMS Tips (updated)

Section A

Question 1 – Compulsory 60 marks

Strategic Role of Information System
Earl’s nine reasons
Earl’s IT/IM/IS strategies: three legs
SWOT Analysis

Gap Analysis & Business Case Development
Earl’s System Audit Grid
McFarlan’s Grid
Peppard’s Application Portfolio
BCG Matrix

IS And Competitive Position
Porter’s Competitive Strategies
Porter’s Value Chain Analysis
Porter’s Five Force Model

Internet as a Strategic Business Tool
Virtual shopping
E-commerce

Section B – 2 out of 3 questions 20 marks each

Organizational Information
Cost and Benefit
Type of IS – EIS/DSS/ES

Knowledge Management & Data Management
Dbase & DBMS
Knowledge Support System
Data mining
Date warehouse and group collaboration systems

Strategic Role of Information System
Zuboff’s Automate, Informate, Tranformate
PEST; CSF

Business Systems & Systems Thinking
Business Automation, Rationalization, Re-engineering
SSM (Rich Picture and CATWOE)
Business Processing Re-engineering

Gap Analysis & Business Case Development
Gap Analysis
Earl’s Risk and Return Portfolio

IS And Competitive Position
Acquisition Procedures

IT outsourcing
Implementing Change
Lewin Model of changes
Ethical analysis; socio-technical design

3.4
parmindar's focused areas for 3.4 dec 2006.

IS in organization - CBIS(EIS), reasons for IS failure

office automation systems - groupware, tele-working

DBMS, data warehousing/mining

SWOT, PEST, CSFs, BCG, generic strategies, BPR, McFarlan/Peppard models, Parson and Nolan, business case justification

Earl's - information systems strategies, why IS/IT is strategic

SSM

e-commerce

change management - resistance and change theories/models

IT strategy in international context

ethics

Paper 3.4 Exam Tips

December 2006 Exam tips

Section A

To a large extent with this Examiner the nature of the scenario is irrelevant – it will be a business with significant system issues linked to a business plan or some strategic view.

The requirement areas could include

* Links with business strategy maybe with reference to Earl’s 3 legs
* Role of CSF’s defining information needs, in line with Jim Stone ‘s article of July 2006
* Application of Ethics as opposed to the more academic 5 moral dimensions question in December 2005
* E- commerce in a specific system / business opportunity
* Evaluation of the scenario’s business systems – maybe the long telegraphed legacy systems could appear!
* McFarlan’s / Peppards grid suggesting development priorities

Qs: 20, 34, 37,58,67,80,

Section B

Soft Systems methodology. A popular topic of the examiner and surely must return soon. Probably with the emphasis on the root definition and conceptual model elements. As an outside possibity there may be a link with agile systems in line with his April article.

Qs: 23, 25, 26, 27

Soft and hard development approaches. There may be a more general discussion on the approaches as opposed to the more specific application of a hard approach which was in the last exam.

Qs: 22, 83

Porter’s Models. Although the value chain came up recently, 5 forces has not been examined for 2 years. It could be time for that to reappear, but there are his other models

Qs: 16, 18, 65, 68

Parsons IS Strategies and Nolan’s Stage Hypothesis. A possible section B academic discussion could appear on either or both of these models.

Qs: 2, 13, 77

Knowledge management and databases. A popular topic that could appear in a mini scenario requiring a suitable technical explanation.

Qs 3, 6, 31, 32

ACCA 3.5 Exam Tips
• 60 marks study –likely to focus strategic management
• Environmental analysis
• Stakeholders
• Strategic options

• Section B ( possible areas)
• Marketing strategy possibly in a foreign country, where you would
have to analyse how you would adapt the marketing mix for a foreign
market
• Ethics/social responsibility
• ROI problems / benefits
• Role of the accountant in the innovation process
• Innovation/Business Growth/International Business/Change Management

Paper 3.5 Exam Tips

December 2006 Exam tips

Section A

Always difficult to predict the subject matter of the case scenario. Therefore this time it might be something simple in structure and based on the Manufacturing environment.

Areas that could be included within the requirements could include

* A discussion of the relative merits of different ways of making strategy
* Stakeholder analysis and objective setting
* Application of strategic analysis models
* Evaluation of strategic objectives, using the numbers included
* Marketing issues
* Change management

Qs: 52, 51, 49, 47 and 45

Section B

Marketing, including new product development. In part suggested by the recent article, and still has not been examined. – Refer to Dec 2003 Q1d as a good review.

Qs: 24, 26, 27, and 34

Information Technology. This is feasible this time because it is an important subject, which has been absent for the past few sittings.

Qs: 23, 28, 31 and 56

Globalisation strategy. The strategic development of global businesses was very popular when the paper was first introduced. It remains relevant and could be due another appearance.

Qs: 41, 42, 43 and 48

Change management. A favourite topic of the examiner and due to be reappear in either section A or B. – Refer to Q 54 c
Qs; 32 and 39

Ethics and corporate social responsibility. With all of the talk (and recent cases) of corporate scandal ethical behaviour is a very topical area of the syllabus

Qs: 16, 17, 18 and 49

ACCA 3.6 Exam Tips

Section A

This compulsory question will be on the preparation of consolidated accounts and the preparation of a group accounts with a foreign subsidiary is due, as is cash flow statements!


Section B

 Share based payments
 Deferred tax
 Financial instruments.
 Developments in group accounts
 Management Commentary / the OFR
 Reporting of non financial performance e.g. Corporate Social Responsibility, sustainability reporting
 Measurement issues
 Accounting standard for SMEs

ACCA Paper 3.6 (Global)
Advanced Corporate Reporting
December 2006 Exam Tips

For each area described, please note the reference to useful questions from BPP’s Practice and Revision kit (P&R kit) 2006 edition. We recommend you practise them all to get broad syllabus coverage.

Section A

The section A question can be on any of the traditional higher-level group accounting topics that are not examinable in paper 2.5. Complex group structures, consolidation of a foreign subsidiary or a group cash flow statement appear to be the most likely topics for this sitting.
The question often includes an adjustment for 4 or 5 marks on another area such as pensions, financial instruments, assets 'held for sale' or incorrect accounting entries.
2006 P&R kit practice questions: Largo, Rod (UK kit only), Memo, Squire.

Section B

Section B questions can either be a single question on one topic or questions that cover a range of standards.
Possibilities for examination include:

* 'Events' questions such as shutdown of an operation, switch to IFRS, natural or deliberate disaster, bringing in areas such as: impairments, provisions, events after the balance sheet date, non-current assets held for sale, discontinued operations, pension scheme curtailment effects, etc
* 'Mixed' questions where a range of standards are covered in separate unrelated parts of the question, such as related parties, recognition and impairment of tangible and intangible assets, foreign currency transactions, revenue recognition, leases, changes in accounting policies or deferred tax.
* Single topic questions in more detail (theoretical aspects followed up with calculations) such as segment reporting, earnings per share, , share-based payment or financial instruments (see examiner's articles below)
* Questions on topical areas, such as the continuing attempts to bring about international harmonisation and the effect on a company's accounts of applying IFRS, or on recent exposure drafts on the planned changes to groups and provisions.
* One of these questions can also include elements of group accounting, including group reorganisations, especially if question 1 is a cash flow statement question

2006 P&R kit practice questions: Argent (INT kit only), Transystems, Issue, Pohler Speed, Cohort, Rockby and Bye, Low Paints, Enterprise, Gear Software, Trident, A B C & D

* Performance and valuation measures, how they are changing and how they are affected by accounting policies often appear in the exam.
* A discussion question looking at current developments in corporate reporting. Topics that could appear here include: management commentary/operating and financial review, social and environmental reporting, business ethics, and reporting on the internet.

Remember the key topics for the December 2006 exams.
For the Section A question and groups:
- changes in the composition of a group – including disposals
- indirect holdings
- overseas entities
- the standard on business combinations, including reverse acquisitions
- group cash flow statements
The most likely question is one asking for translation of a net investment and hedge accounting
under the FI standard. It is possible that you get a group cash flow statement, possibly with an
overseas subsidiary.
For Section B questions:
- pension costs
􀀹 regularly examined
􀀹 consider the under-funding problem and the treatment of actuarial gains and
losses (conceptual problem under the corridor approach)
􀀹 consider the merits of the amendment of the employee benefit standard in this
regard
􀀹 both problem areas arise in defined benefit plans – possible discussion area
- SBPT – examined in each of the last 3 exams – consider cash-settled SBPT and share
appreciation rights
- non-current assets held for sale
- international harmonisation and convergence and the first-time application of
International (or Singapore or Hong Kong GAAP)
- discussion paper areas – in particular, leases
􀀹 classification drives the accounting
􀀹 the conceptual problem that arises if a lessee does not capitalize operating
leases
􀀹 should a lessee capital all leases?
􀀹 the leasehold property problem – classify L and B separately and account for
accordingly
􀀹 can an operating lease be classified as an IP? If yes, how to account for such a
lease
􀀹 sale and finance leaseback
􀀹 sale and operating leaseback
- the improvements project
- revenue recognition
- the highly examinable area of financial instruments consider:
􀀹 classification
􀀹 reclassification
􀀹 impairment
􀀹 derecognition
􀀹 accounting for convertibles
􀀹 accounting for non-equity interests
􀀹 hedge accounting – 3 different situations; 3 different sets of rules
- the often examined area of impairment
􀀹 impairment of goodwill
􀀹 impairment of corporate assets
􀀹 impairment of financial instruments
- the regularly examined areas of provisions and intangibles
- the sometimes examined areas of related parties, government grants, segment reports,
investment properties and agriculture – the segment reports standard is being revised –
consider the question: what is an operating segment?
- PPE – compare OOP with IP – what is a hotel? OOP or IP?
- how should a property developer account for pre-sold property? – consider the timing of
the recognition of revenue
- conflict between the “principles” and the requirements of accounting standards
􀀹 the leasing standard – the problem of lessees not capitalising operating leases
􀀹 the employee benefits standard – the problem of recognition of actuarial gains
and losses under the corridor approach
􀀹 the government grants standard – is there a conceptually method for the
recognition of the benefit of a government grant?
- eps and deferred tax issues – eps is a very likely area for examination – note the
treatment of contingent shares in basic and diluted WANOS
- ethics and good corporate governance and environmental reporting
- accounting for minerals and emission rights
- share valuation
- recycling
- web-based reporting
- an accounting standard for SMEs – possibly, again – read the article in the April 2006
Student Accountant
- etc……..
Note the shift in emphasis in the December 2005 exam to “single-standard” questions. June
2006 reverted to the more usual multi-standard questions. Be prepared for both types of
question in December 2006. Be prepared for questions on eps, leases, impairment and, again,
financial instruments.

ACCA 3.7 Exam Tips

Section A

* Overseas NPV: Ability to perform a basic overseas NPV/FCF calculation. Including one off cash flows, annuities and perpetuity calculations and the knowledge of the specific issues that relate to foreign direct investment.

* Company Valuation within the context of Merger and Acquisitions: A possible question that requires a valuation under various methods like NAV, DVM, P/E Ratio and FCFs. (maybe within the context of Going Private.) Also review the share for share exchange style questions.

* WACC - Risk adjusted WACC – APV calculations within the context of a standard investment appraisal question. However risk adjusted WACC could also be examined within the context of traditional gearing.

* Risk management: Interest rate risk / Currency Risk

Section B:

* Economic Value Added – EVA
* Portfolio Theory and CAPM - summary and alpha tables
* Dividend Policy
* Term Structure of Interest rate
* International economics – I.M.F., Treasury Management. Balance of payments deficits and Forecasting exchange rates.

ACCA Paper 3.7
Strategic Financial Management
December 2006 Exam Tips and Useful Articles

Health Warning!

The examiner deliberately tries 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.

On this basis specific tips would be misleading and counterproductive. The following may be a guide however:

Section A:

Capital Structure:

M & M Theory with and without tax leading into gearing and ungearing betas to estimate a cost of capital and then use that cost on an investment appraisal. Real options theory.

Global Financial Management:

As a core topic this can be expected to arise somewhere on the paper although for the June sitting this did not feature significantly. An overseas NPV would seem a likely candidate for the compulsory section. The examiner will expect you to be able to discuss political risks in this context.

Corporate Restructuring:

This topic is due to be tested in depth again. Management Buyouts did arise as an option question in December 2005 involving a forecasting element. There has not been a reconstruction scheme tested for some time however. Valuations may be incorporated into the calculations.

Section B:

CAPM and Portfolio Theory:

This is tested so often it is notable when it doesn’t arise. Changing business risk featured in December 2005 but there was no Portfolio Theory this is a popular optional question with the examiner.

Adjusted Present Value:

This topic has not arisen for some time and is due to be tested.

Interest Rate/Currency Hedging:

Other:

EVA and Free Cash Flow particularly due to the article published in June/July. Black Scholes is also due to be examined.

Question 6 is always discursive. Recently it has featured questions on the Global Economic Environment. Corporate Governance or ethical business practices have not been tested for some time.

for more continous updated tips please visit LowYat forum

posted by Unknown @ 9:24 PM