TARC ACCA 2005

ACCA Exam Tips June 07 Part 3(b) collected from help of Coolly

ACCA 3.5 Exam Tips

FTC

Key Areas:
A fundamental appreciation of the key activities associated with strategic analysis, choice and implementation will always be required in interpreting the scenario.
The relevance of ethics and corporate governance to strategic decision making
Issues related to globalization and international business management
Marketing and how it may be influenced by ethics and globalisation
Be able to comment in general on how things like HR and IT can help underpin a strategic plan

BPP

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

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.

Information Technology. This is feasible this time because it is an important subject and will be very present within the new ACCA syllabus.

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.

Change management. A favourite topic of the examiner and due to be reappear in either section A or B.

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

China Website

• Strategic analysis – likely to be analysis of competition using porter’s 5 forces analysis
• Strategic choice and evaluation – competitive strategy, market product strategy and method of development
• Marketing and globalisation
• Sustainable strategic position & competitive advantages
• Quality issues & TQM
• Application of IT (internet)
• Corporate social responsibility & Ethical issues

Article
Strategy challenge: the internet (Student Accountant March 2007)

By Niu Niu (Prepared By Mr Philip Woo.....)

June 2007 suggestions

1. Models of strategic management

• Kenichi Ohmae – Strategic triangle (three c’s)
• Michael Porter – Competitive advantage and generic strategies
• Strategic development – Deliberate, emergent and incremental
strategies ( Mintzberg, Linblom and Quinn)
• Henry Mintzberg – 5 P’s (Plan, ploy, pattern, position, perspective)
• Strategic Intelligence – Donald Marchand

2. External environmental scanning

• Analysis of customers and markets – Market segmentation
targeting and positioning
- Market research
(Desk and field research Retail audit and test marketing)
• Benchmarking – Internal, Competitive, Process/Activity, Customer and Generic
• Industry Analysis - Michael Porter’s 5 competitive forces

3. Internal Assessment
• Product Market Portfolio (BCG)
• Product Life Cycle (PLC)
• McKinsey 7s

4. The nature of strategic analysis and choice
• Corporate Appraisal – SWOT, PESTEL, 6M, Value Chain
• Ansoff’s - Product market matrix
• Stakeholder expectations – Mendelow matrix
• Strategic direction – Mission statement, objectives and strategic
Intent (Hamel and Prahalad)

5. The nature of strategy implementation

• Marketing strategies – strategies of market leader, follower, nicher
and challenger
- promotion mix (advertising, sales promotion,
public relations, personal selling)
- marketing mix (4P’s/6P’s)
• Service marketing – Intangibility, inseparability, variability, ownership
• IT and strategic advantage – Strategic importance of IT (McFarlan
and McKenny strategic grid)
- Michael Earl awareness, opportunity and position framework
- Michael Earl system audit grid
• Management and control of quality – TQM and Quality Circles
• Management of change – strategies for managing change
(Johnson and Scholes, Lewin, Gemini 4R’s, Huczynski and Buchanan
Pettigrew and Whipp), System intervention Strategy
• Goold and Campbell – Strategic management styles (strategic planning
strategic control and financial control)

6. Matching structure with strategy
• Matrix structures, SBU, transitional/adaptive structures (virtual organization
• Burns and Stalker – organic and mechanistic structures
• Henry Mintzberg – organizational configurations

7. The nature of global competition

• Global strategies – product positioning
- development of global brands
- Standardization vs Customization

• Managing global company – Ethnocentric, Polycentric, Geocentric
- Kenichi Ohmae 5C’s

• Development of global business
- market convergence, cost advantages, government pressures, currency, trade barriers and global competition

• Entry to foreign market – Jacoby’s six stages

8. Outcomes of the strategic management process

• Corporate decline / Strategic failure – causes, failing to adapt and
strategic drift (Miller)
• Learning Organisation – Peter Senge and David Galvin

9. Ethical considerations

• Corporate ethics and managerial ethics – Carroll’s moral, immoral and amoral management (ethical norms, motives, goals, legal orientations and strategy)
• Corporate governance – features of poor corporate governance
- code of best practices and combined code
• Social responsibility


ACCA 3.6 Exam Tips

FTC

Section A
This compulsory question will be on the preparation of consolidated accounts and the twist that is due is that it will have a foreign subsidiary.

Section B
Mixed scenario based questions involving some of the following standards
Impairment
Share based payments
Deferred tax
Financial instruments.
Reirement benfits
Discussion question on accounting theory in repect of recognition and measurement issues

BPP

Section A

* Compulsory question on group accounting topics such as complex group structures, consolidation of a foreign subsidiary or group disposals

Section B

* 'Mixed' questions where a range of standards are covered such as related parties, pensions, recognition and impairment of tangible and intangible assets, leases, revenue recognition, changes in accounting policies, effects on EPS or deferred tax.
* '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, government grants etc
* 'Specialist industry' questions, where a range of standards are also tested, but in the context of a specific industry (NB: no specific knowledge of the industry required)
* 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, financial instruments or share-based payment, or standards inconsistent with the framework (eg leases)
* A discussion question looking at current developments in corporate reporting such as success/issues on implementation of IFRS, approach to segment reporting, mineral resources, comprehensive income, social and environmental reporting or business ethics

By Niu Niu (Prepared by Navzar FTMS)

1)Group-Overseas,indirect subsi and reverse acquisition
2)Operating lease esp those related to genuine sales and leaseback in OL form
3)EPS? Im not sure coz he said didnt examined quite some time. From what i see from his dec 06 tips, he also spotted this. But unfortunately, this EPS didnt came out...
4)International harmonisation and FRS 1/IFRS 1, possible reconciliation Qs
5)As in examiner's article, FRS 119 on pension accounts, familiarize yourself with treatment on actuarial losses/gain and its theories as frs 119 provide 3 choices! So, argue its benefits and drawbacks.
6)Again, examiner's article FRS 2 and other other articles on FRS 6....




ACCA 3.7 Exam Tips

FTC

Section A:

1) Overseas NPV: This topic was last examined in December 2003 and therefore will be on everybody’s tip list. The specific items that you need to be familiar with are: the application of double tax agreements, remittances from subsidiaries, use of purchasing power parity theory and the overall structure of an Overseas NPV. Excellent questions are Axmine(Pilot94) andAVTO(Dec03). He has also written as lightly different style of question Wickern(Dec01) where he gives you all the PV calculations in the question and asks you to analysis the numbers. This is worth reviewing. Basic awareness of political and economic risk is essential.

2) Risk management:
Currency Risk: Scott wrote a wonderful question called Lammer(Q2Jun06) which you should review in detail as it includes his main tricks on all the major techniques to hedge transaction risk. It is also worth reviewing Vertid(Jun95) in which Scott takes a more theoretical approach to currency risk.

Interest rate risk: This topic appeared as a case study in the last exam. However,be aware you’re your examiner has already written a case study that combined Currency Risk and Interest rate risk (Autocrat-December2002).Play it sate and review this topic. Excellent questions are HYK Communications Dec (99) and Interest Rate Hedge (Jun 05).

3) Hunting down the discount rate: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 traditiona lgearing. WACC-Jetter© (Jun02) and Semer(a)(Dec05). Risk Adjusted WACC–Romage Jun(00). Traditional Gearing-Bentras(Dec01). APV–Strayer(Jun 02).

4) Merger and Acquisitions: A FCF calculation possibly within the context of Going Private. Also review the share for share exchange style questions Raywood( Dec 92).

Section B:
1) Economic Value Added – EVA This is a topically area and you should review Toutplut (Jun 02) and Remuneration (Dec 04).

2)Portfolio Theory and CAPM Hasder(Jun03) is an excellent question as it covers both Portfolio Theory and CAPM calculations and the topic of international diversification. The Portfolio Theory section is technically demanding as you are given the covariance as opposed to the normal correlation coefficient. It is also interesting to note that in Scott’s answer he calculated the coefficient of variation for the first time. This will now be a standard requirement in all portfolio theory questions.

3) Term Structure of Interest rate - review Bond Prices (Jun 03) and BNG (Dec 00)

4) International economics– I.M.F-(Dec96), Current account deficit(Pilot01), Foreign
trade risks (Jun01) and Political risk (Dec01).


BPP

The December 2006 exam awarded very few marks for cost of capital, NPV, and currency hedging which are major areas of the syllabus that are regularly examined. It is reasonable to expect these areas to feature more strongly in June, but the examiner deliberately tries not to be too predictable and just because a question featured last time, doesn’t mean it won’t feature this time.

The following is a guide to areas that you should include as part of your revision:

Section A:

Global financial management: NPV – of an overseas project, leading into a discussion of financing issues. Adjusted Present Value is a possible angle that could be taken by the examiner; don’t neglect this area just because it was tested in the December 2006 exam.

Investment decisions: If not tested in an overseas context as above, NPV can be tested in a domestic context. Cost of capital is generally the main focus of domestic NPV questions and can easily lead into a discussion of gearing strategy.

Risk analysis: Currency hedging is a core topic that can be expected to arise somewhere on the paper especially because this did not feature significantly in the December 2006 exam. A likely area for the examiner to focus is currency futures and options.

Section B:

Risk analysis: Black-Scholes is due to be tested; it is a regularly examined area that has not been tested in the last 2 exam sittings. Strategy formulation: Economic Value Added is a regularly examined area that has not been tested since December 2004.

Investment decisions: Portfolio theory is a regularly examined area, it has also come up as a compulsory question so make sure you don’t neglect it.

Other: Question 6 is always discursive. Recently it has featured questions on the Global Economic Environment. Corporate Governance or financing overseas investments are areas that are likely to be tested.

From Niu Niu

Spotted topic for 3.7 June 2007 final sitting
1)Overseas investment
2)Forex
3)Demerger
4)Black & Scholes/Option pricing
5)Portfolio Theory

posted by Unknown @ 12:29 AM