P7 Advanced Audit and Assurance

P7 Advanced Audit and Assurance(INT) (KAPLAN)

• Core areas (as per examiner’s approach article) likely to be examined in every paper:

• Engagement planning and risk assessment (business risk?);
• Engagement procedures (i.e. evidence);
• Ethics and professional issues;
• Engagement reporting (ISA’s 700, 705, 706 in particular);


• Subjects of recent articles yet to be examined:

• Unmodified audit reports (ISA 700) (October ‘11 article).
• ISA 540 Audit of Accounting Estimates.
• Auditing in a Computer Based Environment;


• Significant topics not examined for at least 18 months:

• Laws & regs (ISA 250);
• Fraud
• Money laundering;
• Forensic audit;
• Written representations;
• Quality control (ISA 220);
• Obtaining work;
• Outsourcing/internal audit;

• NOTE :
• Please note; the UK strand is also very likely to include an aspect of Insolvency.

• Please be aware that the whole syllabus is examinable. Whilst the above topics are likely to be examined in forthcoming sittings this does not mean candidates should avoid other areas of the syllabus in their exam preparation.

• The examiner will set 5 questions, which will all have multiple elements, so it is likely that topics other than the ones noted above will be examined in the December 2011 exam.

• The examiner has noted that questions will not be restricted to topic areas (e.g. question 5 will not necessarily be on audit reporting) and instead we should expect to see topics spread across a number of questions.

• In addition, please note the case study questions in section A will have the requirements embedded in the question (see the recent article from the examiner ‘Changes in question style’).


P7 Advanced Audit and Assurance(INT) (BPP)


There are a number of areas that candidates can expect to see in their exam, such as:
•A risk-based planning scenario in the compulsory section
•Questions based on articles published in Student Accountant (although not necessarily from the last six months)
•A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues and ISAs
•A practice-based scenario looking at professional, ethical and quality control issues
•A reporting scenario of some sort - probably testing candidates’ knowledge of either the various modifications to the standard audit report or other forms of communication available to the external auditor.
We would also recommend that candidates read the examiner’s report from the June 2011 exam (in the context of the June 2011 exam paper) and keep the following additional issues in mind as part of their revision:
•Don’t forget key brought-forward knowledge from Paper F8 which candidates have traditionally struggled with at P7(audit risk, audit procedures and audit reports).
•Candidates should also not forget about practice-related issues (such as the terms of audit engagements, sampling and documentation) where topics such as quality control procedures, ACCA firm practising requirements and the ethical implications of one firm providing both internal and external audit services could be discussed.
•The correct accounting treatment of complex issues, such as IAS 19 Employee benefits or a newcomer for 2011 IAS 21 The effects of changes in foreign exchange rates or even the associated issues of disclosure (such as IFRS 8 Operating segments or IAS 33


P7 Advanced Audit and Assurance (ICOUNT)


· Audit opinion
· Evidence
· Transnational audits
· Business and financial statement risk
· Ethics
· Quality control

P7 Advanced Audit and Assurance (FIRST INTUITION)

Business risk in a scenario
Identifying ethical and other professional issues in a scenario
Audit reports
Group audits
Money laundering
Forensic audits

P6 Advanced Taxation

P6 Advanced Taxation(UK) (KAPLAN)

• Overseas aspects of CGT
• Corporation tax groups with consortium relief
• VAT groups
• IHT vs CGT
• Lease vs buy assets
• Employment income: share options and redundancy payments


P6 Advanced Taxation(UK) (BPP)


Section A will involve two case study questions covering around 60-70% of the marks. One will be from a personal tax perspective and the other from a corporate tax perspective. Both questions will cover a range of topics and taxes and will require the construction of professional documents like reports/letters.

Section B will comprise 3 questions making up the balance of the marks.
Topics that may appear this sitting are as follows:
Liquidation
Group/Consortium relief
Close companies
Sole trader/partnerships
Inheritance tax versus capital gains tax
Property income
Enterprise investment scheme/venture capital trust
Termination of employment
Income tax losses
Personal service companies
Land and buildings aspects of VAT

P6 Advanced Taxation (ICOUNT)


· Advising on IHT mitigation with CGT aspects of lifetime gifts.
· Corporation tax groups with VAT groups.
· Sole trader trading losses.
· Employee share schemes.



P6 Advanced Taxation (FIRST INTUITION)

Income tax- overseas aspects of income tax, share option schemes, change of year end, trading losses, partnerships, EIS and VCT relief
Corporation tax – close companies, benefits for participators, non-UK companies trading in the UK, groups and trading losses and groups and gains, including pre-entry elements. Overseas subsidiary or branch.
CGT – PPR and gift reliefs, reorganisations and takeovers
VAST – capital goods scheme, flat rate scheme
Administration – payment of corporation tax in instalments
IHT – related property, BPR

P5 Advanced Performance Management

P5 Advanced Performance Management (KAPLAN)

• CSFs and KPIs
• Strategic analysis tools, i.e. SWOT, benchmarking
• Gap analysis
• External analysis
• Ethics / CSR
• Budget preparation/forecasting
• IT developments
• Performance measurement
• Not-for-profit organisations
• Quality
• League table and targets in the public sector
• Evaluation of financial and non-financial performance (may examine the performance pyramid / prism)


P5 Advanced Performance Management (BPP)

Performance analysis:
The new examiner has indicated that his questions will require more skill in interpreting data and discussing strategies to improve performance rather than performing calculations. You may be asked to analysis performance vs budget to identify underlying problems that a company needs to address. This analysis could include the use of activity-based approaches, learning curves or non-financial performance measures.
‘Beyond budgeting’ is an important area that can be tested either as a discussion or a numerical question.
Performance appraisal requires effective information systems, expect to be asked to identify the key strategic, tactical and operational information requirements of a business.

Risk analysis:
Analysis of the risk of a new proposal could include numerical techniques such as expected values and probabilities; but strategic frameworks such as PEST analysis could feature here.
Strategic performance measures in the private sector:
Divisional performance measurement is another key area; ROI, RI , EVA, NPV or even cost of quality could feature here and transfer pricing could feature as an aspect of these questions.
EVA is especially likely given the recent articles published in this area – make sure you have read them. Modified IRR is new to the syllabus so make sure that you are comfortable with this area.

Reward systems:
HR issues are new to the syllabus from June 2011; the examiner is interested in the impact of reward systems on performance management.
Alternative views of performance measurement:
Questions are commonly set that require a good understanding of the balanced scorecard, the building blocks model and the performance pyramid. Questions will often require you to analyse data that has been collected using one of these models. The balanced scorecard and performance pyramid were tested heavily in June 2011.

Performance hierarchy:
Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements that could easily include a simple NPV or profit analysis.

P5 Advanced Performance Management (ICOUNT)


· Quality measurement
· PEST/Porters 5 forces
· Incremental Budgeting
· Public sector performance measurement
· Activity Based Costing

P5 Advanced Performance Management (FIRST INTUITION)

Performance pyramid
Performance management hierarchy
Quality costs
EV and risk
Impact of external factors on performance
Activity based principles

P4 Advanced Financial Management

P4 Advanced Financial Management (KAPLAN)

• The examiner has expressed his desire to move the paper away from the highly technical papers set by the previous examiner and to make them more strategic and practical. This has been a feature of the last 2 exam papers in December 2010 and June 2011.

• At the March 2011 ACCA Lecturers’ Conference, the examiner explained that question spotting is dangerous at this level – it is important that students should study all parts of the syllabus in detail.

• However, for December 2011, we would advise students to focus on the following core syllabus topics in particular:

• Net Present Value – including foreign currency cash flows

• Bond yields and bond values

• Risk adjusted WACC

• Discussion of financing options

• Interest rate hedging – options, futures and FRAs


P4 Advanced Financial Management (BPP)


Role and responsibility towards stakeholders:
Ethical issues continue to appear regularly as an optional discussion question, normally with practical financial issues from elsewhere in the syllabus. The discussion question is normally one of the easier optional questions.
Economic value added and ratio analysis can also be used to appraise the performance of a company.
Advanced investment appraisal:
The compulsory question often features an NPV question with an analysis of risk and/or financing; it could easily be set in the context of an overseas investment.
Cost of capital calculations are regularly tested, make sure that you are comfortable adjusting betas for differences in gearing. Real options are also a popular theme.
Acquisitions and mergers:
This exam normally contains a question involving valuations which the examiner sees as a crucial part of the syllabus; valuations questions are also likely to cover strategic and financing issues.
Corporate reconstruction:
A question could also ask you to evaluate a management buy out i.e. whether a business will be worth more if it splits itself up.
Advanced risk management:
We would expect to see a numerical risk management question featuring either interest rate or exchange rate hedging; currency hedging was tested in June 2011.

P4 Advanced Financial Management (ICOUNT)


· Overseas Net Present Value
· Financing incorporating change in Business Risk
· Black Scholes
· Corporate failure
· Interest rate risk management


P4 Advanced Financial Management (FIRST INTUITION)

Q1 International investment appraisal techniques focusing on risk management tools such as value at risk
Q2 Impact of WACC following hedging of interest rate risk
Q3 Company valuation-based scenario, possible MBO finance structure
Q4 Adjusted present value with link to real options and Black Scholes option pricing model
Q5 Written question on credit ratings and difficulties of raising debt finance in current credit markets. This could be linked to current challenges faced by Eurozone governments attempting to raise debt capital amidst falling credit ratings

P3 Business Analysis

P3 Business Analysis (KAPLAN)

• Section A

Question 1 may well be less strategic than we have seen in the past. It could feature a large element of project management for example. But it should have some element of strategic analysis, possibly a SWOT. Project management links well to other areas of the syllabus such as strategy and people and process redesign.

• Section B

• This will combine all elements of the syllabus (strategic analysis, choice and implementation).
• Pricing
• Project appraisal
• Strategy and people
• Change management

• The only chapter from Kaplan’s official study text that has not yet been examined in any detail is the chapter covering finance, so students should ensure that they are comfortable with this chapter as it may appear as part of an option question.



P3 Business Analysis (BPP)

Important areas to cover:

Strategy models
Analysis of the environment and/or internal factors has featured in most exams. Key models include PESTEL, Porter’s Five Forces and the value chain. Expect something on forecasting soon.
Evaluation of strategic options is usually tested one way or another (although wasn’t in the last paper).SAF can be a useful framework to generate ideas but don’t feel you need to follow it slavishly.
Strategic action (largely change management and organisational configuration) is often overlooked, but has featured in the last two papers, emphasising the need for good syllabus coverage.

Business Process Change
A popular area, which may be based around models such as Harmon, or completely unstructured, describing a process and asking for improvements. Expect to see some numbers coming in to questions in this area to help with decisions such as automation and outsourcing.

Information Technology
A pervasive theme in many questions. Make sure you are comfortable with some of the more important recent concepts in technology such as cloud computing, viral marketing and new business models.

Project Management
This is a major topic and was not tested in the last sitting so may well be this time. Questions could well focus on analysis and realisation of benefits and again are likely to include a numerical element.
Financial Analysis
Lots of management accounting knowledge from F5 is assumed knowledge here, including budgeting, variance analysis and relevant costing. The lessons from Q1 in the last paper are that, 1) this may be in the compulsory question and 2) you may not be specifically told which techniques to use, but have to work it out from the data given.

People
This is most likely to be tested in conjunction with one of the other topics, as it was in the last paper.
Most importantly…
Knowledge alone will not get you close to a pass on this paper. You need to be able to apply your knowledge to specific situations. Practice this using past questions and stories in the press or on the web as often as you can and you will be ready for whatever the exam throws at you!

P3 Business Analysis (ICOUNT)


· Project management skills
· Internal resources and competences
· Supply chain management
· Decision tree
· Budgeting
· Change management

P3 Business Analysis (FIRST INTUITION)

Section A
Environment analysis, people with financial analysis
Section B
Project management
Strategic action
Information technology – pricing strategy

P2 Corporate Reporting

P2 Corporate Reporting(INT)(KAPLAN)

Group statement of financial position
Retirement benefits
Financial instruments
Non-current assets & assets held for sale
Deferred tax
Revenue recognition
Entity reconstructions
Conceptual framework / Fair Value Measurement
Management Commentary




P2 Corporate Reporting(INT) (BPP)


Q1: group SOFP and/or SOCI including discontinued activities, acquisitions and disposals or a statement of cash flows, plus adjustments on other syllabus areas such as financial instruments, pensions, share-based payment and impairments. Written part on a linked accounting adjustment and social/ethical/moral aspects of corporate reporting.

Q2 & Q3:2 case study questions, one following a theme such as non-current assets, deferred tax, foreign currency, financial instruments, pensions, share-based payment, the other an industry-based question testing a range of standards such as accounting policies and the framework, leases, grants, IFRS for SMEs, reorganisations, provisions, events after the reporting period and related parties.

Q4:discussion question e.g. revenue recognition, fair values, management commentary, improvements in performance measurement, leasing, including an application part with some computations.

P2 Corporate Reporting (ICOUNT)


· Consolidation Statement of Comprehensive Income (with complex groups)
· Consolidated Statement of Cashflow
· Accounting treatment for Pension / Share based payments.
· Current developments within IFRS'/IAS'
· Financial instruments at FVTPL and amortised cost.

P2 Corporate Reporting (FIRST INTUITION)

Q1 Group question on disposals, piecemeal acquisitions
Ethics
Revenue recognition – current issues
Deferred tax
Share based payments
Related parties

P1 Governance, Risk & Ethics

Corporate governance: external actors – stock exchanges & Company secretary
‘Sound system’ of Internal controls
Normative / instrumental stakeholder views
Deontological and Teleological
Ethical Decision making – Tucker/AAA
CSR / corporate citizenship
Remuneration committee
Risk perception and ALARP
Role of Chairman and/or NEDs
Directors Performance Evaluation


P1 Governance, Risk & Ethics (BPP)


In the long 50 mark scenario question you can expect to see all areas of the syllabus being tested. For this reason you should ensure that you have not neglected any of the broad syllabus areas of governance, risk and ethics. The topic of risk can be further subdivided between risk and control.
Some good areas of governance to look at are agency, stakeholders and directors’ remuneration.
Don’t neglect internal control reporting.
Ethical theories get tested regularly, and professional codes of ethics are an important part of the syllabus. The examiner did not touch environmental issues in the June exam – you should ensure you brush up on these too.


P1 Governance, Risk & Ethics (ICOUNT)

· Transaction cost versus agency theories
· Board committees
· Risk management and the role of internal audit
· Controlling organisational risks
· Absolutist versus relativist ethical theories
· Professional ethics

P1 Governance, Risk & Ethics (FIRST INTUITION)

50 mark scenario question, to include: TARA risk model, ethics, absolutist v relativism, chairman and CEO powers need to be separate, also corporate social responsibility, ISO 14001
Optional questions to include: importance of internal control, NEDs and remuneration committee, business risks, Grays Owens and adams

F9 Financial Management

F9 Financial Management (KAPLAN)
• Investment appraisal
This is a key topic which seems highly likely to be examined every time. The most common technique assessed is NPV with inflation and taxation although be prepared for a twist, possibly involving capital rationing or sensitivity calculations.


• Working Capital Management
Another key topic which is likely to examined every time. Exams to date have covered much of this topic but it’s been a while since we’ve seen the more numerical aspects surrounding receivables management or the models for cash management.


• Valuations
This has been examined in virtually every F9 exam to date although to a lesser extent in recent sittings. Asset and cash flow based values have yet to be examined although the PE ratio and dividend valuation methods still appear to be the more examinable areas.


• Business Finance
This topic has been heavily examined recently and in particular the impact of financing on ratios is an area the examiner likes. We’ve not seen much in relation to rights issues recently.


• Cost of Capital
This topic features in virtually every exam to a greater or lesser extent. Good coverage of all of the syllabus areas is therefore essential to ensure you can handle any eventuality on the day.


• Risk Management
Within this section of the syllabus, foreign exchange risk has been examined more often than interest rate risk. However, both are fairly under-examined areas of the syllabus as a whole and so this is a topic worth being on top of.

• The Financial Management Function and the impact of the economic environment upon it
These topics have largely been ignored thus far although a general discussion of the relationship between investment decisions, dividend decisions and financing decisions was required in the June 2010 exam.

Despite the examiner’s assertion in his first article about F9 that all topics carry equal weight we can probably expect these topics to continue to take a back seat. Having said that, a questions relating to the objectives in both the corporate and NFP sectors could be a potential.



F9 Financial Management (BPP)

Important areas to cover:

WACC: - any element of the WACC could be tested, including cost of equity, preference shares & different types of debt, along with their corresponding market values & then putting all of this together to calculate the WACC.

Investment decisions: the exam normally contains a question involving net present value (NPV), often with tax and inflation. In order to discount the NPV, you may be asked to first calculate a weighted average cost of capital (see above)

Working capital: questions on inventory management and receivables management are likely. Ensure that you are comfortable with working capital ratios as you may have to be able to put these in reverse

Sources of finance: a topical area, we would expect a part question on financing problems covering gearing issues and problems companies. Ratio analysis is likely to feature here with discussion of the numbers calculated. Ensure you are comfortable with the calculations of the different sources of finance. Islamic Finance was new on the syllabus for the June 11 exam but was not tested. It is possible it may come up in Dec 11, though if it does, it should be straightforward knowledge for a few marks only.

Business Valuations: commonly tested and a core syllabus area. The examiner often combines different syllabus areas within the same exam question – for example asking you to calculate a cost of equity and then use it to value a company.

F9 Financial Management (ICOUNT)

Net Present Value
· Working Capital Management
· Types of finance and WACC – change in Business Risk
· Analysing performance – financial & non financial measures
· PE and DVM valuations

F9 Financial Management (FIRST INTUITION)

Discussion of the economic environment and the impact on interest and exchange rates
Working capital management
Investment appraisal and cost of capital
Business valuation

F8 Audit and Assurance

F8 Audit and Assurance(INT) (KAPLAN)

• Audit risk including analytical procedures
• Assurance engagements
• Ethics including fundamental principles/confidentiality
• Systems: payroll, inventory
• Evidence: payroll, inventory, share capital, reserves, opening balances
• Specific standards/topics:

o ISA 530 (sampling)

o ISA 220 (review of working papers)

o Audit committees

o Not for profit organisations

o ISA 520 (analytical procedures)

o Audit regulation – International standards on Auditing

- Completion (ISA 560 – subsequent events)

- Auditor’s reports


• NOTE :
• Please be aware that the current examiner has suggested that the questions will not be restricted to topic areas, i.e. question 1 won’t just be about systems and controls. This is a significant difference from the previous examiner. Also be aware that recent diets for F8 have ranged from those requiring knowledge of the content of a broad range of standards (some quite peripheral to the syllabus) and those requiring grounding in the core auditing concepts/techniques. Therefore, students should be prepared for either possibilities in the December 2011 paper, or a combination of the two.


F8 Audit and Assurance(INT) (BPP)
Q1 (30 marks)
This question will be based on a scenario and incorporate between 3 and 5 distinct requirements.
The areas most likely to be tested in this question include audit planning and the identification and explanation of audit risk, audit procedures (substantive tests and/ or tests of control) and internal control.

Q2 (10 marks)
This will be a factual or knowledge based question. It is likely to cover several areas of the syllabus with 2 or 3 separate requirements worth between 2 and 5 marks each.
Topics for Question 2 can be drawn from all areas of the F8 syllabus and questions could include the responsibilities of directors and auditors as well as other definitions such as audit risk, audit assertions, audit regulation and corporate governance.

Q3, Q4 & Q5 (20 marks each)
These questions will be scenario based but will also include some knowledge based requirements.
Areas which are likely to be covered in these questions include ethics, planning, the audit of specific transactions or account balances (including estimates), subsequent events, management representations, going concern, audit reports, internal control and corporate governance.
Note that the scenario may be set in the context of a profit making or non-profit making organisation.

F8 Audit and Assurance(INT) (ICOUNT)

System deficiencies and controls
· Corporate governance
· Audit assertions and appropriate audit procedures.
· Written representations
· Ethics and safeguards.

F8 Audit and Assurance(INT) (FIRST INTUITION)

Q1 Substantive audit procedures and tests of control on a key area of the Statement of Financial Position eg inventories or non-current assets
Q2 Short 10-marker on ISAs eg audit reports, fraud & error
Q3 ‘Identifying and explaining’ the threats to auditor independence and ways of managing them
Q4 Management letter; identify the weaknesses, consequences and recommendations in a particular company
Q5 Subsequent events

F7 Financial Reporting

F7 Financial Reporting(INT)(KAPLAN)

• Question 1

• Consolidated statement of financial position* including an associate.
• Possible adjustments to include:
deferred consideration/share exchange
net asset fair value adjustments
intra-group loan/current account
goodwill impairment**
impairment of the investment in the associate
PURP
• UK: Balance sheet

• ** UK: Amortization and possibly impairment

• Question 2

• Preparation of financial statements from trial balance including a SOCIE*.

• Possible adjustments to include:
revaluation
depreciation
financial liabilities (possibly redeemable preference shares or finance lease)
provisions
revenue recognition
tax and deferred tax
prior period adjustment

• UK: Statement of the Movements in Share Capital and Reserves



• Question 3

• Possible mixed cash flow/interpretation question to include:
The preparation of a statement of cash flow (or part thereof)
Calculation of ratios and a short interpretation exercise using the statement of cash flow and ratio results.


• Questions 4 and 5
Lease
Impairment
Non-current (fixed) assets
Intangible asset – possibly to include research & development
Government grant
Investment property


F7 Financial Reporting(INT)(BPP)

Q1: Consolidated SOCI and/or SOFP with one subsidiary plus associate with intragroup adjustments and fair value adjustments. May include written part on a group topic.

Q2: SOCI and SOFP preparation from TB or restatement with usual adjustments for depreciation, revaluation, current/deferred tax plus others such as leases/substance, financial instruments (change in FV or amortised cost). May include discontinued operation/EPS/SOCIE.

Q3: Interpretation and/or statement of cash flows. Could focus on specific part of SOCF or specific ratios.

Q4 & Q5: One question in context of conceptual framework, and the other containing one or two discrete topics, such as regulatory framework, inflation, government grants, discontinued operations, impairments, deferred tax, leases or intangible assets.

F7 Financial Reporting(INT)(ICOUNT)

· Consolidated group accounts with parent, sub and associate - with intergroup trading, items in transit and FV adjustments.
· Redraft of single entity accounts with adjustments 3. Statement of Cashflow with liquidity ratios.
· EPS/Construction Contracts
· Features of a finance lease, with computations.


F7 Financial Reporting(INT)((FIRST INTUITION)
Q1 Consolidated SFP, with associate, deferred consideration, Pups and fair value adjustment downwards
Q2 Single company accounts questions, including contract, lease, and intangible assets
Q3 Statement of cash flow and comments there on with no ratios
Q4 The framework with computation for no current assets
Q5 IAS 37/IAS 12 and deferred tax computation

F6 Taxation

F6 Taxation (KAPLAN)

Income tax

Husband and wife
Joint investment income
Some exempt income
Adjustment of profits
Gift Aid donations/personal pension contributions - extending basic rate band
Calculation of PA based on adjusted net income
Employment Income - benefits
National insurance
Income tax trading loss

Corporation tax

Possibly a long/short period of account
Capital allowances including IBA [IBA cannot be examined after this sitting]
Penalties for late filing of return
Interest on late payment of corporation tax
Groups - Losses

VAT

Separate part of question 1 or 2 or whole question 4/5 (as in June 2009/ June 2011)
VAT return – including some discounts and impaired debts relief
Cash accounting scheme/Flat rate scheme
Overseas issues

Capital gains tax

Individual making disposals
Disposal of chattels
Transfer between spouses
Principal private residence relief
Rollover and gift relief
Corporate chargeable gains

Sundry topics for questions 4 and 5

Groups – Losses / Gains Group
Income tax Basic Planning – comparative scenario with calculation of net cash consequences
IHT



F6 Taxation (BPP)

Question 1 will test income tax with maybe a VAT section attached as a separate part. The income tax will focus on a self employed individual with property income and some investment income. The VAT section could look at calculation of VAT payable, penalties and special schemes.

Question 2 will test corporation tax and could involve a long period of account, capital allowance computations for plant and machinery, computation of corporation tax payable and payment of tax.

Question 3 will test capital gains tax from an individuals’ perspective. This question will involve a number of different disposals involving entrepreneurs’ relief, part disposals, chattels and shares with a computation of capital gains tax payable. It is possible this question could alternatively involve a company disposing of shares.

Question 4 & 5 will test anything else. Possible topics that may be examined here are:
- commencement, cessation and change of accounting date rules for sole traders and partnerships
- inheritance tax testing the inheritance tax liabilities on lifetime gifts and as a result of the individual’s death.
- Group relief
- Overseas aspects of corporation tax
- Self assessment system
- Badges of trade
- Corporation tax loss relief


F6 Taxation (ICOUNT)

· Adjustments to accounting profits to calculate income tax of a sole trader.
· Corporation tax basic groups.
· Chargeable gains for individuals or companies.
· Accounting for VAT, including registration dates.
· Income tax losses.


F6 Taxation (FIRST INTUITION)

Resident status
BIKS and employment v self employment
Badges of trade
Adjustment of profits
Basis periods – change of year end
Capital allowances
Partnerships
Property profit
Income tax computation
Corporation tax with group relief
CGT – chattels, PPR, rollover relief, gift relief
NI – Class 1,2 and 4
VAT – cash accounting, default surcharge
Payments on account

F5 Performance Management

F5 Performance Management (KAPLAN)

• Payoff tables
• Multiproduct breakeven
• ABC
• Regression analysis
• Linear programming
• Performance management


F5 Performance Management (BPP)

Specialist Cost and Management Accounting Techniques: Environmental accounting techniques have not yet been tested under the new syllabus, so could feature. Throughput accounting featured numerically in June. ABC vs AC or target costing is also possible.

Decision making techniques: There is a trend for pricing to be examined with other areas of the syllabus, for example learning curves. Relevant costing, CVP, make or buy or other short term decisions could feature as dealing with risk and uncertainty and limiting factors have featured recently.
Budgeting: Discussion marks often focus on the appropriateness of budgeting types or the behavioural impacts of types of budgeting. Numerically it could be tested via time series as a forecasting method.

Standard costing & variance analysis: Variances are likely to feature in the exam, students should be prepared for mix and yield variances, planning and operational variances as well as the basic variances and operating statements. Questions typically require thought about the most appropriate layout and could include discussion of variances which have already been calculated.

Performance Measurement and Control: In June, there was a change in emphasis, with this being the first paper not to contain a question focusing on interpretation of performance and financial vs. non financial measures. Detailed knowledge could instead be required on any of the performance measurement tools. Transfer pricing has not been examined recently, so could feature.

F5 Performance Management (ICOUNT)

· Linear Programming
· Analysing Performance using Financial and Non Financial Indicators
· Activity Based Costing
· Relevant Costing
· Budgeting

F5 Performance Management (FIRST INTUITION)

Target costing
Life cycle costing
Relevant costing decision making
Forecasting
Fixed overhead variances
Financial and non-financial performance assessment
Transfer pricing

F4 Corporate and Business Law

F4 Corporate and Business Law (KAPLAN)

• English Legal System
Tribunals
Interpretation of statute
Judicial precedent
Human Rights Act

• Contract Law
Acceptance/postal rule
Consideration
Terms
Capacity
Exclusion Clauses
Breach of contract

• Torts
Breach of Duty
Professional Misstatement
Defenses to Negligence

• Employment Law
Common law duties
Summary dismissal
Redundancy
Remedies

• Agency Relationships
Types of Partnership

• Fraudulent Behavior
Money Laundering
Insider Dealing
Fraudulent/wrongful trading

• Company Law
Types of companies
Articles of Association
Resolutions
Meetings
Class rights
Directors duties
Different Types of Directors
Voluntary Liquidation


F4 Corporate and Business Law (BPP)

Q1 Statutory interpretation
Q2 Formation of a contract – consideration or intention
Q3 Tort of negligence – how the duty of care is breached
Q5 Debentures and charges
Q6 Appointment/termination of directors
Q7 Employment law - the employment contract/relationship
Other likely topics – breach of contract and remedies, company insolvency and Insider Dealing.

F4 Corporate and Business Law (Icount)

· Contract breach
· Employment tests
· Company articles and memorandum
· Corporate governance
· Loan capital
· Limited liability


F4 Corporate and Business Law (first Intuition)

Sources of law
Offer and acceptance
Contract terms
The law of torts
Employment law
Partnerships
Corporations & separate legal personality
Director
Company meetings and resolutions
Fraudulent behaviour

Important Examinable Areas

There's no substitute for proper study, but we can help you focus your last minute revision with our Key Examinable Areas for this year's exams.

F4 Corporate and Business Law

F5 Performance Management

F6 Taxation

F7 Financial Reporting

F8 Audit and Assurance

F9 Financial Management

P1 Governance, Risk & Ethics

P2 Corporate Reporting

P3 Business Analysis

P4 Advanced Financial Management

P5 Advanced Performance Management

P6 Advanced Taxation

P7 Advanced Audit and Assurance

Responsibility Centre

Responsibility centre is individual part of business for which manager is fully responsible for performance of that part of business.
Responsibility accounting is also based on this individual part of business.

Responsibility centre can be:
Cost Centre
Profit Centre
Revenue Centre
& Investment Centre

Cost Centre is any identifiable unit of busines for which cost is incurred and recorded.
Profit Centre is any identifiable unit of business fow which cost incurred and revenue earned are identified.
Revenue Centre is business unit which are earning sales revenue.
Investment Centre is that part of business in which manager has to take decision about the investment of assets as well as cost and profit decisions.