ACCA exam tips December 2010 by LBSF

F5
Probables
Activity based cosyting.
Decision making under uncertaibty – (maximax, maximin etc).
Advanced variances – mix variances.
Performance measurement – NFIs or divisional performance appraisal.

Possibles
Learning curve.
Throughput accounting.

F6
Income tax for husbands and wife.
Employment income, including the evaluation of benefits, car, fuel, mileage allowance, and accommodation benefit.
Income for ISA including the rules for individuals aged 50 years and over.
Corporation tax – adjustment of a trading profit and the computation of capital allowances on plant and machinery and industrial buildings maybe long period of account.
Due date for VAT registration.
Cash accounting scheme.
Contents of VAT invoice.
Disposals including the matching rules for shares and rights or bonus issues.
Sole trader/partnership in business making trading losses and deciding on the best way to relieve the losses.
Employed versus self employment or pensions.

F7
Q1- consolidated income statement with IFRS 3 (Revised) discussion, or both CSFP and CIS in same Q (last one Dec 2008).
Q2 – re-drafting or published accounts.
Q3 - interpretation mainly, with or without cash flows.
Q4 - mixed standards, especially leasing, impairment, EPS, grants.
Q5 – depreciation, provisions, deferred tax, standard setting.

F8
Apointment.
Ethics.
Risk.
Non current assets.
Liabilities.
Reporting.

F9
Probables
Investment appraisal – tax and inflation.
Cost of capital – project specific discount rates.
Business finance – rights issue and gearing.
Risk – parity theory and currency hedging.
WCM – financing of WC and receiveables.

Possibles
Valuation – PV of FCF.
NPV – sensitivity analysis.

P1
Audit committees.
Board performance evaluation.
Importance of independence.
Transaction cost theory.
Industry-specific risk categories.
Gray, Owen and Adams positons on CSR.
Kohlberg moral development theory.
Role of corporate codes of ethics.

P2
Complex groups.
Cash flow statement.
Revenue.
SME.
Segments.
Provisions.

P3
Strategic position – excternal analysis.
Strategic choice – joint ventures/alliances.
Culture and its effect on strategy.
Life cycle.
Change management.

P5
We have a brand new examiner so all bets are off I’m afraid.

P6
IHT with the death estate including BPR and valuation rules. Transfer of unused nil rate band between spouses. Changing the will after a person is dead.
Corporation tax including relief for trading, losses, groups, consortium relief, overseas aspects including DTR and, anti-avoidance legislation S768 ICTA 1988.
Capital gains tax – mergers, takeovers, reorganizations shares including bonus and rights issues and losses on the disposal of unquoted shares.
Employment income – share options, share incentive plans and taxable and tax free benefits.
Property business profits including furnished holiday letting property.
Enterprise investment scheme, venture capital trusts and corporate venturing scheme relief.
Partnership -= with wife being employed or being introduced as a partner.
Partial exemption for VAT, opting to tax a building, electronic filing of the VAT return, flat rate scheme.
VAT implications of selling the business as a going concern.
Purchase of own shares by a company.
Personal service companies.
Ethics and deliberate tax defaulters.

P7
Business risk/due diligence.
Audit work on segment information/related party transactions/provisions/intangibles.
Social/environmental reporting and assurance reports.
Evaluation of proposed audit report.
Advertising by audit firms.
Ethical threats and safeguards.

Thanks to PQ Magazine