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34 Pages·2012·8.7 MB·English

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36 EXAM GUIDANCE
EXAM
SUPPORT
EXAMINERS’ APPROACH AND EXAMINERS’ ANALYSIS INTERVIEWS
ACCA is committed to providing
support to all its students. As part of ACCA IS COMMITTED TO PROVIDING SUPPORT TO ALL
this support, a range of materials –
ITS STUDENTS. EXAMINER REPORTS, EXAMINER
in a variety of media to reach as many
students as possible – is available INTERVIEWS, EXAM NOTES (WHICH PROVIDE
specifically to address the ACCA
GUIDANCE ON EXAMINABLE MATERIAL INCLUDING
Qualification exams. Information from
ACCA’s examiners including examiner RELEVANT ACCOUNTING AND AUDITING DOCUMENTS
reports, examiner interviews and a
AND A WIDE VARIETY OF TECHNICAL ARTICLES
wide variety of technical articles are
available in a range of different media ARE AVAILABLE IN A RANGE OF DIFFERENT MEDIA
on the ACCA website.
ON THE ACCA WEBSITE AT WWW.ACCAGLOBAL.COM/
The two sets of examiner interviews are
available on www.accaglobal.com STUDENTS/ACCA/EXAMS
and are extremely valuable resources.
Each set of interviews can help
you prepare for your exams in different EXAMINERS’ ANALYSIS INTERVIEWS necessarily be examinable in
ways and, when used in conjunction The examiners’ analysis interviews build the next session.
with the paper resources available, on the examiners’ approach interviews. The ACCA website features examiner
they can make a big difference to They highlight where students interviews recently at this year’s
your studies. are performing well, where students are Learning Providers’ Conference. It is
performing less well, and give advice on still very important to make use of the
EXAMINERS’ APPROACH INTERVIEWS how students can improve performance individual examiners’ reports available
The examiners’ approach interviews are in problem areas. in this issue of the Essential Guide and
very useful when you are undertaking It’s never too soon to start listening on the ACCA website, as well as listening
a particular paper for the first time, to the examiners’ analysis interviews, to the analysis interviews. After you have
giving you a real insight into what but they would probably be most useful worked through a practice question,
examiners are looking for in terms once you have covered the syllabus and refer to the relevant examiner’s report
of exam performance. They cover the are starting to think about the detail of and you will find an analysis of that
main themes of each paper and give a paper and how to apply what you have question, what the examiner is looking
information on the style of the exams learned in the exam. for in a good answer, typical answers
and how they are structured. They also They are designed to give guidance given by students, why they might not
advise on exam technique, with tips on around which areas of the syllabus be relevant and so on.
how to succeed and potential pitfalls students have been struggling with All of these resources and others such
to avoid. in recent exam sittings and how as the Syllabus and Study Guide, past
The examiners’ approach interviews students can tackle the difficulties papers, examinable documents and
complement the examiners’ approach others have been having. The analysis technical articles can be accessed at
articles, which were written to interviews are closely related to the www2.accaglobal.com/students/acca/
give guidance on how to tackle each examiners’ reports, which are published exams/
exam paper. These resources contain after each exam session. They bring
similar information but the difference together the examiners’ reports from
in delivery method can be a useful the first three sessions of the ACCA
advantage when studying and may Qualification, illustrating that some
give you a better chance of absorbing mistakes are being repeated consistently
the examiners’ advice. The examiners’ and highlighting critical areas of the
approach interviews also contain syllabus to focus on. Remember, this
useful links to other relevant resources does not mean
for your exam. one of those areas will
EACH SET OF EXAMINER INTERVIEWS CAN HELP
YOU PREPARE FOR YOUR EXAMS IN DIFFERENT WAYS
AND, WHEN USED IN CONJUNCTION WITH THE
PAPER RESOURCES AVAILABLE, THEY CAN MAKE A BIG
DIFFERENCE TO YOUR STUDIES.
EG1011_C_exam support.indd 36 26/08/2011 10:30
STUDENT ACCOUNTANT ESSENTIAL EXAM GUIDE 10/2011 37
HOW TO BE GOOD
PROFESSIONAL ETHICS
RELEVANT TO ACCA QUALIFICATION PAPERS
Values, ethics and governance detailed below – each designed to help ¤ Unit 2 gives you the opportunity to
are essential skills for you understand what it means to think judge the acceptability of arguments
finance professionals. and act as a professional accountant. for and against some difficult decisions.
This is why ACCA has adopted a Sometimes, without you even realising, It is important that you give careful
holistic approach to your ethical your personal values can get in the way consideration to these arguments,
development via the exams syllabus, of your professional ethics. As accounting and there is great value in discussing
the practical experience requirements students, you have been learning the these with your friends and colleagues.
and the Professional Ethics technical aspects of your chosen The objective is to help you see what
module – requirements you need profession, and may not have spent much kinds of arguments might make you
to complete in order to obtain your time thinking about your own values, how change your mind. Providing you with
ACCA Qualification. you make decisions, and how you may be this valuable knowledge about yourself
As an ACCA student, your ethical and influenced in making those decisions. The will be useful when you are a qualified
professional development starts from Professional Ethics module includes some accountant, where you may be faced
day one – as soon as you have registered exercises to help you explore these issues. with a difficult decision and find that
with ACCA. Then, when you are faced with a difficult people are trying to influence your
decision and find yourself applying the decisions or behaviour.
PROFESSIONAL ETHICS MODULE fundamental principles of your profession, ¤ Unit 3 contains a brief overview of
As part of your ethical development, you will be better prepared to apply your ethical schools of thought to help you
students are required to complete the professional judgment rather than your recognise your own personal values in
Professional Ethics module, developed personal beliefs. the context of established theory.
by ACCA. ¤ Unit 7 is an interactive case study.
This will give you exposure to a range Professional ethics module units Based on a realistic scenario and
of ethical perspectives and includes 1 Start here using computer animation, the unit
several self-tests which require you to 2 Judging the acceptability provides the opportunity to apply what
reflect on your own ethical behaviour of arguments you have learned from other units by
and values. 3 What is ethics? evaluating information, assessing the
You then apply what you have learned 4 Rules vs principles consequences of your actions, and
in a case study where you experience an 5 About ACCA’s fundamental principles making ethical judgments. The case
audit situation from two points of view 6 The framework study is a chance for you to practise
– that of the auditor and the corporate 7 Case study your ethical decision-making skills and
financial accountant. 8 Applying what you have learned will provide you with feedback on all the
9 Tell us what you have learned decisions you make.
MODULE CONTENT ¤ Unit 8 gives you further practice at
So what can you expect the module Looking at some of the units within the making ethical decisions. Within
to be like? It consists of nine units – Professional Ethics module more closely: this module you are presented with
five situations. For each one, you are
required to select what you think is the
best solution, and obtain feedback on
your decision.
¤ In Unit 9, you are required to write
BAD GOOD
a short paragraph about what you
have learned from completing
the module.
You are given access to the Professional
Ethics module as soon as you become
eligible to take Paper P1, Governance, Risk
and Ethics. It is recommended that you
take the Professional Ethics module at the
same time as, or before Paper P1.
While you have the flexibility to
complete the Professional Ethics module
in your own time, if you registered as a
student after January 2007, you should
note that ethics is now one of your
requirements of membership. ACCA will
now contact you as soon as you have met
all of the requirements – exams, ethics,
experience and performance objectives –
and invite you to transfer to membership.
EG1011_C_Ethics.indd 37 26/08/2011 10:32
38 TechnIcAl
stepping up
movIng uP from PAPer f5 To P5:
underPInnIng knoWledge for PerformAnce mAnAgemenT
Paper P5 is an advanced performance Activity-based costing, which is in Knowledge of limiting factors
management paper. It looks at different Section A1 of the Paper F5 syllabus, (Section B3) is required, not just for
types of performance management feeds into activity-based management, decision making, but also because it
systems and considers whether or not in the Paper P5 syllabus. Some feeds into transfer pricing. You should
they provide useful information to the activity-based management questions know how to solve basic limited factor
management of an organisation. By in Paper P5 exams have required decisions. It would not be necessary
performance management systems, candidates to perform calculations using to go into solving linear programming
we include techniques such as activity-based costing principles, so it is problems for Paper P5.
budgeting, variance analysis, balanced important to have a good knowledge of Pricing (Section B4) is not specifically
scorecards and other such techniques this area. in the syllabus for Paper P5, but the
used by organisations to manage their The other specialist cost and examiner has indicated that he would
performance so they can plan and management accounting techniques expect candidates to be aware to be able
control their activities better. It also included in the Paper F5 syllabus to calculate a simple cost plus price.
covers areas such as remuneration which are also relevant to Paper P5 are Pricing is also relevant in the context of
schemes for management and target costing, lifecycle costing and transfer pricing.
employees which attempt to motivate environmental management accounting. Risk and uncertainly is an important
them to work towards the objectives of However, as these are specifically factor in control of an organisation
the organisation. included within the Paper P5 syllabus, so the Paper F5 topics on risk and
While performance management candidates should be able to refresh and uncertainty should also be known.
systems are covered in Paper F5, increase their knowledge of these from Particularly important areas are
at Paper P5 additional models of their Paper P5 materials. expected values, maximax, maximin,
performance management are included Budgeting is another important area. minimax regret and the use of
such as value based models, and In Paper P5, the focus is on whether sensitivity analysis, and these have all
the performance prism. In addition, budgets are a useful tool or not, and been examined recently at Paper P5. It
candidates must be able to advise on which types of budget are useful in what is unlikely that you would be asked to
what type of systems are relevant to situations. It is useful, therefore, to be draw a decision tree at Paper P5 but
a particular organisation. Different familiar with the following budgeting knowledge the underlying principles of
organisations have different information sections from Paper F5 syllabus: probability and joint probabilities would
requirements, and candidates must be ¤ C1 – Objectives of budgeting be useful.
able to understand these, and be aware ¤ C2 – Budgetary systems Variance analysis is a core
of the factors that determine what type ¤ C3 – Types of budget management accounting tool, so you
of management accounting information ¤ C5 – Behavioural aspects of do need to be aware of it, and be able
is needed. budgeting. to discuss whether it provides useful
Finally, in Paper P5, there is more information to management. Candidates
detailed discussion of qualitative factors While quantitative aspects of may also be required to calculate
surrounding performance management. budgeting have been excluded from this variances at Paper P5 level, so it is
Candidates need to have much more list, candidates would have to have to important to understand how to do
depth of knowledge than at Paper F5. deal with some maths – for example these – particularly those variances with
So rather than just knowing the rationale to deal with simple forecasting. strategic implications.
of the Balanced Scorecard, for example, Candidates would not be required Performance measurement is
candidates might be asked to evaluate it to do detailed calculations involving introduced at Paper F5, and is a core
in the context of a specific scenario. techniques such as regression and time topic at Paper P5. However, the relevant
series analysis. learning outcomes from Paper F5 are
WhAT do I need To knoW? Decision making is an area that also included within the Paper P5
Since Paper P5 builds on Paper F5, the sometimes gets examined in Paper P5. syllabus too – so you should be able
examiner could assume you know all Candidates may be asked to evaluate to pick up the required knowledge of
of the Paper F5 topics. In practice, the a decision, so some calculation may this area from your Paper P5 study
examiner is unlikely to examine Paper be required in such questions. It is material rather than needing to go
F5 topics in detail unless they are also important, therefore, to be familiar with back and review your Paper F5 notes.
specifically included within the syllabus relevant costing principles, which are in The performance measurement topics
for Paper P5 too. It is advisable however Section B1 of the Paper F5 syllabus. An are developed further at Paper P5 with
to have a good knowledge of certain awareness of CVP analysis is also useful the introduction of new techniques
areas of the Paper F5 syllabus before (Section B2) although it is extremely such as Economic Value AddedTM,
starting to study Paper P5. The areas of unlikely that you would be required to the performance pyramid and the
particular importance are as follows: draw any of the charts in Paper P5. In performance prism.
¤ activity-based costing addition, a practical understanding of
¤ budgeting cost structures, cost behaviour (fixed STudyIng PAPer P5
¤ decision making and variable) and break even analysis The core part of your Paper P5
¤ performance measurement. will often be useful in analysing and preparation will be your Paper P5 study
giving advice in a scenario materials. When studying for Paper P5,
EG1011_C_F5 to P5.indd 38 24/08/2011 11:54
STudenT AccounTAnT essential exam guide 10/2011 39
it is not necessary or desirable to learn of time. You only learn from a question if the examiner asked candidates to analyse
everything in your study materials parrot you really try it yourself. the business environment within which
fashion. Simply repeating what you have Finally, you should also read the an organisation was operating, and the
seen in your study manuals in an exam examiner’s reports from the last sittings. implications on this for its strategy. The
is never likely to satisfy the examiner’s These provide a useful insight into where examiner did not tell you which technique
requirements. What is important is to students have done well or badly in to use to answer this. So you could have
read the materials, understand and previous exams. You can learn from their used PEST analysis, or any other approach
appreciate the issues, and think about mistakes. It also gives an insight into that was sensible.
them. Then practise past exam questions what the examiner likes and dislikes. One Paper P5 question may well focus
dealing with these areas. This will help The examiners’ reports for Papers P1 to on several different parts of the syllabus:
you to develop the skills of critical P7 start on page 15. at this level you can’t just view each topic
analysis that you will need both in the as being in a separate box, you have to
exam, and in your professional work. SkIll requIred for PAPer P5 appreciate how they are all linked. This
In the section on ‘beyond budgeting’ Paper P5 is a Professional level paper, is much more like real life. If you are a
for example, your textbook may and the examiner expects candidates to management accountant in the real world,
well include a list of weaknesses of demonstrate the skills that they would the management of the company may
traditional budgeting processes, as need when working in a professional ask you to assess the performance of a
suggested by Hope and Fraser. More environment as an advisor or consultant. particular division. They are not likely to
important than learning this list is to This is more than is required at Paper F5. tell you to ‘assess the performance of
understand the weaknesses suggested, In Paper F5, you are required to be the division using residual income with
and think about whether or not you able to apply given techniques to the annuity based depreciation’. They would
agree with them. By doing this, you will short scenarios in the exam. For example, leave it to you to decide how to assess the
be better placed to answer a question a question may ask you to calculate performance. The Paper P5 examiner tries
in the exam on the weaknesses of materials mix and yield variances for the to do the same.
budgeting by coming up with your own last month. You are also required to be
ideas, even if you could not remember able to interpret numbers at Paper F5, for concluSIon
the list from the textbook. example, using pre-calculated variances The P5 syllabus builds on the knowledge
Have a broad knowledge of the to assess the performance of the sales covered in Paper F5, and there are certain
syllabus. It is better to have a manager. The scenarios in Paper F5 are Paper F5 topics that you should know
reasonable knowledge of the entire usually fairly short, and the questions well before embarking on Paper P5. Much
syllabus, than a perfect knowledge of specify very clearly what is required of you. higher skills are required at Paper P5,
say 60% of it, and not to know anything In Paper P5 questions, particularly in and there is much greater application of
about the rest. Section A, you will need to be able to deal your knowledge to life like scenarios. In
Being a Professional level paper, it is with much longer scenarios. The examiner order to improve your chance of success,
important to read around the subject too. is seeing if you can apply your knowledge it is good to read around the subject and
There are plenty of technical articles on to real life situations. This tests your ability practise past exam questions.
the ACCA website relating to Paper P5, to deal with a larger amount of data, and
and these are essential reading. These identify the most important issues. Can Nick Ryan is a tutor at ATC
articles have a long shelf-life so the older you see the big picture when presented International
articles are equally as important as the with a lot of detail?
articles from the past few years. You may also have to decide for yourself
As a Paper P5 tutor, I find that using what particular techniques you will use to
real-life examples help my students to answer the question. In a recent question,
understand the concepts covered during
the courses, and makes the materials
come alive. These examples can be
found in quality newspapers and news
websites, so try to read a good quality
newspaper/website, if not every day, at
least once a week.
Practising past exam questions under
timed conditions is essential. A big part
of the challenge in Paper P5 (and indeed
To ImProve your chAnce
all the Professional level papers) is being
able to analyse a detailed scenario, and of SucceSS, IT IS good To
provide relevant answers to the questions
reAd Around The SubjecT
asked. Unless you practise this in
advance, you are at a big disadvantage in And PrAcTISe PAST
the exam hall. Many students get into the
exAm queSTIonS.
terrible habit of reading the question and
then auditing the answer. This is a waste
EG1011_C_F5 to P5.indd 39 24/08/2011 11:54
40 Technical
sound understanding
sTepping up from paper f6 (uk) To paper p6 (uk)
we look aT The knowledge you need To bring from your
paper f6 sTudies To be successful in paper p6
The aim of Paper P6, Advanced The technical areas included within the Throughout the exam, candidates are
Taxation (UK), is to ensure that syllabus are set out in the Study Guide expected to be able to identify issues, as
candidates can provide clients – both on ACCA’s website. Candidates should well as demonstrate detailed knowledge
individuals and businesses – with the always check the website for the latest of the tax system. In line with this
information and advice they require Study Guide relevant to their exam session emphasis on practicality, questions may
regarding the impact that the major to ensure that nothing has changed and require candidates to address ‘the UK
UK taxes may have on their financial hence the learning that they are about to tax consequences’ of a given situation
decisions and situations. The emphasis embark on is up to date. without indicating which particular
is on the practical application of Candidates are required to explain, taxes to consider. It is up to candidates
tax rules to client scenarios and the calculate and apply their knowledge of to identify the relevant taxes, and the
production of professional documents the system of taxation in the UK. This issues in respect of those taxes, before
incorporating helpful, clear advice. knowledge must be up to date. Candidates beginning their answers.
It should be noted that the ability must familiarise themselves with the Calculations are normally only
to communicate with clients, HM changes introduced by the recent Finance required in support of explanations and
Revenue & Customs and with other Acts as summarised in the Finance Act advice, and not in isolation. Again, it is
professionals, is one of the five main articles published in Student Accountant. often up to candidates to decide what
capabilities required of candidates calculations to produce in order to do
sitting Paper P6 (UK). The sTyle and formaT of The paper this in the most efficient manner. Advice
The Paper P6 (UK) exam is offered on how to approach a given problem
The syllabus in paper format only. Candidates are may be provided in the question.
Paper P6 (UK) is directly underpinned given three hours with an additional 15 There is no specific allocation of
by Paper F6, Taxation (UK). Knowledge minutes of reading and planning time numerical calculation versus narrative
and understanding of the technical (RAPT). (Read page 50 for advice on balance within Papers F6 and P6.
content of Paper F6 is, therefore, vital how to use the RAPT appropriately.) However, in practice, Paper F6 is
if candidates are to be successful at Paper P6 (UK) differs from Paper F6 weighted towards numerical calculation
Paper P6 (UK). It is quite possible that (UK) in that not all of the questions are approximately 60 to 85% whereas Paper
the technical content of a Paper P6 (UK) compulsory. Paper P6 (UK) consists P6 is weighted 60 to 70% towards
question could be drawn almost wholly of two sections, A and B. Questions narrative explanations. In both papers, the
from the Paper F6 (UK) syllabus. 1 and 2 in Section A are compulsory, ability of candidates to be able to explain
However, such a question will require the and are worth a total of between 50 their treatments and opinions is vital. It is
analysis of information provided, and and 70 marks. Questions 3, 4, and important to note that this does not mean
the application of technical knowledge 5 in Section B each have the same that candidates need to have perfect
to the situation in order to solve number of marks, ranging from 15 to grammar or spelling; it means that they
the problem. 25. Candidates are required to answer need to make themselves understood.
The Paper P6 (UK) syllabus extends two of these Section B questions only. Paper P6 has approximately five marks
the coverage of income tax, corporation The whole of the syllabus is examinable across the exam for professional skills,
tax, capital gains tax and inheritance throughout both sections of the exam. known as professional marks. In order
tax and introduces stamp duty land tax The Section A questions require to score well, candidates first have to
and stamp duty. The syllabus is very candidates to analyse the information satisfy the requirement in relation to
wide, as befits an optional paper at this provided and to use any guidance given the style and format of the document
level. New technical content is clearly to help address the requirements. Both requested. Further marks are then
identified in the Study Guide and will be questions are likely to address a number available for providing clear explanations
examined regularly. of different taxes and to require a report and coherent calculations (see page 12
While no part of the syllabus is more or letter as part of the answer. Because for more about professional marks).
important than any other, it should Section A questions are relatively large,
be recognised from the above that careful time management is important, approach To The exam
knowledge of the technical areas that and candidates are advised to use the Irrespective of whether a candidate is
are exclusive to Paper P6 (UK) will number of marks allocated to each preparing for Paper F6 or P6, there are
not, on its own, be sufficient to pass requirement to determine how much a number of stages that they need to go
the exam. time to spend on each part. through in order to be successful. The
The Section B questions contain an approach to be taken is as follows:
introductory paragraph, which outlines ¤ Acquire the knowledge and obtain a
the technical areas within the question, solid understanding of the subject
together with concise structured area. At both levels within the taxation
information and sub-headings to make stream, a good understanding of the
them easy to assimilate and navigate. UK system of taxation is vital to a
This enables candidates to determine successful exam result. Knowledge can
which two questions to answer without be acquired using a range of different
having to read the whole of the question options, and it is best to select a
if they need to due to time pressure. method that is appropriate to you.
EG1011_C_F6 to P6.indd 40 19/08/2011 12:31
student accountant essential exam guide 10/2011 41
sound understanding
PaPer P6 Is dIrectly underPInned by PaPer F6. Knowledge and
understandIng oF the technIcal content oF PaPer F6 Is, thereFore,
vItal IF candIdates are to be successFul at PaPer P6.
¤ However you choose to acquire the ¤ When practising exam‑standard Candidates should note the command
relevant knowledge, you should also questions it is vital to spend time words (calculate, explain, etc), any
use the support resources available on reviewing your answer against the matters which are not to be covered
the ACCA website (technical articles, model answer to learn what was done and the precise issues they have been
Study Guides, examiner reports, well and where mistakes were made asked to address.
examiner interviews being just some so as not to repeat these errors. ¤ Candidates should also note any
of the available resources). These It should be noted that the model additional guidance given in the
resources are there to support you as answers for written questions will question or in any notes following the
an additional source of information always contain more than a candidate requirement regarding the approach
and learning. needs to write in order to achieve a that should be taken when answering
¤ Consolidate understanding by good pass. When attempting a past the question.
practising questions that focus on exam question it is worth also taking ¤ Pay attention to the number of
specific topic areas. In order to have time to review the examiner report marks available – this provides a
a good understanding, it is vital to for that question to see what the clear indication of the amount of
attempt questions that are focused common mistakes were, what was time that should be spent on each
on the topic. These questions assist done well and how candidates can question part.
understanding of the basic approach improve performance. Candidates should not provide general
to the topic but do not necessarily explanations or long introductions.
provide a grasp of exam technique. Finally, when actually attempting the ¤ If candidates are asked to calculate,
¤ To improve your exam technique and real exam, it is important to follow the there is no need to explain what
approach, practise exam‑standard instructions of the exam and answer all they are going to do before they do
questions written by both Approved the questions required. So, in Section it; they should just get on with it –
Learning Partners – content A, both questions are compulsory and explanations should only be provided
(ALP–c) and ACCA past exam must be answered. when asked for.
questions. All of ACCA’s exams In Section B candidates must answer ¤ Candidates should think before
require candidates to apply their two of the three questions; no more they write. They should then write
knowledge at an appropriate or less. This way a candidate will have whatever is necessary to satisfy
level for the stage of exam. the best possible chance of passing by the requirement.
Candidates who attempt exams attempting the 100 marks available for ¤ Candidates should apply their
without practising exam‑standard the exam in the time available for those knowledge to the facts by reference to
questions are unlikely to pass as marks. If a candidate does not answer the requirement.
they are unlikely to have mastered all of the exam questions that they are Candidates should think before they
the required exam technique or required to answer, they are reducing start and manage their time. This will:
technical understanding. their chance of passing as they will not ¤ Ensure that they allow the correct
¤ ACCA’s website includes past exam be marked out of a 100 marks but only amount of time for each question.
questions and answers. Note, however, the maximum marks attributed to the ¤ Provide an opportunity to identify the
that these past exams are based questions or question parts that have relevant issues, and the calculations
on the legislation that was in force been attempted. necessary, to support their advice.
(and was therefore examinable) at ¤ Enable them to consider whether
the time of the exam session. This In the exam the necessary calculations could be
may mean that some of the content Candidates should pay particular carried out in a particularly efficient
of a question or answer may be out attention to the following in order to way. For example, it may be that the
of date. maximise their chances of success in client will be a higher rate taxpayer
¤ ALP‑c are allowed to use these past the Paper P6 (UK) exam: regardless of proposed changes to
exam questions in varying degrees Address the requirement income; the income tax implications
depending on whether they are ¤ Read the requirement carefully can therefore be computed at the
Platinum or Gold. They adapt the – in the Section A questions the margin without the need to prepare
question or answer so that the content detailed tasks that candidates full income tax computations.
is relevant for the exam session(s) are to perform will be set out
to which the material (study text or in one of the documents within Section A questions are relatively
revision bank) relates. ALP–c may each question. It may be helpful long and may include a number of
also write their own exam standard to tick off the tasks as they are requirements. A separate article,
questions which may look at areas addressed. Marks are awarded for ‘Guidance on approach to questions in
that have not yet been examined. satisfying the requirements and not Section A of Paper P6 (UK)’ is available on
for other information even if it is the ACCA website.
technically correct.
¤ The requirements of each question Rory Fish is examiner for Paper P6 (UK)
are carefully worded in order to
provide guidance as to the style and
content of answers.
EG1011_C_F6 to P6.indd 41 19/08/2011 12:32
42 technical
f3 to f7 to p2
climbing the financial accounting anD rePorting
exam laDDer
relevant to acca qualification PaPers f3, f7 anD P2
This article looks at what candidates
need to do in order to progress table 1: accounting stanDarDs examinable within PaPer f3
successfully from Paper F3 to Paper
F7 to Paper P2. As such the article ias 1 Presentation of financial statements
explains the difference in syllabus, ias 2 inventories
exam and the approach that candidates ias 7 statement of cash flows
should take to each of these exams. ias 10 events after the reporting Period
ias 16 Property, Plant and equipment
Progression of syllabus ias 18 revenue
It should be noted that Paper F3 is ias 27 consolidated and separate financial statements
changing from December 2011 onwards ias 28 investments in associates
and the differences are explained with ias 37 Provisions, contingent liabilities and contingent assets
reference to the Paper F3 syllabus from ias 38 intangible assets
December 2011. ifrs 3 business combinations*
Double entry, accounting treatments and * relevant for exams between December 2011 and January 2013
preparation of financial statements
The Paper F3 syllabus has been
designed to provide a solid grounding The Paper F7 syllabus builds on group accounting
in double entry. From this basis, knowledge of double entry, accounts The Paper F3 syllabus introduces
candidates will be expected to preparation and accounting standards the concept of group accounting
appreciate and be able to prepare by requiring candidates to apply this to and covers the core techniques,
financial statements, or extracts of almost all of the accounting standards issues and principles of accounting
these, from a trial balance focusing in issue. The level of detail is much for subsidiaries, this includes basic
on the standard year end adjustments greater than Paper F3. Candidates are calculation of goodwill with only simple
including depreciation, closing required to define, compute, discuss, consideration of shares and cash, fair
inventory, irrecoverable debts, accruals, explain and apply their knowledge value of non-depreciable assets, basic
prepayments and areas related to the of the accounting standards. This intercompany trading. Group accounting
standards listed within examinable means that a good working knowledge ends with syllabus addressing the issue
documents. An accounting treatment and understanding of the accounting of what an associate is, how they are
can also be tested and regularly is treatment is required at this level. accounted for within the group accounts
in isolation so not in the context of The Paper P2 syllabus does not but does not require candidates to apply
producing the final financial statements. require candidates to prepare financial the techniques to a numerical scenario.
There are only a limited number statements for individual business Paper F7 continues the theme of group
of accounting standards that entities but does require a detailed accounting by looking at the same areas
are examinable within Paper F3 understanding of almost all of of subsidiaries but in more depth, for
(see Table 1). the accounting standards listed as example being able to understand and
In most cases, the accounting examinable within Paper F7 plus some apply knowledge of how to account for a
standard is not examinable in selected exposure drafts identified variety of different forms of consideration.
its entirety and is examinable at as examinable within the examinable Candidates are also required to apply
a relatively superficial level. Full documents list. Candidates are expected knowledge of associates.
details as to what is examinable can to appraise the accounting treatments The Paper P2 syllabus focuses on
be found within the Study Guide and proposed within scenarios, apply the the more complex areas of group
examinable documents listed on ACCA’s detail of accounting standards and accounting, including issues with
website and on page 53. Candidates advise on what the correct accounting regard to acquisition date valuation,
should always check the latest Study treatment should be. Further, candidates changes in group, complex group
Guide and examinable documents are expected to be able to critique structures (eg vertical groups), and
relevant to their exam session to ensure accounting standards and discuss foreign subsidiaries.
that nothing has changed and, as such, proposed developments.
that the learning that they are about to interpretation of financial statements
embark on is up to date. The Paper F3 syllabus concludes with
the interpretation of single company
financial statements where the learning
outcomes are focused on understanding
the need for ratios and interpretation.
Candidates should have the ability to
conduct basic interpretation, and should
focus on the movement of financial
statement items, eg revenue, cost of
sales, and operating expenses.
EG1011_C_F7 P2.indd 42 24/08/2011 12:26
stuDent accountant ESSENTIAL EXAM GUIDE 10/2011 43
The Paper F7 syllabus expands Paper F7 and P2 exams are currently approach to exam
the level of skill required in the area offered in paper format only and are Many candidates feel that objective
of interpretation as candidates are three hours with an additional 15 test questions are easier to pass than
required to be able to interpret the main minutes of reading and planning time longer-form questions. This is not true
financial statements and/or a selection (RAPT). Read page 50 for how to use the as objective test questions can and, do
of ratios, usually in the context of a RAPT appropriately. test, exactly the same detail and skill,
industry scenario or for a particular All of the questions within the and in many respects precise points of
stakeholder in mind. Paper F3 and F7 exams are compulsory. detail are even more important.
While Paper P2 candidates are The Paper P2 exam comprises one Irrespective of whether a candidate is
not required to interpret financial Section A compulsory question and then preparing for Paper F3, F7 or P2, there
statements in a similar manner as candidates need to select two questions are a number of stages that they need
Paper F7, there is an expectation from three within Section B. to go through in order to be successful.
that candidates will be able to Both the Paper F7 and P2 exams The approach to be taken is as follows:
appreciate and explain the implication have questions dedicated to particular ¤ Acquiring the knowledge and obtain
of an accounting treatment on the question types or areas of the syllabus a solid understanding of the subject
financial statements and, therefore, (see Table 2). area. At all levels within the financial
consider how this will impact The Paper F7 and P2 examiners accounting and reporting stream a
stakeholder understanding. do not state a specific allocation of good understanding of double entry,
numerical calculation versus narrative the principles of accounting and the
current issues balance within their papers. However, in conceptual framework is vital to both
The Paper P2 syllabus has a whole practice, Paper F7 is weighted towards a successful exam result and a career
question dedicated to current issues numerical calculation approximately within accountancy. Knowledge can
including revisions of accounting 60 to 70% and Paper P2, 55 to 65% be acquired using a range of different
standards. The examinable documents towards narrative explanations. As such options, and it is best to select the
list any exposure drafts or discussion in both papers the ability of candidates method that is appropriate to you.
papers that are potentially examinable to be able to explain their treatments
within a given exam period. In order and opinions is vital. It is important
to have an appreciation of the current ttoo nnoottee tthhaatt tthhiiss ddooeess nnoott mmeeaann tthhaatt
issues it is important to read widely candidates need to have perfect
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paper and computer-based exam (CBE) aasskkeedd wwiitthhiinn tthhee rreeqquuiirreemmeenntt,, aatttteemmpptt
format. It is two hours long and from aallll ppaarrttss ooff tthhee qquueessttiioonn,, aanndd aaddoopptt aa
December 2011 will initially have 50 llooggiiccaall ffllooww aanndd cclleeaarr pprreesseennttaattiioonn ttoo
two-mark objective test questions which tthheeiirr aannsswweerr ((sseeee ppaaggee 1122 ffoorr mmoorree oonn
for the paper version will be multiple earning professional marks).
choice only but within the CBE format
also includes number entry, multiple
response, and multiple response
matching question types. In the future,
the exam format will move to comprise
many canDiDates feel that obJective test
35 two-mark objective test questions
plus two longer 15-mark questions. questions are easier to Pass than longer-form
The first of the long questions will be
questions. this is not true as obJective test
on group accounting and the second
on accounts preparation (with some questions can anD, Do test, exactly the same
questions including a small element
Detail anD sKill, anD in many resPects
of interpretation of no more than five
marks). Pilots for both these exam Precise Points of Detail are even
paper formats are available on the
more imPortant.
ACCA website.
EG1011_C_F7 P2.indd 43 24/08/2011 12:26
44 technical
When practising exam standard
table 2: DeDicateD questions in PaPers f7 anD P2 questions it is vital to spend time
reviewing your answer against the
question Paper f7 marks Paper P2 marks model answer to learn what was done
1 group accounting 25 group accounting with 50 well and where mistakes were made
accounting standards, plus so as not to repeat these errors.
ethical issues It should be noted that the model
2 accounts preparation 25 accounting standards 25 answer for written questions normally
3 cash fl ow and/ accounting standards in contains more than a candidate
or interpretation 25 an industry context 25 needs to write in order to achiever a
good pass. When attempting a past
4 accounting standards 15 current issues 25 exam question it is worth also taking
5 accounting standards 10 time to review the examiner report
for that question to see what the
common mistakes were, what was
However you choose to acquire the These past exams are based on the done well and how candidates can
relevant knowledge, you should also regulations, accounting standards improve performance.
use the support resources available on and legislation that were in force
the ACCA website (technical articles, and were therefore examinable at reaD the requirements
Study Guides, examinable documents, the time of the exam session. This Finally, when actually attempting the
examiner reports, examiner interviews can mean that for some subjects the real exam whether by paper or CBE, it
being just some of the available content of the question or answer is is important to follow the instructions
resources). These resources are there out of date. ALP–c are allowed to use of the exam and answer all the
to support you as an additional source these past exam questions in varying questions required. So if all questions
of information and learning. degrees depending on whether they are compulsory answer all of them,
¤ Consolidate understanding by are Platinum or Gold. They adapt the if there are some questions that are
practising questions that focus on question or answer so that the content optional (eg two from three questions)
specific topic areas. In order to have is relevant for the exam session(s) answer the required number of these
a good understanding it is vital to that the material (study text or option questions (so two questions)
attempt questions that are focused on revision bank) relates. ALP–c also and not more or less. This way you are
the topic. For example, within Paper tend to write their own exam standard ensuring you have the best possible
F3 the treatment of depreciation questions which may look at areas chance of passing by attempting the
or revaluation is just one of many that have not yet been examined. Very 100 marks available for the exam in the
areas where this is required. These few examiners address the same topic time available for those marks. If you
questions assist understanding of the in exactly the same way as they did in do not answer all of the exam questions
basic approach to the topic but do not previous exam sessions. that you are required to answer, you are
necessarily provide a grasp of exam rreedduucciinngg yyoouurr cchhaannccee ooff ppaassssiinngg aass yyoouu
technique. wwiillll nnoott bbee mmaarrkkeedd oouutt ooff 110000 mmaarrkkss bbuutt
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approach, practise exam standard tthhee qquueessttiioonnss oorr qquueessttiioonn ppaarrttss tthhaatt yyoouu
questions written by both Approved hhaavvee aatttteemmpptteedd..
Learning Partners – content (ALP–c)
and ACCA past exam questions. All SShhaarroonn MMaacchhaaddoo iiss AACCCCAA qquuaalliiffiiccaattiioonnss
of ACCA’s exams require candidates ccoonntteenntt mmaannaaggeerr aanndd hhaass rreessppoonnssiibbiilliittyy
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eexxaamm.. CCaannddiiddaatteess wwhhoo aatttteemmpptt eexxaammss
without practising exam standard
questions are unlikely to pass as
they are unlikely to have mastered
the required exam technique or when actually attemPting the real exam
technical understanding. ACCA’s
whether by PaPer or cbe, it is imPortant to
website includes past exam questions
and answers for all papers going back follow the instructions of the exam anD
a number of years.
answer all the questions requireD.
EG1011_C_F7 P2.indd 44 24/08/2011 12:27