by ACCAGLOBAL

ACCA Exam Tips

NOTE: These exam tips should only be used in conjunction with proper studying. We cannot guarantee that these tips will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision.
Please also read all the Examiners Articles – available on the ACCA website or in the Student Accountant magazine.

F4 – Corporate & Business Law (English variant)

English legal system
• Delegated legislation/interpretation of statutes

Obligations
• Formation and terms of a contract. Duty of care in tort or professional negligence

Employment
• Dismissal

Company law
• Incorporation procedure or articles
• Maintenance of capital
• Termination of directors office and directors powers
• Types of meetings and resolutions
• Fraudulent behaviour – Money Laundering

F5 – Performance Management

• Budgeting

• Learning curves

• Variances, possibly including mix and yield

• Performance measurement including financial and non financial performance indicators

• Transfer pricing or ROCE/ RI

• Throughput accounting

F6 – Taxation

This will be the third exam for F6 and the paper is 100% compulsory, we suggest you revise the entire syllabus.
The following topics are areas which the examiner has highlighted as being important, core areas and will be regularly examined.

Question 1 [25 or 30 marks]
• Income Tax
• Income from employment [in particular, the assessable income, benefits and allowable deductions.]
• Income from self employment [in particular, the basis of assessment, allowable expenditure, assessable profits on commencement and cessation, capital allowances and relief for trading losses.]
• Property and investment income [in particular, property business profits, savings income and dividend income.]
• The computation of taxable income and income tax liability
• The self assessment system [in particular, the time limit for submission of information, claims and payment of tax.]

Question 2 [25 or 30 marks]
• Corporation tax
• Profits chargeable to corporation tax [in particular, the allowable expenditure in calculating the tax adjusted trading profit, capital allowances, property business profits, and relief for trading losses.]
• Computation of corporation tax liability
• Gains group aspect

Question 1 or 2 might include a small element of chargeable gains.

Value Added Tax [10 marks]
A minimum of 10 marks will always be allocated to VAT which will be examined either as part of Question 1 or 2.
The VAT element will be self contained and so can be answered on its own.
• The computation of VAT liabilities [in particular, the tax point, valuation of supplies, non deductible input VAT, relief for impairment losses on trade debts]
• Default Surcharge
• The annual accounting scheme.

Question 3 [20 marks]
Capital Gains Tax
• Computation of capital gains
• Computation of the amount of allowable expenditure for a part disposal
• Computation of a chargeable gain on disposal of a chattel
• Computation of exemption when PPR is disposed
• Share identification rules – Individuals
• Exemptions and reliefs [in particular rollover and holdover relief]
• Computation of capital gains tax payable by Individuals [in particular the calculation of taper relief.]

Question 4 [15 marks]
Some aspect of Income Tax or Corporation Tax not examined within question 1

Question 5 [10 marks]
Some aspect of Corporation Tax or Income Tax not examined within question 2
Partnerships [with explanation of loss relief]
Corporation tax loss relief
Change of accounting date

National Insurance contributions – will not be examined as a separate question, but may be examined in any question involving income tax or corporation tax.

F7 INT – Financial Reporting (international variant)

Question 1
Consolidation possibly 3 company SFP or 2 company I/S and SFP
Question will probably include the update to IFRS 3 affecting Goodwill and NCI calculations

Question 2
Preparation of published accounts from TB to include I/S, SOCIE and SFP – possible transactions, depreciation, revaluation, income tax and deferred tax, lease, development costs.

Question 3
Possible mixed interpretation question to include calculation of a basic statement of cashflow and a report to include calculation of ratios and interpretation of the accounts using the cash flow and ratio results.

Question 4 and 5
Construction Contracts, IASB Framework (elements or qualitative characteristics), Impairment or Provisions.

F7 UK – Financial Reporting (UK variant)

Question 1
Consolidation possibly 3 company B/S or 2 company P/L and B/S
FV adjustments to both purchase consideration and subsidiaries net assets, inter-co loan and PURP.

Question 2
Preparation of published accounts from TB to include P/L, STRGL and B/S – possible transactions, depreciation, revaluation, income tax and deferred tax, lease, development costs.

Question 3
Possible mixed interpretation question to include calculation of a basic cash flow statement and a report to include calculation of ratios and interpretation of the accounts using the cash flow and ratio results.

Question 4 and 5
Long-term contracts, ASB Statement of Principles (elements or qualitative characteristics), Impairment or Provisions.

F8 – Audit & Assurance (UK & International variant)

Q1 – Audit procedures: payroll, CAATs & substantive tests (30 marks)

Q2 – Facts/standards: engagement letters/acceptance (10 marks)

Q3 – Risk & audit approach: identification of risks in audit risk model (20 marks)

Q4 – Specialist audit areas: internal audit (20 marks)

Q5 – Collection of evidence/reporting: events after the reporting date (20 marks)

F9 – Financial Management

• Investment appraisal – NPV/IRR with tax, inflation and working capital is a favourite topic of the examiner, although areas not examined to date include payback, replacement analysis, capital rationing and lease v buy.

• Working Capital Management – receivables are traditionally the most popular topic but payables and cash are due a turn.

• Cost of Capital – given recent articles CAPM, its advantages and disadvantages, and its use in calculating a cost of equity and a risk-adjusted WACC must be expected.

• Risk Management – hedging foreign exchange risk

• Business Finance – gearing/capital structure calculations and comment

• Valuations – asset and cash flow based values