KAPLAN FINANCIAL - ACCA TIPS FOR DECEMBER

KAPLAN FINANCIAL - ACCA TIPS FOR DECEMBER
2012


Here are the exam tips from Kaplan
Financial's contents experts


F4


English legal system - court structure,
court vs tribunal.


Contract law - exclusion clauses, intention
to create legal relations.


Tort of negligence - general negligence,
professional misstatement.


Employment law - common law duties,
dismissal.


Agency/partnership - how agency
relationship arises, termination of partnership.


Company law - separate personality/lifting
the veil, company registration, class rights.


Fraudulent behaviour - insider dealing,
bribery.





F5


• Throughput
accounting and TOC.


• Learning curves.


• Variances -
Sales Variances, market size and market share.


• Decision Trees.





F6


Income tax


– joint investment
income


– adjustment of
profits


– national
insurance


Corporation tax


– chargeable gains
to calculate, with rollover relief


– group loss
relief – with some tax planning


– interest on late


payment of corporation tax


VAT


– VAT registration
– futures test


– cash accounting
scheme


– default
surcharges


Capital gains tax


– Transfer between
spouses


– Incorporation
relief


– PPR, gift and entrepreneurs’
relief





F7


Q1: Consolidated statement of comprehensive
income and consolidated statement of financial position with adjustments to
include: PURP, share exchange, current accounts, impairment, revaluation, fv
adj.


Q2: Published accounts to include:
statement of comprehensive income, statement of financial position and SOCIE
from TB. Possible adjustments to include: revenue recognition, depreciation,
revaluation, tax & deferred tax.


Q3: Ratios with interpretation.


Q4/Q5: Qualitative characteristics, finance
leases, tangible & intangible assets, government grants.





F8


• Audit risk
including analytical procedures.


• Systems:
purchasing/sales (including tests of control).


• Evidence:
purchases/payables; share capital/directors transactions.


• Specific
standards/topics:


− communicating with those charged with
governance (ISA 260/265).


− materiality (ISA 320).


− external confirmations (ISA 505).


• Completion (ISA
580 – written representations)


• Auditor’s
reports





F9
Investment appraisal: this is a key topic
which is highly likely to be examined every time. The most common technique
assessed is NPV with inflation and taxation although be prepared for a twist.


Working Capital Management: exams to date
have covered much of this topic but it’s been a while since we’ve seen the more
numerical aspects surrounding inventory or payables management.


Valuations: cash flow based values have yet
to be examined


Business Finance: make sure you’re able to
discuss the impact that different policies may have on company by being able to
both calculate and interpret financial ratios.


Cost of Capital: it’s been a while since
we’ve seen any of the more technical CAPM based calculations regarding
de-gearing and re-gearing betas.





P1


• Corporate
governance: stock exchanges.


• Ethical theories
– Absolutism.


• Internal control
failures.


• Transaction cost
theory.


• Sustainability –
Social and environmental footprints.





P2


Question 1: Group statement of cash flows
plus ethics, possibly including inappropriate application of IFRS 10 and/or
accounting errors.


Other questions: Content of Questions 2, 3
and 4 can come from any part of the syllabus.


Possible topics which may be examined
include:


• Reconstructions.


• Employee
benefits and share option schemes.


• Financial
instruments.


• Foreign
currency.


• Fair value
measurement.





P3

• Decision trees.


• Strategic
change.


• Strategy
evaluation.


• Benefits
realisation.





P4


Section A


Business Valuation


Investment appraisal


Corporate reconstruction


Section B


BSOP model


Interest rate hedging


The Eurozone debt crisis





P5


• Building block
model linked to CSFs.


• Importance of
political factors in performance management.


• Evaluation of a
performance management system.


• Corporate
failure.


• Divisional
performance appraisal and transfer pricing.





P6


Corporation tax


- Capital gains groups: NGNL and rollover
relief.


- Degrouping charges.


- Overseas aspects: branch vs
sub/CFCs/transfer pricing.


Capital gains


- Reliefs: Rollover, holdover, gift, PPR
and letting.


Inheritance tax


- Lifetime gifts.


- Valuation of shares.


- Death estate computation.


Income tax


- Sole traders opening year rules, trading
losses.


- Self assessment admin: payment by
instalment, new penalty regime.
- Income tax comps at marginal rates, possible
overseas income.


VAT


- Partial exemption.


- Land and buildings.


- Registration.





P7


Core areas likely to be examined in every
paper:


• Engagement
planning and risk assessment.


• Engagement
procedures.


• Ethics and
professional issues.


• Completion (matters
to consider/evidence on file) and engagement reporting.


Plus:


• Planning.


• Subsequent
Events (ISA 560).


• Review
engagements.


• Obtaining work.


• Competition in
the statutory audit market.


• Improving the
audit report.


Please note: these are for the INT variant.
The UK variant is likely to additionally include an aspect of Insolvency.