#LSBF #June14 #ExamTips #ACCA F4 * Judicial precedent. * Civil v criminal law. * Offer & acceptance. * Intention to create legal relations. * Doctrine of privity. * Breach of contract & remedies. * Liability of auditors in tort. * Volenti & contributory negligence. * Redundancy. * Types of worker. * Agency position of partners. * Doctrine of incorporation & Company names , promoters & pre-incorporation contracts, issue of shares, duties of directors (including ultra vires), company meetings & resolutions, CVL v MVL v administration, fraudulent & wrongful trading. F5 * ABC/target costing. * Linear programming & limitations. * Flexible budgets and budget revisions. * Mix & yield, sales mix and quantity variances. * Corporate performance, profit or non profit organisations. F6 * Q1: employment income including the evaluation of benefits, savings income and dividend income and interest payable on special loans, ISAs and the rules for individuals, child benefit income tax charge, introducing a partner into the partnership with opening year rules, computing the income tax payable, computing national insurance. * Q2: (a) corporation tax computation, adjustment of a trading loss including capital allowances for plant and machinery and relief for the trading loss, VAT or maybe a separate question, errors on the VAT return, VAT implications of a business offering a discount to customers, flat rate scheme for VAT. * Q3: capital gains tax for individuals a mixed bag. * Q4: the cash basis of accounting versus the normal or accruals basis. * Q5: the residency position of a number of individuals, IHT on making lifetime gifts into a trust. F7 * Q1: consolidated statement of financial position (maybe with P/L) with associate - no associate last time. * Q2: published accounts, possibly redrafting (missing for many years) & including SOCIE and EPS. * Q3: interpretation with cash flow (15 marks on standards). * Q4: mixed standards: EPS, fin inst, PPE, intangibles, provisions, substance, deferred tax, discontinued, etc. * Q5: concepts with standards, eg contracts, provisions, leasing, events after reporting period, impairment, etc. F8 * Conflicts of interest. * Threats to objectivity. * Confidentiality. * Audit risk with ratios to calculate. * Internal controls (objectives, procedures, tests) over multiple areas. * Substantive tests over payables. * Subsequent events. * Other information. * Audit report scenarios. * Reliance on internal audit work. * Pros and cons of outsourcing internal audit. F9 * Investment appraisals: NPV, capital rationing/asset replacement. Discussion question on risk and uncertainty – example - sensitivity analysis and probability distribution. * Working capital management: Quantity discount (EOQ) and factoring calculations or cash budget. Discussion of working capital financing and/or investment policies. * Cost of capital: WACC: calculating cost of equity using CAPM or dividend valuation model, cost of redeemable debt and bank loan/preference shares. Discussion of circumstances under which WACC can be used. * Business valuation: Valuation of equity using; DVM, P/E ratio and asset basis. Valuation of convertible debt and calculation of conversion premium. Explanation of weak/semi-strong and strong form of efficient market. * Sources of finance: The effect of different financing options on key ratios like EPS, debt/equity ratio and interest cover, including calculation of TERP. Discussion of factors to consider in raising short/long-term capital or equity/debt capital. * Risk management: Hedging currency risk using forward contract and money market hedge. Using purchasing power parity and interest rate parity theories to estimate future spot rate and forward rate respectively. P1 * Role of chairman. * Induction/performance appraisal. * Institutional investors. * AGM/proxy voting. * Global standards. * Failure in internal control. * Auditor conflict. * Risk committees. * Risk audit. * Absolutism & relativism. * Kohlbergs model. P2 * Group position or performance. Two mix questions. Plus current issue question in framework or integrated reporting or consistency. P3 * External analysis. * Stakeholder management. * Strategic choice. * Improving business processes. * Project management. P4 * Investment appraisal using modified internal rate of return and adjusted present value or net present value. * Mergers and acquisitions - valuation using free cash flows; cash or share exchange as purchase consideration. Discussing defensive tactics and regulations of takeovers. * Cost of capital using the principles of Modigliani and Miller prepositions or geared and ungeared betas. * Hedging exchange rate or interest rate risk using forward contract, futures, options and swaps. * Option pricing theory. Real options, example, option to abandon, expand or delay. Valuation of company using the Black-Scholes option pricing model and delta hedge. * Capital reconstruction schemes - designing a capital reconstruction scheme or assessing the success of a given scheme. P6 * IHT with the death estate including BPR, APR and gifts into a trust. * Changing the will after a person is dead, using a deed of variation to apply the reduced rate of IHT when a charitable legacy is made. * Company selling shares and the substantial share exemption or a company selling its trade and assets. * Research and development expenditure for large companies. * Controlled foreign companies. * Badges of trade, partnership with a partner joining/leaving with opening year rules, choice of accounting date, conditions to change the accounting date. * Trading losses at the beginning or middle of the trading cycle maybe in a partnership. * Personal pension schemes. * Errors on the VAT return – prompted and unprompted disclosure. * Capital gains tax including entrepreneurs’ relief, PPR relief/letting relief and shares matching rules. * Opting to tax a building, electronic filing of the VAT return, flat rate. * The capital goods scheme. * Overseas aspects of VAT including exports and imports. * Ethics and the duties of a senior accounting officer. P7 * Business risk and risk of material misstatement. * Ethics and professional issues, including money laundering and advertising. * Matters and evidence on various IAS/IFRS. * Criticism of a given audit report. * Discussion on benefits of proposed new audit report format. * Quality control of audit. * Prospective financial information. * Social and environmental reporting KPIs and evidence. * ISA 210 Preconditions for an audit. * ISAs 240, 250, 510, 550, 560, 720. Courtesy : LSBF, PQ
Posted on: Sat, 24 May 2014 14:30:00 +0000
Trending Topics
Recently Viewed Topics
© 2015