Accountancy as a profession (What & Why)

Accounting is aptly called the language of business. This designation is applied to accounting because it is the method of communicating business information. The basic function of any language is to serve as a means of communication. Accounting duly serves this function. The task of learning accounting is essentially the same as the task of learning a new language. To enable the accounting language to convey the same meaning to all people as far as practicable it should be made standard. To make it a standard language certain accounting principles, concepts and standards have been developed over a period of time.

Many accountants have the skills and experience to be business advisers and consultants for virtually any type of business or industry. Accounting is no longer just “bookkeeping and taxes.” Today’s accountants are prepared to be financial planners, business managers, fraud investigators, chief financial officers, directors and chief executive officers.

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    F9 Exam tips DEC-2012 ACCA Reloaded

    Paper F9 December 2012 Exam Tips:

    • Investment appraisal in all its glory, incl. calculating written down allowances and taxation effects; NPV & IRR;

    • Basic valuation methods, incl. Dividend Valuation Model, P/E ratios and Discounting Free Cash Flows;

    • Determining the cost of capital:

    • Risk-return relationship; Business and Financial Risk; the impact of gearing on the cost of equity;

    • Working with betas (both geared and ungeared); Using CAPM and WACC;

    • Calculating the cost of debt (redeemable and irredeemable) to the company, as well as required returns to
    investors (yields)

    • Working capital management management techniques:

    • EOQ; JIT

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      F4 Exam tips DEC-2012 ACCA Reloaded

      Paper F4 December 2012 Exam Tips:

      • Partnerships and their different forms

      • Remedies for buyer when seller in breach

      • Criminal v Civil law or Common Law v Civil Law (remember that the two “Civil laws” are NOT the same thing)

      • What is needed to form a contract ?

      • ICC Incoterms

      • Different charges, fixed v floating, that can exist

      • Members v Creditors voluntary liquidations

      • Insider dealing &/or Money Laundering

      • Corporate Governance

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        P7 Exam tips DEC-2012 ACCA Reloaded

        Engagement planning and risk assessment.
        Engagement procedures.
        Money laundering.
        Forensic audits.
        Subsequent Events (ISA 560).
        Competition in the statutory audit market.
        Improving the audit report.
        Going Concern.
        Planning, materiality, sampling, analytical review.
        Audit, business or financial statement risk.
        Group audits, joint ventures, goodwill, joint audit.
        Profit forecast.
        Outsourcing, service providers, use of an expert.
        CG, internal audit (ethics/outsourcing), audit committees.

        Tips should not be relied on – they are only intelligent guesses.

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          P6 Exam tips DEC-2012 ACCA Reloaded

          IHT with the death estate including BPR, APR and valuation rules.
          Overseas aspects of corporation tax including controlled foreign companies.
          Rules for personal service companies.
          Remittance basis for taxing overseas income and capital gains.
          Pensions, and the rules relating to ensuring that the amount invested in the pension plan give the taxpayer relief at the highest possible rate.
          Self assessment for individuals, consequences of filing the tax return late and paying the balancing payment late.
          Partial exemption for VAT, opting to tax a building, electronic filing of the VAT return, flat rate scheme and the capital goods scheme.
          Ethics and tax evasion/tax avoidance.
          CGT re-constructions/takeover.
          Penalties for errors, late returns.

          Tips should not be relied on – they are only intelligent guesses.

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            P5 Exam tips DEC-2012 ACCA Reloaded

            Learning curves and budgeting
            Non-financial performance measurement: balanced score card etc.
            Building block model linked to CSFs.
            Transfer pricing
            Corporate failure.
            Activity based costing
            Environmental management accounting including life cycle costing and costs of quality.
            ROI, RI and EVA.

            Tips should not be relied on – they are only intelligent guesses.

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              P4 Exam tips DEC-2012 ACCA Reloaded

              Large question including NPV, cost of capital, asset/equity betas.
              Foreign exchange risk management
              Corporate reconstruction
              Interest rate risk management
              Option pricing
              Written – possibly on the European debt crisis
              BSOP model
              Impact of macro economics and international financial institutions

              Tips should not be relied on – they are only intelligent guesses.

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                P3 Exam tips DEC-2012 ACCA Reloaded

                Environmental analysis, people with financial analysis ,take-over and mergers
                Culture and organizational structure.
                Process change, change management and outsourcing.
                Benefits realization.
                Information Technology – pricing strategy.
                E-marketing.
                PEST and Five Forces analysis.

                Tips should not be relied on – they are only intelligent guesses.

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                  P2 Exam tips DEC-2012 ACCA Reloaded

                  Q1- Consolidated cash flow ,IFRS 10 and/or accounting errors,Environmental considerations , corporate governance matters, management commentary
                  Q2 -IFRSs eg earnings per share, revenue,Employee benefits and share option schemes,Financial instruments,borrowing costs, asset impairments
                  Q3- reconstruction of a single company, faithful representation
                  Q4- IFRSs 10, 11, 12 ,13,5 – IAS17,19,21,24 , Current issues

                  Tips should not be relied on – they are only intelligent guesses.

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                    P1 Exam tips DEC-2012 ACCA Reloaded

                    • Governance, CG in other organizations – NGOs, public sector.
                    • Directors
                    • Board sub-committees ( Audit and Nominations )
                    • Quality of information
                    • Early indicators of at-risk companies
                    • Employees are aware of company strategy
                    • Environmental footprint and accounting
                    • CSR, TARA
                    • Internal control failures.
                    • Transaction cost theory
                    • Ethical theories and business codes
                    • Board structure
                    • Agency theory – stakeholders, Mendelow.
                    • Bribery Act.

                    Tips should not be relied on – they are only intelligent guesses. ( Past paper Analysis) 

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