What the ACCA Examiners said Sarah Colley, FCCA

Contents Comments for each paper from examiner Includes key changes from June 2011 exams Common themes

F5 Performance Management - comments Basics done well including variances and budgets Struggled with linear programming, planning and operational variances, pricing strategies and classic performance management questions Must be able to discuss subjects, not just perform routine calculations

F5 Performance Management – What’s new Backflush accounting is deleted Included - Specialist cost and management accounting techniques - Decision making - Standard costing and variance analysis

F7 Financial Reporting comments Basic areas done well on Qu 1- 3 Weak when non standard requirement such as cashflow extracts, complications in group accounting questions. Must relate ratio comments to scenario Qu 4 and 5 poor, failure to refer to accounting standards and demonstrate understanding Handwriting getting worse

F7 Financial Reporting – What’s new Syllabus largely same but some more rules based requirements Will continue to test several standards within question 4 & 5 To ensure understanding rather than mechanics will test in a non standard way

F8 Audit and assurance comments Most students are completing all 5 questions but many leave question 1 until last Other strong areas, ethics, report to management, going concern indicators Weaknesses include assurance, audit risk, substantive procedures vs test of controls, audit reports, definitions Layout poor and question requirement not answered F3 knowledge

F8 Audit and Assurance what’s new Nothing major, and no future changes planned either to syllabus or exam style

F9 Financial Management - comments Frequently examined areas including NPV, IRR, WACC, cost of debt, working capital management consistently done well Questions on long term finance and impact of financing on financial position never answered well To improve study whole syllabus including theory and link this to techniques, try and reflect on what a financial manager would do

F9 Financial Management – what’s new Addition of Islamic Finance but only at knowledge level Structure of exam to stay same Level of questions remain same

P1 Governance, Risk and Ethics comments Areas done well include core corporate governance themes, knowledge marks, time management and organised answers Weak areas where tasks are 2 parts, answering questions with verbs such as evaluate, construct and assess, ethical reasoning task and professional marks in Qu 1 Must not question spot Must read and study the case and each question before starting the answer

P1 Governance, Risk and Ethics – what’s new New name New content on risk: - dynamic nature of risk assessment - management responses to changing risk assessment - risk appetite - ALARP - objective and subjective risk perception - related and correlated risk

P2 Corporate Reporting comments Basic knowledge of IFRS, the written parts of topical issues, cashflows and new goodwill calculation The question is often not answered at all or all parts or scenario not used. Layout is weak and application of knowledge is lacking To improve need to apply knowledge, understand the principles, write better essays, do more revision and manage stress

P2 Corporate Reporting what’s new IFRS 9 IASB work programme IFRS for SMEs Reorganisations More group accounting in future Format still same, Qu 2 major theme, Qu 3 specialised industry, Qu 4 current development with application in part b

P3 Business Analysis - comments Strong areas, strategic position, choice and implementation, IT and financial analysis Poor areas, business process change, project management, people and exam technique Practise doing questions in full to time, answer requirement, use quantitative data provided, rational model and the interconnections

P3 Business Analysis – what’s new Lots!! Evaluation of business forecasting models Establish pricing strategies including financial and non financial factors Project management restructured Performance and reward management and quality removed Pilot paper available on ACCA website

P7 Advanced Audit and Assurance - comments Good performance on requirements featuring risk assessment, discussion of ethical and quality control matters, audit procedures and factual knowledge Poor answers included bullet points and waffle, with a failure to demonstrate higher level skills Need to learn clarified ISA and improve application skills

P7 Advanced Audit and Assurance – what’s new No change on focus Some requirements may be embedded in scenario Few requirements will be based solely on factual knowledge More practical requirements

Common themes Time management Lack of reading around Dealing with questions in a non standard format Need to practise full questions to time Not answering question requirement Examining whole syllabus Exam based on real life situations

Questions