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LSBF's ACCA exam tips
26 May 2017
LSBF's JUNE EXAM TIPS
Sections A and B: Costing methods (ABC, throughput and lifecycle) and decision making (relevant costing, linear programming and uncertainty).
Section C: Transfer pricing, budgeting and advanced variances.
Income tax looking at a sole trader or partnership business and calculating the tax adjusted profit. Calculating the income tax liability, with the savings income and dividend income nil rate bands being examined.
Corporation tax looking at a company with a long period of account, requiring two corporation tax computations. Corporation tax implications of companies belonging to a 75% loss group.
Chargeable gains calculating gains made by an individual on disposals of residential property versus disposals of non-residential assets.
Inheritance tax calculating IHT on lifetime gifts made within seven years, with taper relief, and looking at advantages of lifetime gifts over death gifts.
VAT calculation of VAT payable, overseas aspects of VAT and VAT groups.
Watch out for some sort of tax planning question, for example, how profits from a company should be extracted or looking at the tax planning opportunities available to married couples.
For the 60 marks of MCQs in Section A and B, the entire syllabus must be covered, including the more obscure standards (recent questions have covered R&D, government grants, borrowing costs, investment properties, etc).
Depreciation and revaluation, deferred tax, associates, effect of company payment policies, etc, on working capital ratios. Watch out also for objective test questions, that is where no alternative answers are given to guide you, usually in numerical questions.
Section C: Ratios & interpretation, including adjustments to be made before comparison to last year or a different company; published accounts with standards, including cash flow aspects; consolidations.
Corporate governance recommendations.
Audit committee roles/benefits.
Audit risk and response.
External auditors responsibility for fraud/laws and regulations, affecting the client.
Internal controls: deficiencies in the clients systems (purchasing/ payroll), recommendations for improvement and tests of control.
Substantive procedures on revenue, tangible non-current assets, payroll, inventory.
Computer assisted audit techniques.
Auditor relying on the work of others.
Section A various questions from across the syllabus.
Section B valuations and risk management.
Section C investment appraisal, including an NPV and business finance.
Roles of NEDs and chairman.
Board performance evaluation.
Rules v principles governance.
Public v private sector governance.
Stakeholder prioritisation (e.g. Mendelow).
External IC reporting.
Objective v subjective risk.
Bribery and corruption.
Gray, Owen and Adams.
Corporate codes of ethics.
Integrated reporting and social/environmental footprints.
Q1 balance sheet or CFS or Sploci, in that order.
Q2 and Q3 usual suspects of FI and NCA and impairment and revenue and leases groups, and so on.
Q4 investors needs or provisions or groups current issues.
Evaluation of options.
Suitability of and Implementation of BPR.
Improving website effectiveness.
Foreign exchange risk.
Mergers & acquisitions.
Suitabilty of metrics.
Financial approaches to decision making.
Value based approaches to decision making.
Link between new processes and new information requirements.
IHT with the death estate including BPR and APR and lifetime gifts, gifts with reservation and relief for a fall in value. Domicile including deemed domicile and election to be treated as UK domiciled and deed of variation.
Takeovers and mergers.
Group question, sale of shares versus sale of the trade and assets.
Relief for trading losses made by a sole trader/partnership at the beginning or end of the trading cycle.
Residency rules, remittance basis and overseas aspects of income tax.
Investment in a VCT the theory versus investing in a registered pension scheme.
Overseas aspects of VAT.
Share incentive plan versus EMI share option scheme.
Ethics conflict of interest or duties of a senior accounting officer.
Audit of public sector performance information, social and environmental info.
Accounting matters and audit evidence.
Ethics and professional issues including money laundering, advertising, quality control.
Audit report scenarios including KAM, MURGC.
For UK students, insolvency.
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