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LSBF's June 2016 Exam Tips

Exam tips from the top tutors at LSBF. Just for you...


Section B
• ABC and target costing.
• Relevant costing.
• Budgeting theory with flexed budgets.
• All advanced variances.
• Divisional performance and transfer pricing.

• Chargeable gains – company making disposals with rollover and holdover relief.
• IHT – calculating IHT on lifetime gifts into a trust when the donor is still alive.
• VAT – due date for registration, calculation of VAT payable.
• Income tax – adjustment of profit for a sole trader/partnership, including capital allowances, for a sole trader in the beginning or middle of the trading cycle.
• Corporation tax – calculating corporation tax, large company and instalment payments.

• Section A: MCQs can cover any topic in the syllabus, but at least half will be on standards.
• Section B: Consolidations/ published accounts will be a 15/30 marker, or vice versa; the remaining 15 marker will probably be on interpretation with adjustments needed beforehand.
If you are registered for the exam and feel reasonably prepared give it a go: September sees the biggest expansion to the F7 syllabus for at least 15 years.

• Ethical threats and safeguards.
• Audit risk and response.
• Internal controls deficiencies/procedures/tests over sales.
• Substantive testing trade payables and receivables, and bank.
• Audit report scenarios.
• Internal audit – VFM audits.
• Reliance on internal auditor by external auditor.
• ISA 720 other information.
• Positive/negative assurance

• Q1: CFS or BS or PL, in that order.
• Q2/3: Usual suspects drawn widely from the syllabus.
• Q4: Maybe financial asset impairment, equity accounting, SMEs, sustainability, leases.

• Strategic analysis.
• Strategic choice.
• Management accounting techniques to support decision making (possibly close or continue).
• Process re-engineering and the need for IT controls.
• Project management.

• Hedging interest rate risk using forward rate agreement, interest rate futures, options on interest rate futures and collars.
• Real options – to abandon, expand or delay using the Black-Scholes option pricing model.
• Investment appraisal using adjusted present values, modified internal rate of return and internal rate of return.
• Cost of capital using the principles of Modigliani and Miller prepositions or geared and ungeared betas.
• Calculation of project specific WACC or WACC of combined activities.
• Valuation of business using free cash flows and price-earnings ratio methods. Best mode of payment – cash offer or share exchange.

• EVA.
• Appraising performance metrics.
• Balanced scorecard.
• Impact on performance management.
• Corporate failure.

• IHT with the death estate including BPR and APR and lifetime gifts into a trust and gifts with reservation.
• Domicile including deemed domicile and election to be treated as UK domiciled.
• Group question, involving losses, group relief.
• Research and development options for a large enterprise.
• Change of accounting date and trading losses made by an unincorporated business.
• Capital gains tax including entrepreneurs’ relief, shares matching rules and gift relief
• Incorporation relief.
• Residency rules, remittance basis and overseas aspects of income tax.
• Group registration for VAT.
• Partial exemption for VAT.
• Employee shareholder scheme/share option schemes.
• Ethics.

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