Exam Tips for December 2010 ( Various collection)

P1 Professional Accountant by Alice CullenYour P1 lecturer has traveled to Forks,Washington in USA

to interview Edward's sister. There, he was recruited by the Cullens to join in a major battle against a
band of new rabid vampires from Seattle! Your lecturer fought alongside the Cullens who were aided by
werewolves led by Jacob Black and Sam Uleh from La Push. After the victorious battle, he pleaded with
Alice to share her vision of the upcoming Professional Accountant paper with ACCA students. Alice has
the gift to predict imminent events. Initially Alice refused as she said that students should not question
spot but should instead study everything. After much persuasion (from twilight time to breaking dawn) she
relented, and finally agreed to reveal these exam tips for the December 2010 sitting:
i) Core topics that can be applied in almost every exam:
a. Nine concepts of corporate governance (e.g. Q1 in December 2007, June 2008, etc.)
b. Agency theory
c. Directors remuneration (although remuneration committee finally appeared in June 2010)
d. IFAC/ACCA code of ethics and conduct (e.g. integrity in Q3 in December 2009 and all 5 fundamental
principles in Q4 June 2010).
e. Technical knowledge for internal controls and risk management - COSO, Turnbull Guidance and TARA
(e.g. new COSO Guidance on Monitoring in Q3 in June 2010).
f. Sub-committees (especially audit committee which has not yet been tested)
g. Types and categories of risks (be sure to identify the specific risks in the scenario)
ii) Core topics not yet tested:
Nil. But ethical theories were not tested in June 2010.
iii) Topics which you cannot bluff (so must know) which are in the syllabus and have not yet been tested:
a. EMAS and ISO 14000
b. ICGN and OECD Codes
c. SOX - A key topic in real life but only tested once (Q4 in June 2008 mentioned but required no
technical knowledge of Section 404 of SOX).
c. Johnson & Scholes four ethical stances and Crane & Matten's corporate citizenship
d. Full cost accounting.
iv) Edge topics:
a. Transaction cost theory
b. Institutional investors, including shareholders activism and when to intervene. Of all the topics in the
Pilot Paper and Supplement to the Pilot Paper, this is the only key topic not yet tested. According to Paul
Merison, the section in study text is copied from David Campbell's book.
c. Company law topics which the examiner likes e.g. retirement by rotation, time limited appointments,
service contracts, insider dealings, etc. on page 70 of BPP.
d. Succession planning
e. Risk policy statement and risk register.
v) Student Accountant technical articles not yet tested:
a. Risk and environmental audit - definitions, stages of risk audit, 3 elements of environmental audit, etc.
(Contents and advantages of external risk audit were tested in December 2009).
b. Risks topics from Changes to the Syllabus effective June 2011 should be read now. Examples include
business and financial risks, and ALARP.
c. Corporate governance - internal and external actors* [Trade union was tested in June 2010 but other
actors like company secretary, stock exchanges, small and institutional investors, etc are potential future
topics]
d. New articles to be published between July to December 2010. = 'Non-corporate corporate governance'
on public sector organisations and charities and voluntary organisations.
vi) Professional marks - Familiarize with formats of briefing notes, speech, narrative statement (in annual
report) and press statements as you should already be familiar with letters, memos and reports. Majority
of marks are awarded for layout format, flow, persuasiveness and quality of English. Press Statement is
unlikely as just tested in June 2010.
vii) Scenario Themes:
a. Company located in a developed country acquires a company in a developing country; to test corporate
governance and investment and sovereign risks.
b. Industries which produce hazardous waste e.g. chemical, mining, nuclear/power plant, deforestation,
etc.; to test corporate social responsibility. The risks involved in a nuclear power plant appeared in Q1
June 2010.
c. Banking failure e.g. Lehman Brothers Inc. and Bear Stearns, due to poor controls, risk management
and governance. Tested in June 2010 in an optional question on whether directors should waive part of
their contractual remuneration if the company under-performs due to their poor management.
d. Climate change contributed by companies carbon emissions.
e. Case studies involving independence and threats to auditors/corporate accountants or directors.
f. Intervention by institutional investors.
g. CEO and/or executive directors with excessive remunerations and/or unfettered powers.
h. Case study to identify ethical stance e.g. a relativist or at Kohlberg Level 3 or a pristine capitalist.
i. Product failure due to internal control quality problems, e.g. recall of Toyota and Honda cars (unlikely to
be tested immediately since exam questions are set 18 months in advance. For David Campbell, he
apparently set questions in September/October for next December exams)
j. Not-for-profit organization; so far not yet tested except for a question on football club and public sector
organisation (Hesket Nuclear in June 2010).
Note: The examiner tested on core topics in the first two sittings but switched to applications/evaluations
(and even common sense) questions in the last four sittings. The above is a guidance on what to focus on
rather than a list of exam tips. In any case, after six sittings, the examiner has to repeat topics as Paper
P1 has a narrow syllabus. According to Paul Merison, David Campbell said "I am glad I am not sitting P1!
There is nothing to study. How can I come up with new questions. I have to repeat myself". P1 is an
application based paper.

P2 Corporate Reporting by ex-student Chan Tsu Chong

1. ANSWERING TECHNIQUE/STEPS
i. Identify issue, e.g. the issue here is whether or not financial instrument is properly recognized and
valued
ii. Refer to FRS, e.g. according to FRS139, the financial instrument is classified as XXXX, and will be
recognized if XXXX and measured at fair value
iii. Apply to case, e.g. in this case, the financial instrument meets the definition and classification of an
XXXX. Hence it should be recognized at fair value and not historical cost
iv. Give double entry, e.g. the double entry (or adjustment) that needs to be made is DR XXXX CR
XXXXX
2. MY HIGHLY UNRELIABLY TIPS
Q1 Group accounts
- either cash flow statement or consolidated balance sheet
- with major foreign exchange retranslation adjustments
Q2/Q3 Issues based questions
- Deferred tax
- Related parties
- Provision
- Joint ventures, associates
- Segment reporting
Q4 Current issues
- environmental and social reporting
- revised FRS3
- Financial reporting and accounting scandals – why has CR failed to prevent the 08/09 financial crisis?
- EPS (including revised standard)
- Revised framework on preparation and presentation of financial statements
- Earnings management
- Not-for-profit reporting
3. CORE TOPICS THAT YOU MUST KNOW UNLESS YOU WANNA RESIT
(High probability that it’ll be examined. May come out in whole Q2/Q3, or small segments throughout the
paper)
Sorted by order of importance
- FRS 116 – PPE
- FRS 136 – Impairment
- FRS 137 – Provisions
- FRS 132 & 139 – Financial Instruments
- FRS 118 – Revenue
- FRS 121 – FOREX
- FRS 2 – Share-based payments
- FRS 119 – Employees benefits
- FRS 138 – Intangible Assets
- FRS 128 – Associate
- FRS 131 – Joint Venture
- FRS 124 – Related parties
- FRS 102 – Inventories
- FRS 112 – Income Taxes
- FRS 108 – Accounting policy, changes, etc
- ED on Fair value
- ED on Management commentary
4. TOPICS THAT APPEAR ONCE IN A BLUE MOON IN SMALL SEGMENTS (fringe topics)
- FRS 110 – Events after balance sheet date
- FRS 117 – Leases
- FRS 120 – Gov Grant
- FRS 123 – Borrowing cost
- FRS 140 – Investment Property
- FRS 5 – NCA HFS and Discontinued operations
- Ic Int 112 – SPE

P4 Advanced Financial Management by ex-student Wong Woon LeongAs every candidate should
know, the new examiner will come in and the emphasis of exam areas may be totally different.
Just follow any publication or information from new examiner and if there is none, please DO ALL PAST
YEAR QUESTIONS including the paper 3.3 questions will be very helpful in coming exam.
Therefore, no guesses are recommended and it is very detrimental, if any!
TIPS: Focus on core topics and do all past year questions.
**Hopefully he will not be as ‘nasty’ as old examiner, which is known for high uncertainty and lots of
surprises! **
P5 Advanced Performance Management by ex-student Yeoh Chen Lee
1. Scope of strategic performance measures in the private sector. Analysis of financial and non-financial
performance
2. Divisional performance and transfer pricing issues.
3. Problems with budgeting.
4. Performance hierarchy. Linking strategic decisions to strategic options using models such as Ansoff’s
matrix or the BCG matrix.
5. Corporate Failure- this has not been examined in any depth since Dec 2007.
6. Environmental management accounting
7. Behavioural aspects of performance management and linking to reward system.
8. Performance prism

P6MYS Advanced Taxation by ex-student Tan Chew Ping

Main Question
1. Unit trust/ Reit/ Investment Holding Company
(Comparison- compare and contrast, tax computation)
2. Rpgt (most likely)
3. Transfer pricing/ Tax Audit/ Tax Investigation/anti avoidance
4. Double Taxation Agreement / Permanent Establishment / withholding tax
5. Estate (computation)/ settlement (s65)
6. Transfer pricing / Advance pricing arrangement / Thin capitalization
Sub Question
IPC, RDC
Group relief/ control transferred,
Fundamental knowledge
Allowances for increased export- PU(A) 309/2003
Islamic instruments

P6MYS Advanced Taxation by Michael Yeo and Chong Gek Chuang

RPGT

P7 Advanced Auditing & Assurance by ex-student Yeoh Chen Lee

1. Risk-based and/or planning scenario in the compulsory section A
2. A number of requirements asking for audit procedures and required evidence in respect of specific
financial reporting issues
3. A practice-based scenario looking at professional, ethical and quality control issues
4. Specific ISAs may be examined in sufficient detail to warrant learning the key elements for regurgitation
in the exam, such as comparatives (ISA 710) other information (ISA 720) or opening balances (ISA 510)
5. Due diligence or forensic audit, money laundering
6. Ethics, practice management and other professional issues
7. Auditing in a Computer Based Environment / E-commerce assurance
8. Assurance work associated with environmental parameters
9. Materiality
10. Audit report – appraise content and form

P7 Advanced Auditing & Assurance by ex-student Wong Woon Leong

Please read the changes to acca qualification @
http://www.facebook.com/l/52088otvTgTe09PCo24WahHafQA;www.accaglobal.com/pubs/students/public
ations/student_accountant/archive/sa_june10_ACCAQual2011.pdf
Which will be effected from June 2011, meaning December 2010 syllabus will remain unchanged.
• Money laundering
• Audit risk
• RPT
• Reliance on Work of experts
• Written representations
• Procedures on interim review
• Procedures on e-commerce/IT
• Forensic audit
• Social and environmental audit
“Touch and Go” on all topics before exam and remember to read examiner’s article which will almost be
featured in the exam questions whenever it is published.