ACCA F5 Exam Tips June 2012 PART A COSTING TECHNIQUES Activity based costing Target costing Environmental accounting

PART B DECISION MAKING Linear Programming. Please do not forget to take pencil, ruler and eraser along with you. You may need to draw diagram to find out optimal point on graph paper, which will be provided by the ACCA. PART C BUDGETING Time Series Analysis. Time series is not examined since along. It is very important forecasting technique in practice CVP analysis is not examined since it is included in ACCA F5 PerformanceManagement syllabus. It may be examined as part of a question for up to 6 marks. PART D STANDARD COSTING Basic variances. Mix & Yield variances. PART E PERFORMANCE MEASUREMENT Divisional performance measurement. It includes ROCE, RI & EVA Balance Score Card Critical Success Factors (CSFs) & Key Performance Indicators (KPIs) Behavioural aspects of performance measurement. It includes issues such asevaluating managerial performance, rewarding performance, encouraging goalcongruence.

F5 Dec 2011 Specialist Cost and Management Accounting Techniques: Environmental accounting techniques have not yet been tested under the new syllabus, so could feature. Throughput accounting featured numerically in June. ABC vs AC or target costing is also possible. Decision making techniques: There is a trend for pricing to be examined with other areas of the syllabus, for example learning curves. Relevant costing, CVP, make or buy or other short term decisions could feature as dealing with risk and uncertainty and limiting factors have featured recently. Budgeting: Discussion marks often focus on the appropriateness of budgeting types or the behavioural impacts of types of budgeting. Numerically it could be tested via time series as a forecasting method. Standard costing & variance analysis: Variances are likely to feature in the exam, students should be prepared for mix and yield variances, planning and operational variances as well as the basic variances and operating statements. Questions typically require thought about the most appropriate layout and could include discussion of variances which have already been calculated. Performance Measurement and Control: In June, there was a change in emphasis, with this being the first paper not to contain a question focusing on interpretation of performance and financial vs. non financial measures. Detailed knowledge could instead be required on any of the performance measurement tools. Transfer pricing has not been examined recently, so could feature.

F7 Tips
This post provides our subject specialists best guess at areas that may come up. The areas suggested below should not be studied to the exclusion of others. Possible important areas to cover for ACCA F7:

Question 1: Consolidated SOCI and/or SOFP with one subsidiary plus associate with intragroup adjustments and fair value adjustments. May include written part on a group topic. Question 2: SOCI and SOFP preparation from TB or restatement with usual adjustments for depreciation, revaluation, current/deferred tax plus others such as leases/substance, financial instruments (change in FV or amortised cost). May include discontinued operation/EPS/SOCIE. Question 3: Interpretation and/or statement of cash flows. Could focus on specific part of SOCF or specific ratios. Questions 4 and 5: One question in context of conceptual framework, and the other containing one or two discrete topics, such as regulatory framework, inflation, government grants, discontinued operations, impairments, deferred tax, leases or intangible assets.

Question 1, Consolidated satement of Income, subsidiary and associate, mid-year acquisition, share for share exchange, nci based on share price, fair value adjustment, intra group sales and pup, 5 mark chat exclusion of subsidiary from consolidation Question 2, Usual question 2, preparation of financial statements, Financial Position, Income, Comprehensive Income, Changes in Equity from a trial balance Question 3, Report on financial performance possibly a simple cash flow included Question 4, Framework, possible element of reliabilty, relevance, faithful representation Question 5, Development expenditure or a complex asset depreciation