See also ACCA F1 Flashcards: Set 1 | Set 2 | Set 3 | Set 4
What is the UITF and what is its function?
(Accountancy regulation)
UITF = Urgent Issue Task Force. This is part of the Accounting Standards Board and tackles urgent issues not yet covered by accounting standards.
Describe ‘intrinsic’ and ‘extrinsic’ rewards.
An intrinsic reward comes from within; for example, a feeling of achievement or personal advancement. Extrinsic rewards come from outside; for example additional pay or praise.
What is IFAC?
IFAC = The International Federation of Accountants. IFAC is the global organisation of the accountancy profession.
Describe the ‘country club’ style of management in terms of Blake and Mouton’s grid.
High concern for people; low concern for the task.
What are the four ethical stances of Johnston and Scholes?
* Short-term shareholder interest
* Long-term shareholder interest
* Multiple stakeholder obligations
* Shaper of society
What are Schein’s three levels of culture?
* Artifacts (visual, structure, processes)
* Espoused values (strategies goals philosophies)
* Basic underlying assumptions
Draw and annotate Mendelow’s Matrix
What is a stakeholder?
Any person or other organisation affected by an organisation.
What is the name of the United States act that deals with Corporate Governance.
The Sarbanes Oxley Act.
What are the seven elements of the cultural web?
Symbols and titles,
Power relations,
Organisational structure,
Control systems,
Rituals and routines,
Myths and stories,
Organisational assumption (paradigm).
What are the four patterns of communication identified by Leavitt?
Y, wheel, circle, chain.
What are Charles Handy’s four cultural types?
* Power (Zeus)
* Role (Apollo)
* Task (Athena)
* Person (Dionysus)
What is corporate social responsibility?
Corporate social responsibility considers the extent to which the interests of stakeholders (other than shareholders) should be taken into account over and above what the law demands.
In Corporate Governance, what is a ‘NED’?
NED = Non-executive director.
Into what three categories can stakeholders be divided (not Mendelow’s classification)
Internal (such as employees), connected (such as customers,) external such as local people.
List five influences on ethical behaviour.
* National and cultural beliefs
* Education and employment
* Psychological factors
* Personal integrity
* Moral imagination
Which board committee is responsible for suggesting new directors for appointment?
The Nomination Committee
What are Hofstede’s four dimensions of national culture?
* Power distance
* Uncertainty avoidance
* Individualism-collectivism
* Masculinity
What are the fundamental principals of the ACCA’s Code of Ethics and Conduct?
* Integrity
* Objectivity
* Professional competence and due care
* Confidentiality
* Professional behaviour
Name seven potential barriers to communication.
Any seven from:
* Inappropriate language/terminology,
* Status,
* Emotion,
* Wrong medium,
* Not wanting to transmit,
* Not wanting to receive,
* Information overload,
* Noise/interference.
In Corporate Governance, what is meant by ‘comply or explain’?
The UK Corporate Governance Code has no force in law and is enforced on listed companies through the Stock Exchange. Listed companies are expected comply with the code or explain to shareholders why they haven’t.
Which board committee is responsible for advising on directors’ pay and bonuses etc
The Remuneration Committee
What are the five causes of inflation?
* Demand pull
* Cost push
* Import cast factors
* Expectations
* Increase in the money supply
Describe regressive tax.
A regressive tax takes a higher proportion of a poor person’s salary than it does for a rich person.
A simple example is VAT. If the VAT rate is 20% proportionally more taken from a poor person’s pay than from a rich person’s.
What are Porter’s five forces?
* Rivalry/competition,
* Threat of new entrants,
* Supplier pressure,
* Buyer pressure,
* Threat of substitutes.
What organisational level would you expect to deal with information that is historical, internal and detailed?
This information is typically used at the operational level.
What are the eight (or nine) team roles identified by Meredith Belbin?
Chairman,
Shaper,
Monitor/evaluator,
Company worker,
Resource investigator,
Team worker,
Plant,
Completer/finisher
and, sometimes, specialist.
What is meant by the ‘agency problem’ in corporate governance?
Shareholders (the principals) own the company; directors (the agents) run the company on a day-to-day basis, and should run it for the benefit of the shareholders. But they might not, so checks need to be performed (like audits).
What does PESTEL stand for?
Environmental influences:
* Political
* Economic
* Social
* Technological
* Ecological
* Legal
What are five differences between financial accounts and management accounts?
| Management accounts | Financial accounts |
| Any format | Format regulated |
| Forward and back | Historical |
| Often ad hoc | Routine |
| Not governed by statute | Governed by statute |
| Not subject to audit | Subject to audit |
What is the purpose of IFAC?
IFAC aims to protect the public interest by encouraging high-quality practices by the world’s accountants. Through its independent standard-setting boards, IFAC develops international standards on ethics, auditing and assurance, education and public sector accounting standards. It issues guidance to support professional accountants in business, small and medium practices and developing nations.
Under Corporate Governance rules, which two roles should be split?
The roles of chief executive officer and chairman should be split.
very useful ! thank you very much
Very useful indeed..
this is truly informative. thanks
Thanks
its is understanding and good