Forum Replies Created
- Posts
P4 is by far one of the easiest paper content-wise (Few topics to cover) but what makes it difficult is; it is one of the most time-draught paper and hence strategy is key to passing this paper. The examiner himself has admitted over and again that the vast majority of students don’t cover all the three questions and yet kept on producing questions that will require at least 5 hours to complete and hence genuinely test your actual knowledge of the subject area. Obviously, ACCA is not interested in additional costs and hence limit the time to 3 hours and condemn passing P4 down to doing the best you can in your limited time and hope for the generosity of the marker. In some tuition class, they are even suggesting that if you get stuck with calculations, assume a percentage number and work it out. The examiner team for P4 is the worst it could get (a know-it-all accountant messing with Finance) and It is systematically encouraging students to hand pick topics, practice on them and hope to pass. My advice is thus dont freak out as there is nothing you gain from it. Focus on Investment appraisals (including on how to calculate cost of equity, WACC,converting currencies for international projects), Company valuations (using market, cash and asset basis) and Risk Management (SWAP and Islamic Finance is a focus for DEC 17). Produce fair attempt on two questions and you are guaranteed, you will pass. Trying to answer all the questions may compromise your chance of passing this paper as you can’t possibly produce good answers to all three in that limited time, in the end failing the exam. What an Irony!!
Interestingly enough though; the sample September/December 2015 question featured the Dec 2015 question on consolidated statement of financial position of a group with an overseas subsidiary so you wonder why they are so quite about the consolidated statement of profit or loss and other comprehensive income from the Sep 2015 sit. Are they implying anything here…wait and see but better to keep an eye on that.
I have gone through the examiner’s report for P2-UK and it seems the consolidated statement of cash flow hasn’t been examined since December 2013. Huh, that doesn’t seem to be a popular area but a potential suspect to appear in March 2016. The last time a consolidated statement of profit or loss and other comprehensive income was examined is in SEP 2015 (before that in June 2014).However, consolidated statement of financial position has frequently appeared on P2 exams with some variation.For example; December 2015 required the preparation of a consolidated statement of financial position of a group with an overseas subsidiary. The Jun 2015 paper question required the candidates to prepare a consolidated statement of financial position with purchase of two subsidiaries and the sale of another subsidiary. Dec 2014 featured again preparation of a consolidated statement of financial position for a group with a steep acquisition, unrecognized contingent liability, negative goodwill and an asset hold for sale. The June 2013 question required to prepare a group consolidated statement of financial position. The group was a complex group with questions about the nature of the group holdings and the dates on which control occurred. Hope that helps.