P2 Int – exam tips – December 2013 (BPP, Kaplan, First Intuition, LSBF, Opentuition)

Exam tips are out! Enjoy but do not rely on them.

BPP

Section A
• Group statement of profit & loss and other comprehensive income and/or statement of financial position. May include discontinued
activities, disposals, acquisitions, statement of cash flows.
• Discursive requirements on linked accounting adjustment and social/ethical/moral aspects of corporate reporting.

Section B
• Q2: Multi-part question covering themes such as – deferred tax, foreign currency transactions, financial instruments, pensions, share-based payment, non-current assets, borrowing costs, the effective treatments on earnings per share or ratios.
• Industry-based question testing range of standards such as accounting policies and the framework, leases, grants, IFRS for SMEs, reorganisations, provisions, events after the reporting period and related parties.
• Q4: current developments in corporate reporting and problems with existing standards – debt vs equity, implementation problems with IFRSs, management commentary, application of the definition of control, performance measurement, conceptual framework, impairment in the current economic climate.

First Intuition

Q1: Group question on disposals, piecemeal acquisitions or cashflow.
• Ethics.
• Revenue recognition – current issue.
• Deferred tax.
• Share based payments.

Kaplan

Q1: Groups and ethics. A CSFP has been examined in the past five exams so there may be a change to consolidated SOCI or a consolidated statement of cash flows. If this is the case, it is likely the question will involve a change in the group structure.
Q2/Q3: Possibly a focus on P2-only reporting standards, which were noticeably absent in June 2013. Accounting issues possibly examined here include hedge accounting, debt or equity?; foreign currency transactions; share based payments; deferred tax.

Q4: Essay style. Due to the recent release of exposure drafts, leases and the impairment of financial assets are both very timely issues. Students should be aware of the criticisms of the existing standards.

Becker Professional Education

• Consolidations in Q1.
• Disposals and complex groups (June 2010).
• Disposals (Dec 2009).
• Step acquisitions (Dec 2011).
• Cash flow (Dec 2010)
• Foreign sub (June 2010).
• Complex group (Dec 2012 and June 2013).
• Group cash flows and foreign subsidiaries.
• Financial instruments (IAS 39/IFRS 9), to include hedge accounting.
• Employee benefits (IAS 19), standard amended by IASB in 2011, now examinable.
• Leases (IAS 17).
• Share-based payments (IFRS 2).
• Impairment of assets (IAS 36).
• Deferred tax (IAS 12).
• IFRS 1 First-time adoption.
• Topical issues – the financial crisis, fair value accounting, financial instruments, revenue recognition issues and leasing issues.
• Capital reconstructions.
• IFRS 13 fair value measurements (hierarchy of inputs).

LSBF

Q1 p/l or cfs perhaps
Q2&3 mix
Q4 equity or integrated reporting perhaps

Opentuition

• Consolidated Statement of Cash Flows (long time since asked!) OR tent structure including a foreign subsidiary (35 marks); 8 marks of corporate governance and 7 marks chat about management commentaries
• Scenaria question with 4 problem areas worth 5 – 7 marks each with up to 12 references to IAS / IFRS. Occasionally, the directors will have proposed an appropriate treatment – just occasionally! So, be aware that the proposed action may in fact be ok – it’s not always a poor choice by the directors
• Similar to question 2 – a scenaria question with 3 – 4 parts worth anywhere from 5 – 12 marks with up to 6 references to IAS / IFRS
• Current issue question – the last 3 have been on proposed revision to IAS 37 Provisions and Contingencies, IFRS 13 Fair Values and heavy discussion about how much disclosure is “enough” and how much is “too much”. There hasn’t been a 25 marker on Management Commentary since it started to become a fashionable discussion topic.

De Monfort
Section A
* Statement of cash flows.
* Foreign currency translation.
Section B
* Debt v’s Equity (see article).
* Fair value accounting.
* Non current assets.
* Financial instruments.
* Reconstruction accounts.

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Source: https://www.pqaccountant.com/
Very best of luck with your exams!
ansi