P2 study tips

Hey guys, just came across these study tips for P2 and thought it will be useful for everyone.

Check those out and don’t get too stressed, P2 is nothing but another ACCA exam, which is quite challenging, but manageable!

If you like it, then study it so well that u shine in exam, if you don’t like it, then study it just so you can pass it and forget about it forever 🙂
best of luck!
ansi

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ACCA P2 Tips & FAQs

Do not ignore ethics it appears in every section A question and could have up 10 marks.

Always apply your 5 standard workings when doing CSFP. This will help ensure easy marks are picked up and it is easier for the marker to follow what you have done.

Do not ignore the current issue question. Often it contains numerical aspects of an accounting standard you are familiar with as well as the current issue. E.g. reviewing the use of FV and the new rules on financial assets in IFRS9.

Practise as many questions as possible across the syllabus, and don’t only concentrate on consolidation. Practice writing out pro-formas so you can do this quickly and efficiently on exam day.

Use the reading time effectively – decide which question you are not going to attempt from Section B and then read the Section A question.

If you need help with Accounting Standards, read Clare Finch’s guide to IFRS.

If you struggle with Groups, read Tom Clendon’s guide to Group accounts

Consolidation is hugely important but you can’t pass the exam on this alone – a significant number of marks in the consolidation tests your understanding of other accounting standards.

Don’t overrun your time on part A of question 1. There are often easier marks available in pasts B & C.

If you can’t do something ignore it and move on – time is very tight and there is no point staring at a blank piece of paper if you really don’t know what to do.

If you can’t do something ignore it and move on – time is very tight and there is no point staring at a blank piece of paper if you really don’t know what to do.

In addition to consolidation the examiner is particularly keen on:

•Revenue Recognition
•Financial Instruments
•Pensions
•Deferred Tax

The examiner writes articles that are published on accaglobal.com – search for “Graham Holt”.

An understanding of the Accounting framework is vital in being able to discuss any issues surrounding an accounting standard or proposed change to that standard.

Unlike F7, there are very few marks, if any, for simple figures in the Consolidation exercise. Marks are concentrated on the adjustments and detailed computations of key group issues, like Goodwill, NCI etc. Make sure your workings are clear and fully explain any adjustments you make to comply with relevant IFRS.

Do not treat the Consolidation exercise as being all 50 marks of question 1. It will typically be 35 so allocate the correct time to it and the other elements in Q1.

In scenario style questions in section B, be sure to state the relevant accounting standard for any advice that you give, together with the relevant rules from the standard and then subsequently state the advice on correct treatment of facts in the scenario. Don’t be tempted to jump straight to a statement of the correct treatment as marks will not be maximised by doing this. Read articles and read around the subject.

Do not add up the accounts.

Start each question on a fresh page.

BE NEAT in the exam.

Time management (or lack of it!) is the most common reason for failure.

Read the examiners’ comments on the ACCA website.

FAQs
Q. What is the most commonly tested area in P2?

A. Groups and ethics. Ethics are always part of the 50 mark question section A. They are easy marks and often the same scenario is repeated in different sittings. E.g looking at the behaviour of directors. Students often run out of time on section A at the expense of picking up these easy marks.

Q. How much of F7 is assumed knowledge for the P2 exam?

A. Groups ( if you know you struggled with this you will need to review your F7 notes), some accounting standards such as IAS 37, IAS 38, IAS 16.

Q. How do you deal with complex consolidation questions?

A. The key is to concentrate on the basics and the easiest numbers first, and then worry about the complicated adjustments. You can pass the exams without being able to do the most difficult parts of questions.

Q. Which questions should I do and in which order?

A. Use your reading time to decide this. Leave your least favourite question until last. Attempt the question you are most comfortable with first. If you start with the compulsory 50 mark question then watch your time!

Q:What does it mean to have to ‘explain the accounting treatment?’

A: Well it doesn’t mean just list a bookkeeping journal. You need to do this and much more at this level. Follow the principles used in all accounting standards that is, Recognition, Measurement and Presentation (RMP). For recognition explain which element of the framework we are dealing with. What is being described in the question – an asset or an expense? Then state how you would initially measure the value of it. So, would you capitalise attributable costs too? Then state how measurements changes subsequently maybe because of depreciation or impairment. Finally note where in the accounts you show the amounts measured.

Q:I never have time to complete the paper. What should I do?

A: Don’t despair, it is the same for everyone. Allocate time to each question and stick to it strictly. You will get the easier parts of questions done this way and stand the best chance of passing. Look, if you were lost in a strange city trying to find your hotel you wouldn’t keep wandering around, you would get a taxi! So, when time’s up on one question, get a taxi straight away onto the next one!

Q. What is likely appear in question 1 of the June 2011 exam?

A. We cannot tell, as we’ve not seen the exam, but my thoughts are…GROUPS – statement of position with a foreign sub with ethics and related party transactions with lots of accounting adjustments

Q. What is likely appear in question 1 of the June 2011 exam?

A. We cannot tell, as we’ve not seen the exam, but my thoughts are…GROUPS – statement of position with a foreign sub with ethics and related party transactions with lots of accounting adjustments

Q. What could come up in questions 2 and 3 of the June 2012 exam?

A. Again, we’ve not seen the exam, but we think it might be…ACCOUNTING STANADARDS – a mixed bunch of applying accounting standards – deferred tax, financial instruments, the new topic of reconstructions of an insolvent company would probably be examined in Q2 or Q3, foreign currency (possible hedging again) impairment including some obscure aspects.

Q. What may be in the current issue question?

A. Might be revenue recognition, international issues, or developments on the homework. Candidates who are well prepared on this area can score very well.

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Source: https://www.kaplan-exam-tips.com/page/acca-p2-tips-faqs