ACCA P2 Exam Tips December 2014

Following are the Exam Tips (Important Topics) of ACCA P2 Paper for December 2014 attempt that may appear in exams according to expert tutors and tuition providers.


Q1 Groups and ethics
Question 1 is so important to passing P2 that students must thoroughly practice a wide range of consolidation questions. However, after a break of two sittings, it would not be a surprise to see a consolidated statement of financial position examined.
Q2 and Q3
The examiner continues to test revenue, provisions and non-current assets held for sale on a regular basis.
IAS 41 Agriculture is new to the syllabus and should be considered highly examinable.
Some areas that have not been tested recently, or in less detail than expected, include:
– IFRS 10 and control
– Share-based payments (IFRS 2)
– Impairment (IAS 36)
– Deferred tax (IAS 12)
Q4 – Essay-style question
ACCA have widely advertised the inclusion of Integrated Reporting in their syllabi and therefore students should make sure that they are familiar with the contents and purpose of an Integrated Report. However, question 4 in recent P2 exams has focussed on extant accounting standards and documents. If this continues, then IAS 36 Impairment of Assets could be tested or, perhaps, the Framework.


– Section A: a 50-mark compulsory case study, including preparation of a group statement of profit of loss and other comprehensive income and/or statement of financial position, which may include discontinued activities, disposals, acquisitions or a foreign subsidiary. This will include other accounting complications such as financial

instruments, pensions, share-based payment and impairments.
There will also be discursive requirements on a linked accounting adjustment and social/ethical/moral aspects of corporate reporting.

– Section B: Q2 and Q3 – two case study questions, one a multi-part question covering a range of topics or a theme such as deferred tax, foreign currency transactions, financial instruments, pensions, share-based payment, non-current assets (recognition and/or impairment of tangible and intangible assets), borrowing costs, the effect of accounting treatments on earnings per share or ratios; the other an industry-based question testing a 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: a discussion question looking at current developments in corporate reporting and problems with existing standards, such as regulatory issues over adoption and consistent application of IFRSs, implementation issues, updating the conceptual framework, impairment in the current economic climate, management commentary, application of the definition of control, improvements in performance measurement.


– Q1: Consolidated position statement with adjustments.
– Q2 &3: Two mix questions with a host of issues including maybe revenue, pensions and financial instruments.
– Q4: Current issues of integrated reporting or transparency or equity accounting or maybe SMEs.

First Institution

– Q1: Group question on foreign subsidiary. Will contain a variety of non-group topics too.
– Ethics.
– Revenue recognition or leases – current issue.
– Deferred tax.
– Share based payments.
– Pensions.


Q1: Consolidation on SoFP including foreign  subsidiary
Q2 & 3: Various IFRS/IAS  possibly Leasing, Revenue, Provisions and Contingencies, Almost certainly Agriculture (new to syllabus)
Q4: Following areas

  • Impairment of financial assets
  • Hedge accounting
  • When does debt seem to be equity
  • Integrated reporting (new to syllabus)

Beckers Professional

– Consolidations in Q1.
– Disposals and complex groups (June 2010).
– Disposals (December 2009).
– Step acquisitions (December 2011).
– Cash flow (Dec 2013).
– Foreign Sub (June 2010).
– Complex group (Dec 2012 and June 2013).
– Consolidated profit or loss was examined for the first time in over three years in the June 2014 paper.
– Foreign subsidiaries have not been examined for a few exams.
– Financial Instruments (IAS 39/IFRS 9) to include hedge accounting, questions on this topic tend to appear in most exams
– Employee benefits (IAS 19), this standard was amended by IASB in 2011 and is now examinable under the new standard.
– Standards: Leases (IAS 17), share-based payments (IFRS 2), impairment of assets (IAS 36), deferred tax (IAS 12).