ACCA P2 Exam Tips:
ACCA P2 Corporate Reporting Exam Tips for June 2015 session are given as follows by famous tuition providers
Q1 Groups and ethics: Consolidation of an overseas subsidiary hasn’t been tested since 2011 so this is a possibility. Q1 is important to pass P2. Students must practice a wide range of consolidation questions.
Q2 and Q3: IAS 41 Agriculture is still be highly examinable.
Some areas that have not been tested recently, or in less detail than expected, include:
– IFRS 10 and control.
– Related Parties
– Derecognition and Impairment (IAS 36).
– Deferred tax (IAS 12)
Q4 – Essay Style: focus seems to have been on existing standards so the adequacy of the existing framework seems a possibility as well as how companies have accounted for and disclosed goodwill impairments (IAS 36).
This will be a 50 mark compulsory case study including preparation of a group statement of financial position and/or statement of profit of loss and other comprehensive income or statement of cash flows which may include a foreign subsidiary, discontinued activities, disposals and/or acquisitions. 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.
It normally includes:
Q2 & Q3: 2 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 (NB: no specific knowledge of the particular industry is required) 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 classification in profit or loss vs OCI (see exam team article), integrated reporting (see exam team article), revision of the conceptual framework, regulatory issues over adoption and consistent application of IFRSs, implementation issues, revenue recognition, management commentary, application of the definition of control and significant influence (equity accounting), improvements in performance measurement. Will also normally include a related computational part based on figures from a case study.
One of these questions can also include elements of group accounting, especially if question 1 is a statement of cash flows question.
– Q1 will be groups plus accounting and ethics as usual. Perhaps a position statement. But watch out for a cfs.
– Q2 and Q3 will be a mix of the usual suspects across the syllabus including financial instruments, nca, groups, revenue and the rest.
– Q4’s current issue may focus on integrated reporting or equity accounting or SPLOCI.
– Q1: Group question on foreign subsidiary. Will contain a variety of non-group topics, too.
– Revenue recognition or leases – current issue.
– Deferred tax.
– Share-based payments.
Question 1 A “D” shaped group question including also a joint venture with all the usual problems (unrealised profits, goodwill impairments, share based payments, pension funds)
Questions 2 and 3 – typical questions with various IAS / IFRS issues
Question 4 – current issue question. Recent technical articles in Student Accountant include:
- Integrated Reporting
- Hedge Accounting
- Impairment of Financial Assets
- Leasing – Operating or Finance
- Concepts of Profit or Loss and Other Comprehensive Income
- IAS 41 Agriculture
Manchester Metropolitan University MMU