Exam Tips May’07

Instructions

* These tips should only be used in conjunction with proper study and revision
* They are not a substitute for in-depth revision
* The tips should be used as a learning aid and checklist
* We can’t guarantee that everything we mention will be on your paper, these tips are only a guide.

Paper 1
Performance Evaluation

* Section A – 14 questions for 40 marks drawn from the whole syllabus so including variances, process costing, performance appraisal
* Section B
o Budgeting usually features heavily
o Standard costing
o Responsibility accounting and performance appraisal
* Section C – topics to date have covered core areas. Possibilities include:
o Modern management accounting methods
o Process costing

Paper 2
Decision Management

* Section A – 8 questions from throughout syllabus
o Learning curves, IRR, probability and optimal pricing have proved popular in the past
* Section B
o Target costing
o Kanban and Kaizen costing
o Joint costs
o Investment appraisal
o Sensitivity analysis
* Section C
o Linear programming with graphs
o Pareto analysis
o Kaizen costing
o Gain sharing
o Posterior probabilities

Paper 3
Risk and Control Strategy

* Corporate governance especially Turnbull and Combined Code
* Interest rate risk management (including discursive element)
* Transfer pricing
* Ethics
* IT/IM/IS strategies
* Internal audit process
* Nominations
* Fraud

Paper 4
Organisational Management and Information Systems

* Information systems changeover
* Marketing and technology
* Motivation theory
* Inventory management
* Ethics
* Supplier selection and stock management
* Resistance to change
* HR Strategy

Paper 5
Integrated Management

* Corporate governance
* Critical path analysis
* Scientific management
* Strategy formulation process
* Review and audit in projects
* Principles of social responsibility and good business ethics
* Delegation
* Leadership styles/theories
*

Paper 6
Business Strategy

* Environment models PEST, five forces or Porter’s diamond
* Rational model and alternative approaches such as emergent strategies
* EVA/SVA
* DPP
* IT applications and their benefit – such as EIS or ERPS
* Controls – perhaps in the service sector
* Relevance of BCG/value chain in modern business environment
* Scenario planning
* Evaluate strategic options

Paper 7
Financial Accounting and Tax Principles

* Section B
o Extract of cash flow statement
o Treatment of non-current assets
o Income tax and deferred tax calculations and associated notes
o Explanation of key terms relating to international taxes
o Cash flow forecast preparation
o Calculation of working capital cycle

* Section C
o Preparation of two out of three of income statement, balance sheet and cash flow statement
o Adjustments needed could include:
* Current tax
* Deferred tax
* Revaluation/impairment
* Adjustment for leases and construction contracts

Paper 8
Financial analysis

* Section A – up to 10 questions expect 3 or 4 on groups
* Section B
* short consolidated income statement or balance sheet
* Ratio calculation and interpretation
* Explanation of US GAAP reconciliation
* Pensions accounting
* Section C
o One question on group financial statements e.g. complex group balance sheet and/or income statement
o Two interpretation questions such as segment analysis, ratio calculations perhaps including EPS
o The examiner has indicated that questions in section C will also incorporate areas from the rest of the syllabus.

Paper 9
Financial Strategy

* Forecasting of income statement and cash flow (either Section A or Section B of paper)
* Overseas IA
* Section B
o Lease versus buy (lessee or lessor perspective)
o Valuation of a company seeking a listing
o NPV with a WACC calculation
o Real options
o Post merger enhancement strategies
o Post audit