Wednesday, November 16, 2011



F4 Corporate and Business Law

Sources of law
Offer and acceptance
Contract terms
The law of torts
Employment law
Corporations & separate legal personality
Company meetings and resolutions
Fraudulent behaviour

F5 Performance Management

Target costing
Life cycle costing
Relevant costing decision making
Fixed overhead variances
Financial and non-financial performance assessment
Transfer pricing

F6 Taxation

Resident status
BIKS and employment v self employment
Badges of trade
Adjustment of profits
Basis periods – change of year end
Capital allowances
Property profit
Income tax computation
Corporation tax with group relief
CGT – chattels, PPR, rollover relief, gift relief
NI – Class 1,2 and 4
VAT – cash accounting, default surcharge
Payments on account

F7 Financial Reporting

Q1 Consolidated SFP, with associate, deferred consideration, Pups and fair value adjustment downwards
Q2 Single company accounts questions, including contract, lease, and intangible assets
Q3 Statement of cash flow and comments there on with no ratios
Q4 The framework with computation for no current assets
Q5 IAS 37/IAS 12 and deferred tax computation

F8 Audit and Assurance

Q1 Substantive audit procedures and tests of control on a key area of the Statement of Financial Position eg inventories or non-current assets
Q2 Short 10-marker on ISAs eg audit reports, fraud & error
Q3 ‘Identifying and explaining’ the threats to auditor independence and ways of managing them
Q4 Management letter; identify the weaknesses, consequences and recommendations in a particular company
Q5 Subsequent events

F9 Financial Management

Discussion of the economic environment and the impact on interest and exchange rates
Working capital management
Investment appraisal and cost of capital
Business valuation

P1 Governance, Risk & Ethics

50 mark scenario question, to include: TARA risk model, ethics, absolutist v relativism, chairman and CEO powers need to be separate, also corporate social responsibility, ISO 14001
Optional questions to include: importance of internal control, NEDs and remuneration committee, business risks, Grays Owens and adams

P2 Corporate Reporting

Q1 Group question on disposals, piecemeal acquisitions
Revenue recognition – current issues
Deferred tax
Share based payments
Related parties

P3 Business Analysis

Section A
Environment analysis, people with financial analysis
Section B
Project management
Strategic action
Information technology – pricing strategy

P4 Advanced Financial Management

Q1 International investment appraisal techniques focusing on risk management tools such as value at risk
Q2 Impact of WACC following hedging of interest rate risk
Q3 Company valuation-based scenario, possible MBO finance structure
Q4 Adjusted present value with link to real options and Black Scholes option pricing model
Q5 Written question on credit ratings and difficulties of raising debt finance in current credit markets. This could be linked to current challenges faced by Eurozone governments attempting to raise debt capital amidst falling credit ratings

P5 Advanced Performance Management

Performance pyramid
Performance management hierarchy
Quality costs
EV and risk
Impact of external factors on performance
Activity based principles

P6 Advanced Taxation

Income tax- overseas aspects of income tax, share option schemes, change of year end, trading losses, partnerships, EIS and VCT relief
Corporation tax – close companies, benefits for participators, non-UK companies trading in the UK, groups and trading losses and groups and gains, including pre-entry elements. Overseas subsidiary or branch.
CGT – PPR and gift reliefs, reorganisations and takeovers
VAST – capital goods scheme, flat rate scheme
Administration – payment of corporation tax in instalments
IHT – related property, BPR

P7 Advanced Audit and Assurance

Business risk in a scenario
Identifying ethical and other professional issues in a scenario
Audit reports
Group audits
Money laundering
Forensic audits

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