P2 – Corporate Reporting
Tips include:
Q1 Foreign entity Statement of Financial Position /IS (Comprehensive income)/
Reconciliation or cashflow
Revision of IAS 1 / ethics
Q2/Q3 Mixed transactional
* Financial instruments/ deferred tax/ actuarial gains and losses/ revaluation of assets/ forex gains/
losses
* Segmental reporting/related party transactions/revenue recognition
* Current issue
* Harmonisation of accounting standards (IFRS and US)
P3 – Business Analysis
Tips include:
A fundamental appreciation of the key activities associated with strategic analysis, choice and
implementation will always be required in interpreting the scenario.
Quality and six sigma
The relevance of ethics and corporate governance to strategic decision making
Issues related to globalization and international business management
Be able to comment in general on how things like HR and IT can help underpin a strategic plan
Also review the pilot paper and make sure you know what CMMI is
P4 – Advanced Financial Management
Tips include:
Section A
NPV or APV of a foreign investment project, with discussion of political risk
Business valuation for a takeover, using book plus model, and including discussion of defence
tactics and ethical issues.
Section B
Interest rate management including a recommendation to the Board
Discussion question on stakeholder conflicts and dividend policy
Cost of capital and free cash flow for a valuation.
P5 – Advanced Performance Management
Tips include:
* Transfer pricing
* Performance appraisal question (financial and non - financial measures, maybe
benchmarking)
* Strategy - missions objectives
* Gap analysis, pest or swot
* Corporate failure (z score)
* NPV ROCE or RI
* EMA
P6 – Advanced Taxation
Tips include:
* Corporation tax including IBA, loss relief (S393A), group and consortium relief, overseas
subsidiaries, group gains and VAT
Key scenarios:
One or more of the following is likely to feature on the exam:
o CGT vs IHT for lifetime gifts
o Employed vs self-employed (IT and NICs)
o Badges of trade (IT vs CGT)
o Employee vs partner (IT and NICs)
o Extraction of funds from company: salary vs dividend (IT, NICs, Corp. Tax)
o Incorporation (IT, NICs, VAT, CGT), perhaps with incorporation relief vs gift
relief
o Comparison of employment packages and benefits (eg. cash vs car, share
options vs bonus)
o Corporation tax – disposal of business: sale of shares vs sale of assets
* Close companies - maybe a letter on this.
* VAT – cash accounting scheme, annual accounting scheme, due date for registration.
* Financial planning – sources of finance, lease versus buy, investments including EIS vs
VCT, the Financial Services and Markets Act 2000, pensions
P7 – Advanced Audit and Assurance
Tips include:
* Risk Assessment / Risk Management / Audit Strategy
* Audit Evidence
* Practice Management - Obtaining professional work / tendering
* Assurance Services - Prospective Financial Information / Due Diligence Reviews
* Reporting/Application of GAAP
* Professional conduct ethical issues
