Jan2009 Class Blog

accaemg1.wordpress.com (WIP)

em=essential module

only for P1, P2 & P3 paper. All the best in the coming year 2009!!

Exams

3th Dec, Wed – F8 Audit Assurance

4th Dec, Thu – F9 Financial Management

Tips for F9 Financial Management (int) Dec 2008

The topic areas covered by each question are not fixed and all areas of the syllabus are examinable as stated in the examiner’s approach. Therefore, it is pretty difficult to spot with only TWO past year and a pilot paper (Ie, NPV in D07 is in Q2 while NPV in J08 – Q4).

so here it goes, according to the Syallbus:

A Financial Management function

Came out in J08, shareholder wealth maximisation.

B Financial management environment

Earnings per share in Pilot.

For section A & B, marks are minimum and the examiner puts less focus here (but in paper 2.4, these are major theory areas.)

C Working Capital Management

1. Receivables & EOQ has been a favourite (both in J08 & D07 even in Pilot).

2. so the question is will it be out again?? if it does, areas not yet examined are:

• Compare factoring & current
• Managing foreign accounts receivable]

3. but, i feel, yes, it’s just a feel :

• Cash operating cycle
• Accounting ratios
• payable discount
• Cash management – Baumol

4. Pilot paper Q3.

D Investment Appraisal

1. Another favourite part – NPV & IRR.

2. This time might, possibly :

• Calculate sensitivity
• Leasing & Borrowing
• Equivalent annual cost
• CAPITAL RATIONING

E Business Finance

1. Gearing – problems of high & financial risk(ratio)

2. Methods of raising EQUITY finance – rights issue, placing, public offer…

F Cost of Capital

1. CAPITAL ASSET PRICING MODEL (CAPM) – theory & ungear then gear calculation.

• Jan 08
• April 08
• June/july 08

2. know how to calculate cost of capital of a range of capital instruments :

• irredeemable debt
• redeemable debt – pilot
• convertible debt  – J08
• preference shares – Pilot
• Bank debt – J08

3. Calculate WACC

4. Miller And Modigliani

G Business Valuation

1. Favourite – P/E ratio method, Dividend valuation model & growth model AND Efficient market hypothesis (weak, semi-strong & strong

2. Asset-based valuation models

H Risk Management

1. Pilot paper Q2!

2. Interest rate risk – (has never been out)

3. Hedging!

.

Not so much of a tips is it? well, that’s the thing about F9. there is notihing to spot or focus as all is examinable.

but if it’s a desperate situation, no guarantees though :

Question 1

1. CAPM – calculate WACC – with gear & ungear

2. CAPM theory, advantages & disadvantages

3. Gearing

4. Miller & Modigliani

Question 2

1. Risk management – foreign currency risk – types, fluctuations(inflation) & hedging

2. interest rate risk & fluatuation

Question 3

1. Cash operating cycle

2. Ratios – calculate & comment

3. Baumol model with EOQ

Question 4

1. calculate NPV – Leasing & borrowing to buy

2. ARR

3. Equivalent annual cost

4. Capital rationing – Profitability index & non-divisible or divisible investment

.

Practice past year questions & use study guide as index to cover the syllabus.

THEORY plays a significant marks allocation for this paper.

Resources : PYQ (2.4 & F9), examiner’s approach, SA magazine, study guide & examiner report & lots of judgement & feeling…

F9 coming up by tonight…

Tips for F8 Audit and Assurance (int) Dec 2008

As promised, a week before exam…

Question 1 (30m)

1. Confirm audit procedures (note: understand the differences between Test of Control TOC & Substantive procedure/testing).

2. Audit procedure relating to assertions on :

• Non-current asset
• Bank & cash

3. Audit sampling (5m approx)

4. Combine with IT or CAAT.

Question 2 (10m)

1. there’s 3 ISA that revised or redrafted compared to the last semester:

• ISA 230 Audit documentation (redrafted) – more info in August 2008 SA magazine pg 54 by Brian Pine
• ISA 560 Subsequent Events (redrafted)
• ISA 720 (Redrafted) The auditor’s Responsibility in Relation to Other Information in Documents Containing Audited FS

2. Again, these are only areas to focus.

3. Since it’s 10m and the syllabus is very wide, not possible to spot.

Question 3 – Risk & Audit Approach (20m)

1. Planning & audit risk – More in May 2008 SA magazine pg 43 by Brian Pine

2. Independence – Pilot

3. Work of others – experts

Question 4 – Specialised audit areas (20m)

1. Internal Audit & Corporate Governance

2. Internal audit assignments – procurement(purchase), marketing, treasury & Human resources.

3. Payroll – Pilot

Question 5 – Collection of audit evidence, closedown, reporting (20m)

1. Subsequent event – Pilot & Dec 2005 Q4 OilRakers

2. combine with auditor’s responsibility

3. Audit report

.

Relevant Articles by Alan Lewin F8 examiner

1. Oct 2008 - Ready to sit for F8?

2. April 2008 – Auditing Fundamentals

.

Note: Above area are forecast by the Mr Han.

of course, the best tip for all exams is STUDYING EVERYTHING IN THE SYLLABUS & STUDY GUIDE at least 3 times

Resources : Past year questions, Pilot paper, Student accountant magazine, examiner’s approach & lots of judgement & estimates.

Exam tips coming up next week…probably a week before exam if possible.

F9 3rd day

8am-6pm(approx)

Lt 8

then Mock exam.

F9 class updates!

Monday(tomorrow)

9am - 6pm(approx)

Lt 8

Note: Class starting time is confirmed with Ms P Geetha

Enrolment for Jan2009

What?
If you planning to take 3 papers – P1, P2 & P3. 2 papers – P1 & P2.

When?
For Jan 2009

What’s the dateline?
As soon as possible because classes maybe full if not fast – especially for P2
The early bird catches the worm first?

Where?
Office at 3rd floor

Who?
For yourself.

Why?
To complete the challenging task and procedure of being an ACCA student and into the next level, a level closer to success!

How?
FIll in the pink form & pass to the office. (that’s all).
of course, pay at the payment counter.

How much?
Student resource fee = RM 285
Each Professional paper = RM 1430

How to get to the office?
simple, follow the instruction as below:

1. Use the lift at Lt2, to Level 3.

2. Go straight, pass the main office.

3. Months ago you will see the sign as below. now, i am not sure if it’s still there.

4. Turn left to this corridor, gents on your right

5. Walk into the door and you will see the office on your left!!

Congratulations, you have made it to the last level! now enroll yourself for next semester!!

F8 Edc/Efc

Friday, 7th Nov
630pm-930pm

Saturday, 8th Nov
8am-6pm

Sunday, 9th Nov
9am-730pm

Classes at Lt2.

Note: copied from sunway college website.