ACCA P2 Exam Tips by BPP for 2016
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.