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OCTOBER 2011

THE ESSENTIAL GUIDEALL YOU NEED TO KNOW FOR THE DECEMBER 2011 EXAMS

RELEVANT TO PAPERS F1 TO F3 AND FOUNDATIONS IN ACCOUNTANCY STUDENTS

EXAM ADVICE AND GUIDANCEINCLUDING EXAMINABLE DOCUMENTS

UNLOCK THE SECRETSOF EXAM SUCCESS

EG1011_A_OFC.indd 1 18/08/2011 12:36

-SA EG ads-Oct 2011.indd 4 19/08/2011 12:19

EDITOR’SCHOICE

Welcome to this special issue of Student Accountant Essential Guide.

This issue is completely focused on exam-related information that you, as Foundations in Accountancy and Paper F1, F2 and F3 students, require. It contains a range of tailored advice and information to help you get prepared for the December 2011 session.

We include examiner feedback from Papers F1, F2 and F3 in June 2011. This advice looks at overall performance

and outlines areas where candidates obtained both high and low marks. Reading the examiner feedback together with the

past exam questions and answers from the latest exam session can help you identify where students have gone wrong in the past,

and how to develop your answers to achieve the best marks possible – it is one of the key resources to use in exam preparation.

As well as examiner feedback, this issue contains examinable standards and information relevant to the fi nancial reporting, audit and tax papers. Use this information to guide your exam preparation and take note of the areas that you could be examined on.

We include essential information on the key elements of the Foundations in Accountancy suite of awards including the Diploma in Accounting and Business, Foundations in Practical Experience Requirement, and Foundations in Professionalism.

Exam technique and advice is also included to help you prepare. We have articles on understanding the verbs used in questions, how to practise for and attempt multiple-choice questions and computer-based exams, and techniques to manage exam stress and get the best out of yourself in the exams.

The Noticeboard section includes the exam timetable for December 2011 and exam rules and regulations.

We’ve produced this magazine to be as helpful to you as possible in the lead up to the December 2011 exams. We have also produced two other tailored magazines for students taking Papers F4 to F9 and the Professional level exams. These can be accessed at www.accaglobal.com/SA

I hope that you fi nd this magazine useful in helping you prepare fully for the December 2011 exams.

Email me at studentaccountant@accaglobal.com with your feedback on this issue.

Victoria MorganEditor, Student Accountant magazine

STUDENT ACCOUNTANT ESSENTIAL EXAM GUIDE 10/2011 03

EDITOR’SCHOICE

Welcome to this special issue of Student Accountant

STUDENT ACCOUNTANT

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EG1011_A_welcome.indd 3 22/08/2011 16:02

ACCA CAREERS On ACCACareers.com you will be able to upload your CV, access global career opportunities and find advice on careers in accountancy and finance

INTERACTIVE Email us – studentaccountant@accaglobal.com – your details if you would like to be profiled in Student Accountant

kEy dATES foR ThE dECEmbER 2011 ExAm SESSIoNExams start 5 december 2011 For a full list of the exam dates, go to page 59 of this issue

Welcome to the STUDENT ACCOUNTANT ESSENTIAl ExAm guIdE 10/2011 04 CONTENTS

EG0411_A_contents.indd 4 24/08/2011 14:34

student accountantIn addition to this twice-yearly printed issue, we also email an alert to a new issue of Student Accountant every two weeks. Make sure you’re keeping up to date with the latest issue at www2.accaglobal.com/sa

essential guide

ResouRces

06 a close look at question VeRBs08 impRoVe youR exam tecHnique 12 Foundations in accountancy – oVeRView14 pRepaRing FoR exam dayexamineRs’ FeedBack 18 Paper F1 20 Paper F2 20 Paper F323 examinaBle documents Relevant to Foundations in Accountancy financial reporting, audit and tax papers for the December 2011 exam sitting and Paper F328 diploma in accounting and Business

exam adVice32 Computer-based exams – preparation is key 36 How to approach multiple-choice questions 40 Key knowledge required for Paper FFA/F3 42 Foundations in pRoFessionalism44 Foundations in pRactical expeRience RequiRement48 acca caReeRs – caReeRs adVice and Find a joB

leaRning centRe50 Top tips for exam success 52 How to: cope with exam stress 53 How to: get exam ready 54 Advice for re-takers 55 Exam performance 56 How your exams are marked

student accountant tecHnical aRticle aRcHiVe All technical content from Student Accountant is on ACCA’s website at www2.accaglobal.com/students/student_accountant/archiveAnswers to frequently-asked questions about ACCA’s qualifications can be found at www2.accaglobal.com/learningproviders/tuition_provider/faq

noticeBoaRdESSEnTIAl InFoRMATIon To HElP wITH youR ExAM ADMInISTRATIon 58 ACCA Connect contact details and the latest subscription and exam fees59 Detailed timetable for the December 2011 exam session to help with

your diary planning60 Exam rules for students planning on taking exams in December 201161 Exam entry information and choosing your study options62 Frequently asked questions: AlP–c63 oxford Brookes BSc degree 64 Frequently asked questions: exam day65 Exemptions and self-check modules

editoRial teamVictoria Morganeditor

Glen Patterson deputy editor

Jackie Dollar art editor

Richard Goodingdesigner

Eleni PerryRhian Stephenseditorial executives

www.accagloBal.comJamie Amblerdigital editor

29 lincoln’s Inn Fields london wC2A 3EE united Kingdom

tel: +44 (0)20 7059 5700email: info@accaglobal.comwww.accaglobal.com

puBlisHing and adVeRtisingAdam williamsHead of publishing

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For all advertising-related matters please contact nick willmertel: +44 (0)20 7902 1673email: nick@educate-direct.com

Published by the Certified Accountants Educational Trust in cooperation with ACCA.

The Council of ACCA and the publishers do not guarantee the accuracy of statements made by contributors or advertisers, or accept any responsibility for any statement which they may make in this publication.

no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior written permission of the publishers. © CAET 2011 ISSn 1473-0979

Foundations in accountancyACCA’s new suite of entry-level qualifications will be first examined in the December 2011 exam session. Find out more on page 12 of this issue

Please email studentaccountant@accaglobal.com with your feedback on this issue

welcome to the STuDEnT ACCounTAnT essential exam guide 10/2011

EG0411_A_contents.indd 5 24/08/2011 18:06

We take a look at the intellectual levels for the ACCA Qualification papers, which should help you know how to answer questions that you might be asked to do in an exam.

It is particularly important to consider

examtechnique

06 technique tips

the question requirements carefully to make sure you understand exactly what is being asked, and whether each question part has to be answered in the context of the scenario or is more general. You also need to be sure that

you understand all the tasks that the question is asking you to perform.

The different levels of the ACCA Qualification each address different intellectual levels. See table below for further information.

intellectual levelsKnowledge and comprehension Application and analysis Evaluation and synthesisPapers F1–F3 Papers F4–F9 Papers P1–P7¤ retention and recall of knowledge ¤ analysis of unfamiliar situations to ¤ generalisation, comparison ¤ understanding of major accounting prepare reports and solve problems and discrimination using complex and and business ideas, techniques using relevant concepts and theories unstructured information and theories ¤ recognition of subtle or hidden ¤ assessment and evaluation¤ use of knowledge and techniques in information patterns and trends within of complex information new but familiar situations financial and other information, ¤ use of reasoned argument ¤ recognition of fundamental cause and the ability to interpret these to infer and make judgments and effect in accounting. ¤ the ability to infer from given ¤ presentation and justification of information and draw conclusions. valid recommendations.

ACCA examiners have highlighted the lack of understanding of the requirements of question verbs as the most serious weakness in many candidates scripts. Given below are some common question verbs used in exams.

question verbsAnalyse Intellectual level 2, 3 Actual meaning Break into separate parts and discuss, examine, or interpret each partKey tips Give reasons for the current situation or what has happened.Apply Intellectual level 2 Actual meaningTo put into action pertinently and/or relevantly Key tips Properly apply the scenario/case.Assess Intellectual level 3 Actual meaningTo judge the worth, importance, evaluate or estimate the nature, quality, ability, extent, or significance Key tips Determine the strengths/weaknesses/importance/ significance/ability to contribute.Calculate Intellectual level 2, 3 Actual meaning To ascertain by computation, to make an estimate of; evaluate, to perform a mathematical process Key tips Provide description along with numerical calculations.Comment Intellectual level 3 Actual meaning To remark or express an opinion Key tips Your answer should include an explanation, illustration or criticism.Compare Intellectual level 2 Actual meaning Examine two or more things to identify similarities and differences

Key tips Clearly explain the resemblances or differences.Conclusion Intellectual level 2 ,3 Actual meaning The result or outcome of an act or process or event, final arrangement or settlement Key tips End your answer well, with a clear decision.Criticise Intellectual level 3 Actual meaning Present the weaknesses/problems; evaluate comparative worthDon’t explain the situation. Instead, analyse it Key tips Criticism often involves analysis. Define Intellectual level 1 Actual meaningGive the meaning; usually a meaning specific to the course or subject Key tipsExplain the exact meaning because usually definitions are short.Describe Intellectual level 1, 2 Actual meaning Give a detailed account or key features. List characteristics, qualities and parts Key tips Make a picture with words; identification is not sufficient.Discuss Intellectual level 3 Actual meaning Consider and debate/argue about the pros and cons of an issue. Examine in-detail by using arguments in favour or against Key tips Write about any conflict, compare and contrast.Evaluate Intellectual level 3 Actual meaning Determine the scenario in the light of the arguments for and againstKey tips Mention evidence/case/point/issue to support evaluation.Explain Intellectual level 1, 2 Actual meaning Make an idea clear. Show logically how a concept is developed.

Give the reason for an event Key tips Don’t just provide a list of points, add in some explanation of the points you’re discussing.Illustrate Intellectual level 2 Actual meaning Give concrete examples. Explain clearly by using comparisons or examples Key tips Add in some description. Interpret Intellectual level 3 Actual meaning Comment on, give examples, describe relationships Key tips Include explanation and evaluation.List Intellectual level 1 Actual meaningList several ideas, aspects, events, things, qualities, reasons, etc Key tips Don’t discuss, just make a list.Outline Intellectual level 2 Actual meaning Describe main ideas, characteristics, or events Key tips Briefly explain the highlighted points.Recommend Intellectual level 3 Actual meaning Advise the appropriate actions to pursue in terms the recipient will understand Key tips Give advice or counsel.Relate Intellectual level 2, 3 Actual meaning Show the connections between ideas or events Key tips Relate to real time examples.State Intellectual level 2 Actual meaningExplain precisely Key tips Focus on the exact point.Summarise Intellectual level 2 Actual meaning Give a brief, condensed accountInclude conclusions. Avoid unnecessary details Key tips Remember to conclude your explanation.

intellectual levels and question verbs

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Our twice-yearly examiner reports include not only technical guidance on how to answer specific questions, but also a wealth of advice on exam preparation and technique. Summarised here, this advice can be used to help improve your performance in future exam sessions.

USING RESOURCESIt is very important to only use the most up to date study materials. Older materials, perhaps borrowed from a friend or bought second hand, often refer to old rules, or to rates which are no longer examinable. This is particularly relevant to papers dealing with taxation, financial reporting, law and auditing.

Revise the entire syllabus, using the Study Guide to help you monitor progress. Don’t focus your revision on favourite subjects, or ‘core’ topics, as this strategy rarely gives you the chance to earn enough marks to pass. By covering the entire syllabus, not only are you fully prepared for the exam, but you are also taking a mature approach, worthy of a professional accountant.

Practise using as many past papers as possible. For papers where legislation and standards are regularly updated, it is important to purchase revision or exam kits produced by the Approved Learning Partners – content who will have updated the original ACCA questions and answers for all such changes. Also review suggested answers, absorb examiner’s comments in the examiners’ reports on previous candidates’ performances, available for each past paper, and read related articles in Student Accountant. In particular, look at the Pilot Paper, which is the best guide to question style and shows the split between numerical and non‑numerical questions.

REVISION STRATEGIESDon’t question spot by analysing past papers. In a previous session, for example, many candidates clearly assumed a specific theory wouldn’t come up because it had been examined the session before. This assumption was wrong, and so those candidates lost the opportunity to gain marks.

When reviewing past papers, don’t memorise model answers in the hope of using them in the exam. As every paper is different, repeating old answers can never be appropriate – and markers will quickly spot when they are being used.

Don’t question guess. Some candidates consider the technical articles in Student Accountant, and the examiner’s reports, as a guide to the questions that will appear in the next exam session. They are not. Technical articles do cover future exam topics, but also deal with subjects less well covered in approved study texts, or provide an update to study material in the light of recent events.

Practise multiple-choice as well as longer questions. The examiner has put just as much careful thought into multiple‑choice questions as into longer questions, and especially into the distractors – which provide plausible, but incorrect, alternatives likely to be selected by less well‑prepared candidates.

Success requires extensive study and practice. Question spotting and short, intensive revision sessions are unlikely to be successful.

Don’t rely on numerical ability alone, especially in the more advanced papers. At this level candidates must always demonstrate analytical and evaluative skills, shown by linking their theoretical learning to a specific case study.

EXAM TECHNIQUE – GENERAL ADVICEIn the exam centre, good technique can make a difference between a marginal pass and fail. Use past papers to practise your exam technique, as well as your technical skills, and pay particular attention to the appropriate exam style for each paper. For example, where a question is worth four marks, brief succinct answers are all that are required.

Good time management is crucial, so use the mark scheme to guide your timing. Apportion the time you have available to the mark allocation for each section, each question, and each question part. This will give you a minute by minute breakdown of your ideal exam progress.

Good time management is especially important when scenarios are rich in detail. Such scenarios always include more points which could be made than the marks on offer, so a careful review of material is required, tailored to the mark allocation, along with a disciplined approach to time management.

Don’t rely on guesswork when answering multiple-choice questions (MCQs). This is a risky strategy and usually leads to a wrong answer. You need a sound knowledge of all syllabus areas to answer an MCQ section successfully. However, don’t leave MCQs unanswered – if you can’t answer an MCQ based on the knowledge you have – or are running out of time – then make an educated guess. You then at least have a chance of gaining a mark, whereas an unanswered question will definitely gain no marks.

Don’t answer more questions than the paper asks you to – this is a waste of time and does not gain any more marks.

In discursive papers, be prepared to explain and discuss. Unless specifically asked for, simple statements in a list, for example, will rarely be enough to gain full marks.

Don’t use the points raised by one question to answer another. It’s very unlikely that separate exam questions are linked, but candidates often repeat points across questions as if there were a deliberate connection.

improving exam performance

REVISE THE ENTIRE SyLLAbUS, USING THE STUDy GUIDE TO HELp yOU MONITOR pROGRESS. by COVERINGTHE ENTIRE SyLLAbUS, yOU ARE fULLy pREpARED fORTHE EXAM, AND TAkING A MATURE AppROACH, wORTHy Of A pROfESSIONAL ACCOUNTANT.

08 EXAM GUIDANCE

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PRESENTATIONWhen writing in your answer booklet, put the relevant question number at the top of each page used to write the answer. Although candidates may answer exam questions in any order on the answer booklet they are strongly recommended to complete each part of a question in order and to keep all answers to parts of questions together in the booklet. This makes marking more manageable and reduces the scope for error or omission.

Don’t use the same page in the answer booklet to answer several different questions – start the answer to each new question on a fresh page. Different parts to the same question can be continued on the same page.

Although possibly a sign of poor planning, it is acceptable to start a question, move on to another, and then return to the first question later – just make sure that each answer is clearly labelled and starts on a new page.

Illegible handwriting can result in missed marks if a correct answer cannot be understood. As handwriting is rarely used now in business, you need to practise this skill so that your answers remain legible throughout the exam.

Don’t write out the question at the start of your answer; this wastes valuable time and gains no marks. Likewise, do not restate the scenario or facts from the question.

When writing an answer, avoid using elaborate headings (in different colours or text styles, for example), which take time to create. Clear headings are important, but simple underlining is enough.

Take care with the presentation of short as well as long answers, paying attention to use of language and general structure.

Think carefully when asked to ‘criticise’ – you are being asked to show your knowledge of expectation or best practice (against which to measure the given example) and show that you have carefully analysed the case study or scenario used.

Pause before preparing calculations: consider any advice given in the question, review the requirement, and think about how to solve the problem before putting pen to paper.

When performing calculations, judge carefully when to detail workings. For minor calculations, pages of unhelpful workings are time consuming to produce and difficult to mark. More complex calculations do require referenced workings, however, and marks can be lost if an incorrect figure is provided but no method shown, as a correct method can earn partial credit.

Read from page 17 for specific exam feedback from examiners.

QUESTION BY QUESTIONRead the question carefully and think before you write. Questions are often answered poorly or incorrectly because key words or instructions are ignored or misunderstood. For example, don’t provide general lists when specific examples, perhaps related to a case study, are required. Always apply your knowledge to the facts by reference to the requirement.

Answer the question on the paper, not the one you want to see – this can often happen with questions on subjects which appear regularly, and which candidates have practised many times before.

Read the whole question before you begin your answer. Many candidates answer one part before realising that some of the points made were more relevant to other question parts. This results in wasted time, as information is repeated.

Questions are worded very carefully, so note the command words or verbs used, the precise issues to be addressed, and guidance on the answer approach. By paying attention to all these aspects, you have a much better chance of giving the right information in your answer, in the correct format, and written in the appropriate style. Don’t focus on one word; pay attention to the wider requirements and make sure your answer reflects these.

When asked to provide a specific number of points, don’t make similar points just to reach the target number. Rephrasing an earlier answer (such as writing both ‘an inability to make profits’ and ‘making of losses’) will only gain one mark.

Don’t provide general explanations or long introductions – these are a waste of time.

these aspects, you have a much better chance of giving the right information in chance of giving the right information in your answer, in the correct format, and

Don’t ; pay attention to the

wider requirements and make sure

ADDITIONAL ADVICE FOR RE-SIT CANDIDATES

¤ Identify those areas of the syllabus where you were weakest – work to improve your knowledge of these areas.

¤ Review your time management and see if it can be improved.

GOOD TIME MANAGEMENT IS CRUCIAL, SO USE THEMARK SCHEME TO GUIDE YOUR TIMING. APPORTIONTHE TIME YOU HAVE AVAILABLE TO THE MARKALLOCATION FOR EACH SECTION, EACH QUESTION,AND EACH QUESTION PART. THIS WILL GIVE YOU A MINUTE BY MINUTE BREAKDOWN OF YOUR IDEAL EXAM PROGRESS.

10 EXAM GUIDANCE

EG1011_A_exam perf.indd 10 23/08/2011 17:20

SA EG ads-Oct 2011.indd 3 18/08/2011 15:53

FIAThe Foundations in Accountancy suite of awards lead towards a range of qualifications at a range of levels – from GCSE equivalent to first-year undergraduate degree level.

Figure 1 shows a diagram including the Foundations in Accountancy qualifications which can lead to full ACCA membership.

There are a number of awards available but there are four key qualifications within Foundations in Accountancy each of which need to be combined with the Foundations in Professionalism module: ¤ Introductory Certificate in Financial and

Management Accounting consisting of FA1, Recording Financial Transactions and MA1, Management Information.

¤ Intermediate Certificate in Financial and Management Accounting consisting of FA2, Maintaining Financial Records and MA2, Managing Costs and Finance.

¤ Diploma in Accounting and Business which consists of FAB, Accountant in Business, FMA, Management Accounting, and FFA, Financial Accounting.

Certified Accounting Technician (CAT) candidates must complete the Diploma in Accounting and Business papers described above and also pass two from three specialist options papers: Paper FAU, Foundations in Audit; Paper FTX, Foundations in Taxation; and Paper FFM, Foundations in Financial Management. (The individual option papers are also available as single awards for which an ACCA Certificate is available to successful candidates.) CAT candidates must also complete the Foundations in Practical Experience Requirement (FPER).

Students registered on Foundations in Accountancy can decide to sit exams leading towards any of the qualifications listed above, subject to timetabling restraints for paper-based exam papers. There is open access to the certificates and the diploma. The qualifications available within Foundations in Accountancy cover three levels. As a benchmark, the Introductory Certificate is set against GCSE or equivalent level, the Intermediate Certificate is set at A-level or equivalent and the Diploma level is set at first-year undergraduate degree level or its equivalent such as the first year of a full-time Higher National Diploma.

Self-check moduleSThe Foundations in Accountancy suite of awards includes self-check modules in mathematics and English which are available free of charge for students at. These modules are optional and can be taken to assess readiness to take accounting exams set in the English language. Results of the tests are anonymously recorded, meaning that ACCA does not know the individual results obtained by students. Results and feedback are given to students individually so that they can either decide that they are ready to register or whether they need to do more work on their maths or English skills before doing so, by using the tutorial material within each module or accessing further material through several links available within the modules.

foundationS in ProfeSSionaliSm To obtain any or a combination of the above awards, students must also complete the Foundations in Professionalism module. This is an online interactive module that develops knowledge and understanding of how an accounting technician should behave professionally at work. It is available free of charge via your MyACCA account.

This module includes a coverage of the law, fundamental principles of professional behaviour and how to apply personal values at work. It concludes with a case study about potential fraud and an end of module self-test. The end-of-module test assesses the student’s knowledge and understanding of the module content and there is a minimum pass mark of 50%. Students who pass will have their student record automatically updated to recognise this. Those that fail will be pinpointed to their areas of weaknesses and can retry the test as many times as necessary at no cost.

foundationS in Practical exPerience requirementSTo gain CAT status, students must also have 12-months’ work experience and have demonstrated at least 10 work-based competence areas, four of which they can use for work experience exemptions from the practical experience requirements of the ACCA Qualification. This means that any CAT holder who decides to transfer to the ACCA Qualification after completing CAT would only have five Essentials performance objectives left to complete within the ACCA practical experience requirement and two more years of experience to obtain.

the foundationS in accountancy Suite of qualificationS: all you need to knowrelevant to all foundationS in accountancy PaPerS

figure 1: Structure of the foundationS in accountancy Suite of qualificationS

12 technical

EG1011_A_FIA.indd 12 26/08/2011 10:22

syllabus contentThe qualifications within Foundations in Accountancy are aligned to technician‑related occupational standards. This ensures that the syllabus of each paper reflects the current needs of employers. The syllabuses concentrate on the core areas of transactional accounting and on the knowledge and skills most relevant to the technician accountant’s roles and responsibilities. Some new areas have been added to the previous CAT Qualification syllabuses and some areas removed. The syllabuses have also been re‑aligned to provide more effective progression through the levels and to articulate more closely with the ACCA Qualification. Apart from the three specialist options papers, all seven exams for the Introductory and Intermediate Certificates and the Diploma are available by computer‑based examination.

Introductory certIfIcate syllabusfinancial accounting 1 (fa1) To introduce the basic accounting systems and documentation that will be encountered in the workplace. To develop knowledge and understanding of the operational aspects of maintaining accounting records and procedures and to learn how to record these transactions in the books of prime entry, including accounting for cash, including petty cash transactions. The syllabus also includes an introduction to the principles of double entry and understanding how a computerised and a manual accounting system work.

Management accounting 1 (Ma1) To introduce the student to the knowledge of basic cost information required for management accounting. To develop the knowledge and ability to recognise, collect and record basic cost and revenue information for planning and control including introduction to full absorption cost and marginal cost, including the use and application of spreadsheets in costing.

InterMedIate certIfIcate syllabusfinancial accounting 2 (fa2) To introduce the fundamental principles of accounting and to develop the knowledge and understanding of the techniques used to maintain accounting records. To account for fixed assets to produce control accounts and reconciliations, and be able to extract and correct an initial trial balance, making the adjustments necessary to produce an extended trial balance and to account for sole traders and partnerships.

Management accounting 2 (Ma2) To develop the knowledge and understanding of the principles and techniques used in recording, analysing and reporting costs and revenues for internal management purposes. To demonstrate and develop applicable cost concepts in making short‑term decisions and to explain and use performance measurement and how spreadsheets can be applied in these areas.

dIploMa level syllabusaccountant in business (fab) To understand business in the context of its environment, including economic, legal, and regulatory influences on such aspects as governance, employment, health and safety, data protection and security. The syllabus also covers certain aspects of the regulatory framework as they affect accounting, auditing and corporate governance, examining the roles of internal and external auditors and introducing the importance of sound accounting and information systems and of internal controls. The syllabus also introduces key management and people issues such as individual and team behaviour, leadership, motivation and personal effectiveness. Finally, the syllabus covers ethics and professionalism in business and accountancy, including corporate codes of ethics and conflict resolution.

Management accounting (fMa) To develop the knowledge and ability to apply appropriate management accounting concepts and techniques for decision making; planning, control and decision making including forecasting techniques and the preparation of budgets and standard costs.

financial accounting (ffa) To develop knowledge and understanding of the underlying principles and concepts relating to financial accounting and to demonstrate technical proficiency in the use of double‑entry techniques, including the preparation and interpretation of basic financial statements for sole traders, partnerships, companies and simple groups of companies.

specIalIst optIon award syllabusesfoundations in taxation (ftX) uK*There is an emphasis on preparing computations of tax liability for individuals and businesses, for income tax, corporation tax, capital gains tax and value added tax (VAT), and this includes new transactional aspects of preparing returns.

*See Study Guides (available on the ACCA website) for the tax variants available in Ireland, Lesotho, Malaysia and Singapore for further information.

foundations in financial Management (ffM)**To examine all aspects of cash and working capital management, and to develop an understanding of the sources of short‑term and long‑term finance. To develop the knowledge and understanding of the way organisations finance their operations and make financing and investment decisions.

foundations in audit (fau)** To develop knowledge and understanding of the external audit functions including audit planning and risk, internal control and audit evidence and procedures.

** Note that these new syllabuses will be examined with effect from June 2012

the qualIfIcatIons wIthIn foundatIons In accountancy are alIgned to technIcIan‑related occupatIonal standards. thIs ensures that the syllabus of each paper reflects the current needs of eMployers.

student accountant essential exam guide 10/2011 13

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Examination Attendance Dockets are dispatched three weeks before your first exam. The Examination Attendance Docket includes a timetable of all the exams you are entered for, and details the desk assigned to you for each paper. Importantly, it also gives the address of your exam centre. If you are not sure where the centre is, how to get there, or how long the journey may take, check out your route before the exam. Make allowances for rush hour traffic or other possible delays if your exam starts at a busy time of day. Try to arrive at the exam centre about 30

minutes before the exam is due to start. This will give you time to relax and prepare yourself.

Bring your Examination Attendance Docket to your exam as it will be used to verify your attendance. You must sit at the desk shown on your docket. The supervisor will collect your Examination Attendance Docket during the exam, so please keep it available on your desk. If you have any other exams during the session, the Examination Attendance Docket will be returned to you. If it is your last (or only) exam, the supervisor will keep the Examination Attendance Docket for ACCA’s records.

The Examination Attendance Docket also details important exam regulations and guidelines that you must abide by during the exams; read these carefully, and make sure you only take permitted equipment into the exam. The exam rules and regulations appear regularly in the Noticeboard section of Student Accountant.

Duplicate Examination Attendance Dockets can be downloaded via myACCA.

Also remember to take your Student Registration Card to each exam, as this will be checked in order to verify your identity.

When you arrive at your exam deskOn your exam desk will be: ¤ a Candidate Answer Booklet¤ the Examination Question Paper.

Check that you have the booklet, and the correct version of the exam paper, before the exam begins. If you have any queries, raise your hand and an invigilator will come to you.

exam regulations Before your exam starts, the supervisor will make any announcements and go through the exam regulations.

If you have any queries once the exam starts – for example, if you want additional booklets or need to go to the bathroom – raise your hand. An invigilator will attend to you.

For security reasons, because ACCA holds exams worldwide, you must remain in the exam hall until the end of the exam. All papers – including your Question Paper and Candidate Answer Booklets – will be collected before you are allowed to leave.

hoW to make Points and Present ansWersIt seems obvious, but answers must be appropriate to the requirement in terms of form, length and depth.

Ideally, answer questions using clear and relatively short sentences, although answer length does depend on the instructional verbs used in the requirement.

exam day preparationgareth oWen, qualifications develoPment manager at acca, Provides guidance on getting ready to sit your exams, hoW to maximise oPPortunities for earning marks, and hoW to organise exam ansWers

14 exam guidance

EG1011_A_exam prep.indd 14 23/08/2011 13:41

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For example, for requirements asking for a ‘list’, or a ‘brief description’, bullet points or brief points will be adequate. If ‘explanation’ is required, then fuller answers should be given; each valid point will normally attract a mark, depending on the mark allocation.

If a requirement asks for analysis or evaluation, then develop points logically, relevantly, and coherently, thereby gaining the additional marks available.

Set out answers so that the marker can clearly see the points being made. ACCA does not penalise candidates for poor grammar or style, especially in the Foundations in Accountancy and Fundamentals level exams, as long as points can be understood by the marker. However, by making points succinctly you can also earn marks more quickly and efficiently.

Avoid numbering the points made within an answer, unless the numbering relates to that used in the question (see above). Additional numbering can be very confusing for markers.

If a diagram, figure or table is needed to illustrate an answer (such as ‘Porter’s five forces’, for example), then support it with a full explanation. This tells the marker that you understand the model, theory or concept being illustrated.

TIME MANAGEMENTIn an exam, effective time management is vital. If a candidate runs out of time, then some questions (or parts) will be left unfinished and marks lost.

The key to good time management is to divide the time allowed between the marks available. For example, in a three-hour exam allow 1.8 minutes per mark, and in a two-hour exam allow 1.33 minutes per mark. This allocation gives a rough guide as to how long to spend on a question or part. Candidates often waste time by: ¤ working on a requirement for longer

than necessary because they wish to correct a mistake and amend all related follow-on figures

¤ feeling they have so much to say about a certain requirement that they ‘dump’ all their knowledge in the Candidate Answer Booklet

¤ persevering for too long with a question even though they are struggling.

Candidates can avoid these problems as follows:¤ If you discover an error in a

calculation or on a financial statement, only correct the initial error. Don’t waste time making all the follow-through corrections.

pass, but the global pass rate would be significantly higher.

The guidance in this article can really make a difference, so remember the following:¤ find out where your exam centre is,

and how to get there, leaving yourself plenty of time

¤ turn up to the exam on time and bring your Examination Attendance Docket with you

¤ bring the right equipment, including an appropriate calculator and pens with black ink

¤ complete the Candidate Answer Booklet properly

¤ keep all answers relating to question requirements together and in order and start each question on a new page

¤ start the answer to a new requirement in a new paragraph

¤ start each answer point on a new line

¤ write points concisely and clearly¤ relate the length and depth

of answers to the instructional verbs used

¤ correct only the original error in calculations or financial statements

¤ make only the number of points required for the marks available

¤ move on to another requirement if you are stuck.

By leaving the original error uncorrected, the only mark(s) lost are those associated with that particular entry or calculation, as ACCA uses a ‘method’ or ‘own figure’ marking policy. If the method adopted is correct, credit will always be given despite incorrect numbers being used.

¤ Only make as many points as there are marks available. For example, if five marks are available for discussing a theory, only make five (or possibly six) separate points. If the total mark available is a round number, then the examiner usually awards one mark per relevant point made. So, in this situation, even making 10 relevant points will earn no more than the maximum five marks available, and so writing those additional points wastes time.

¤ If you are struggling to get to grips with a requirement, move on to the next requirement, or even question, leaving enough blank pages in your Candidate Answer Booklet to complete it later.

CONCLUSIONThe global pass rate for any exam is very sensitive to the performance of marginal candidates. If these candidates gain an extra mark or two, then not only will they

ThE GLObAL pASS rATE fOr ANy ExAM IS vEry SENSITIvE TO ThE pErfOrMANCE Of MArGINAL CANdIdATES. If ThESE CANdIdATES GAIN AN ExTrA MArk, ThEN NOT ONLy wILL ThEy pASS, bUT ThE GLObAL pASS rATE wOULd bE hIGhEr.

16 ExAM GUIdANCE

EG1011_A_exam prep.indd 16 23/08/2011 13:41

feedback

examiners’ feedback provides guidance on past acca exam performance and suggests ways in which students can achieve higherexam results 18paperF1,accountantin business

20paperF2,ManaGeMentaccountinG

20paperF3,FinanciaLaccountinG

onLineaccesspiLotpapersFortheFoundationsinaccountancysuiteoFawardsatwww2.accaglobal.com/students/ fia/exam/

exaMresourcesavailable at www.accaglobal.com/students/

technicaLarchiveontheaccawebsiteaccess the technical article archive at www2.accaglobal.com/ students/student_accountant/archive/

howtopassfind Syllabus and Study Guides, past exam papers, examinable documents and examiner interviews at www2.accaglobal.com/students/pass/

exaMiners’Feedbackfrom the June 2011 exam session

EG1011_A_feedback cover.indd 17 24/08/2011 18:08

exam feedbackPaPeR f1accountant in businessCandidates were generally well prepared and most questions had pass rates in excess of 50%. Only seven questions had pass rate lower than this.

The areas where candidates performed exceptionally well included Macgregor’s Theory X and Y, roles within the accounting department, computerised v manual systems and remuneration systems.

Questions with lower pass rates included those on the differences between a team and a group, SWOT analysis, PEST (environmental) factors, Kolb’s theory of learning, non-executive directors, team briefing, and the role of external auditors in reducing the risks of fraud. It was surprising that candidates performed relatively poorly on SWOT and PEST analyses, as such questions had caused less difficulty in the past. Likewise, only just over half the candidates selected the correct answers for questions on IFAC and the ACCA Code of Ethics.

Candidates continued to do well on questions relating to the accounting function.There was a good awareness of the role of internal auditors, the role of external auditors, the purposes of an aged receivables listing and the roles of the managers of specific areas of accounting within a company’s finance department. This did not apply across the whole paper, however, as over 40% of candidates chose incorrect answers for questions on the role of an audit committee, management of working capital and recording transactions.

It was encouraging to note that there seems no longer to be major problems with questions on human resources management or management theories in general. In particular, the pass rates on questions relating to Tuckman’s theory of team development, the separation of management and ownership, certain aspects of corporate governance and organisational culture were very satisfactory.

Marginal candidates may have compromised their results by failing to answer the required number of questions. Even if the candidate has little grasp of a topic, it is worth making some attempt at the question when there is a 25%, 33% or 50% probability of getting the question right.

Candidates performed quite well on scenario questions, suggesting that even if these take longer to answer, they are no more difficult that briefer questions of considered carefully.

Of the 10 one-mark questions on the paper, only two of these saw very high pass rates, which seems to indicate that candidates do not find them easier than two-mark questions.

ExamplE 1Question 2 required an understanding of how the characteristics of a team differ from those of a group.

Which of the following is a characteristic of a team but not of a group?A The sense of identity brought about by

common objectivesB The bonding and loyalty of the

members to one anotherC The emergence of one particular

individual as a leaderD The organisation of work through

strictly formal processes

This topic is covered quite well in approved teaching materials, but only 34% of candidates selected the correct answer. The correct answer is D.

A sense of identity can be brought about by common objectives in both a team and a group. Likewise, bonding and loyalty can apply to both. Distractor C is more tricky, in that a working team usually has an appointed leader, but it is not impossible for leaders to emerge, especially when working groups are loosely configurated.

ExamplE 2Question 28 required knowledge of Kolb’s theory of learning. This is one of two theories that candidates need to learn, the other being that of Honey and Mumford.

Kolb’s learning cycle comprises active experimentation, experience, observation and reflection, and which other element?A AssimilationB ApplicationC Abstract conceptualisationD Positive reinforcement

The correct answer is C. Only 34% of candidates selected the correct answer.

The question is a good example of the necessity to remember stages of the various models encountered in the course of study for Paper F1. To some extent, tackling this type of question is dependent on a good memory, as it is quite clearly impossible to remember every stage of every model studied for the paper. The best way to deal with such theoretical models is to look at their practical significance by using real examples to demonstrate how to apply them.

ExamplE 3Question 38 required a knowledge of the PEST (or PESTEL) factors that must be considered by those responsible for strategic planning in an organisation.

Eatkleen is a pressure group that seeks to encourage food producers to eliminate harmful preservatives from food and make the public aware of the potential dangers of these additives. Frustrated with the government’s explicit policy not to act on this in the near future, Eatkleen is campaigning for consumers to boycott certain products.

What combination of environmental factors is Eatkleen bringing to bear on food producers?A Political and socialB Social and economicC Political and technologicalD Economic and technological

The correct answer is B, which was selected by 38% of candidates.

Making the public more aware of the potential dangers of additives is an attempt to affect social trends. A boycott of certain products, if effective, will lead to lower sales revenues and therefore lower profits, bringing pressure to bear on the companies concerned. This is clearly an economic influence.

Distractors C and D should have been ruled out quite quickly, as there was nothing in the question to suggest that technological factors were relevant.

ConClusionsThe performance in June 2011 continues the trend suggesting that candidates have been taking an appropriately broad approach to their studies. None of the individual sections of the syllabus caused significantly greater difficulty than others, though perhaps understandably there are higher pass rates on questions directly relating to accounting and finance.

Theories applicable to ‘softer’ management and human resources topics are often more difficult to grasp, but this reflects in pass rates for only certain questions. Generally, theories that are more easily remembered due to the words used (for example, Tuckman’s theory includes forming, storming, performing and so on) are more straightforward, and candidates can remember the words used, the order in which they appear in the theory, and apply them to scenarios. By contrast, the theories of writers such as Belbin and Kolb often present greater difficulty, the former because there are nine typologies to remember and the latter

18 Exams

EG1011_A_ ACCA feedback.indd 18 22/08/2011 16:04

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because the terminology is difficult. This suggests that perhaps a little more time should be spent on these in order to make the concepts clearer.

Scenario questions take longer because there are more words to read, and it is sometimes necessary to read the scenario several times in order to understand the issues involved. As mentioned above, however, these questions seem not to prove any more difficult to candidates, demonstrating that most candidates are reading them thoroughly before selecting their answers. By contrast, some one-mark questions have lower pass rates that expected, and this may be because candidates afford them too little time.

This session produced some surprises, in that this was the first exam in which questions on environmental factors and SWOT analysis created any significant difficulties for some candidates. It is, therefore, important to assume that these subjects will not always yield ‘easy’ marks.

PAPER f2mAnAgEmEnt AccountingThe improvement in the overall general performance of candidates referred to in the last examiner’s report was maintained at this sitting. The performance on an individual question basis also improved, compared with the December 2010 sitting. On this occasion, there were just eight questions where the correct answer was not selected by at least 40% of the candidates. It is interesting to note that five of these were ‘written’ style questions (that is no calculations were involved in answering them).

The following questions taken from the June 2011 exam are ones where the performance of candidates was weak – in each case less than 40% of the candidates selected the correct answer. Each of these questions carried two marks and each related to a mainstream topic in the Study Guide.

ExamplE 1 Are the following statements, which refer to documents used in the material procurement procedures of a company, true or false? (i) All purchase requisitions are

prepared in the purchasing department and are then sent out to suppliers.

(ii) All goods received notes are prepared in the goods inwards department.

Statement (i) Statement (ii)A False FalseB True TrueC True FalseD False True

The correct answer was D. This question tested Section D1(a) in the Study Guide. A purchase requisition is completed in the department which requires the goods and then sent to the purchasing department where a purchase order is raised to send to the supplier. Therefore, statement (i) is false and statement (ii) is true.

ExamplE 2A company uses standard marginal costing. Last month the standard contribution on actual sales as $40,000 and the following variances arose: Sales price variance $1,000 FavourableSales volume contribution variance $3,500 AdverseFixed overheadexpenditure variance $2,000 Adverse

There were no variable cost variances last month.

What was the actual contribution for last month?A $35,500B $37,500C $39,000D $41,000

The correct answer was D. This question tested Section E5(b) of the Study Guide – the reconciliation of budgeted and actual contribution under marginal costing.

The fixed overhead expenditure variance is not relevant to a reconciliation of budgeted and actual contributions. Fixed costs are deducted afterwards from contribution to arrive at profit.The figure of $40,000 given in the question as the ‘standard contribution on actual sales’ means that the effect of the sales volume contribution variance has already been taken into account in arriving at that figure of $40,000. Budgeted contribution is adjusted for the sales volume contribution variance to arrive at the figure for ‘standard contribution on actual sales’.Therefore, the only variance that needs to be taken into account in this particular question is the favourable sales price variance as follows: [40,000 + 1,000] = $41,000.

Both answers A and B were more popular choices by candidates than the

correct answer (D). Candidates choosing A presumably adjusted for all three variances and those choosing B adjusted for both sales variances.Example 2 in the December 2010 examiner’s report related to a similar question.

ExamplE 3A company uses flexed budgets. The fixed budget for last month was based on 100% activity and showed direct costs of $100,000. Last month’s actual direct costs were compared with the flexed budget to show the following:

Actual VarianceDirect costs $93,600 $2,400 Adverse

What was the actual activity as a % of the fixed budget last month?A 91.2%B 93.6%C 96.0%D 97.5%

The correct answer was A. This question tested section E3(a) in the Study Guide.

The actual costs were $93,600 and when compared with the flexed budget this gave an adverse variance of $2,400. Therefore the flexed budget was [93,600 - 2,400] = $91,200. Budgets are flexed based on activity levels. As $100,000 of direct costs represented a 100% activity level then flexed budget direct costs of $91,200 represents a 91.2% level of activity (actual activity as a % of the fixed budget).

Answer B was the most popular choice by candidates. The mistake here was to express actual costs as a percentage of budgeted costs rather than basing the calculation on activity levels. Candidates choosing C treated the adverse variance as favourable so that $[93,600 + 2,400] is 96.0% of $100,000. Answer D (chosen by more than 13% of the candidates) could be calculated as $93,600 expressed as a percentage of $96,000.

Future candidates are advised to:¤ Study the whole syllabus. ¤ Practise as many questions as

possible.¤ Read questions very carefully. ¤ Read previous examiner’s reports.

PAPER f3finAnciAl AccountingThe following questions have been taken from the International paper and were the three questions with the lowest pass rates. The aim of reviewing these questions is to give future

20 Exams

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candidates an indication of the types of questions asked and guidance on dealing with exam questions.

ExamplE 1 Which one of the following errors would lead to the creation of a suspense account?A Sales returns were credited to the

purchase returns account and debited to receivables

B The total of the sales daybook has been added incorrectly before being posted to the ledger accounts

C Discounts allowed have been dealt with correctly in the receivables account, but debited to the purchases account

D Purchases from the purchases daybook have been credited to sales and dealt with correctly in the payables control account

The correct answer is D. Only 33% of candidates answered this correctly, with option C being the most popular incorrect answer. The key to answering these types of questions correctly is to consider each option individually and establish if the error will cause a suspense account to be created. This will only occur if there has been a one-sided entry or both sides of a journal have been posted to the same side of the ledger.

In option A, we can see that there is a debit and a credit entry in the transaction so even though these are incorrect entries, they will not cause the trial balance to be out of balance.

In option B, the sales daybook total is posted to the sales account and the receivables account, so even though the total is incorrect, there will still be a journal that balances and this will not cause the trial balance to be out of balance.

In option C, discounts allowed should be credited to receivables, which has happened, and should be debited to discounts allowed expense. They have been incorrectly debited to purchases, but as the transaction has a debit and credit entry it will not cause the trial balance to be out of balance.

Finally, in option D, purchases from the purchase daybook should have been debited to purchases and credited to payables. The credit entry has been dealt with correctly but instead of debiting purchases the entry has been made to credit sales. This journal entry has two credits and does not balance so the trial balance will not balance leading to a suspense account being required.

ExamplE 2Pelle has a balance on his suspense account of $1,820 credit. He discovered the following errors:1 Sundry income of $1,750 has been

recorded in the sundry income account as $1,570

2 Sales of $2,800 from the sales day book have been posted to the receivables control account, but no other entry has been made

3 The purchases daybook was undercast by $950

What is the balance on the suspense account after Pelle has corrected the above errors?A $4,800 CRB $1,160 DRC $210 DRD $3,850 DRThe correct answer is B and is calculated as follows: $Balance b/f 1,820 CR1 sundry income (180) DR2 sales ledger (2,800) DRBalance c/f (1,160) DR

As with the first suspense account question in Example 1, the key to answering this question is to look at each transaction individually and determine if the transaction causes an entry to be made in the suspense account.

Transaction (1) requires an entry to the suspense account as too little sundry income has been recorded in the ledger account. The correcting journal entry is to Dr Suspense and Cr Sundry income with the difference of $180.

In Transaction (2) there has been a one-sided entry so to correct it we need to post Dr Suspense Cr Sales with $2,800 sales that have not been posted.

Transaction (3) does not require an entry to the suspense account as the incorrect total of the daybook will be posted into the ledger accounts and will not cause the trial balance to be out of balance.

Only 30% of candidates answered this question correctly with 35% of candidates answering C which adjusted for item (3) as well as items (1) and (2).

ExamplE 3Abigail’s receivables ledger control account does not agree with the total of the receivables ledger balances. She discovered the following errors:1 The receivables column of the cash

received daybook has been undercast by $300

2 A contra of $150 against the purchase ledger has only been entered in the control account

3 A sales invoice of $454 has been entered into the sales daybook as $544

Which of the above errors would cause a difference between the receivables control account and the total of the receivables ledger?A 2 and 3 onlyB 1 and 3 onlyC 1 and 2 onlyD 1, 2 and 3

The correct answer is C. Only 30% of candidates answered this question correctly with the most popular incorrect answer being B. This question is similar to the suspense account questions above in that each error has to be considered individually to assess whether it causes a difference between the control account, which contains a summary of transactions, and the individual customer accounts that are totalled to make the receivables ledger balances. So we are looking for items that have only been included in either the control account or ledger accounts or vice versa.

Item (1) will cause a difference as the individual items in the daybook are posted to the receivables ledger, and the daybook is totalled and posted to the control account. If the daybook has been added incorrectly then different amounts will have been posted to the ledger and control account.

Item (2) causes a difference as the contra has only been posted to the control account and has not been entered into the individual account.Item (3) will not cause a difference as the incorrect amount has been entered in the daybook and this will be posted individually to the customer account and then posted to the control account as part of the total.

ConClusionIn this exam, the worst answered questions all dealt with errors with two questions covering suspense accounts and one covering control account reconciliations. These are key exam topics and require a focused approach. Candidates need to ensure that they understand how transactions are posted from daybooks to control accounts so they can establish if a journal entry will cause a suspense account to be created or a reconciling item between a control account and the subsidiary ledgers.

1917studEnt aCCountant essential exam guide 10/2011 21

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examinable documentsRelevant to the December 2011 exam session

exam notes

exam notes provide guidance on aCCa examinable material, including any relevant accounting and auditing documents.

24 PaPer Fa2, maintaining Financial records and PaPer FFa/F3, Financial accounting

24 PaPer Fau, Foundations in audit

25 PaPer Ftx, Foundations in tax (uK)

to access exam resources visit the links below

PaPer F1www2.accaglobal.com/students/acca/exams/f1

PaPer F2 www2.accaglobal.com/students/acca/exams/f2

PaPer F3 www2.accaglobal.com/students/acca/exams/f3

PaPer Fa1 www2.accaglobal.com/students/acca/exam/fa1

PaPer ma1 www2.accaglobal.com/students/acca/exam/ma1

PaPer Fa2 www2.accaglobal.com/students/acca/exam/fa2

PaPer ma2 www2.accaglobal.com/students/acca/exam/ma2

PaPer Fab www2.accaglobal.com/students/acca/exam/fab

PaPer FFa www2.accaglobal.com/students/acca/exam/ffa

PaPer Fma www2.accaglobal.com/students/acca/exam/fma

PaPer Fma www2.accaglobal.com/students/acca/exam/fma

EG1011_A_examnotescover.indd 59 24/08/2011 10:37

FINANCIAL REPORTING – INTERNATIONAL ANd UKPaPer Fa2, maintaining Financial records and PaPer FFa/F3, Financial accountingKnowledge of examinable documents issued by 30 September will be required in exam session being held in the following calendar year.

Legislation must have been passed or regulation issued prior by 30 September in order to qualify as an examinable. Documents may be examinable even if the effective date is in the future.

The documents listed as being examinable are the latest that were issued/passed prior to 30 September 2010 and will be examinable in December 2011, June 2012 and December 2012 exam sessions**.

The Study Guide offers more detailed guidance on the depth and level at which the examinable documents will be examined. The Study Guide should be read in conjunction with the examinable documents list.

International Accounting Standards (IASs)/International FinancialReporting Standards (IFRSs) FA2 FFA/F3IAS 1 Presentation of Financial Statements • •IAS2 Inventories • •IAS7 Statementof CashFlows •IAS 10 Events After the Reporting Period •IAS16 Property,PlantandEquipment • •IAS18 Revenue • •IAS 27 Consolidated and Separate FinancialStatements •IAS28 InvestmentsinAssociates •IAS 37 Provisions, Contingent Liabilities andContingentAssets • •IAS38 IntangibleAssets •IFRS3 BusinessCombinations(revised) • Other Statements FA2 FFA/F3 Framework for the Preparation and Presentationof FinancialStatements* • •

Note:* The Conceptual Framework was issued 28 September

2010. Given the proximity to the cut off ACCA has made the decision that in the interests of all stakeholders this revised document will not be examined and any questions relating to the framework will be based on the documents listed in the above table.

** It would normally be the case that exams in 2012 would be based on regulation and legislation issued/passed on or before 30 September 2011. As the first exam session of FIA/new F3 papers is December 2011 ACCA has decided that it would be not be in the interest of stakeholders to have learning materials applicable to only one exam session. Unless the IASB release regulation that significantly affects the above papers the above table of examinable documents based on regulation in existence as at 30 September 2010 will be examinable for sessions in December 2011, throughout 2012 until the end of January 2013.

AUdIT – INTERNATIONALKnowledge of new examinable regulations issued by 30 September will be examinable in exam sessions being held in the following calendar year. Documents may be examinable even if the effective date is in the future. This means that all regulations issued by 30 September 2010 will be examinable in the December 2011 exam.

The Study Guide offers more detailed guidance on the depth and level at which the examinable documents should be examined. The Study Guide should therefore be read in conjunction with the examinable documents list.

PaPer Fau, Foundations in auditThe accounting knowledge that is assumed for Paper FAU is the same as that examined in Paper FA1 and Paper FA2. Therefore, candidates studying for Paper FAU should refer to the accounting standards listed under Paper FA2. Candidates will also be expected to be familiar with the accounting standards examined in Paper FFA.

International Standards on Auditing (ISAs) Glossary of Terms Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with ISAs ISA 210 Agreeing the Terms of Audit Engagements ISA 220 Quality Control for an Audit of Financial StatementsISA 230 Audit DocumentationISA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial StatementsISA 260 Communication with Those Charged with GovernanceISA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management ISA 300 Planning an Audit of Financial Statements ISA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and its Environment ISA 320 Materiality in Planning and Performing an AuditISA 330 The Auditor’s Responses to Assessed Risks ISA 450 Evaluation of Misstatements Identified During the Audit ISA 500 Audit Evidence ISA 501 Audit Evidence – Specific Considerations for Selected Items ISA 505 External Confirmations ISA 520 Analytical Procedures ISA 530 Audit Sampling ISA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures ISA 560 Subsequent Events ISA 570 Going ConcernISA 580 Written Representations ISA 610 Using the Work of Internal Auditors ISA 620 Using the Work of an Auditor’s Expert ISA 700 Forming an Opinion and Reporting on Financial Statements ISA 705 Modifications to the Opinion in the Independent Auditor’s Report ISA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report

ExAm NOTEs whAT yOU NEEd TO KNOw

24 ExAm NOtES

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exam notes what you need to know

Other Documents ACCA’s ‘Code of Ethics and Conduct’

audIt – ukPAPer fAu, foundAtions in Audit (uK)ACCOUNTING STANDARDSAll questions set will be based on International Financial Reporting Standards.

International Standards on Auditing (ISAs) (UK and Ireland) Glossary of Terms ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with ISAs (UK and Ireland) ISA 210 Agreeing the Terms of Audit Engagements ISA 220 Quality Control for an Audit of Financial Statements ISA 230 Audit Documentation ISA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements ISA 260 Communication with Those Charged with Governance ISA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management ISA 300 Planning an Audit of Financial Statements ISA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and its Environment ISA 320 Materiality in Planning and Performing an Audit ISA 330 The Auditor’s Responses to Assessed RisksISA 402 Audit considerations relating to entities using a service organisation ISA 450 Evaluation of Misstatements Identified During the Audit ISA 500 Audit Evidence ISA 501 Audit Evidence – Specific Considerations for Selected Items ISA 505 External Confirmations ISA 520 Analytical Procedures ISA 530 Audit Sampling ISA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures ISA 560 Subsequent Events ISA 570 Going Concern ISA 580 Written RepresentationsISA 610 Using the Work of Internal Auditors ISA 620 Using the Work of an Auditor’s Expert ISA 700 The Auditor’s Report on Financial Statements ISA 705 Modifications to the Opinion in the Independent Auditor’s Report ISA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report

Ethical standards ES (Revised) Provisions available for small entities ES1 (Revised) Integrity, objectivity and independence ES2 (Revised) Financial, business, employment and personal relationships ES3 (Revised) Long association with the audit engagement ES4 (Revised) Fees, remuneration and evaluation policies, litigation, gifts and hospitality ES5 (Revised) Non-audit services provided to audit clients Glossary

Other Documents ACCA’s ‘Code of Ethics and Conduct’

audIt – sIngaporeSingapore Standards on Auditing (SSAs) Preface to the Singapore Standards on Quality Control, Auditing, Review, and Other Assurance Related Services Framework and Assurance Engagements Glossary of Terms SSA 200 Overall Objectives of the Independent Auditor and the Conduct of the Audit in Accordance with SSAs SSA 210 Agreeing the Terms of Audit Engagements SSA 220 Quality Control for an Audit of Financial Statements SSA 230 Audit Documentation SSA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements SSA 260 Communication with Those Charged with Governance SSA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management SSA 300 Planning an Audit of Financial Statements SSA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and its Environment SSA 320 Materiality in Planning and Performing an Audit SSA 330 The Auditor’s Responses to Assessed Risks SSA 450 Evaluation of Misstatements Identified During the Audit SSA 500 Audit Evidence SSA 501 Audit Evidence – Specific Considerations for Selected Items SSA 505 External Confirmations SSA 520 Analytical Procedures SSA 530 Audit Sampling SSA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures SSA 560 Subsequent Events SSA 570 Going Concern SSA 580 Written Representation SSA 610 Using the Work of Internal Auditors SSA 620 Using the Work of an Auditor’s Expert SSA 700 The auditor’s report on financial statements SSA 705 Modifications to the Opinion in the Independent Auditor’s Report SSA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report

Other Documents Revised ICPAS Code of Professional Conduct and Ethics

taxPAPer ftX (uK), foundAtions in tAXAtionThe following notes refer to Paper FTX (UK) only. Guidance for other variant papers – where available – is available at www2.accaglobal.com/students/fia/exam/ftx/documents.

Legislation which received Royal Assent on or before 30 September annually will be assessed in the exam sessions being held in the following calendar year. Therefore, the December 2011 exam will be assessed on legislation which received Royal Assent on or before 30 September 2010.

audIt

STUDENT ACCOUNTANT essentiAl eXAm guide 10/2011 25

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Finance actThe latest Finance Acts which will be examined in Paper FTX (UK) at the December 2011 session are the Finance (No 1) Act 2010 and the Finance (No 2) Act 2010. With regard to prospective legislation when, for example, provisions included in the Finance Act will only take effect at some date in the future, such legislation will not normally be examined until such time as it actually takes effect. The same rule applies to the effective date of the provisions of an Act introduced by statutory instrument.

The Study Guide offers more detailed guidance on the depth and level at which the examinable documents should be examined. The Study Guide should therefore be read in conjunction with the examinable documents list.

Supplementary inStructionS, tax rateS and allowanceSThe following supplementary instructions, tax rates and allowances will be reproduced in the exam paper in December 2011. In addition, other specific information necessary for candidates to answer individual questions will be given as part of the question.¤ Calculations and workings need only be made to the

nearest £.¤ All apportionments should be made to the nearest month.¤ All workings should be shown.

income tax Normal Dividend rates rates % %Basic rate £1–£37,400 20 10 Higher rate £37,401– £150,000 40 32.5Additional rate £150,001 and over 50 42.5

A starting rate of 10% applies to savings income where it falls within the first £2,440 of taxable income.

personal allowances £Personal allowance £6,475Income limit for standard personal allowance £100,000

car benefit percentage The base level of CO2 emissions is 130 grams per kilometre (g/km). %Petrol cars with CO2 emissions of 75 g/km or less 5Petrol cars with CO2 emissions between 76 and 120 g/km 10

car fuel benefit The base figure for calculating the car fuel benefit is £18,000.

pension scheme limits The maximum contribution that can qualify for taxrelief without evidence of earnings £3,600 authorised mileage allowances: cars Up to 10,000 miles 40pOver 10,000 miles 25p

capital allowanceS: rateS oF allowanceplant and machinery %Main pool 20Special rate pool 10

motor cars (purchases since 6 april 2009 (1 april 2009 for limited companies))CO2 emissions up to 110 grams per kilometre 100CO2 emissions between 111 and 160 grams per kilometre 20CO2 emissions over 160 grams per kilometre 10

annual investment allowanceFirst £100,000 of expenditure 100

industrial buildings allowanceWriting-down allowance 1

corporation tax Financial year 2008 2009 2010Small companies rate 21% 21% 21%Main rate 28% 28% 28% £ £ £Lower limit 300,000 300,000 300,000Upper limit 1,500,000 1,500,000 1,500,000Standard fraction 7/400 7/400 7/400

marginal relief Standard fraction x (U–A) x N/A

Value added tax Standard rate – up to 3 January 2011 17.5%Standard rate – from 4 January 2011 onwards 20%Registration limit £70,000Deregistration limit £68,000

capital gains tax %Rate of tax – Lower rate 18 – Higher rate 28Annual exemption £10,100Entrepreneurs’ relief – Lifetime limit £5,000,000 – Rate of tax 10%

national insurance contributions (not contracted out rates) %Class 1 Employee £1–5,715 per year Nil £5,716–43,875 per year 11.0 £43,876 and above per year 1.0Class 1 Employer £1–5,715 per year Nil £5,716 and above per year 12.8Class 1A 12.8Class 2 £2.40 per week Small earnings exception limit – £5,075Class 4 £1–5,715 per year Nil £5,716–43,875 per year 8.0 £43,876 and above per year 1.0

Where weekly or monthly calculations are required, the Class 1 limits shown above should be divided by 52 (weekly) or 12 (monthly) as applicable.

rates of interest (assumed) Official rate of interest 4%

tax

ViSit www2.accaglobal.com/StudentS/Fia For more reSourceSto help you with your StudieS

26 exam noteS

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DIPloma In accountIng anD BusInessWith effect from December 2011, the ACCA Diploma in Accounting and Business will be launched as part of the new Foundations in Accountancy suite of qualifications.

This new Diploma will provide a flexible open-entry route into the Skills module of the ACCA Qualification for candidates who do not start their ACCA Qualification studies with the usual entry requirements. The Diploma in Accounting and Business is awarded on the completion of the exams: Accountant in Business (FAB), Management Accounting (FMA) and Financial Accounting (FFA), and the Foundations in Professionalism module.

The Diploma will also be available to ACCA registered students who register directly for – and pass – the Fundamentals Knowledge module papers: Paper F1, Accountant in Business; Paper F2, Management Accounting; and Paper F3, Financial Accounting; and who successfully complete the Foundations in Professionalism module (see page 42).

Who is the Diploma aimeD at?The Diploma is suitable for those aspiring to work, or already working, in the following types of roles:¤ basic bookkeeping ¤ trainee accountant in a commercial

organisation or accounting practice ¤ accounts clerk in the public sector.

The Diploma in Accounting and Business is broadly equivalent to HND level/the first year of a degree.

hoW is the Diploma structureD?The Diploma in Accounting and Business consists of three exams:¤ Paper FAB, Accountant in Business ¤ Paper FMA, Management Accounting ¤ Paper FFA, Financial Accounting

These three exams will also be the same exams as:¤ Paper F1, Accountant in Business¤ Paper F2, Management Accounting¤ Paper F3, Financial Accounting

This is illustrated in Figure 1.

Who is eligible to take the neW Diploma?1 Certified Accounting Technician (CAT)

students (based on status prior to August 2011) who take at least one of Papers FAB, FMA and FFA from December 2011.

2 MSER students (based on status prior to August 2011) who take at least one of Papers F1/FAB, F2/FMA or F3/FFA from December 2011.

3 FIA registered students who take at least one of Papers FAB, FMA and FFA from December 2011.

4 ACCA registered students who take at least one of Papers F1, F2, F3 from December 2011.

To be awarded the Diploma, all three of Papers FAB (F1), FMA (F2), and FFA (F3) must be passed or exempted, with at least one of the three papers having been taken and passed from December 2011 onwards. In addition, the Foundations in Professionalism module must also be successfully completed before the Diploma can be awarded.

The first Diploma certificates will be awarded from February 2012.

syllabus anD exam structure changes for existing stuDentsThe new syllabuses for the FIA Diploma in Accounting and Business are being introduced to reflect updates to national occupational standards in technician-level curricula and to take into account employer needs as obtained from consultation surveys with key stakeholders. The new syllabuses are also being re-aligned to more effectively underpin studies at higher levels within the ACCA Qualification.

In addition to syllabus changes, there are also exam structure changes that students need to be aware of.

Which students will be affected?1 CAT students (based on status prior to

August 2011) who have taken Paper 5, Managing Systems and People; Paper 6, Drafting Accounting Statements; and Paper 7, Planning – Control and Performance Management; and those

the acca Diploma in accounting anD business Will proviDe a flexible open-entry route into the skills moDule of the main acca Qualification.

figure 1: alternative routes to the acca Diploma in accounting anD business

28 founDations in accountancy

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DIPloma In accountIng anD BusIness

who will be taking FAB, FFA and FMA, respectively, as the equivalent exams from December 2011.

2 Existing and newly registered ACCA students who are taking the existing Paper F1, F2 and F3 exams during the transitional period (between February and November 2011) and who will be taking the new Paper F1, F2 and F3 exams from December 2011 onwards.

3 MSER students (based on status prior to August 2011) who take Papers F1/TT5, F2/TT7 and F3/TT6 after August 2011, but who will be taking the new Paper F1/FAB, F2/FMA and F3/FFA exams from December 2011 onwards.

4 All FIA students who can take the existing Papers TT5 (FAB), TT7 (FMA) and TT6 (FFA) exams during the transitional period, which follow the syllabuses for the existing Paper F1, F2 and F3 exams respectively (between February and November 2011), and who will be taking new FAB, FMA and FFA, respectively, as the equivalent exams from December 2011 onwards.

What changes do the above students need to be aware of?The specific syllabus and exam structure changes explained in this article cover four areas:¤ Syllabus areas no longer examined

from the existing CAT equivalent exams – Papers 5, 6 and 7.

¤ New syllabus areas and changes in the exam structures in the new FAB, FMA and FFA exams as compared with the CAT equivalent exams in (1) above.

¤ Syllabus areas no longer examined from the existing Fundamentals Knowledge exams – Papers F1, F2 (MMA) and F3 (MFA)

¤ New syllabus areas and changes in the exam structures in the new Paper F1, F2 and F3 exams as compared with the ACCA and MSER equivalent exams in (3) above.

Note: All these tables are to assist students who may have to retake an exam, or for tutors preparing to teach towards the new exam. However, in all

table 1: syllabus areas no longer examineD in fab, fma anD ffa, Which are currently examineD in cat eQuivalent exam syllabuses – papers 5, 6 anD 7

paper 5 syllabus paper 6 syllabus paper 7 syllabusareas removeD* areas removeD* areas removeD*none 1a) Discuss the 6d) alternative shortcomings of historical approaches to budgeting cost accounting and how they might be overcome

2a) preparation of 9a) session 27 pricing partnership financial and demand – all statements, admission and dissolution of a partnership

9b) session 28a(i) and (ii) ie the calculations elements have been removed

9c) session 28d(i) Discuss the link between target costing and pricing

9d) session 28 d(iii) Discuss the role of value engineering in target costing

* the references given are to the syllabus and study sessions within these syllabuses

table 2: exam structure changes betWeen cat aDvanceD level anD the neW Diploma papers

paper 5, managing paper 6, Drafting paper 7, planning, systems anD people financial statements control anD performance managementold exam structure: old exam structure: old exam structure:section a: 12 x two-mark section a: 10 x two-mark section a: 10 x two-markmcQ questions mcQ questions mcQ questionssection b: four x 14-mark section b: one x 40-mark section b: four x 20-markand one x 20-mark questions and two x 20-mark questions questions

fab, accountant in business ffa, financial accounting fma, management accounting

new exam structure*: new exam structure*: new exam structure*:50 x two-mark objective 50 x two-mark objective 50 x two-mark objectivetest questions test questions test questions

* the new exam structure will apply until students become accustomed to the new syllabus. it is planned to introduce longer type objective test questions to the new papers at a later stage and adequate notice of any new exam structure changes will be given.

stuDent accountant essential exam guide 10/2011 29

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table 4: exam structure changes betWeen existing papers f1, f2 anD f3 anD the neW paper f1, f2 anD f3 exams

paper f1, accountant paper f2, management paper f3, financialin business accounting accounting

old exam structure: old exam structure: old exam structure:40 x two and 10 x 40 x two and 10 x 40 x two and 10 x one-mark mcQ questions one-mark mcQ questions one-mark mcQ questions

f1/fab, accountant f2/fma, management f3/ffa, financial in business accounting accountingnew exam structure*: new exam structure*: new exam structure*:50 x two-mark objective 50 x two-mark objective 50 x two-mark objectivetest questions test questions test questions

* the new exam structure will apply until students become accustomed to the new syllabus. it is planned to introduce longer type objective test questions to the new papers at a later stage and adequate notice of any new exam structure changes will be given.

table 3: syllabus areas no longer examineD in the neW paper f1, f2 anD f3 exams, Which are examineD in the existing funDamentals knoWleDge moDule exam syllabuses – papers f1, f2 anD f3

paper f1, accountant paper f2, management paper f3, financialin business syllabus accounting syllabus accounting syllabusareas removeD** areas removeD** areas removeD**a5d) identify different c1 Dealing with b2 alternative basessources of internal and uncertainty – all used in the preparationexternal information of financial informationa5e) Describe the f1 cost volume profit c3 accounting systemsmain features of analysis – all and the impact ofinformation systems information technology on financial reportinga7b) identify influences f2b) calculate relevant f4 accounting forthat determine whether costs for materials, partnerships. the oldbehaviour and decisions labour and overheads and syllabus did not coverare ethical or unethical c) calculate the relevant detailed accounting for

costs associated with admissions and dissolution, non-current assets only simple allocation of profitsc1a) and b) history and f3 limiting factors – role of accounting all except: 3a) identifyin business single limiting factor

f2a) explain the purposesof personal developmentplans

f3a) Definecommunications*the syllabus refers to the existing study guides

it is most important for all stuDents to be fully aWare that if they take any cbe exams tt5, tt6 anD/or tt7 betWeen august anD november, they Will be examineD on the existing syllabuses of papers f1 to f3, so the changes referreD to in this article Will not apply to any exams sat before December 2011.

cases, it is important to refer to the Study Guide for full details.

transitional arrangementsThe changes referred to in this article apply with effect from December 2011. Computer-based exams (CBE) and paper exams – following new syllabuses and structures – will be available from December 2011.

Up until December 2011, CAT students (based on status prior to August 2011) can take the CBE versions of the F1 (TT5), F2 (TT7) and F3 (TT6) exams from February until November. Existing ACCA or MSER students (based on status prior to August 2011) may also take the CBE versions of the existing syllabuses until November.

It is most important for all students to be fully aware that if they take any CBE exams TT5, TT6 and/or TT7 between August and November, they will be examined on the existing syllabuses of Papers F1 to F3, so the changes referred to in this article will not apply to any exams sat before December 2011.

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table 5: neW syllabus areas examinable in the fab, fma anD ffa syllabuses as compareD to papers 5, 6 anD 7

fab neW syllabus areas aDDeD as ffa neW syllabus areas aDDeD as fma neW syllabus areas aDDeD ascompareD to the paper 5 syllabus compareD to the paper 6 syllabus compareD to the paper 7 syllabus a4 macroeconomics – in more detail a5 Duties and responsibilities of those a3 cost classification all except: charged with governance h) high low analysis and; i) explain the structure of linear functions and equations a5 microeconomics – all e1 prepare a trial balance from b1 accounting for material, labour and ledger accounts overheads – alla8 environmental factors – all b3 cost accounting methods – alla9 c) porter’s five forces model c5 capital budgeting and discounted cash flow – allb4 committees in the businessorganisation – allc4a) explain the various purposes for which the following financial informationis required: (i) is (ii) socf (iii) sofp b) Describe the main purposes of the following types of management accounting reports: i) cost schedules ii) budgets iii) variance reportse3 competency frameworks – allf1 fundamental principles of ethical behaviour – allf3 corporate codes of ethics – allf4 ethical conflicts and dilemmas – all

table 6: neW syllabus areas examinable in the neW papers f1, f2, anD f3 syllabuses as compareD to the existing papers f1, f2 anD f3 f1 neW syllabus areas aDDeD as f3 neW syllabus areas aDDeD as f2 neW syllabus areas aDDeD as compareD to the olD f1 syllabus compareD to the olD f3 syllabus compareD to the olD f2 syllabusa1 purpose and types of business a5 Duties and responsibilities of a2 – sources of data – allorganisation – all those charged with governancea5 microeconomics – all f3 Disclosure notes (explain purpose, draft a4 presenting information – all non-current asset, provision, events after the reporting period and inventory note)a8 environmental factors – all g1 accounting for subsidiaries b4 alternative costing principles – alla9c) porter’s five forces model g2 awareness of what associates are and c1 i) time series analysis which are equity accounting included in j) k), l), m) and n)c4a) explain the various purposes for h1 importance and purpose of analysis c2b) prepare cash budget and e) preparewhich the following financial information of financial statements master budgetsis required: (i) is (ii) socf (iii) sofp b) Describe the main purposes of the following types of management accounting reports: i) cost schedules ii) budgetsiii) variance reportse3 competency frameworks – all h2 ratios c5 – capital budgeting and discounted cash flow – allf1 fundamental principles of ethical h3 analysis of financial statements c6e) explain concept of controllable andbehaviour – all uncontrollable costs f) prepare control reports suitable for

presentation to managementf3 corporate codes of ethics – all c7 behavioural aspects of budgeting – allf4 ethical conflicts and dilemmas – all performance measurement overview – all performance measurement application – all cost reduction and value enhancement – all monitoring performance and reporting – all

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cbes

This article considers the benefits of computer-based exams (CBEs), highlights the points that you need to be aware of when completing ACCA’s current CBEs, and looks at the different types of questions featured in these exams. It relates specifically to the new syllabus exams, which will be available from December 2011.

Computer-based exams at aCCaACCA has offered CBEs since 1998. The launch of the Foundations in Accountancy suite of awards sees an increased number of papers being assessed via CBE and provides the next step in the move towards ACCA’s vision to deliver all exams via e-assessment. The papers shown in Table 1 will be assessed by CBE from December 2011.

A rigorous approach is taken when developing CBEs. Questions are written by experienced writers. They are then thoroughly reviewed by examiners, staff in the qualifications team at ACCA and other technical experts at various points during their development. Questions are trialled in exam conditions to gather statistical data on how they work and, if necessary, questions are revised in light of this data. It is only when a question has successfully completed all of these stages that it is ready to be included in an actual exam.

Computer based v paper based?CBEs offer specific benefits over paper-based exams. A particular benefit of the current CBEs is that they can be automatically marked by computer, which means that you can receive your results soon after completing the exam.

It is also possible for you to complete these CBEs at any time of year rather than being restricted to the June or December exam sessions. Exams are automatically constructed from a large bank of questions, which means that a group of students taking the same exam in the same place and at the same time will be presented with different questions, in different orders. Questions are specifically written for the CBE question banks. The CBE system ensures that each exam contains questions drawn from areas across the syllabus, but there is no way of predicting the actual questions which will be included in an exam.

Equivalent exams are currently available in paper-based format. However, completing a CBE is a very different experience to completing an exam on paper. The types of questions included in each format will be similar, but the way that each question is presented, and the answer recorded, differs between the two. In a CBE, candidates record their answers on the same screen where the question is shown; for paper-based multiple-choice exams answers are recorded on a separate Candidate Registration Sheet (CRS). Also, the whole experience of moving between questions and progressing through the exam is quite different. In a paper-based exam, you can see several questions at a time, whereas in a CBE students are presented with one question at a time to help them to focus on each question in turn. Another difference is in the way we read information presented in different formats; because of our experience online our eyes tend to jump around the computer screen rather than read it systematically as we would a printed page. For CBEs, therefore, remember to take time to read the question carefully to ensure you don’t miss any important information.

These differences mean that it is important for you to take time to familiarise yourself with the experience of completing exams as CBEs. Go to www.accaglobal.com/students/exams/cbes/demo to access materials which will help to familiarise you with the CBE system. By practising exam technique using computer-based practice tests, you will be able to concentrate on answering the questions, rather than understanding the system, when you eventually take a real CBE.

using the Cbe systemActions associated with paper-based exams, such as turning a page, need to be recreated in different ways in a CBE. This is achieved by reserving part of the screen for tools which enable movement between questions and which also to help you monitor your progress through the exam, as can be seen in Figure 1, an example of a CBE question from a Paper FMA exam. The real exams include additional features, such as a timer to show how much time is remaining and a drop down list of questions showing the questions not yet answered.

Computer-based exams – preparing for the experienCerelevant to the foundations in aCCountanCy suite of awards and aCCa qualifiCation papers f1 to f3

table 1: Computer-based exams

fia aCCa qualifiCation introductory Certificate in financial and Knowledge module management accounting f1 accountant in business fa1 recording financial transactions f2 management accounting ma1 management information f3 financial accounting intermediate Certificate in financial and management accounting fa2 maintaining financial records ma2 managing Costs and finance diploma in accounting and business fab accountant in business ffa financial accounting fma management accounting

a partiCular benefit of the CurrentComputer-based exams is that they Canbe automatiCally marKed by Computer, whiCh means that you Can reCeive your results soon after Completing the exam.

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Once you have entered your answer for a question, it is important to click on the ‘Submit’ button, for your answer to be saved. You can revisit questions and change answers by clicking on the ‘Clear’ button to remove your old answer; remember to click on ‘Submit’ to save your new answer once you have entered it.

Use the drop down question list and the timer to monitor your progress through an exam. For example, if you are less than halfway through an exam with only one of the two hours remaining then you are probably spending too much time on each question and should move through the remaining questions more quickly.

Do not spend a lot of time on questions you are unsure of; instead, move on and come back to these questions at the end of the exam. Any questions that you could not answer first time through will be highlighted by an asterisk in the question list and you can quickly move to these questions by clicking on the relevant question number in the list. When you return to these more difficult questions, if you still cannot work out the answer, then guess the most likely option and submit this response. For number entry questions, where no answer options are given, you should enter a number that you believe could be correct. You will not lose any marks for an incorrect guess.

Question typesCurrently, ACCA CBEs comprise four main question types: multiple choice, multiple response, multiple response matching and number entry. All questions are worth two marks. Table 2 shows the question types available in each CBE.

Multiple-choice Questions (McQs)MCQs are the most commonly used question type and feature in all of ACCA’s CBEs. Questions typically have four answer options, although some questions may have more than this. Figure 2 shows an example of an MCQ from the FA1 exam.

Figure 2: Multiple-choice questionThis question type comprises a question and several answer options; only one of which is correct. Some questions also include a ‘question stem’ – additional information needed to help you work out the answer. This information is presented in a box at the top of the screen.

You answer the question by clicking on the ‘radio’ button next to your chosen answer option, and then clicking the ‘Submit’ button. The computer prevents you from selecting more than one answer option at a time. You must press the ‘Submit’ button if you change your answer, otherwise your previous answer will be the one that is saved at the end of the exam.

Multiple-response QuestionsQuestions typically have four answer options, two of which are correct. However, sometimes the number of correct answer options varies, so it is important that you read the question carefully to see how many correct options you are looking for. Figure 3 shows a multiple-response question from a Paper FAB exam.

Figure 1: saMple screen FroM the FMa cBe

taBle 2: coMputer-Based exaM Question types Question Fia Fia Fia – FaB Fia – FMa Fia – FFa type Fa1 and Ma1 Fa2 and Ma2 acca – F1 acca – F2 acca – F3 Multiple choice ✔ ✔ ✔ ✔ ✔

Multiple response ✔ ✔ ✔ ✔

Multiple response matching ✔ ✔ ✔ ✔

number entry ✔ ✔ ✔

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Figure 3: Multiple-response questionAlthough multiple-response questions appear to be very similar to MCQs, you have to select more than one option by clicking on the square ‘tick boxes’ next to your chosen options, then clicking the ‘Submit’ button. If you select an incorrect number of answer options and then click ‘Submit’, a pop-up box will remind you of the number of options that you are required to select.

Answering Multiple-choice And Multiple-response questionsFor MCQs and multiple-response questions, all incorrect answer options have been chosen carefully because they are common incorrect responses to the question. At first glance, all answer options may appear plausible. It is, therefore, important to take the time to read all the answer options carefully rather than choosing those that look most obviously correct.

If the question involves a calculation, work out the answer rather than simply selecting the option that looks most likely to be correct. If you find a particular question difficult, start by discounting any answer options that you know are incorrect and then concentrate in more detail on those that remain.

Multiple-response MAtching questionsFigure 4, from the FMA exam, shows the standard layout for multiple-response matching questions.

Figure 4: Multiple-response matching questionThis type of question comprises the actual question and several statements related to the question. Each statement is accompanied by several response options, in Figure 3 these are ‘abnormal gain’ and ‘abnormal loss’. Each statement should be matched its correct response by clicking on the corresponding radio button in the row for the statement. Each statement needs to be completed correctly for the award of two marks.

Figure 2: Multiple-choice question

Figure 3: Multiple-response question

iF A Multiple-response question involves A cAlculAtion, work out the Answer rAther thAn siMply selecting the option thAt looks Most likely to be correct. you cAn stArt by discounting Answers thAt you know Are incorrect.

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If only one statement is completed correctly you will not be awarded any marks. If you do not select a response for each statement, when you click ‘Submit’ a pop-up box will appear to remind you of the total number of responses that you should select.

Number eNtry questioNsThe example in Figure 5 is from a Paper MA2 exam.

Figure 5: Number entry questionThis is the only question type in a CBE where you need to enter the correct answer yourself, rather than choose from a list of options. To gain marks for a correct value, remember that numerical answers should be submitted without commas and using the full stop as a decimal point (eg 10530.25).

If you enter letters or symbols that the CBE system does not recognise, the system will either change or ignore your answer. Therefore before you press the ‘Submit’ button, check that you have presented your answer using the correct format.

Once you have clicked ‘Submit’, check that your answer is presented correctly next to the label ‘Your currently accepted answer’. If it does not appear as you intended press ‘Clear’ and try again.

summaryCompleting a CBE is straightforward when you are familiar with what is required. Before you take your first CBE, go to www.accaglobal.com/students/exams/cbes/demo and use the familiarisation materials found there.

Remember, the computer will make sure that you select the correct number of answer options for each question; it is up to you to make sure that you choose the correct ones.

Helen Claydon is ACCA qualifications e-assessment manager

Figure 4: multiple-respoNse matchiNg questioN

Figure 5: Number eNtry questioN

completiNg a cbe is straightForward wheNyou are Familiar with what is required. beFore you take your First cbe, go to www.accaglobal.com/studeNts/exams/cbes/demo aNd use the FamiliarisatioN materials FouNd there.

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