P1 – Professional Accountant
Section A: Compulsory
• always covers range of syllabus areas
• some element of ethics in this question
Section B: 2 from 3
• one question solely on governance
• one question with significant ethics element
Key topics – in section A or B:
• internal audit: independence or appointment (possibly via audit committee)
• remuneration committee
• directors induction and / or appraisal
• ethical decisions: AAA or Tucker
• stakeholder categorisation
• normative / instrumental views of stakeholders
• board structure: family / insider or unitary / two tier
• Corporate Social Responsibility (CSR)
• sound internal controls
P2 INT – Corporate Reporting (International variant)
Compulsory group question within part A could be:
• Cashflow (not examined under the new syllabus, but in the pilot paper)
• Group income statement which will examine aspects of IFRS 3 revised (goodwill and NCI at fair value)
• Accounting for changed shareholdings in group structure
Within the compulsory question, there may also be some explanation and application of ethics and/or a written element which includes IFRS 3 revised.
Multi-topic question to include aspects of:
• Impairments
• Share-based payment
• Financial instruments
• Retirement benefits
• Discontinued and held-for-sale
• Deferred tax
• Provisions and events after the b/s date
Current issues:
• Retirement benefits – Discussion Paper within examinable documents
• Financial Instruments – Discussion Paper within examinable documents
• IFRS 3 Revised
• Harmonisation of international standards
P3 – Business Analysis
Section A
• Question 1 will still focus mainly on the strategic planning process. Key areas may be:
• SWOT
• Ansoff
• Acquisition
• Also expect an implementation issue such as culture or change management
Section B
• If culture and/or change management do not appear in the compulsory question then they may appear in the option questions
• Other areas may be:
• TQM
• Supply chain management
• Choosing & evaluating an IT system
P4 – Advanced Financial Management
Section A
• Business valuation (various methods, with pros and cons)
• Option pricing – Black Scholes model
Section B
• Interest rate hedging (futures and options), bond pricing and credit spreads
• Stakeholders and conflict of objectives
• Investment appraisal – with foreign currency
P5 – Advanced Performance Management
• Corporate failure as per recent article (July 08)
• Pricing (transfer pricing)
• Strategic planning and gap analysis
• Performance measures for both private and public sector
• Environmental management accounting
P7 – Advanced Audit & Assurance (UK & INT variant)
Core areas of the syllabus expected to be examined in every sitting:
• Engagement planning and risk (audit risk likely this sitting);
• Gathering evidence;
• Ethics/professional issues; and
• Engagement reporting (particularly audit qualifications).
Subject of recent articles:
• Forensic investigations and audit (September 2008). (Likely to include elements of planning and/or gathering evidence similar to question 2 of pilot paper).
"Peripheral topics" from exam approach article yet to be covered:
• Regulatory framework;
• Obtaining professional work; and
• Corporate governance.
source : opentuition
