THE ESSENTIAL GUIDE - ACCA

33 Pages·2013·6.83 MB·English

APRIL 2013
EXAM ADVICE AND GUIDANCE
INCLUDING EXAMINERS’ FEEDBACK
AND EXAMINABLE DOCUMENTS
RELEVANT TO PAPERS F1 TO F3 AND
FOUNDATION LEVEL STUDENTS
YOUR ACCA JOURNEY
STARTS HERE
ALL YOU NEED TO KNOW FOR THE JUNE 2013 EXAMS
THE ESSENTIAL GUIDE
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Essential guide FEB 2013.indd 2 20/02/2013 11:39
STUDENT ACCOUNTANT | ESSENTIAL EXAM GUIDE | 04/13
EDITOR’S
CHOICE
Welcome to the latest issue of
Student Accountant Essential Guide
This issue is focused on exam-related
information that you need to support your
studies towards any of the Foundation level
exams and Papers F1, F2 and F3.
We include examiner feedback from
Papers F1, F2, and F3 and the Foundation
level papers. This advice looks at overall
performance and outlines areas where
candidates obtained both high and low marks. As well as examiner feedback, this issue
Reading the examiner feedback together with contains the examinable standards and
the past exam questions and answers from information relevant to the fi nancial reporting,
the latest exam session can help you identify audit and tax papers. Use this information to
where students have gone wrong in the past, guide your exam preparation and take note of
and how to develop your answers to achieve the areas that you could be examined on.
the best marks possible – it is one of the key We include essential information on the key
resources to use in exam preparation. elements of the Foundation level qualifi cations
and important advice on entering at the
correct level to give you the best chance of
success and exam progression.
Our Exam Toolkit section contains a range of
useful advice to perfect your exam technique
and help you prepare for your next exams.
We’ve included detailed advice on taking
exams with multiple-choice questions and also
how to attempt a computer-based exam.
In Noticeboard, you can view the exam
timetable for June 2013, and access details
on the exam rules and regulations that you
need to be aware of, as well as information
on entering for exams.
We’ve produced this magazine to be
as helpful to you as possible in the lead up to
the June 2013 exams. We have also produced
two other tailored magazines for students
taking Papers F4–F9 and the Professional
level exams. These can be accessed at
www.accaglobal.com/studentaccountant.
I hope that you fi nd this magazine useful
in your exam preparation. Email me at
[email protected] with your
feedback on this issue.
Victoria Morgan
Editor, Student Accountant magazine
A_Welcome.indd 3 25/02/2013 14:32
WELCOME | CONTENTS
44
W N LOA D
PDhLctOStiopdAsmTt:5u/N/4Ud/u1ieNstD0nu/3EtnEa-3eppR4Nslpa0. /anT2Aapn?c pemPclreat/P=.- 8
ESSENTIAL GUIDE
49
06 EXAMINERS’ FEEDBACK 44 EXAM TOOLKIT
44 How to answer
08 Paper FA1
multiple-choice questions
10 Paper FA2
49 Improve your exam
12 Paper MA1
performance
13 Paper MA2
52 Exam day FAQs
16 Paper FAU
54 Exam day preparation
18 Paper FFM
20 Paper FTX 54 E XAMINABLE DOCUMENTS:
WHAT YOU NEED TO KNOW
23 Paper F1/FAB
25 Paper F2/FMA 59 ACCA CAREERS
26 Paper F3/FFA
60 FOUNDATIONS IN
29 U PDATES TO THE ACCA PROFESSIONALISM
54
QUALIFICATION IN 2013
61 P ERFORMANCE
30 T HE FOUNDATION LEVEL: OBJECTIVES
ALL YOU NEED TO KNOW
34 T HE FOUNDATION LEVEL:
STARTING AT THE RIGHT
LEVEL
37 A PPROVED LEARNING ers 59
e
PARTNERS FAQs @ACCA C a r
40 C OMPUTER-BASED EXAMS
STUDY SUPPORT VIDEOS
Access a range of study support videos at
www.accaglobal.com/studentaccountant
STUDENT ACCOUNTANT TECHNICAL
ARTICLE ARCHIVE
All technical content from Student Accountant is
on ACCA’s website at www.accaglobal.com/en/
student/publications/sa-archive.html
61
STUDENT ACCOUNTANT | ESSENTIAL EXAM GUIDE | 04/13
A_Contents.indd 4 26/02/2013 17:06
JJOOIINN AACCCCAA’’SS
FFAACCEEBBOOOOKK
PAGE
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EDITORIAL TEAM
AACCCCAA CCAARREEEERRSS Victoria Morgan | Editor
65 UUggaaiippllannnnootll ddbb ooaaw aaaaccffwiiddllccnn oo ccwddyyuuaa.oo arrnnaauueecttddrraaeecvv nnrrCCaii cccccVVooeeyya,,pp raaooaappeccnnnnooecc ddrrrcceetts aauuffss.iirrcnnssnneeo iiaatteemiinnrreeccssssee GJJWaalWcnekeniW eCP .aD ARtotCeelilCrdasAr o| GnD| ALe| DOrstiegB epnAdueLitrt.yCo rOedMitor
Jamie Ambler | Digital editor
RESOURCES
29 Lincoln’s Inn Fields London
NOTICEBOARD WC2A 3EE
United Kingdom
ESSENTIAL INFORMATION TO HELP
WITH YOUR EXAM ADMINISTRATION tel: [phone]
email: [email protected]
62 ACCA Connect contact details
www.accaglobal.comAND
and the latest subscription and
exam fees ADVERTISING
Adam Williams | Publisher
62 Achieving ACCA membership
Anthony Kay | Production manager
63 June 2013 exam timetable
63 Keeping you informed For all advertising-related matters
please contact Nick Willmer
64 Exam rules relevant to
tel: [phone]
June 2013
63
email: [email protected]
65 Exam entry – key dates
Published by the Certifi ed Accountants
65 Study options
Educational Trust in cooperation
66 Practical experience with ACCA.
requirement
The Council of ACCA and the publishers
67 Exam exemptions do not guarantee the accuracy of
statements made by contributors or
67 Exam resources
advertisers, or accept any responsibility
for any statement which they may make
in this publication.
62 64 No part of this publication may be
reproduced, stored in a retrieval
system, or transmitted in any form or
by any means, electronic, mechanical,
PRACTICAL EXPERIENCE
photocopying or otherwise, without prior
Why not log into your myACCA account to record your written permission of the publishers.
experience using the online recording tool My Experience? © CAET 2013 ISSN 1473-0979
STUDENT ACCOUNTANT
In addition to this printed issue, we also email an alert to a
new issue of Student Accountant each month. To make sure
we can continue to send you alerts and emagazines, update ACCA recommends that you study with
your consent levels in your myACCA account. one of our Approved Learning Partners
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A_Contents.indd 5 26/02/2013 17:06
FEEdbacK
EXAMINER FEEDBACK
FROM THE dEcEMbER 2012 ExaM sEssiOn
Examiners’ feedback provides guidance on past acca exam performance
and suggests ways in which students can achieve higher exam results
08 pApER FA1 18 pApER FFM
10 pApER FA2 20 pApER FTX
To1 a2c c peAssp sEyRll aMbuAs1, study Guides, past pap2e3r s,p eAxpaEmRin Fe1r /fFeAedBback, and
examiner resources, visit the links below:
13 pApER MA2 25 pApER F2/FMA
16 pApER FAU 26 pApER F3/FFA
TEChNICAl ARChIvE oN ThE ACCA wEBsITE
access the technical article archive at www.accaglobal.com/
studentaccountant
EXAMINER GUIDANCE
access examiner interviews and past examiner
feedback on the acca website at
www.accaglobal.com/examinerfeedback
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Essential guide FEB 2013.indd 5 20/02/2013 11:40
EXAMS
8
exam feedback
PaPeR fa1 of $3,690 and outstanding lodgements C $29,300
RecoRding financial of $5,120. D $26,730
tRansactions What should be the balance on Colin’s
Of the 50 multiple-choice questions bank account in the general ledger? Correct answer is A.
on the December 2012 paper, 29 A $25,550 debit
questions were correctly answered B $25,550 credit Payables are a liability and therefore
by more than 50% of candidates. C $22,690 debit will have a credit balance of $16,420
This is consistent with June 2012 but D $22,690 credit brought forward. With the transactions:
still represents a fall of 11% on the the purchase of goods would have a
December 2011 paper. Correct answer is A. double entry of DR Purchases $39,610
As mentioned in previous reports, and CR Payables ledger control account
not all questions are attempted. In When the question asks for ‘what $39,610, the purchase return would
fact, only eight out of the 50 questions should be the balance of the cash have a double entry of DR Payables
were answered by all candidates. This account in the general ledger’ it ledger control account $2,110 and CR
is much worse than for the June 2012 wants the correct amount after the Purchases $2,110, and the payment
paper and is extremely disappointing in reconciliation has been done. This would be DR Payables ledger control
a multiple-choice paper. If a candidate was found by taking the balance of account $24,620 and CR Cash $24,620.
does not know the correct answer a $24,120 which was positive (credit) So the credits were just the brought
guess will give a 25% chance of a with the bank, adding the outstanding forward balance and the purchases.
correct answer – this advice has been lodgements of $870 and deducting the $16,420 + $39,610 = $56,030. The
pointed out in previous comments. unpresented cheques $1,230: majority of candidates chose answer C,
Candidates performed exceptionally $24,120 + $5,120 – $3,690 = which was the balance carried forward
well in the questions regarding the $25,550 on the account, not the total of the
construction of a trial balance and Candidates yet again struggled with credit side. Candidates need to ensure
dealing with a suspense account. Given whether the balance was a debit or they are reading the requirement very
suspense accounts require candidates credit balance, with 31% of candidates carefully and not just assuming they
to apply their knowledge of double entry getting the answer numerically correct know what is being asked.
in detail, this was promising. but going for a credit rather than a
As highlighted in previous debit balance. When it says a credit question 20
comments, candidates perform very balance at the bank, this means that Question 20 was a control account
well in the questions about the use the bank owes cash to its customers, reconciliation question.
of documentation, but the questions so from the business’ point of view Pauline’s list of payables ledger
regarding the content of documents, a credit balance at the bank means balances totalled $13,120. Pauline later
such as the petty cash voucher, was it has a positive cash balance, which discovered that:
disappointing. would appear as a debit in the ledger of ¤ a debit balance of $100 had been
It was very pleasing to see that some the business. included in the payables ledger list
improvements had been made in dealing The unpresented cheques are as a credit balance
with discounts and sales tax, with cheques written by the business and ¤ the total of the purchase day book
questions in these areas generally done recorded in the cash book but not yet was understated by $1,200.
well. However, the questions dealing with showing on the bank statement, so they
the day books, and posting the entries need to be deducted from the bank The payables ledger balances and the
from the day books into the ledgers yet statement balance. control account reconciled after adjusting
again caused problems, although these Outstanding lodgements are for these errors.
are fundamental parts of the syllabus. receipts paid into the bank that have What is the correct total for the list of
Difficulties were also encountered in not yet cleared, and so are not yet balances on Pauline’s payables ledger?
other practical bookkeeping topics, showing on the bank statement and
such as questions that required ledger need to be added on. A $12,920
accounts to be balanced off. Many candidates incorrectly B $13,020
These issues also spread to deducted outstanding lodgements and C $14,320
dealing with control accounts and, as added on unpresented cheques. D $14,120
usual, questions on control account
reconciliations and bank reconciliations question 9 The correct answer is A.
produced the worst results. The issues Question 9 dealt with the payables
with these have been highlighted below. ledger control account. $13,120 – $200 = $12,920
Maureen owed her suppliers $16,420 The question wants the total on the
sample questions for discussion at the start of April. During April she list of balances of the payables ledger
question 7 bought goods costing $39,610, she – this is the total of all of the individual
Question 7 was a bank reconciliation returned goods costing $2,110 and suppliers’ accounts.
question. Just as in both the June 2012 made payments of $24,620. The suppliers are liabilities and
and December 2011 papers, this was What is the total of the credit side therefore the total will be a credit balance.
not well attempted. of Maureen’s payables ledger control If there is debit balance it means, for
Colin’s bank statement showed account for the month of April? some reason, the supplier owes money
a credit balance of $24,120. When to the entity – for example, if an entity
performing his bank reconciliation, A $56,030 has overpaid a supplier, or has paid a
Colin discovered unpresented cheques B $43,150 supplier and then subsequently returned
A_ExamFeedback.indd 8 20/02/2013 15:25
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Essential guide FEB 2013.indd 4 20/02/2013 11:39
EXAMS
10
the goods. These debit balances should of the statement of financial position is created through a debit entry in the
be deducted from the total, but here they (30 November), the trader had three goodwill account. The double entry is
have been added on – candidates needed separate items that needed to be completed through credit entries in
to deduct the debit balances by double classified – cash takings, an overdraft the capital accounts of the original
the amount. and a petty cash balance. Once this is partners. The value credited to each
The total of the purchase day book clarified, it can be seen that the cash partner’s capital account is calculated
is posted to the payables ledger control takings (£2,468) and the petty cash by dividing the goodwill in the old profit
account only and therefore doesn’t affect balance ($44) are current assets and that and loss sharing ratio. In this case, the
the list of balances the total value is $2,512 ($2,468 + $44). old ratio was an equal share ($21,000)
Paper FA1 covers both knowledge of The bank overdraft is a liability and, to each partner.
the syllabus and the application of that therefore, it is not part of current assets. If goodwill is not to be carried in the
knowledge. The knowledge questions Option A was chosen by candidates books of the new partnership, it follows
were done significantly better than the who did not pay sufficient attention that a credit entry is required in the
application questions. As with previous to the date on which the takings were goodwill account to bring the balance on
papers, the questions that required banked. If the takings had been banked that account to nil. The double entry is
candidates to perform calculations were on 30 November, the overdraft would completed through debit entries in the
not done as well as those that were have become a balance of cash at bank capital accounts of the new partners,
pure narrative, although this differential of $895. When the petty cash balance with the value of each entry being
has narrowed. Candidates still seem of $44 is added, the result is $939. calculated by sharing the goodwill in the
to be spending more time reading However, as the takings were not banked new profit and loss sharing ratio. In this
and digesting the material rather than by 30 November, the overdraft at that question the new profit and loss sharing
practising questions. A well-prepared date remains and the takings were in the ratio meant that the following debit
candidate will make sure they have form of cash. entries were required:
practised all types of question. Option D was chosen by candidates
who made the error discussed in the Luka 2/5 $16,800
PaPeR fa2 paragraph above and also omitted the Eden 2/5 $16,800
maintaining financial petty cash balance. Greg 1/5 $8,400
RecoRds Option B was chosen by candidates who
The purpose of this report is to assist assumed that only the petty cash balance These entries lead to capital balances
candidates at future exam sittings so should be reported as a current asset. as follows:
that they can avoid the mistakes that Luka $22,000 (Cr) + $21,000 (Cr)
are most often made by candidates. example 2 – $16,800 (Dr) = $26,200 (Cr)
The means of doing this is to focus Luka and Eden have been in partnership, Eden $22,000 (Cr) + $21,000 (Cr)
on three questions that were correctly sharing profits and losses equally. – $16,800 (Dr) = $26,200 (Cr)
answered by the lowest number of Greg was admitted to the partnership Greg $8,400 (Dr) = $8,400 (Dr)
candidates at the December 2012 on 1 December 2012. At that date Luka
sitting. Observations on how to select and Eden each had a credit balance of Thus, Greg must introduce $34,600
the correct answer, and why the other $22,000 on their capital accounts. ($26,200 + $8,400) to bring his capital
choices are incorrect, are made on It was agreed that: balance to a credit of $26,200.
each of these questions. 1 Goodwill, which would not be carried Option B was selected by candidates
in the books of the new partnership, who correctly calculated the closing
sample questions for discussion had a value of $42,000 balances on the capital accounts of
example 1 2 Profits and losses in the new Luka and Eden, but omitted the debit
Iona’s cash takings of $2,468 for partnership would be shared between entry for goodwill in Greg’s account.
30 November were not banked until Luka, Eden and Greg in the ratio 2:2:1 This can often arise when a candidate
4 December. 3 Greg would introduce cash so that, calculates a value that is included in
At 30 November, her bank balance immediately following his admission, the options, but fails to realise that
was an overdraft of $1,573 and she had the capital account balances of all their calculation is incomplete.
a balance of $44 in her petty cash box. three partners were equal. A few candidates calculated the
What amount should be included in adjustments on the original partners’
current assets in Iona’s statement of How much cash was Greg required accounts correctly, but swapped the
financial position at 30 November? to introduce? debit and credit entries leading to
revised balances of $17,800. Once
A $939 A $34,600 again, the inclusion of this value in the
B $44 B $26,200 choices meant that they stopped their
C $2,512 C $30,400 calculation at that point.
D $895 D $17,800 One way of avoiding this is to ignore
(or even cover up) the choices until the
This question tested candidates’ Those candidates with a good calculation has been completed.
ability to correctly classify assets and understanding of the principles of Many candidates simply calculated
liabilities. The question also required accounting for a change to a partnership the value of the debit entry required in
careful reading in order to avoid were able to successfully answer this Greg’s account ($8,400) and used this
selecting the wrong option. question. The key knowledge that was in conjunction with the starting balance
The key to obtaining the correct required was that, on the admission on each of Luka and Eden’s accounts to
answer was to note that, at the date of a new partner, the asset of goodwill obtain a value of $30,400.
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