The Final Lap - ACCA Preparation

The ACCA exams are barely 10 days away and I am sure, at this point, everyone is neck deep in books, looking at multiple reference documents, going through the ACCA study hub resources ( super important at this point ) and making a go at mocks.

And as the D Day nears, the kind of questions that I get are

• how many questions should I solve ?
• how many hours should one study in a day ?
• How many mock exams should one attempt?
• Which sources should I refer?
• Which concepts are important ?
• Which concepts are not going to be tested?
• What should be my strategy for writing the paper?
• What sequence should I pick up ?

and many more.

So for all the ACCA skill and professional level aspirants out there, this is a comprehensive strategy in terms of how you should prepare for the upcoming exams given that you have 10 days and you want to give it your all. Remember, there is no alternative to hard work. You must be ready to put your shoulder to the wheel, ready to do all it takes.

Financial Reporting

The financial reporting paper is 100 mark exam in the financial reporting paper.

Let’s understand what topics are tested in section C. A section C will contain one question on preparation of financial statements, single entity standalone or consolidated and another question will be on interpretation of financial statements.

Interpretation of Financial Statements

You have to make sure that the topic - interpretation of financial statements and ratio analysis is done properly in your preparation. There are different scenarios that get tested in ratio analysis

• single entity financials analysis - comparison with another entity
• single entity financials analysis - comparison with sector averages
• single entity financials analysis - comparison with itself ( 2 years )
• analysis of cash flow statements
• consolidated financial statements when you are acquiring a subsidiary
• consolidated financial statements when you are disposing of a subsidiary

Make sure that you have practised at least one question of each type.

Preparation of Single Entity Financial Statements

In preparation of single entity financial statements, there are a couple of adjustments that are tested very frequently.

• Significant financing component
• compound instruments
• revaluation
• deferred tax
• closing stock

Make sure that you know how to tackle each of these adjustments . Practice at least 58 - 10 full length questions.

Preparation of Consolidated Financial Statements

You should be aware of the sequence and the format of making working notes. Doing that in the right order is critical for success.

You should know that there are five working notes which are absolutely essential if you are preparing a consolidated statement of financial position.

• Group structure
• Fair value of net assets of subsidiary
• Goodwill
• Consolidated return earnings
• Non-controlling interest, and then of course you have impact of fair value adjustment

Make sure that you know how to tackle each of these.

In consolidated profit and loss account practise all the different scenarios, including mid-year acquisition.

You need to practice at least 8 - 10 questions to get this right

As for Section A and Section B, it would be ideal to follow the sequence given below for preparation

I - IAS 33, IFRS 15, IFRS 16

II - Conceptual Framework, IAS 21, IAS 12, IAS 37, IAS 10

III - IAS 16, IAS 20, IAS 23, IAS 40, IAS 36, IAS 38, IFRS 5

IV - IAS 8, IAS 2, IAS 41, IFRS 13

Target completing at least 35-40 MCQs everyday in the upcoming 10 days and you will be all set for the exam.

Audit and Assurance (AA)

Section A contains three short case studies followed by MCQs. Each case study has five MCQs. There are four options and you have to pick one.

These can come from any area of the syllabus but particularly come from

• audit framework
• planning and risk assessment
• internal controls audit
• evidence
• review and reporting

Make sure that you are aiming to score minimum 22 to 24 marks out of 30 for this practice is the only way. There are roughly 200 MCQs in the kit and another 100 from the hub, you are good to go.

Section B has three constructed response questions - one question is for 30 marks and two questions for 20 marks each.

The 30 mark question basically tests the areas of planning and risk assessment, internal controls and audit evidence although the scenario may focus on one particular section of the audit process. In addition other syllabus areas may feature in these questions.

The other two questions, each worth 20 marks, will again be based around?a scenario, and will predominantly test the areas of planning and risk assessment or internal controls or audit evidence. In addition other syllabus areas may feature in these questions. The approach to answering the 20-mark questions is similar to that of the 30-mark question in that candidates again will need to analyse the scenario to identify the appropriate points relevant to their answers and should allocate sufficient time to each question. It is recommended that candidates allocate approximately 36 minutes to read, plan and answer each 20-mark question.

In the next 10 days, you should endeavour to practise as under: