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Professional, Practical, Proven

October 2016

Advanced Financial Accounting

1) Exam statistics

2) Practical exam tips

3) Exam guidance

4) Format of exam


Contents

Exam Statistics

% Pass Rate % Pass Rate % Pass Rate

May August Overall*

2016 80% 49% 83%

2015 83% 75% 89.50%

2014 67% 76% 80%

Advanced Financial Acc Statistics


2. Summer 2016

Question 1 Theory

– In general this question was well answered. It largely drew on material in chapter 3 of the text book and the practice questions at the back of the chapter


2. Summer 2016

Question 2 MCQ

• Overall a great result


2. Summer 2016

Question 3 Financial Statements

• Many students scored very well in this question. Students who did not attempt parts ( c) and (d) lost relatively easy marks.


2. Summer 2016

Question 4

– This question was based on chapter 10 in the text book with the question itself very similar to some of the practice questions at the back of the chapter. Students lost marks where answers were vague and failed to capture the differences between a provision and a contingent liability.


2. Summer 2016

Question 5.

This question was drawn from chapter 6 of the text- the capitalisation of costs associated with the construction of non – current assets. Most students scored well in part (a) but lost easy marks by not following through in part (b) with an explanation of why they treated each cost in the manner they did.

8 Advanced Financial Accounting

2. Summer 2016

Question 6

• This question examined the students’ understanding of the differences between accounting policies, accounting estimated and prior period errors and applying their knowledge on the appropriate treatment of changes in accounting policies to a change in the valuation of inventory. While many students were comfortable with the differences between accounting policies. estimates and prior period errors, the application of a change in accounting policy to the valuation of inventory was poorly answered.


3. Autumn 2016

Question 1 Theory

Students either scored quite well or quite poorly in this question.

Students who scored poorly seemed to have little if any knowledge of the material covered in chapter 15 of the text.


3. Autumn 2016

Question 2 MCQ

• Fair overall result


3. Autumn 2016

Question 3

Familiar question at this stage with most students scoring well.


3. Autumn 2016

Question 4

– Students continue to find cash flows difficult.

– Some students who calculated the adjustments correctly, got the signs incorrect (e.g. added back rather than subtracted and vice versa)– suggesting a lack of understanding of the reason for the adjustment.


3. Autumn 2016

Question 5

– Many students made very fundamental mistakes in the ledger accounts. Even the very basic information such as the opening balances were presented on the wrong sides of the ledger accounts.


3. Autumn 2016

Question 6

– Not a popular question – Many of the students who did answer this question did not provide the

required “Report” format, losing easy presentation marks.


5. Exam guidance

• Extensive coverage of syllabus: • Double entry book-keeping

• Financial statements

• Specific accounting standards can be examined as a theory question, as a computational question or as a question which is part theory and part computational.

• Interpretation of financial statements (discussion, analysis and report writing)

• Weak areas likely to be re-examined:

• Topics not examinable: • Preparation of financial statements from ratios

• Admission, dissolution, retirement, revaluation (partnerships)

• Calculation of interest rate or present value (finance leases)

• Cash flow from operations – direct method


6. Format of Exam

• Format unchanged

• Section A (60 marks incl 2 pres) – 3 compulsory questions

– Theory question (20 marks)

– MCQ (15 marks)

– Other (25 marks) incl computational and written parts

• Section B (40 marks incl 4 pres) – 2 out of 3 questions

– Questions can be computational or narrative or a combination of both.


4. Practical exam tips

• Importance of presentation- “easy” marks

• Show workings – cause of students losing valuable marks

• Answer required number of questions, no more

• Present answer in report format when asked for report

• Answer every part of the question

• Allocate time appropriately



Any Questions?

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