Professional, Practical, Proven Donna Treleaven October 2013
Contents 1) Exam statistics 2) Summer 2013 3) Autumn 2013 4) Practical exam tips 5) Exam guidance 6) Format of exam
1. Summer Summer 2013 2012 2011 2010 Pass rate 66% 65% 61% 73% Avg. mark 54% 53% 50% 56% Financial Accounting 2
1. Autumn Autumn 2013 2012 2011 2010 Pass rate 65% 75% 39.6% 39.8% Avg. mark 52% 55% 45% 45% Financial Accounting 2
2. Summer 2013 Question 1 Theory (33%) Part (a) Faithful representation Heavy reliance on true & fair view One answer fits all : XXXXXXXX Part (b) Define elements of FS Examples support rather than answer Basic definitions which students should know by heart Part (c) IAS 8 Many students didn t read the requirement properly Again, heavy reliance on examples
2. Summer 2013 Question 2 MCQ (60%) Overall a great result Computational style questions continue to trip up students Greatest level of difficulty experience in Q10 which tested students knowledge of debits / credits.
2. Summer 2013 Question 3 SOCF & Journal add-on (62%) Franchise Limited Great result consistent with previous years Highest result on paper Difficulties experienced: Profit before interest continues to be a weak area Capital asset acquisitions & disposals Changes in working capital where adjustments required Part (b) Journal requirement Uncomplicated journal requirement Very well answered by majority of students
2. Summer 2013 Question 4 Journals & Manufacturing account (51%) Relatively low average mark Poor performances in part (a) off-set by higher marks in part (b) Part (a) IAS 2 & journals Highlighted weaknesses in understanding of both IAS 2 and journals Main difficulties: 10% mark-up provided for when adjusting closing inventory Treatment of auctioneer fees re obsolete goods sold after yr end Treatment of inventory destroyed by fire and insurance funds receivable Where students were comfortable: Journal presentation improving Identifying non-adjusting event as per IAS 10
2. Summer 2013 Question 4 (cont d) Part (b) Manufacturing account A very capable performance however presentation very sloppy Surprising no. students presented SOPL &/or SOFP Main difficulties: Allocating costs among cost centres esp. PAYE/PRSI Layout 9
2. Summer 2013 Question 5 SOPL & SOFP extract (61%) Most popular optional question supported by very strong performance Mix of easy and more complex adjustments however students could pass question where complex adjustments ignored Common pitfalls: Depreciation calculated despite stating that it had already been provided for Treatment of finance lease very weak, ignored by many SOFP extract Encouraging to see a more competent performance than expected Lot of soft marks which were achieved by most students 10
2. Summer 2013 Question 6 IAS 37 Prov, cont liab & cont assets (57%) Not surprising least favourite optional question Chosen by stronger students who scored well Part (a) definitions 2 of 3 Weakest part of question, lot of confusion Part (b) Treatment of 5 scenarios to be determined Majority of student correctly identified right treatment Biggest reason for losing marks was insufficient discussion, one word answers will not be awarded full marks Most common incorrect answer was part (iii) where provision should have been provided for high street shop refunds Part (c) Journal requirements for provision Full marks awarded to majority of students
2. Summer 2013 Question 6 IAS 37 Prov, cont liab & cont assets (57%) Not surprising least favourite optional question however students scored well Students get confused where >1 journal per transaction required (i) warranties Many students calculated provision correctly but unsure of journal entries Very few correctly identified need to disclose contingent liability (ii) IAS 16 capitalising costs Common errors : redesign costs added instead of subtracted, general administration costs capitalised (iii) Capital grant Very poor understanding of journal requirements Many forgot to amortise in line with depreciation policy (iv) Inventory valuation Weakest area. Most common error was accounting for full value of inventory and not reduction in value
3. Autumn 2013 Question 1 Theory (43%) Good result but 10% of marks attributable to presentation marks As per previous years students who knew the topics presented excellent to the point answers and scored high marks Part (i) Corporate governance (4 marks) Most common incorrect answer involved lengthy discussions based on ethical behaviour and social responsibility of local companies Part (ii & iii) Internal & external auditor (14 marks) Surprising number of students don t know the basic role of either auditor and others simply confused the roles and presented a puzzling outline of both roles.
3. Autumn 2013 Question 2 MCQ (61%) Good overall result No obvious black spots
3. Autumn 2013 Question 3 Statement of Financial Position (46%) Farmhand Limited 2 nd lowest score on paper, unusual for compulsory question Fragmented nature of question too cumbersome for weak students Difficulty computing revised retained earnings Adjustments to be made: Machinery bought on finance lease Under-insured inventory destroyed in fire at year end Deferred income not provided for Bad debt at year end Asset disposal, proceeds outstanding at year end
3. Autumn 2013 Question 4 ratio analysis (65%) Most popular optional question Straightforward question, easy to score high marks however very mixed performance Part (a) & (c) ratio formula Students very comfortable Ratios which caused most difficulty ROCE and gearing Part (b) Ratio analysis Students less comfortable, very mixed performance some of which was due to misreading the requirement
3. Autumn 2013 Question 5 Statement of Cash Flows (48%) Edmonstown Limited Popular but challenging question SOCF in 2012 scored 60% Students comfortable with layout and presentation Tough question for weaker students Items to be adjusted for: Asset disposal Capital asset acquisition & grant income Prepaid insurance Main challenges: Including all calculations in SOCF Calculation of payments to acquire non-current assets Treatment of prepaid insurance
3. Autumn 2013 Question 6 Ledger a/c s & IAS 16 (59%) Least favourable optional question Preferred by stronger students who scored really well Part (a) Ledger a/c preparation: Unexpected strong performance which highlighted the calibre of the student who opted for this question Students were thrown by the two rates of depreciation for plant & machinery Part (b) IAS 16 Property, Plant & Equipment: Students scored surprisingly well in this part Theory questions not usually a strong point Questions were specific and accordingly encouraged students away from meandering discussion and towards short concise answers
4. Practical exam tips Importance of presentation (6 easy marks, 8 marks in Autumn 2013) Show workings cause of students losing valuable marks Complete cover sheet correctly Answer required number of questions, no more Present answer in report format when asked for report (Q1 Autumn 2013) Answer all questions in MCQ Spread time appropriately (1.8 min per mark)
5. Exam guidance Extensive coverage of syllabus: Double entry book-keeping Financial statements Theory topics on syllabus Interpretation of financial statements (discussion and analysis) 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 Questions may include mixed topics
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 2 computational questions 1 narrative question, may have some computational parts
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