EXAMINER'S APPROACH TO PAPER F4 (ENG)

AND (GLO)

RELATED LINKS
Student Accountant hub page
The Paper F4 exam will undergo significant changes in the coming year, with a new format for the written papers, both
for English and Global, applicable from December 2014 and the introduction of computer-based exams (CBEs) for
both English and Global from 19 November 2014.
It cannot be denied that the new structure of Paper F4 represents a major change inhow the content is examined, but,
hopefully, what follows will reassure learning providers and, more importantly perhaps, candidates that what is
examined has changed little and how the content examined is suitable to this new format. This article explains the
validity of the content and approach in relation to the exam structure. In dealing with the new format, it focuses on the
written paper as reference can be made directly to the specimen paper that is available on the website currently. CBE
specimens will be made available in advance of the introduction of English and Global by the on-demand CBE model.
Moving Paper F4 (ENG) and (GLO) to the on-demand CBE model allows us to introduce added flexibility into our
exam schedule, while, as detailed below, ensuring our assessments are relevant for finance professionals.

THE SYLLABUS
The general aim of Paper F4 remains the development of knowledge and understanding about the general legal
framework within which an accountant operates. To that end it is thought necessary to develop an awareness of
specific legal areas of central importance to business in general, and to accountants in particular.
It has to be emphasised that Paper F4 does not aim to make candidates into lawyers. For the most part, in a real life
context, legal questions will be dealt with by legal professionals. Accountants must be aware, however, of the legal
framework within which their legal professionals operate, and indeed which controls their operation, and must be
sufficiently sensitive to the fact that certain issues require expert legal advice.
The stated capabilities of the Paper F4 syllabus remain as follows:

Identifying the essential elements of the legal system, including the main sources of law. (It is felt that
candidates must have a minimum understanding of the legal framework in order to understand the operation of
the substantive law. Now that the Human Rights Act 1998 has bedded into English law it has been decided not
to examine it as a substantive topic, although its effect remain pervasive and may arise in a consideration of
specific aspects of law.)

Recognising and applying the appropriate legal rules relating to the law of obligations (both contractual and
tortious). (These are the essential legal relationships that people generally enter into, but accountants in
particular must be aware of the issues raised. Negligence is felt essential as it is the basis for understanding
professional negligence. It should be noted that in terms of tort law attention will be focussed on the essential
business-centred torts of passing off and negligence and others, such as the personal torts of nuisance and
trespass, have been removed from the syllabus.)

Explaining and applying the law relating to employment relationships. (This is an important and popular
element of the syllabus.)

Distinguishing between alternative forms and constitutions of business organisations.

Recognising and comparing types of capital and the financing of companies.

Describing and explaining how companies are managed, administered, and regulated.

Recognising the legal implications relating to insolvency law.

Demonstrating an understanding of various criminal offences that may arise in the operation of businesses.
This latter aspect of the syllabus was enhanced by the necessary introduction of the law relating to bribery but,

in recognition of the fact that the syllabus cannot just be allowed to grow, it was decided to remove corporate
governance from the Paper F4 syllabus. This was in no way to imply that corporate governance was not an
essential aspect of the operation of businesses, but it was recognised that the issue was dealt with more fully in
Papers F8 and P1.
The foregoing has referred specifically to the Paper F4 (ENG) syllabus. The Paper F4 (GLO) syllabus, designed to
reflect international aspects of business law, remains essentially unchanged, although with the removal of corporate
governance.

THE EXAM
This is the area where real change will take place. From December 2014 the exam will move from the current threehour paper to a two-hour paper, which will be divided into two sections.
Section A will be worth 70 marks. It will contain a mixture of 20 one-mark and 25 two-mark questions. The use of the
word mixture is deliberate, as it is important to emphasise that within the exam paper questions will be randomised,
so candidates will have to recognise the area of law they are dealing with before offering an answer. It should also be
emphasised that the whole syllabus will be open to exam and the availability of 45 questions makes it highly likely that
all aspects of the syllabus will be examined in each exam.
Candidates will be required to select the correct one from a list of potential answers. As objective test (OT) questions
there can only be one correct answer to each question. The allocation of marks will depend on the complexity of the
question with one-mark questions having fewer possible answers than two-mark questions. It will be apparent that the
format of Section A will lend itself to computer-based marking and will facilitate conversion to computer-based exam,
when that is made available.
Section B will contain five six-mark multi-task questions (MTQs) and in effect will replicate the three
analysis/application questions to be found at the end of the previous exam paper. The format of the questions will be
similar to the previous problem scenarios and they will contain a series of tasks that relate to a scenario.

COMMENT
A significant part of any educational process is about imparting knowledge, and clearly objective testing is capable of
assessing whether that knowledge has been assimilated or not. The current Paper F4 exam structure, to a very large
degree, is designed to assess whether candidates possess a sufficient level of legal knowledge to be deemed fit to
function as accountants. It might be thought that the use of OTs would exacerbate the mere unthinking collection of
knowledge, but in fact the reverse may prove to be the case. Knowledge will have to be marshalled appropriately;
there will only be one correct answer and candidates must know it. Also, the new format will stop the questionspotting provider of prepared answers. The sheer number, together with the randomisation, of questions will require
candidates to cover the whole syllabus and should require them to think about what aspect of that syllabus they are
being questioned on.
However, education is much more than the mere passing on of knowledge; it is about the inculcation of the higher
level skills of analysis, reflection and synthesis. Well written questions in Section B of the new format will be capable
of testing those higher skills. Candidates may only be required to provide short responses to question prompts, but in
order to get the correct answer, they must engage in the appropriate processes of analysis, and reflection. Candidates
may not be required to write out those processes but the provision of the correct answer is the proof that they have
nonetheless engaged in those processes.
ACCA has an established approach to exam development that ensures that levels of rigour across the qualification
are maintained when changes are introduced. In developing the new format for Paper F4 we undertook extensive

consultation, including review sessions with subject matter experts and global exam trialling with exam ready
candidates. These are key steps of our exam development process that ensure that the new exam format is fit-forpurpose.

CONCLUSION
Paper F4 will continue to recognise that candidates are potential accountants, rather than potential lawyers. The
structure of the new paper will change significantly from December 2014 but the syllabus will not significantly change
subject to the changes mentioned in the article above.
Candidates should ensure that they take the time to familiarise themselves with the relevant structure and question
types for the exam they will be sitting.

DETAILED CHANGES OUTLINED FOR JUNE AND DECEMBER 2014

SKILLS MODULE EXAMS
The following section summarises the structural and syllabus changes for the Skills module exams at the ACCA
Fundamentals level.

PAPER F4, CORPORATE AND BUSINESS LAW (ENG) AND (GLO)

The Paper F4 exam will undergo significant changes in the coming year, with a new format for the written papers, for
both English and Global and all variant papers, applicable from December 2014 and the introduction of computerbased exams for both English and Global only from 19 November 2014.
The new structure, applicable from December 2014, can be accessed via the Syllabusand Study Guide in the
Qualifications Resources section of the ACCA website.
Take the time to familiarise yourself with the relevant structure and question types for the exam you will be sitting, but
the new structure is described below.
New structure
The syllabus is assessed by a two-hour paper-based exam.
The exam consists of:

Section A

(%)

25 x 2 mark objective test question

50

20 x 1 mark objective questions

20

Section B

5 x 6 mark multi-task questions

30
100

Syllabus changes
The main areas that have been amended in the syllabus are shown in Table 1 below:
Table 1 Amendments to Paper F4 (ENG)

Section and
subject area

Syllabus content

The concept and impact of human rights (whole of A3

removed and merged into just one outcome so less
A2(d) Human rights

emphasis on human rights)

The main areas that have been deleted in the syllabus are shown in Table 2 below:

Table 2 Deletions to Paper F4 (ENG)

Section and subject area

Syllabus content

The structure and operation of the

A1(b) Court structure

tribunal systems

The concept of human rights as

expressed in the Human Rights Act
A3(a) Human rights

1998

H1(a) Corporate governance

The idea of corporate governance

H1(b) Corporate governance

The extra-legal codes of corporate

Section and subject area

Syllabus content

governance

The legal regulation of corporate

H1(c) Corporate governance

governance

PAPER F5, PERFORMANCE MANAGEMENT

From December 2014 the Paper F5 exam is being re-structured as follows:
New structure
The syllabus is assessed by a three-hour paper-based exam.
All questions are compulsory. It will contain both computational and discursive elements.
Some questions will adopt a scenario/case study approach.
The exam structure consists of:

Section A

(%)

20 x 2 mark objective test question

40

Section B

3 x 10 marks

30

2 x 15 marks

30
100

The two 15-mark questions will come from decision making techniques, budgeting and control and/or performance
measurement and control areas of the syllabus. The section A questions and the other questions in section B can
cover any areas of the syllabus.
Syllabus changes
There were no deletions but a few additions to clarify what was already assumed in the syllabus as detailed below in
Table 3:

Table 3 Additions to Paper F5

Section and subject area

Syllabus content

(a) Discuss and apply the theory of

A4 Throughput accounting

constraints

(b) Estimate the learning rate and

C3 Quantitative analysis in budgeting

learning effect

(a) Analyse and evaluate past

performance using the results of
variance analysis

(b) Use variance analysis to assess

how future performance of an
D8 Performance analysis and behaviour organisation or business can be
aspects

improved

(c) Analyse past performance and

suggest ways for improving for
D4 Performance analysis in private

improving financial and non-

sector organisations

financial performance

Note that budgeting and standard

costing are now merged into one
syllabus area budgeting and control