ACCA Optional Papers

Which are the right ones for you?

Within the Professional Level of ACCA there are four optional papers: P4 P5 P6 P7 Advanced Advanced Advanced Advanced Financial Management Performance Management Taxation Auditing and Assurance

Each student has to select, study and pass only two of these four exams. Choosing the right papers for you is very important, so please read through Kaplan Financials guidance below.

General information and guidance The optional papers all build on the knowledge gained in a related subject in the Skills module. If you found the lower level paper extremely difficult or were exempt from it, you are likely to struggle at the higher level paper. Therefore, we suggest you avoid choosing an optional paper in these circumstances, if possible. If you currently work in a specific role (e.g. auditor) it may give you an advantage to select a paper that examines topics you will have already experienced in your role, and vice versa. However, if you are thinking of changing your role in the future, you may wish to choose a paper which reflects your future career plans. Read through the detailed study and syllabus guides on the ACCA website and view past exam papers. This will give you an idea of the type of topics covered. If you are interested in a particular subject, then it often makes studying and understanding the topics much easier.

Exam information Each exam is 3 hours long, with an additional 15 minutes reading & planning time at the start of the exam. The exam papers are divided into two sections: Section A - compulsory - normally two questions carrying approx 60% of the marks Section B - select 2 out of 3 or 4 questions, for the remaining 40%

Need any more help? We hope that the information above and on the following pages will assist you to make a choice on which optional papers are best for you. If you need further help, we suggest you contact your local Kaplan centre and discuss your position with an experienced ACCA optional paper tutor. The ideal time to do this is during an ACCA Open Day although tutors are available all year round. To find out more about our courses, please view www.kaplanfinancial.co.uk/acca Alternatively, please contact accaadvice@kaplan.co.uk and we will help you with your enquiry.

Please view the detailed paper guidance below.

ACCA Optional Paper Guidance Dec09 1/5 Kaplan Financial

P4 - Advanced Financial Management - AFM

What assumed knowledge will I need? P4 follows on directly from F9 and the key areas for P4 are Investment Appraisal, Corporate Finance and Risk Management. Students who enjoyed F9 would be well suited to P4 as all of the topics in F9 are examinable again at P4 but in far greater depth and in a much more open ended way. Students need to think through financial management issues and come up with their own solutions and suggestions and there is often more than one way of answering the questions requirements.

What is the style of examination? The P4 exam is a combination of calculation and discussion and will therefore suit those who are good allrounders, and who can cope with both numerical and discursive aspects of exams. The exam is very demanding but by focusing on the basics students should obtain enough marks to pass.

Will it suit me and how will it help for the future? P4 is particularly suited to those who work in commerce and industry, and especially those who are likely to be involved in strategic planning, project appraisal, corporate finance or risk management. It fits well with either P5 or P7, and some of the material and ideas overlap with P5. It would also suit students working in practice who may wish to pursue a career in business or financial advice rather than pure tax or audit and assurance.

Syllabus Available at www.accaglobal.com/students/acca/exams/p4/syllabus

Aim of paper To apply relevant knowledge, skills, and exercise professional judgement as expected of a senior financial executive or advisor, in taking or recommending decisions relating to the financial management of an organisation.

ACCA Optional Paper Guidance Dec09

2/5

Kaplan Financial

P5 - Advanced Performance Management - APM

What assumed knowledge will I need? P5 is a high level Management Accounting paper and the P5 syllabus assumes a sound knowledge of papers F2, F5 and P3. Consequently, a review of these subjects is recommended before beginning the course.

What is the style of examination? Candidates are often misled in believing that P5 is a purely discursive paper and in fact there is a large computational element, typically 50% of the marks. Section A questions may or may not be based upon the same scenario and may test areas from several areas of the syllabus. Section B questions are based in a small scenario and at least one will be entirely discursive in nature. The current examiner of P5 was also the examiner of 3.3 (the equivalent paper under the old syllabus) which means that the advantage of this is we have access to a wealth of past exam questions.

Will it suit me and how will it help for the future? P5 is particularly suited to those working in industry dealing with management accounts on a daily basis.

Syllabus Available at www.accaglobal.com/students/acca/exams/p5/syllabus

Aim of paper To apply relevant knowledge, skills, and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of the performance of an organisation and its strategic development.

ACCA Optional Paper Guidance Dec09

3/5

Kaplan Financial

P6 - Advanced Tax - ATX

What assumed knowledge will I need? A candidate choosing to study Advanced Tax at professional level should be prepared to build upon the technical skills acquired at F6 or other previous studies if exempted from F6. A sound knowledge of current income tax, corporation tax, capital gains tax and VAT rules will be assumed when students begin the P6 course. If F6 has not been studied in 2009, then attendance of a Finance Act Update course is highly recommended, as this will explain the impact of the 2008 Finance Act on the F6 syllabus and highlight the required knowledge which is assumed at the start of the P6 course.

What is the style of examination? The emphasis of the P6 syllabus will be to provide students with a professional and practical application of tax rules that they are likely to face in a scenario with a client. Consequently it is both a computational and discursive exam with real life multi-tax scenario questions requiring the application of higher skills to give tax planning advice and understand the interaction of taxes.

Will it suit me and how will it help for the future? P6 is often a paper that is popular with people that work in a practice or tax environment and P6 will allow them to gain expertise in this area. Candidates who have passed the final examinations of the ACCA (including P6 Advanced Tax UK variant) may apply for exemption credit for the Application and Interaction paper of the CTA qualification. In addition to this, having passed P6 it may be useful for students to consider sitting it with P7 to assist them in obtaining an ACCA Practicing Certificate in the future (subject to ACCA approval).

Syllabus Available at www.accaglobal.com/students/acca/exams/p6/syllabus

Aim of paper To apply relevant knowledge, skills, and exercise professional judgement in providing relevant information and advice to individuals and businesses on the impact of the major taxes on financial decisions and situations.

ACCA Optional Paper Guidance Dec09

4/5

Kaplan Financial

P7 - Advanced Audit and Assurance - AAA

What assumed knowledge will I need? P7 should only be selected at professional level if the student has a sound knowledge of the material covered in F8 Audit and Assurance and P2 Corporate Reporting.

What is the style of examination? P7 is a wholly discursive paper and the questioning style within the P7 exam will require the use of higher skills and the application of a variety of auditing techniques not seen or expected at F8. Candidates will draw on many different areas of the P7 syllabus as well as good corporate reporting knowledge. The advanced audit examiner is happy to examine the audit of complex areas of Corporate Reporting such as Share based payment. You will need to know your IFRSs from P2 for this one. The questions will be split into a number of requirements that may cover any area of the syllabus and section B will examine using a short scenario focusing on much more specific topics.

Will it suit me and how will it help for the future? P7 is a very practical exam that is popular with students that have a senior audit role within a firm of Accountants that offers audit and assurance to clients. It is therefore a more practical exam than F8 and the candidate will be placed in a real life scenario when attempting questions in which to apply gained knowledge. In addition to this, having passed P7 it may be useful for students to consider sitting it with P6 to assist them in obtaining an ACCA Practicing Certificate in the future (subject to ACCA approval).

Syllabus Available at www.accaglobal.com/students/acca/exams/p7/syllabus

Aim of paper To apply relevant knowledge, skills, and exercise professional judgement in analysing, evaluating, concluding and reporting on the assurance engagement and other audit and assurance issues in the context of best practice and current developments.

ACCA Optional Paper Guidance Dec09

5/5

Kaplan Financial