CIMAF2 Area A Self Study Guide Session Component Learning outcomes (duration)

1 (WK 1 60min) Warming Up Familiarizing oneself with the syllabus and what the exam is all about.

Study Guidance / Tips

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Review the F1 Financial Operations syllabus to ensure there are no knowledge gaps. Minor updates for F2 for May 2013 exams F2 A guide for students

Purchase a new writing pad write something that will keep you going for the term. Keep yourself motivated. Familiarize yourself with the syllabus Take notes from the syllabus and from the article. Familiarising yourself with the syllabus and what the exam is all about. F2 paper is split into Section A (50 marks) and Section B (50 marks). Section A consists of 5 short questions carrying 10 marks each. Section B consists of 2 questions carrying 25 marks each. Familiarize yourself with the study resource page

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CIMAF2 Area A Self Study Guide Session Component Learning outcomes (duration)
2 (WK1 5 hours) Recap/revision of the previous knowledge Note: It is important to develop a thorough understanding of financial statements and starting it from a simpler level will allow you to progress more smoothly and effectively. The questions and the skill level in this particular session will not be tested in the exam they are solely to lay a strong foundation of pre-requisites.

Study Guidance / Tips

1. F2 starts with the complex group financial statements, for those of you who are coming from a non accountancy/finance back ground, it is of huge importance. 2. Develop your understanding of what group financial statements look like and how to consolidate these statements. 3. Once learnt, test your understanding by attempting the following questions from the past paper questions.

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Top Tips from the tutors Consolidated statement of Financial Position Consolidated Income statement Consolidated Financial statements

Exam questions from F1 Financial Operations: May-10 Q4 Nov -10 Q4 Nov-11 Q4 March-12 Q4

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CIMAF2 Area A Self Study Guide Section A: Group Financial Statements (35%) Session Component Learning outcomes (duration)
3 (WK2 11 Hours ) 1(a) Prepare a complete set of consolidated financial statements in a form suitable for publication for a group of companies

Study Guidance / Tips

1. Important Note: students will have to come back to this learning outcome once they have covered the preceding learning outcomes. This is because this learning outcome tests the skills at various levels, for example, you will need to be able to demonstrate the impact on group financial statements of any acquisitions/JVs or disposals (including shares from its subsidiaries) which the company makes during the year. 2. Identify the fundamentals Control provisions for unrealised profit on the transfer of inventory and noncurrent assets (including the differences between associates and subsidiaries). Correction and cancellation of intra-group balances. Fair value adjustments to subsidiaries net assets at the date of acquisition. Goodwill calculations (consideration and the calculation of net assets at the date of acquisition). NCI calculation (NCI % of net assets at the year-end). TOP TIP: Practice, Practice and Practice. Show your workings clearly.

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Principles of Group Accounting Group structure Cash flow statements

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CIMAF2 Area A Self Study Guide

1(a) Exam questions from F2 Financial Management papers: May-10 Q6 Nov-10 Q6 May-11 Q6 Nov-11 Q6

Session Component Learning outcomes (duration)

4 (Wk 3 & 4 22 hours) 1(b)Demonstrate the impact on group financial statements where: there is a minority interest; the interest in a subsidiary or associate is acquired or disposed of part way through an accounting period; shareholdings, or control, are acquired in stages; intra-group trading and other transactions occur; the value of goodwill is impaired Note: this learning outcome is the heart and soul of Group financial statements.

Study Guidance / Tips

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Tackling the step acquisitions Complex groups featuring subsubsidiaries Changes to group structure

1. Understand how to establish adjusted group structures where the organisation undergoes any changes. 2. Understand the fundamental changes when an associate becomes a subsidiary. 3. Understand the fundamental changes when a subsidiary becomes an associate. 4. Understand the fundamental impact when a subsidiary is acquired in stages. 5. Understand the fundamental impact when the value of good will is impaired. 6. Intra group trading.

TOP TIP: Take each of the above mentioned circumstances in turn and practice their impact on the financial statements. Dealing in turn with each of them will help you develop a thorough understanding and comprehension of each topic. 1(b) Exam questions from F2 Financial Management papers: May-10 Q1 Q2 Q4 Nov-10 Q3 Nov-11 Q1
4

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CIMAF2 Area A Self Study Guide Session Component Learning outcomes (duration)

Study Guidance / Tips

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5 1(c) Apply the concept of a joint venture 1. The accounting treatment for joint (Wk 5 and how various types are accounted for. ventures. 3 hours) 1(c) Exam questions from F2 Financial Management papers: Nov-11 Q1

Session Component Learning outcomes (duration)

6 (Wk 5 1 hour 7 (Wk 5 4 hours)6 (60 min)

Study Guidance / Tips

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2(a) Accounting for reorganisation and

capital restructure schemes. 2(b) Explain foreign currency translation principles, including the difference between the closing rate/net investment method and the historical rate method.

Note: develop understanding according to the verb hierarchy. 1. Develop your understanding of IAS21 in accordance with the learning outcome. 2. Understand the difference between the working capital and fixed capital foreign translation. TOP TIP: Memorise the exact principles whilst developing their understanding; later test your understanding by practicing the questions in CIMA`s official texts.

2(b) Exam questions from F2 Performance Management papers: May-11 Q6 Nov-11 Q6

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CIMAF2 Area A Self Study Guide Session Component Learning outcomes (duration)
7 (Wk 5 1 hour) 2(c) Explain the correct treatment for foreign loans financing foreign equity investments

Study Guidance / Tips

CIMA Technical Articles

1. Develop the understanding for initial recognition of transaction, settled transaction and unsettled transaction. TOP TIP: Identify the effects if you own a company that acquired loan in $ what happens if dollar strengthen or weakens against your operational currency?

OTHER STUDY RESOURCES:

Find all examiners suggested answers here Post exam guides CIMA Publishing Velocity-Student e-magazine Financial Management magazine Chat to other students on CIMA-sphere discussion boards for Management level Please note that the session duration time given for each area is a rough guide based on % of F2 syllabus weightings. Research has shown that students who study a minimum of 11 hours per week are more likely to pass. These timings must be taken into account with other personal commitments such as work, family time, recreation etc. Obviously the more hours students can dedicate to studying the higher their chance of success. Please use this as guidance rather than as an exact science of how to study, and please feel free to change it to suit your requirements.

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