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Paper 8 - Financial Analysis

CIMA Managerial Level. Paper 8 - Financial Analysis. February 2006. Paper P6 Management Accounting Business Strategy. Paper P3 Management Accounting Risk & Control Strategy. Paper P9 Management Accounting Financial Strategy. Business Management Pillar. Management Accounting Pillar.

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Paper 8 - Financial Analysis

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  1. CIMA Managerial Level Paper 8 - Financial Analysis February 2006

  2. Paper P6 Management Accounting Business Strategy Paper P3 Management Accounting Risk & Control Strategy Paper P9 Management Accounting Financial Strategy Business Management Pillar Management Accounting Pillar Financial Management Pillar CIMA SYLLABUS 2006 TOPCIMA Test of Professional Competence in Management Accounting STRATEGIC LEVEL Paper P5 Integrated Management Paper P2 Management Accounting Decision Management Paper P8 Financial Analysis MANAGERIAL LEVEL Paper P4 Organisational Management & Information Systems Paper P1 Management Accounting Performance Evaluation Paper P7 Financial Accounting & Tax Principles (Click Here)

  3. CIMA SYLLABUS 2006 Paper P8 Financial Analysis (Click Here)

  4. CIMAPaper P8Financial Analysis Examination Structure - There will be a written examination paper of three hours Section A - 20 marks A variety of compulsory objective test questions, each worth between two and four marks. Mini-scenarios may be given, to which a group of questions relate. Section B – 30 marks Three compulsory medium answer questions, each worth 10 marks. Short scenarios may be given, to which some or all questions relate. Section C – 50 marks Two questions, from a choice of three, each worth 25 marks. Short scenarios may be given, to which questions relate. (Click Here)

  5. Group Financial Statements (35%) The Measurement of Income and Capital (20%) Paper 8 Financial Analysis Analysis and Interpretation of Financial Accounts (35%) Developments in External Reporting (10%) (Click Here)

  6. Group Financial Statements (35%) The accounting entries for mergers, demergers and capital reconstruction schemes The accounting treatment of associates and joint ventures (IAS 28 & 31) using the equity method and proportional consolidation method The treatment in consolidated financial statements of minority interests, pre and post acquisition reserves, goodwill (including its impairment), fair value adjustments, intragroup transactions and dividends, piecemeal and mid-year acquisitions, and disposals to include sub-subsidiaries and mixed groups The preparation of consolidated financial statements (including the group cash flow statement) involving one or more subsidiaries, sub-subsidiaries and associates, under the acquisition and pooling of interests methods (IAS 7, 22 & 27) Foreign currency translation (IAS 21) to include overseas transactions and investments in overseas subsidiaries

  7. The Measurement of Income and Capital (20%) The measurement and disclosure of financial instruments (IAS 39) Financial instruments classified as liabilities or shareholders funds and the allocation of finance costs over the term of the borrowing (IAS 32 & 39). The principle of substance over form (IAS 1) and its influence in dealing with transactions such as sale and repurchase agreements, consignment stock, debt factoring, securitised assets, loan transfers and public and private sector financial collaboration The problems of profit measurement and the effect of alternative approaches to asset valuation; current cost and current purchasing power bases and the real terms system; accounting for changing prices (IAS 15) and hyper inflation (IAS 29) Retirement benefits, including pension schemes - defined benefit schemes and defined contribution schemes, actuarial deficits and surpluses (IAS 19). (Click Here)

  8. Environmental and social accounting issues, differentiating between environmental measures and environmental losses, capitalisation of environmental expenditure, and the recognition of future environmental costs by means of provisions The Global Reporting Initiative: non-financial measures of environmental impact Pressures for improved quality of financial reporting following large scale corporate collapses in the US and UK, and implications for corporate governance and external audit Major differences between IAS’s and US GAAP Human resource accounting Increasing stakeholder demands for information that goes beyond historical financial information and the model for an expanded Operating and Financial Review (OFR) proposed by the UK government Developments in External Reporting (10%) The influence of different cultures on financial reporting (Click Here)

  9. Ratios in the areas of performance, profitability, financial adaptability, liquidity, activity, shareholder investment and financing, and their interpretation Limitations of ratio analysis (e.g. comparability of businesses and accounting policies) Segment analysis: inter-firm and international comparison (IAS 14) The identification of information required to assess financial performance and the extent to which financial statements fail to provide such information Calculation of earnings per share under IAS 33, to include the effect of bonus issues, rights issues and convertible stock Analysis and Interpretation of Financial Accounts (35%) The effect of short-term debt on the measurement of gearing Interpretation of financial statements via the analysis of the accounts and corporate reports Reporting the results of analysis

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