Making the Right Choice - Aug 07

7/27/2019 Making the Right Choice - Aug 07

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50 student accountant August 2007

ACCA

Qualification

It is important that you carefully consider which Options papers you

choose at the Professional level of the ACCA Qualification. Making the

wrong choice could affect your performance in the exams and at work,

and ultimately influence your career progression.Start with some self analysis by evaluating your own personal and

professional strengths and weaknesses as well as identifying potential

opportunities that may be available, and any potential threats. Consider

these questions:

What are my main strengths, abilities, and aptitudes?

Which exams have I passed? What have I performed well in, or not

so well in, so far, and of the subjects that I have already studied,

which did I enjoy or dislike most?

What quality and choice is offered at my local tuition provider? Or

if self studying what support is available? Which local tuition

providers offer the best support? Are the learning resources

available to me best suited for particular options?

How many syllabus gaps exist between the Options papers and the

underpinning papers for which I have converted passes, and how do

I best fill those gaps? Which performance objectives have I satisfied already, and how well

did I perform?

Which of the Options performance objectives do I plan to demonstrate,

and how effectively can I demonstrate these in my current job?

What experience do I possess?

What do I want to do after I qualify, and what opportunities and

threats exist in terms of my career ambitions?

Do I already possess relevant knowledge and skills from my job and

work experience that directly helps towards a particular Options

paper such as taxation?

Where do I want to work in the future, in which function, for whom,

and what skills will I need to carry out that job effectively?

making the

right choice Do I need to take a particular Options paper to gain certification

in practice? For example, will I need to take the Advanced

Audit and Assurance Options paper before I qualify, or can I take

it subsequently as a member, and meet audit performance objectivesin order to obtain a practising certificate?

Are there opportunities to move into other functional areas or into

management positions with my current employer, and by studying

towards a particular Options paper, might I have a better chance of

taking advantage of these opportunities and benefit from enhanced

career prospects?

Once you have asked and answered the above questions, you should

have a much better idea about the types of work experience you need,

and the educational capabilities you should demonstrate, in order to

achieve your professional and career objectives.

MAIN CAPABILITIES IN THE OPTIONS PAPERS AND THE RELATED

OPTIONS PERFORMANCE OBJECTIVES

A summary of the main capabilities covered within the four Optionspapers and the Options performance objectives relating to these areas are

shown in Table 1. However, before making any decisions about Options

papers, you should look carefully at the main capabilities assessed in the

Options papers and examine the detailed subject areas and outcomes of

these, as outlined in the Study Guides.

You should also consider which performance objectives you plan

to demonstrate at work as these will, ideally, relate to your chosen

Options papers so that you can apply what you learn effectively in the

workplace.

If done successfully, you can then match your skills, capabilities,

and career needs against the content of the Options papers and the

performance objectives.

Gareth Owen, ACCA qualifications development manager, provides guidance on making an informedchoice about the Options papers you choose to study for the ACCA Qualification.


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August 2007 student accountant 51

TABLE 1: MAIN CAPABILITIES ASSESSED IN THE OPTIONS MODULE PAPERS AND THE RELATED OPTIONS PERFORMANCE OBJECTIVES

Options paper Main syllabus sections Options performance objectives

P4, Advanced Financial Management Role and responsibility towards 15 Evaluate potential business/investment

stakeholders (A) opportunities and the required finance options

Advanced investment appraisal (B) 16 Manage cash using active cash managementAcquisition and mergers (C) and treasury systems

Corporate reconstruction and reorganisation (D)

Treasury and advanced risk management

techniques (E)

Economic environment for multinationals (F)

Emerging issues in finance and financial

management (G)

P5,Advanced Performance Management Strategic planning and control (A) 12 Prepare financial information for management

Economic, fiscal, market, and environmental 13 Contribute to budget planning and production

factors (B) 14 Monitor and control budgets

Performance measurement systems and

design (C)

Strategic performance measurement (D)

Performance evaluation and corporate failure (E)

Current developments and emerging issues inmanagement accounting and performance

management (F)

P6,Advanced Taxation Advanced topics within the main taxes and further 19 Evaluate and compute taxes payable

capital taxes (A) 20 Assist with tax planning

Tax issues in personal and corporate financial

management (B)

Tax advice in special situations, including the

interaction of taxes (C)

Minimising and/or deferring tax liabilities and

standard tax planning (D)

Communication with clients and relevant tax

authorities (E)

ACCA

Qualification


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ACCA

Qualification

TABLE 2: PAPERS DIRECTLY UNDERPINNING PROFESSIONAL LEVEL OPTIONS SUBJECTS

Professional level paper Fundamentals level paper Equivalent converted pass Most similar current papers

Paper P4,Advanced Financial Paper F9, Financial Management Paper 2.4 Paper 2.4

Management These papers share some similarities, These papers share some

but Paper F9 has no management similarities, but Paper F9 has noaccounting content and contains management accounting content

more financial management content and contains more financial

management content

Paper P5,Advanced Performance Paper F5, Performance Paper 2.1* Paper 2.4

Management Management Different content Fairly similar content

Paper P6,Advanced Taxation Paper F6, Taxation Paper 2.3 Paper 2.3

Similar content Similar content

Paper P7,Advanced Audit and Paper F8,Audit and Assurance Paper 2.6 Paper 2.6

Assurance Similar content Similar content

*Note that if you pass Paper 2.1, Information Systems, you will receive a credit for Paper F5, although the closest equivalent is actually Paper 2.4,

Financial Management and Control, with almost half the syllabus similar in content. If you pass Paper 2.4, you will receive a credit for Paper F9 withover half the syllabus similar in content.

TABLE 1 CONTINUED: MAIN CAPABILITIES ASSESSED IN THE OPTIONS MODULE PAPERS AND THE RELATED OPTIONS PERFORMANCE

OBJECTIVES

Options paper Main syllabus sections Options performance objectives

P7,Advanced Audit and Assurance Regulatory environment (A) Underpinning objectives (from Paper P2):

Professional and ethical considerations (B) 10 Prepare financial statements for external

Practice management (C) purposes

Assignments (D) 11 Interpret financial transactions and financial

Reporting (E) statements

Current issues and developments (F)

Main audit objectives:

17 Prepare for and collect evidence for audit

18 Evaluate and report on audit

All Options papers Law, regulation, and compliance are integrated

through appropriate performance objectives

It is important that you carefully consider which Options papers you choose atthe Professional level of the ACCA Qualification. Making thewrong choice could affect your performance in the exams and at work, andultimately influence your career progression.


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ACCA

Qualification

PROGRESSION RULES

Under the progression rules of the ACCA Qualification, you can take up to

four papers at each exam sitting, and can sit papers within a module in

any order. ACCA recommends, however, that you should take papers in

numerical order.

The progression rules also require you to take each module in order.

This means that if you are left with papers to complete within a module,

you must take these before (or with) any papers at any subsequent

module, subject to the maximum four paper rule. At the Professional

level, this means that the three Essentials module papers must be

attempted before (or with) any Options module papers.

However, special transition progression rules have been put in place

for students converting to the new qualification who could otherwise be

prevented from taking the equivalent of the Options papers on the ACCA

Qualification. This is because for the Professional Scheme, students had

to take option papers then core papers, but on the new qualification,

students take Essentials and then Options papers.

To prevent students from being disadvantaged, ACCA will allow

students who were eligible to take an option paper at the June 2007

exam session to take Options papers with, or before, the Essentials

module. This means that the usual progression rule does not apply for

these students at the Professional level of the new qualification.

SUBJECT PROGRESSIONWhether you are eligible to take Options papers in December 2007 or

not, your choice of Options papers may be affected by your conversion

status in August 2007. This is because there are varying levels of

similarity between equivalent papers for which students are awarded

converted passes.

Each Options paper within the Professional level is directly

underpinned by a Skills module paper in the Fundamentals level.

Table 2 on page 52 shows each Options paper and the relevant

underpinning papers in the ACCA Qualification. It also shows which

papers in the Professional Scheme give the relevant converted pass.

Finally, the most similar papers (with the most common subject content)

in the Professional Scheme are also shown.

The Options paper choices for some students in December 2007 and

beyond may be influenced by certain subject area gaps as indicated by

the asterisk (*) in Table 2. These choices will fall into the following threecategories after the June 2007 session:

Students who have passed Paper 2.1 but not Paper 2.4, who get a

converted pass for Paper F5 and who must take Paper F9.

Students who have passed Paper 2.4 but not Paper 2.1, who get a

converted pass for Paper F9 and who must take Paper F5.

Students who pass both Papers 2.1 and 2.4 and who get converted

passes for both Papers F5 and F9.

You should also take into account the following:

Because Paper 2.1 has little or no similarity with Paper F5, there are

many areas of the Paper F5 syllabus which you will need to review

before you decide whether to take Paper P5.

Because there are only some similarities between Papers 2.4 and

F9, there are some areas in Paper F9 which you will need to review

before you decide whether to take Paper P4.

Because both Papers F5 and F9 contain some content which is not

in Paper 2.4, there are a number of additional syllabus areas which

you will need to review before you decide whether to take either

Papers P4 or P5.

The Mind the Gap article in the May 2007 issue ofstudent accountant

explains in detail which specific syllabus gaps may potentially affect you

in the above, and other, transition situations and how these gaps can

be filled.

CASE STUDIES

The case studies on pages 54 to 58 help to illustrate some of the points

you should consider if you are converting from the current to the new

qualification in August and taking one or more Options papers at the

December 2007 session or beyond. The students in these case studies

all live in different parts of the world and demonstrate a wide range of

educational, career, and personal circumstances.

Before examining each individual case study, it is worth making

a general point. While choices regarding the selection of Options

papers may be more flexible for transition students (where the normal

progression rules are waived), ACCA still recommends that, whereverpossible, Essentials papers should be taken before Options papers. The

reason for this is that there are papers within the Essentials module

which indirectly prepare you for, and underpin, some of the Options

papers. However, for many transition students who have been studying

for or have failed option papers on the Professional Scheme in June

2007 it might be better to re-take these Options first, where direct

equivalents exist.

READY TO CHOOSE?

Start by asking yourself the right questions and undertake a personal

SWOT analysis examining your strengths, weaknesses, opportunities,

and threats, and matching these with the main syllabus areas of the

exams and relevant performance objectives. You will then be in a better

position to make an informed choice and select the Options papers most

appropriate for you.


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ACCA

Qualification

TABLE 3: CONSIDERATIONS FOR ADAM

Paper P4 Paper P5 Paper P6 Paper P7

Advantages of taking each Will have to take Paper A relevant Options paper Highly relevant to his career

Options paper F9, thereby gaining to his career aspirations aspirations

knowledge to underpin if he wishes to work in thethis Options paper UK rather than in Ireland Has passed Papers 2.5

and 2.6 and achieved

Has passed Paper 2.3 high marks

(GBR) in December 2006

Paper P7 is one of the

Completed the CAT tax requirements if he

paper wishes to practise as an audit

professional in the UK or

Ireland, and demonstrate IES 8

Section 42 skills

Disadvantages of taking each Has a limited background Not a subject that fits in Paper P6 (UK) is less Has no relevant experience

Options paper and no career aspirations well with his career relevant if he chooses to in audit and assurance

in the finance area aspirations work in Ireland

Hasnt yet taken Paper P1,He didnt take CAT Paper As he has been credited Professional Accountant or

10, Managing Finances with Paper F5 for passing Paper P2, Corporate Reporting,

Paper 2.1, many Paper F5 which both indirectly underpin

Has failed Paper 2.4 and syllabus areas will need to Paper P7

would find this Options be reviewed before taking

paper difficult this Options paper

Paper P5 isnt offered at his

local college so he may need

to look elsewhere if he wants

to do this Options paper in

December 2007

STUDENT A

Adam is from the UK, studying ACCA full time.

The college he attends offers tuition for all

Professional level papers for the December

2007 session, except for Paper P5. Adam

wants to work in the UK or Ireland, practising

as an audit professional. He successfullycompleted the CAT qualification, taking the international version of

the audit paper and UK tax paper. He was exempt from Part 1 of the

Professional Scheme and he also passed Papers 2.1, 2.2 (Global), and

2.3 (GBR) in December 2006. In June 2007 he passed Papers 2.5

(International) and 2.6 (International) with high marks, but failed

Paper 2.4. Table 3 below shows the considerations for Adam.

Notes

As Adam was eligible to take one option paper at the June 2007 session,

he is defined as a transition student, and has the choice of taking either

one or two Options papers in December 2007 along with Paper F9,

regardless of the fact that he didnt take any option papers in June 2007.

Recommendation

Adam could take Papers P6 (UK) and P7 (International), but may benefit

more if he takes them (particularly Paper P7) after completing Papers

P1 and P2 and gaining some audit work experience. Note that Paper P7

and the audit performance objectives must be taken if he wishes to attain

audit professional status, with responsibility for significant judgements

in the audit of historical information, under the requirements of IES 8,

Competence Requirements for Audit Professionals, issued by IFAC. Note

also that Paper P7 could be taken post-qualification if Adam had originally

chosen two other Options papers.


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ACCA

Qualification

TABLE 4: CONSIDERATIONS FOR GLORIA


Advantages of taking each Quite a relevant paper for Very relevant to her career Not highly relevant to her

Options paper the financial control aspirations career aspirations

functionHas recently passed Has recently passed Paper

Has recently passed Paper 2.4 2.3, based on Malawi tax

Paper 2.4

Has experience in this

area

Disadvantages of taking each Some syllabus gaps A number of syllabus gaps No Paper P6 Only just passed Paper 2.6

Options paper between Papers 2.4 and between Papers 2.4 Malawi tax variant (International)

P4 need to be filled and P5 need to be filled available

Has no relevant experience

It would be very difficult to in audit

progress to the advanced

taxation paper from a Has no career plans

different jurisdiction in this area

You should also consider which performance objectives you planto demonstrate at work as these will, ideally, relate to your chosenOptions papers so that you can apply what you learn effectivelyin the workplace.

STUDENT B

Gloria is from Malawi and is a management

accountant with many years of experience in

costing and performance management, having

left school at 18. Gloria has always studied

for ACCA exams independently. She wants to

qualify as a professional accountant to furtherher career and hopes to become a senior management accountant

or financial controller. In June 2007 she completed her last four Part

2 papers, including Papers 2.4 and 2.5 (International), Paper 2.3

(Malawi), and achieved 50% in Paper 2.6 (International). In December

2007 she is planning to take the three Essentials papers and one

Options paper. Table 4 shows the considerations for Gloria.

Notes

As Gloria did not have the opportunity to take any option papers in

June 2007, the special transition progression rule does not apply and

the progression rules require her to take Essentials papers with, or

before, any Options papers in December 2007. She will however, find

it challenging to study towards and pass four papers, including the

completely new Paper P1, without tuition support.

Recommendation

Gloria should not attempt to take four papers in December 2007 as

she has only five papers left to take in total. She is best advised to

concentrate on some (or all) of the Essentials papers at December 2007

and to leave the Options papers until a later sitting. As far as Options are

concerned, Gloria could take Papers P4 and P5, or she could, with some

additional study, take Paper P6 (South Africa) or Paper P6 (Zimbabwe),

as they are from similar tax jurisdictions.


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ACCA

Qualification

TABLE 5: CONSIDERATIONS FOR EKATERINA


Advantages of taking each Could be relevant for her Would be a good choice if Would be a good Options This paper is very relevant if

Options paper future career if she wants her job situation changes, paper for her if she gets she can, and still wants to,

to get into the finance or particularly in working transferred to the growing continue in her role with

treasury function of a for manufacturing tax division at her her current employer

company organisations company

She has comfortably passed

Has some underpinning Some common syllabus Paper 2.6 (International)

knowledge from having areas with Paper 3.4,

marginally passed in strategic management She has already studied

Paper 2.4 areas Paper 3.1 (International)

Disadvantages of taking each A number of syllabus gaps Many syllabus gaps College doesnt offer Paper She has failed Paper 3.1

Options paper between Papers 2.4 and between Papers 2.4 and P6 and she would need to (International)P4 need to be filled P5 need to be filled consider moving to another

tuition provider or Difficult to take this Options

Only just passed Paper 2.4 studying independently paper unless underpinned

by Paper P2

Took the Russian variant of

Paper 2.3 at least 18

months previously

There is no Paper P6 (Russia)

available and it would be very

difficult to transfer to advanced

tax from a different jurisdiction

STUDENT C

Ekaterina is from Russia and is studying ACCA

part time. The college she studies at offers

tuition in all Professional level papers except

Paper P6 for the December 2007 session,

although she did pass Paper 2.3 (Russia) after

studying there previously. She is a junior auditmanager in a medium-sized accountancy firm with a fast-growing tax

services department. Her line manager expects her to take an audit

option. Ekaterina marginally passed Paper 2.4, and comfortably passed

Papers 2.5 (International) and 2.6 (International) in December 2006.

In June 2007 she failed Paper 3.1 (International), but passed Paper 3.4.

She also recognises that, following an imminent reorganisation, her

current position might not be safe and that she may need to change

jobs either internally or externally. Her local area is heavily industrialised,

and as a result most local employers are in manufacturing. Table 5

shows the considerations for Ekaterina.

Notes

Ekaterina, as a transition student, is eligible to take an Options paper in

December 2007 with or without taking any Essentials papers. Having

passed Paper 3.4 in June 2007, she will be credited with an Options

paper pass in Paper 3.4, Business Information Management.

Recommendation

Depending on her career prospects with her current employer, Ekaterina

could re-sit Paper P7 (International), but she should be aware that there

is some direct underpinning from Paper P2 that she will not benefit from.

She could, alternatively, decide to take Paper P5, should she envisage

a career move into the manufacturing sector. Her best course of action,

however, might be to take the Essentials module first, or with an Options

paper. As far as Paper P6 is concerned, she would not be advised to take

a UK tax variant without undertaking preliminary studies, but could look

at other Paper P6 variants which might be closer to the Russian system.


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ACCA

Qualification

TABLE 6: CONSIDERATIONS FOR IMRAN


Advantages of taking each Could be good for his Would be a good choice, Could be a reasonable Not applicable he has already

Options paper future career if he wants to particularly for his career choice for tax advice or passed Paper 3.1

get into consultancy in the aspirations in consultancy consultancy in the UK

finance function

Has already studied

Has already studied Paper 3.3

Paper 3.7

Disadvantages of taking each Finance is not his strong As he failed Paper 3.3, Is a long time since he

Options paper subject, having failed some weaker syllabus passed Paper 2.3

Paper 3.7 areas may need review (Pakistan) extra revision

may be required

Lecturer issues hemay need to go to another Could only take Paper P6

tuition provider or study (UK) continuity problems

independently

As there is no Paper P6

(Pakistan) variant, if returning

to Pakistan, Paper P6 (UK)

may not be relevant

STUDENT D

Imran, from Pakistan, is studying ACCA full

time at a tuition provider in London. This

provider offers tuition for all four Options

papers. He finds his Paper 3.7, Strategic Financial

Management lecturer difficult to understand, and

doesnt like his lecturing style. Imran has littleaccounting or previous work experience, and registered for ACCA with

exemptions for Part 1 and for Papers 2.1 and 2.2 (England), having

completed a business degree in the UK. Imrans ambition is to qualify

as a professional accountant and work in a consultancy division of

an accountancy firm, in the UK or Pakistan. He passed the Paper 2.3

(Pakistan) tax variant in June 2006, narrowly passed both Papers 2.6

(International) and 3.1 (International) in December 2006, and took his

core papers and the Paper 3.3 option paper in June 2007. He passed

Papers 3.5 and 3.6 (International) but narrowly failed Papers 3.7 and

3.3. Table 6 shows the considerations for Imran.

Notes

As a transition student, Imran could take his remaining Options paper

in December 2007. As he has failed Paper 3.7 he must, at some point,

take the completely new Essentials Paper P1, Professional Accountant.

Recommendation

Imran may be best advised to take Paper P5, as he is probably better

prepared to re-take this subject, and it seems most relevant for his career

plans, but he could consider taking Paper P4 instead, if issues with his

tutor can be resolved.


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ACCA

Qualification

TABLE 7: CONSIDERATIONS FOR CINDY


Advantages for taking each Not applicable as she has Not applicable as Cindy Could be a good choice as

Options paper already passed Paper 3.7 has already passed tax is relevant to finance

and cannot take this Paper 3.3 and treasury

Options paper

ACCA offers a Paper P6

variant paper for Singapore

Disadvantages for taking each Not applicable Not applicable A long time has elapsed Only just passed Paper 2.6

Options paper since she passed Paper (International)

2.3 (Singapore) extra

revision may be required Has no relevant experience

in audit

If planning to leave her

home country, Singapore Has no career aspirations

taxation may not be in this area

relevant

STUDENT E

Cindy, from Singapore, is studying ACCA on her

own using study texts and the Internet. She is

working for a bank in the treasury area. There is

a local ACCA accredited tuition provider at which

she is considering studying. Cindy was registered

on the Mature Student Entry Route with ACCA,and as she is registered on a Joint Examination Scheme with ICPAS, she

has been taking Singapore versions of papers where they are available.

She originally left school after taking her Singapore GCE O-levels; she

obtained a very high pass in mathematics, but only just passed her

English, finding it quite difficult. Despite doing well in her exams, she

is now taking the Cambridge ICFE (International Certificate in Financial

English) to improve her business language skills further. In her ACCA

studies, she only just passed Paper 2.6 (International) at the second

attempt. Cindys ambition is to qualify as a professional accountant

and then to take specialist qualifications in order to follow a career as a

corporate treasurer.

Cindy has already passed the Paper 3.3 option in December

2006 and took her core papers and Paper 3.4 in June 2007. She

passed all her core papers, but failed Paper 3.4. Table 7 shows the

considerations for Cindy.

Notes

Cindy is a transition student, but as she has passed all her core papers

and Paper 3.3, she may or may not have an Options paper left to

complete. Note that by passing Paper 3.7, Cindy would either be allowed

to take a converted pass from Papers P1 or P4. If Cindy elected to sit

an Options paper, as there is no equivalent Options paper for Paper 3.4,

she would have to study for a completely different subject. If she takes

the credit for Paper P1, she would not be allowed to take Paper P4 and

would therefore have to choose from Papers P6 or P7. If she takes a

credit for Paper P4, she will have no Options papers left to take, despite

Paper P6 possibly being quite a relevant paper for her future career.

However, if she takes a credit for Paper P4, she will then need to take

Paper P1, which is a completely new Essentials paper.

Recommendation

Cindy is best advised to take the credit for Paper P4, leaving her with

no remaining Options papers to take. By doing this she will need to

take Paper P1, which covers areas such as risk, internal control, and

compliance, which could be very useful to her in her intended career. She

would benefit from enrolling at her local ACCA accredited college, at least

to study for Paper P1, as this is a completely new paper.

Documents

Making the Right Choice - Aug 07