Thursday, February 16, 2012
Review of Dec 2011 P5 Examination by ACCA
Pass rate for Dec 2011 P5 ACCA paper is a disappointing 29%, which is the worst among the whole ACCA papers set for during the December 2011 examination.
The examiner has clearly indicated that this was due to lack of preparation of the students on the performance management aspect as compared to their ability to manage performance measurement.
Comments that was obtained from ACCA Teach Magazine Feb 2012 issues are included here
"Paper P5
The paper was considered fair, covering the syllabus well, although the questions were set on comparatively less focused areas. There was concern that with a lot of information to absorb, candidates may feel pressured for time.
Question 1 Parts (a) and (c) were considered fair but candidates may have struggled with Part (b) since the requirements did not specify which technique to use. ACCA stated that at this level, candidates should be able to decide which technique to use from the information given. Also the requirement hints ‘decision making under uncertainty’, giving a clue to use expected values and maximax.
- This will be a common feature in P5 ACCA paper from now, the examiner expects the candidate to select the models and tools to be used for the problem given - this implies that student must know what is the purpose of each model and where it can be used - very similar to previous 3.5 examiner approach.
Question 2 was considered fair, although some candidates might struggle due to it being a wholly written question.
- This usually causes a problem for Malaysian students which loves the number crunching issues and hates the theory parts. This would have been very hard for the students to handle.
Question 3 required some practical experience in the workplace, and may have posed a challenge. ACCA said this was the most popular question and candidates were generally doing well.
- Any questions that uses practical skills would be welcomed by most, since it allows the student to display their "other knowledge" and might allow some creative approach to answering the question
Question 4 was considered easy, with a lot of useful information provided in the background case. Feedback from the standardisation meeting however reported that most candidates were not performing well in this question. It was anticipated that
- Indicating that students were generally weaker in the management of case information during the examination
Question 5 would prove most popular and ACCA confirmed that candidates were generally performing better with this question.
- Computational questions are always something that is sought after by desperate souls in search of marks
The student survey showed:
56% of candidates found the syllabus was covered well
67% felt time pressured
Many commented that the wording in Question 1 lacked clarity"
(Sourced from ACCA, 2012 - Teach magazine)
The examiner has clearly indicated that this was due to lack of preparation of the students on the performance management aspect as compared to their ability to manage performance measurement.
Comments that was obtained from ACCA Teach Magazine Feb 2012 issues are included here
"Paper P5
The paper was considered fair, covering the syllabus well, although the questions were set on comparatively less focused areas. There was concern that with a lot of information to absorb, candidates may feel pressured for time.
Question 1 Parts (a) and (c) were considered fair but candidates may have struggled with Part (b) since the requirements did not specify which technique to use. ACCA stated that at this level, candidates should be able to decide which technique to use from the information given. Also the requirement hints ‘decision making under uncertainty’, giving a clue to use expected values and maximax.
- This will be a common feature in P5 ACCA paper from now, the examiner expects the candidate to select the models and tools to be used for the problem given - this implies that student must know what is the purpose of each model and where it can be used - very similar to previous 3.5 examiner approach.
Question 2 was considered fair, although some candidates might struggle due to it being a wholly written question.
- This usually causes a problem for Malaysian students which loves the number crunching issues and hates the theory parts. This would have been very hard for the students to handle.
Question 3 required some practical experience in the workplace, and may have posed a challenge. ACCA said this was the most popular question and candidates were generally doing well.
- Any questions that uses practical skills would be welcomed by most, since it allows the student to display their "other knowledge" and might allow some creative approach to answering the question
Question 4 was considered easy, with a lot of useful information provided in the background case. Feedback from the standardisation meeting however reported that most candidates were not performing well in this question. It was anticipated that
- Indicating that students were generally weaker in the management of case information during the examination
Question 5 would prove most popular and ACCA confirmed that candidates were generally performing better with this question.
- Computational questions are always something that is sought after by desperate souls in search of marks
The student survey showed:
56% of candidates found the syllabus was covered well
67% felt time pressured
Many commented that the wording in Question 1 lacked clarity"
(Sourced from ACCA, 2012 - Teach magazine)
Sunday, February 12, 2012
P5 ACCA Re-sit for June 2012 examination
Timetable for the re-sit is out
P5 Advance Performance Management Classes (8.30 - 5.30 pm)
25 Feb 2012
10 Mar 2012
18 Mar 2012
31 Mar 2012
7 Apr 2012
8 Apr 2012
21 Apr 2012
Revision
1 - 3 June 2012
CALL 0178786074
P5 Advance Performance Management Classes (8.30 - 5.30 pm)
25 Feb 2012
10 Mar 2012
18 Mar 2012
31 Mar 2012
7 Apr 2012
8 Apr 2012
21 Apr 2012
Revision
1 - 3 June 2012
CALL 0178786074
Thursday, November 17, 2011
Spots for DEC 2011 P5 ACCA
This time around the paper will probably have the following elements
1. Uncertainty (articles)
2. Benchmarking (sample paper)
3. Budgeting - ABB or ZBB (public sector question)
4. Mission statement with a gap analysis - compute gap and critically evaluate the options suggested by management to close the gap (calculate the closing prospect and comment on the risk associated with it)
5. Prism or pyramid
6. Information system issues / sources
7. Quality, six sigma issues DMAIC and consideration for CMMI (stages)
8. Service quality management issues - RATER
9. Economic factors influencing performance
10. VFM and Public sector issues
11. Basic bread and butter stuff - TRANSFER PRICING / ROI / RI / EVA / EBITA / OVERHEAD SYSTEM
Most of the items will be either theories or possibly some computation.
BE CAREFUL IF YOU HAVE USED SHANE JOHNSON'S QUESTION - WHICH FOCUSED HEAVY ON PERFORMANCE MEASUREMENT, WHEREAS ALEX WATT SEEMS TO FOCUS HEAVY ON PERFORMANCE SYSTEM EVALUATION AND MANAGEMENT - NOT TOO MUCH ON MEASUREMENT. THIS DIFFERENCE IN EMPHASIS IN CRITICAL UNDERSTANDING IN PASSING THIS PAPER!
Best of luck in preparing for this paper.
Hope the DEC 2011 ACCA Paper P5 will be kind to you.
Sunday, October 02, 2011
P5 IRC Slot for Dec 2011 ACCA Exams
UPDATE REGARDING IRC SLOT
There has been significant interest in the IRC for P5 for the coming ACCA Dec 2011 Examination. The dates for the slot are as follows:
Registration is on 29/10/2011 at 5.30 pm - 7.30 pm (Limited seats, only 18 pax can be accommodated) OR you can sms 0178786074 and make the necessary arrangement.
Training slots for the P5 IRC on:
30/10/11 (8.30 - 5.30)
3/11/11 (8.30 - 5.30)
4/11/11 (8.30 - 5.30)
5/11/11 (8.30 - 5.30)
There has been significant interest in the IRC for P5 for the coming ACCA Dec 2011 Examination. The dates for the slot are as follows:
Registration is on 29/10/2011 at 5.30 pm - 7.30 pm (Limited seats, only 18 pax can be accommodated) OR you can sms 0178786074 and make the necessary arrangement.
Training slots for the P5 IRC on:
30/10/11 (8.30 - 5.30)
3/11/11 (8.30 - 5.30)
4/11/11 (8.30 - 5.30)
5/11/11 (8.30 - 5.30)
Sunday, March 06, 2011
ACCA P5 New Beginnings
The paper has been remade with new materials from P3 being added in and some elements being removed, while ACCA has also added in a new examiner.
Updated examiner's approach to Paper P5
As a relatively new examiner and having managed the marking (though not the writing) of the June 2010 paper and both the writing and marking of the December 2010 paper, I felt that it would be helpful to try to give candidates further clarification of the style of questions and skills that will be tested in Paper P5, Advanced Performance Management.
Key issues to consider
The paper will test a candidate’s ability to assess different approaches to performance management from a variety of perspectives. This will entail the candidate knowing what the approaches are and more importantly being able to compare one with another in the context of a scenario, for example, profit and value approaches, financial and non-financial perspectives, short-term and long-term issues.
The questions set in Paper P5 will be based around an organisation. The scenario will describe the organisation, its objectives and its business environment. A good candidate will show how they have taken in this information and then applied it to the performance management of that
organisation. For example, when assessing different performance management approaches, a useful question to ask is ‘Does this meet the objectives/needs of the organisation?’ so obviously, the candidate must have identified these from the scenario.
Candidates must make sure that they can:
1. Assess the current situation of the organisation (eg its existing performance management systems) and then
2. consider how to apply a new approach to performance management (eg value-based or based on one of the many models mentioned in the syllabus such as the performance prism or the building block model)
and
3. assess whether this new approach will be an improvement.
Lists of rote-learned advantages and disadvantages for different approaches will not produce a complete answer as a candidate will be expected to tailor this knowledge to the situation given in the question. So for example, Question 2 of December 2010 asked for an evaluation of two costing systems within a laptop manufacturer. A good answer considered the advantages and
disadvantages of the absorption costing and activity-based costing in a dynamic, competitive, bespoke-manufacturing environment.
Cover the whole syllabus
Remember that, broadly, the exam will test the capabilities listed in the syllabus that are required of a candidate. There are six capabilities and most will feature to some extent in every diet:
• use strategic planning and control models to plan and monitor organisational performance
• assess and identify relevant macro economic, fiscal and market factors and key external influences on organisational performance
• identify and evaluate the design features of effective performance management information and monitoring systems
• apply appropriate strategic performance measurement techniques in evaluating and improving organisational performance
• advise clients and senior management on strategic business performance evaluation and on recognising vulnerability to corporate failure
• identify and assess the impact of current developments in management accounting and performance management on measuring, evaluating and improving organisational performance
The paper will aim to address issues at both the strategic and operational levels and will often require a candidate to understand the connections between these levels. For example, the question of how strategic objectives flow through critical success factors to performance indicators as in Question 1 of the December 2010 paper.
Another example of the type of question that arises is how does the choice of operational performance measures impact on the strategic performance of the organisation? A phrase that rings true in many situations is Drucker’s dictum ‘What gets measured gets done.’ This phrase succinctly points to the impact that the choice of performance metrics have on the management activity of the firm.
Now these points should illustrate why it is a misapprehension that the paper is predominantly about performance measurement, it is a performance management paper. This error often manifests in a candidate’s over-concentration on detailed elements of Section D (strategic performance measurement) of the syllabus. As indicated above, it is important to remember
that the ideas contained in the various metrics need to be coherently applied to meet the strategic needs of an organisation and this is where other sections of the syllabus will connect to a question, for example, Section A on how strategic performance fits with the planning and control structures or Section B on external drivers of performance.
Create information
The candidate is expected to be able to calculate numbers using the various techniques of the paper, however, it is more important that the candidate can explain what their numbers mean and what importance to place on them.
A valuable management accountant will create information from the detailed data given in a question. It is often best to begin by considering the ‘big picture’ (what is the overall objective); next, break down the data into smaller but meaningful (and manageable) chunks; finally, discuss the individual lines of the data table and even then, a candidate should focus on the data that
explains the overall picture of emission changes.
A good example of this was Question 4 Part b) of the December 2010 paper.
1. Consider the ‘big picture’ – whether the overall target for emission reduction be met.
2. Break down the data into smaller but meaningful (and manageable) chunks – road, rail and air transport
3. Discuss the individual lines of the data table focusing on the data that explains the overall picture of emission changes – the switch from petrol to diesel powered motor vehicles is complete in commercial vehicles and has lead to large reductions in emissions but such a change may be more difficult in company cars as employees may resist such a change.
Note specifically, this will require answers that go beyond repeating, in sentence form, the data given in (say) a table in that question. There many candidates wasted their time by limiting their comments to only writing out statements such as ‘Commercial Fleet Diesel use has fallen from 105.4 to 70.1’ or even ‘Commercial Fleet Diesel use has gone down’. First, this is stating the obvious to anyone who read the table but also importantly, this is far too detailed for most reporting purposes.
Candidates will be expected to analyse not merely calculate numerical data given from a scenario.
Overall
A candidate would be advised to ask him/herself if the answer they have produced would help the organisation to answer the question requirement.
Remember… try to add value with your answers by way of comments relevant to the issue at hand.
Alex Watt is examiner for Paper P5
The above article was sourced from http://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_feb11_P5_examap.pdf
(accessed on 7th March 2011,1.34am MST)
From the above, combined with the meeting that I attended in UK, it would seem that he is serious about the way he is changing the paper - performance management rather than performance measurement
Examples of types of organisations that might be sampled by the examiner can be reviewed by looking at http://www.linkedin.com/pub/alex-watt/b/5a9/469
Overall it would worth while to update yourself regarding this paper if you failed, since marks can be easily be obtained by the correct method
Thursday, August 26, 2010
J Pro update
The interest for P3 and F8 was sufficient for me to initiate a class for the 2 papers
The current schedule for p3 and f8 class is as follows:
P3 - Monday and Tuesday (10.00am - 1.00 pm)- RM1,000 (includes revision)
F8 - Wednesday (10.00 - 2.00 pm)- RM800 (includes revision)
The class will start on 6 th of September for P3 and F8 will start on 8th of September.
Both classes will cater for students that have some background in the paper, studied before but need some form of clarity in handling the exam questions. I will still do a re-cap of the theories and models for each paper, higher emphasis will be on exam techniques.
Please make your registration by sending an sms with your name and paper to 0178786074. The class size is limited to 18 only (maximum that I want to tutor), confirm early.
P7 classes will be starting this Saturday 28th, those that have confirmed your seats please take note, there is still some room for others to join in (8 more seats only)
The interest for P3 and F8 was sufficient for me to initiate a class for the 2 papers
The current schedule for p3 and f8 class is as follows:
P3 - Monday and Tuesday (10.00am - 1.00 pm)- RM1,000 (includes revision)
F8 - Wednesday (10.00 - 2.00 pm)- RM800 (includes revision)
The class will start on 6 th of September for P3 and F8 will start on 8th of September.
Both classes will cater for students that have some background in the paper, studied before but need some form of clarity in handling the exam questions. I will still do a re-cap of the theories and models for each paper, higher emphasis will be on exam techniques.
Please make your registration by sending an sms with your name and paper to 0178786074. The class size is limited to 18 only (maximum that I want to tutor), confirm early.
P7 classes will be starting this Saturday 28th, those that have confirmed your seats please take note, there is still some room for others to join in (8 more seats only)
Sunday, May 30, 2010
The following is the tips for the papers F5 and P5
F5 ACCA Performance Management by Kaplan for JUNE 2010
- Financial and non-financial performance indicators
- Mix and Yield variances
- Transfer Pricing
- Activity Based Costing
P5 ACCA Advanced Performance Management by Kaplan for JUNE 2010
- Forecasting
- Divisional assessment
- Strategic alternatives
- Corporate failure
- Dealing with uncertainty
Paper F5 ACCA by BPP for JUNE 2010
- Specialist Cost and Management Accounting Techniques. ABC, Throughput Accounting & Target Costing have featured recently. Backflush accounting has not yet been examined. Be prepared to discuss techniques such as ABC compared to traditional costing techniques such as Absorption Costing.
- Decision making techniques. Relevant costing, linear programming and risk & uncertainty have been examined recently. Pricing is yet to be examined in much detail other than a brief discussion about discounting and a requirement to suggest two pricing strategies.
- Budgeting. Learning curves have featured most regularly to date. Discussion marks may look at the appropriateness of budgeting types or the behavioural impacts of types of budgeting. Numerical elements in a budgeting question could include flexed budgets or time series analysis.
- Standard costing & variance analysis. Mix & yield variances, planning & operating variances and operating statements have been examined. Be prepared to discuss performance and whether variances are an indicative measure of good / bad performance.
- Performance Measurement and Control. Questions focusing on interpretation of performance and financial vs non financial measures have featured on all papers to date. Questions could focus on the public sector, divisional performance measures such as ROI / RI or a discussion of the impact on performance of various transfer prices.
Paper P5 ACCA Tips by BPP for JUNE 2010
- Scope of strategic performance measures in the private sector. Analysis of financial and non-financial performance; this could include the use of activity-based approaches or learning curves, and strategies to improve performance.
- Divisional performance and transfer pricing issues. ROI, RI , EVA or even ABC could feature here; transfer pricing could feature as an aspect of these questions.
- Problems with budgeting. Budgeting has been a favourite essay question with your examiner, especially an awareness of the problems of budgeting but was largely unexamined in 2009.
- Alternative views of performance measurement. The examiner often includes a question to evaluate an organisation against an established theoretical model. The balanced scorecard, performance pyramid and building blocks have all appeared in previous exams.
- Performance hierarchy. Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements that could easily include a simple NPV or profit analysis.
Tips for ACCA Paper F5 “Performance Management” for JUNE 2010 by Open Tuition
1. ABC
2. Linear Programming or Decision Theory
3. Budgeting written + flexed
4. Mix & Yield variances
5. Divisional + transfer pricing
