e

exams
ACCA QUALIFICATION CAT QUALIFICATION
FINANCIAL REPORTING FINANCIAL REPORTING
Papers F3, F7, P2 68 Papers 3 and 6 77
AUDIT AUDIT
Papers F8 and P7 70 Paper 8 77
TAX TAX
Papers F6 and P6 74 Paper 9 79

Guidance on examinable legislation and documents, and tax rates and

allowances for students sitting papers at the June 2008 session. Refer to the
ACCA website for Law exam guidance.
exams
You are advised to bring a calculator to the exam hall for all papers. You are permitted to use a
noiseless, cordless, pocket‑sized, programmable or non‑programmable calculator without printout
or graphic/word display facilities. You should read articles published in student accountant as part of
your preparation for the exams.
FINANCIAL REPORTING – INTERNATIONAL
PAPER F3, FINANCIAL ACCOUNTING (INT)
PAPER F7, FINANCIAL REPORTING (INT)
PAPER P2, CORPORATE REPORTING (INT)
Knowledge of new examinable regulations will not be required until at
least six calendar months after the last day of the month in which the
document was issued, or the legislation passed. Documents may be
examinable even if the effective date is in the future. The documents
listed as being examinable are the latest that were issued prior to
30 November 2007 for the June 2008 exams. The Study Guide includes
more detailed guidance on the depth and level at which the examinable
documents will be examined. The Study Guide should be read in
conjunction with the examinable documents list.
International Accounting Standards (IASs)/International Financial
Reporting Standards (IFRSs) and Presentation of Financial
F3 F7 P2
IAS 1 Presentation of Financial Statements • • •
IAS 2 Inventories • • •
IAS 7 Statement of Cash Flows • • •
IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors • • •
IAS 10 Events after the Reporting Period • • •
IAS 11 Construction Contracts • •
IAS 12 Income Taxes • •
IAS 16 Property, Plant and Equipment • • •
IAS 17 Leases • •
IAS 18 Revenue • • •
IAS 19 Employee Benefits •
IAS 20 Accounting for Government Grants and
Disclosure of Government Assistance • •
IAS 21 The Effects of Changes in Foreign
Exchange Rates •
IAS 23 Borrowing Costs • •
IAS 24 Related Party Disclosures •
IAS 27 Consolidated and Separate
Financial Statements • •
IAS 28 Investments in Associates • •
IAS 29 Financial Reporting in
Hyperinflationary Economies •
IAS 31 Interests in Joint Ventures •
IAS 32 Financial Instruments: Presentation • •
IAS 33 Earnings per Share • •
IAS 34 Interim Financial Reporting •
IAS 36 Impairment of Assets • •
IAS 37 Provisions, Contingent Liabilities
and Contingent Assets • • •
IAS 38 Intangible Assets • • •
IAS 39 Financial Instruments: Recognition
and Measurement • •
68  student accountant  February 2008
F3 F7 P2
IAS 40 Investment Property • •
IAS 41 Agriculture •
IFRS 1 First-time Adoption of International
Financial Reporting Standards •
IFRS 2 Share-based Payment •
IFRS 3 Business Combinations • •
IFRS 5 Non-current Assets Held for Sale
and Discontinued Operations • •
IFRS 7 Financial Instruments: Disclosures • •
IFRS 8 Operating Segments •
Other Statements
F3 F7 P2
Framework for the Preparation
Statements • • •
Interpretations of the International Financial Reporting Interpretations
Committee (IFRIC)
F3 F7 P2
SIC-12 Consolidation – Special Purpose
Entities •
SIC-13 Jointly-controlled Entities –
Non-monetary Contributions by
Venturers •
SIC-15 Operating Leases – Incentives •
SIC-21 Income Taxes – Recovery of
Revalued Non-depreciable Assets •
SIC-27 Evaluating the Substance of
Transactions in the Legal Form of a
Lease •
SIC-32 Intangible Assets – Website Costs •
IFRIC 1 Changes in Existing
Decommissioning, Restoration
and Similar Liabilities •
IFRIC 4 Determining Whether an
Arrangement Contains a Lease •
IFRIC 5 Rights to Interests from
Decommissioning Restoration and
Environmental Rehabilitation Funds •
IFRIC 7 Applying the Restatement
Approach under IAS 29, Financial
Reporting in Hyperinflationary
Economies •
IFRIC 8 Scope of IFRS 2 •
IFRIC 9 Reassessment of Embedded
Derivatives •
IFRIC 10 Interim Financial Reporting and
Impairment •

F3 F7 P2
IFRIC 11 IFRS 2: Group and Treasury Share
Transactions •
IFRIC 12 Service Concession Arrangements •
IFRIC 13 Customer Loyalty Programmes •
Exposure Drafts, Discussion Papers and Other Documents FRS 8 Related Party Disclosures •
F3 F7 P2
ED IFRS for Small and Medium-sized
Entities •
DP Management Commentary •
DP Fair Value Measurements •
DP Preliminary Views on an improved
Conceptual Framework for Financial
Reporting – The Objective of
Financial Reporting and Qualitative
Characteristics of Decision-useful
Financial Reporting Information •
FINANCIAL REPORTING – UK
PAPER F3, FINANCIAL ACCOUNTING (UK)
PAPER F7, FINANCIAL REPORTING (UK)
PAPER P2, CORPORATE REPORTING (UK)
Knowledge of new examinable regulations will not be required until at
least six calendar months after the last day of the month in which the
document was issued, or the legislation passed. Documents may be
examinable even if the effective date is in the future. The documents
listed as being examinable are the latest that were issued prior to
30 November 2007 for the June 2008 exams. The Study Guide provides
more detailed guidance on the depth and level at which the examinable
documents will be examined. The Study Guide should be read in
conjunction with the examinable documents list.
Statements of Standard Accounting Practice (SSAPs) Operating and Financial Review (OFR) •
F3 F7 P2
SSAP 4 Accounting for Government Grants • •
SSAP 5 Accounting for Value Added Tax • • •
SSAP 9 Stocks and Long-term Contracts • • •
SSAP 13 Accounting for Research and
Development • • •
SSAP 19 Accounting for Investment Properties • •
SSAP 21 Accounting for Leases and Hire
Purchase Contracts • •
SSAP 25 Segmental Reporting •
Financial Reporting Standards (FRSs) UITF
F3 F7 P2
FRS 1 Cash Flow Statements • • •
FRS 2 Accounting for Subsidiary
Undertakings • •
exams
F3 F7 P2
FRS 3 Reporting Financial Performance • • •
FRS 5 Reporting the Substance of
Transactions • •
FRS 6 Acquisitions and Mergers • •
FRS 7 Fair Values in Acquisition Accounting • •
FRS 9 Associates and Joint Ventures • •
FRS 10 Goodwill and Intangible Assets • • •
FRS 11 Impairment of Fixed Assets and
Goodwill • •
FRS 12 Provisions, Contingent Liabilities
and Contingent Assets • • •
FRS 15 Tangible Fixed Assets • • •
FRS 16 Current Tax • •
FRS 17 Retirement Benefits •
FRS 18 Accounting Policies • • •
FRS 19 Deferred Tax • •
FRS 20 Share-based Payment •
FRS 21 Events After the Balance Sheet Date • • •
FRS 22 Earnings Per Share • •
FRS 23 The Effect of Changes in Foreign
Exchange Rates •
FRS 24 Financial Reporting in
Hyperinflationary Economies •
FRS 25 Financial Instruments: Disclosure
and Presentation • •
FRS 26 Financial Instruments: Recognition
and Measurement • •
FRS 28 Corresponding Amounts • •
FRS 29 Financial Instruments: Disclosures • •
Reporting Statement
F3 F7 P2
Other Statements
F3 F7 P2
Statement of Principles for Financial
Reporting • • •
FRSSE Financial Reporting Standard
for Smaller Entities •
Urgent Issues Task Force (UITF) Abstracts
F3 F7 P2
Foreword to UITF Abstracts •
Abstract 4 Presentation of Long-term Debtors
in Current Assets • •
February 2008  student accountant  69
exams
You are advised to bring a calculator to the exam hall for all papers. You are permitted to use a
noiseless, cordless, pocket‑sized, programmable or non‑programmable calculator without printout
or graphic/word display facilities. You should read articles published in student accountant as part of
your preparation for the exams.
F3 F7 P2
UITF
Abstract 5 Transfers from Current Assets to
Fixed Assets • •
UITF
Abstract 24 Accounting for Start-up Costs •
UITF
Abstract 27 Revision to Estimates of the
Useful Economic Life of Goodwill
and Intangible Assets •
UITF
Abstract 28 Operating Lease Incentives •
UITF
Abstract 29 Website Development Costs •
UITF
Abstract 31 Exchanges of Businesses or Other
Non-monetary Assets for
an Interest in a Subsidiary,
Joint Venture or Associate •
UITF
Abstract 34 Pre-contract Costs •
UITF
Abstract 36 Contracts for Sales of Capacity •
UITF
Abstract 40 Revenue Recognition and Service
Contracts •
UITF
Abstract 41 Scope of FRS 20 ISA 315 Identifying and Assessing the Risks of
UITF
Abstract 42 Reassessment of Embedded
Derivatives •
UITF
Abstract 44 FRS 20 (IFRS 2) Group and Treasury
Share Transactions •
Discussion Papers and Other Documents Entities Using Service
F3 F7 P2
Revenue recognition •
AUDIT – INTERNATIONAL
PAPER F8, AUDIT AND ASSURANCE (INT)
The accounting knowledge that is assumed for Paper F8, Audit and
Assurance is the same as that examined in Paper F3, Financial
Accounting. Therefore, candidates studying for Paper F8 should refer to
the accounting standards listed in the Paper F3 section on page 68.
PAPER P7, ADVANCED AUDIT AND ASSURANCE (INT)
The accounting knowledge that is assumed for Paper P7, Advanced Audit
and Assurance is the same as that examined in Paper P2, Corporate
Reporting. Therefore, candidates studying for Paper P7 should refer to
the accounting standards listed under Paper P2 on page 68.
70  student accountant  February 2008
Paper P7 will only expect knowledge of accounting standards and
financial reporting standards from Paper P2. Knowledge of Exposure
Drafts and Discussion Papers will not be expected.
International Standards on Auditing (ISAs)
F8 P7
Glossary of Terms • •
International Framework for Assurance
Assignments • •
Preface to the International Standards on
Quality Control, Auditing, Review, Other
Assurance and Related Services • •
ISA 200 Objective and General Principles
Governing an Audit of Financial Statements • •
ISA 210 Terms of Audit Engagements • •
ISA 220 Quality Control for Audits of Historical
Financial Information •
ISA 230 Audit Documentation (Revised) • •
ISA 240 The Auditor’s Responsibilities Relating to
Fraud in an Audit of Financial
Statements (Redrafted) • •
ISA 250 Consideration of Laws and Regulations
in an Audit of Financial Statements • •
ISA 260 Communications of Audit Matters with
Those Charged with Governance • •
ISA 300 Planning an Audit of Financial
Statements (Redrafted) • •
Material Misstatement Through
Understanding the Entity and Its
Environment (Redrafted) • •
ISA 320 Audit Materiality • •
ISA 330 The Auditor’s Responses to Assessed
Risks (Redrafted) • •
ISA 402 Audit Considerations Relating to
Organisations • •
ISA 500 Audit Evidence • •
ISA 501 Audit Evidence – Additional Considerations
for Specific Items • •
ISA 505 External Confirmations • •
ISA 510 Initial Engagements – Opening Balances • •
ISA 520 Analytical Procedures • •
ISA 530 Audit Sampling and Other Means of Testing • •
ISA 540 Audit of Accounting Estimates • •
ISA 545 Auditing Fair Value Measurements and
Disclosures •
ISA 550 Related Parties •
ISA 560 Subsequent Events • •
ISA 570 Going Concern • •
ISA 580 Management Representations • •

F8 P7
ISA 600 (Revised and Redrafted) The Audit of Group
Financial Statements (Including the Work of
Component Auditors) •
ISA 610 Considering the Work of Internal Auditing • •
ISA 620 Using the Work of an Expert • •
ISA 700 The Independent Auditor’s Report on a
Complete Set of General Purpose
Financial Statements • •
ISA 701 Modifications to the Independent
Auditor’s Report • •
ISA 710 Comparatives • •
ISA 720 Other Information in Documents
Containing Audited Financial Statements • •
ISA 800 The Auditor’s Report on Special Purpose
Audit Engagements •
International Auditing Practice Statements (IAPSs) Financial Statements •
F8 P7
IAPS 1000 Inter-bank Confirmation Procedures • ISA 250 (Redrafted) The Auditor’s Responsibilities
IAPS 1010 The Consideration of Environmental
Matters in the Audit of Financial Statements •
IAPS 1013 Electronic Commerce: Effect on the
Audit of Financial Statements • •
IAPS 1014 Reporting by Auditors on Compliance
with International Financial Reporting
Standards • •
International Standards on Assurance Engagements (ISAEs) ISA 500 (Redrafted) Considering the Relevance and
F8 P7
ISAE 3000 Assurance Engagements other than
Audits or Reviews of Historical
Financial Information • •
ISAE 3400 The Examination of Prospective
Financial Information •
International Standards on Quality Control (ISQCs) Involving Fair Value Measurements and
F8 P7
ISQC 1 Quality Control for Firms that Perform
Audits and Reviews of Historical
Financial Information and Other
Assurance and Related Services
Engagements •
International Standards on Related Services (ISRs) Group Financial Statements •
F8 P7
ISR 4400 Engagements to Perform Agreed-upon
Procedures Regarding Financial Information •
ISR 4410 Engagements to Compile Financial
Information •
exams
International Standards on Review Engagements (ISREs)
F8 P7
ISRE 2400 Engagements to Review Financial
Statements • •
ISRE 2410 Review of Interim Financial Information
Performed by the Independent Auditor
of the Entity •
Exposure Drafts (EDs)
Topics of Exposure Drafts are examinable to the extent that relevant
articles about them are published in student accountant.
F8 P7
ISA 200 (Revised and Redrafted) Overall Objective
of the Independent Auditor, and the Conduct
of an Audit in Accordance with ISAs •
ISA 220 (Redrafted) Quality Control for an Audit of
ISA 230 (Redrafted) Audit Documentation •
Relating to Laws and Regulations in an
Audit of Financial Statements •
ISA 260 (Revised and Redrafted) Communication
with Those Charged with Governance •
ISA 320 (Revised and Redrafted) Materiality in
Planning and Performing an Audit •
ISA 450 (Redrafted) Evaluation of Misstatements
Identified During the Audit •
Reliability of Audit Evidence •
ISA 505 (Revised and Redrafted) External Confirmations •
ISA 510 (Redrafted) Initial Audit Engagements – Opening
Balances •
ISA 530 (Redrafted) Audit Sampling •
ISA 540 (Revised) Auditing Accounting Estimates
and Related Disclosures (other than those
Disclosures) •
ISA 550 (Revised and Redrafted) Related Parties •
ISA 560 (Redrafted) Subsequent Events •
ISA 570 (Redrafted) Going Concern •
ISA 580 (Revised and Redrafted) Written
Representations •
ISA 600 (Revised and Redrafted) The Audit of
ISA 610 (Redrafted) The Auditor’s Consideration
of the Internal Audit Function •
ISA 620 (Revised and Redrafted) Using the Work of
Auditor’s Expert •
ISA 700 (Redrafted) The Independent Auditor’s Report
on General Purpose Financial Statements •
February 2008  student accountant  71
exams
F8 P7
ISA 705 (Revised and Redrafted) Modifications to the
Opinion in the Independent Auditor’s Report •
ISA 706 (Revised and Redrafted) Emphasis of Matter
Paragraphs and Other Matter(s) Paragraphs
in the Independent Auditor’s Report •
ISA 720 (Redrafted) The Auditor’s Responsibility in
Relation to Other Information in Documents
Containing Audited Financial Statements •
ISA 800 (Revised and Redrafted) Special Considerations
– Audits of Special Purpose Financial and
Specific Elements, Accounts, or Items of a
Financial Statement •
ISA 805 (Revised and Redrafted) Engagements to
Report on Summary Financial Statements •
ISQC 1 (Redrafted) Quality Controls for Firms that
Perform Audits and Reviews of Financial
Statements, and Other Assurance and Related
Service Engagements •
Other Documents ISA 330 The Auditor’s Procedures in Response to
F8 P7
ACCA’s ‘Code of Ethics and Conduct’ • •
IFAC’s ‘Code of Ethics for Professional
Accountants’ •
ACCA’s Technical Factsheet 94 – Anti‑money
Laundering (Proceeds of Crime and Terrorism) •
The Combined Code (of the Committee
on Corporate Governance) as an Example
of a Code of Best Practice •
IAASB Paper ‘Financial Reporting on the Internet
Responsibilities of Directors and Management’ •
IAASB Paper ‘First Time Adoption of
International Financial Reporting Standards –
Guidance for Auditors on Reporting Issues’ •
AUDIT – UK
PAPER F8, AUDIT AND ASSURANCE (UK)
The accounting knowledge that is assumed for Paper F8, Audit and
Assurance is the same as that examined in Paper F3, Financial
Accounting. Therefore, candidates studying for Paper F8 should refer to
the accounting standards listed in the Paper F3 section on page 69.
PAPER P7, ADVANCED AUDIT AND ASSURANCE (UK)
The accounting knowledge that is assumed for Paper P7, Advanced Audit
and Assurance is the same as that examined in Paper P2, Corporate
Reporting. Therefore, candidates studying for Paper P7 should refer to
the accounting standards listed under Paper P2 on page 69.
Paper P7 will only expect knowledge of accounting standards and
financial reporting standards from Paper P2. Knowledge of Exposure
Drafts and Discussion Papers will not be expected.
72  student accountant  February 2008
International Standards on Auditing (ISAs) (UK and Ireland)
F8 P7
Glossary of terms • •
ISA 200 Objective and General Principles Governing
an Audit of Financial Statements • •
ISA 210 Terms of Audit Engagements • •
ISA 220 Quality Control for Audits of Historical
Information •
ISA 230 (Revised) Audit Documentation • •
ISA 240 The Auditor’s Responsibility to Consider
Fraud in an Audit of Financial Statements • •
ISA 250 Consideration of Laws and Regulations in
an Audit of Financial Statements • •
ISA 260 Communication of Audit Matters with those
Charged with Governance • •
ISA 300 Planning an Audit of Financial Statements • •
ISA 315 Obtaining an Understanding of the Entity and
its Environment and Assessing the Risks of
Material Misstatement • •
ISA 320 Audit Materiality • •
Assessed Risks • •
ISA 402 Audit Considerations Relating to Entities
using Service Organisations • •
ISA 500 Audit Evidence • •
ISA 501 Audit Evidence – Additional Considerations
for Specific Items • •
ISA 505 External Confirmations • •
ISA 510 Initial Engagements – Opening Balances
and Continuing Engagements – Opening
Balances • •
ISA 520 Analytical Procedures • •
ISA 530 Audit Sampling and other Means of Testing • •
ISA 540 Audit of Accounting Estimates • •
ISA 545 Auditing Fair Value Measurements and
Disclosures •
ISA 550 Related Parties •
ISA 560 Subsequent Events • •
ISA 570 Going Concern • •
ISA 580 Management Representations • •
ISA 600 Using the Work of Another Auditor •
ISA 610 Considering the Work of Internal Audit • •
ISA 620 Using the Work of an Expert • •
ISA 700 The Auditor’s Report on Financial Statements • •
ISA 710 Comparatives • •
ISA 720 (Revised) Section A – Other Information
in Documents containing Audited Financial
Statements; Section B – The Auditor’s
Statutory Reporting Responsibility in Relation
to Directors’ Reports • •
 exams
International Standards on Quality Control (ISQCs) F8 P7
F8 P7 ISRE (UK and Ireland) 2410, Review of
ISQC 1 Quality Control for Firms that Perform Interim Financial Information Performed by
Audits and Reviews of Historical Financial the Independent Auditor of the Entity •
Information and other Assurance and
Related Services Engagements • Exposure Drafts (EDs) (UK and Ireland)
Topics of Exposure Drafts are examinable to the extent that relevant
Practice Notes (PNs) articles about them are published in student accountant.
F8 P7
PN 8 Reports by Auditors under Company F8 P7
Legislation in the United Kingdom • ISA 260 (Revised) – The Auditor’s Communications
PN 16 Bank Reports for Audit Purposes with those Charged with Governance •
(Revised): Interim Guidance • • ISA 320 (Revised) – Materiality in the Identification
PN 25 Attendance at Stocktaking • • and Evaluation of Misstatements •
PN 26 Guidance for Smaller Entity Documentation • • ISA 540 (Revised) – Auditing Accounting Estimates
and Related Disclosures (other than those
Ethical Standards (ESs) Involving Fair Value Measurements and
F8 P7 Disclosures) •
ES Provisions Available for Small Entities • • ISA 600 (Revised) – The Audit of Group Financial
ES1 Integrity, Objectivity and Independence • • Statements •
ES2 Financial, Business, Employment and ISA 700 (Revised) The Independent Auditor’s Report
Personal Relationships • • on a Complete Set of General Purpose
ES3 Long Association with the Audit Engagement • • Financial Statements •
ES4 Fees, Remuneration and Evaluation ISA 701 The Independent Auditor’s Report on
Policies, Litigation, Gifts and Hospitality • • Other Historical Financial Information •
ES5 Non-audit Services Provided to Audit Clients • • ISA 705 Modifications to the Opinion in the
ESRA Ethical Standard for Reporting Accountants • • Independent Auditor’s Report •
ESRA Glossary • • ISA 706 Emphasis of Matter Paragraphs and
Other Matters Paragraphs in the
Bulletins Independent Auditor’s Report •
F8 P7 ISA 720 (Revised) •
B99/4 Review of Interim Financial Information • ISA 800 The Independent Auditor’s Report on
2001/03 E-business: Identifying Financial Statement Summary Audited Financial Statements •
Risks • • Proposed Revisions to the Ethical Standards
2005/3 Guidance for Auditors on First-time for Auditors •
Adoption of IFRSs in the United Consultation Papers: Guidance for Smaller
Kingdom and Republic of Ireland • Entity Audits •
2006/5 The Combined Code on Corporate
Governance: Requirements of Auditors Other Documents
under the Listing Rules of the Financial F8 P7
Services Authority and the Irish Stock ACCA’s ‘Code of Ethics and Conduct’ • •
Exchange • IFAC’s ‘Code of Ethics for Professional
2006/6 Auditor’s Reports on Financial Statements Accountants’ •
in the United Kingdom • • Scope and Authority of APB
2007/1 Example Reports by Auditors under Pronouncements (Revised) • •
Company Legislation in Great Britain • • ACCA’s Technical Factsheet 94 –
Anti-money Laundering (Proceeds of
Statement of Standards for Reporting Accountants (SSRAs) Crime and Terrorism) •
F8 P7 IAPS 1014 – Reporting by Auditors on
Audit Exemption Reports • Compliance with International Financial
Reporting Standards •

February 2008  student accountant  73

exams

You are advised to bring a calculator to the exam hall for all papers. You are permitted to use a
noiseless, cordless, pocket‑sized, programmable or non‑programmable calculator without printout
or graphic/word display facilities. You should read articles published in student accountant as part of
your preparation for the exams.

tax Car Benefit Percentage

paper f6, taxation (uk) The base level of CO2 emissions is 140 grams per kilometre.

The following notes refer to Paper F6 (UK) only. Guidance for other variant Car Fuel Benefit
papers – where available – will be published on the ACCA website. The base figure for calculating the car fuel benefit is £14,400.

Examinable Legislation Pension Scheme Limits

Knowledge of new legislation will not be required until at least six Annual Allowance £225,000
calendar months after the last day of the month in which the legislation
received Royal Assent. The relevant last day for the June 2008 exams The maximum contribution that can qualify for tax relief without any
was 30 November 2007. earnings is £3,600.

Finance Act Authorised Mileage Allowances

The latest Finance Act which will be examined in Paper F6 (UK) at the
June 2008 session is the Finance Act 2007. With regard to prospective
legislation when, for example, provisions included in the Finance Act
will only take effect at some date in the future, such legislation will
not normally be examined until such time as it actually takes effect.
The same rule applies to the effective date of the provisions of an Act
introduced by statutory instrument.
The following relevant articles have been published in student
accountant and are also available on the ACCA website:
finance act 2007 and benefits from employment – January 2008
examiner’s approach to Paper F6 (UK) – January 2007.
SUPPLEMENTARY INSTRUCTIONS
The following supplementary instructions will be included in the June
2008 exam:
calculations and workings need only be made to the nearest £
all apportionments should be made to the nearest month
all working should be shown.
Tax rates and allowances
The following tax rates and allowances will be reproduced in the exam
paper for Paper F6 (UK). In addition, other specific information necessary
for candidates to answer individual questions will be given as part of the
question. For example, in the case of corporate chargeable gains, the
relevant retail prices index for particular dates will be given at the end of
the relevant question.
Income Tax Full rate 30% 30% 30%
% Lower limit 300,000 300,000 300,000
Starting rate £1 – £2,230 10
Basic rate £2,231 – £34,600 22
Higher rate £34,601 and above 40
Personal Allowances (M - P) x I/P x Marginal relief fraction
Standard £5,225
65 – 74 £7,550
75 and over £7,690
Income limit for age-related allowances £20,900
All cars:
Up to 10,000 miles 40p
Over 10,000 miles 25p
Capital Allowances
%
Plant and machinery
Writing-down allowance 25
First-year allowance – Plant and machinery 40
– Low emission motor cars (CO2
emissions of less than 120 grams per
kilometre) 100
For small businesses only: the rate of plant and machinery first-year
allowance was increased to 50% for the period from 1 April 2006 to
31 March 2008 (6 April 2006 to 5 April 2008 for unincorporated
businesses).
Long-life assets
Writing-down allowance 6
Industrial buildings allowance
Writing-down allowance 4
Corporation Tax
Financial year 2005 2006 2007
Small companies rate 19% 19% 20%
Upper limit 1,500,000 1,500,000 1,500,000
Marginal relief fraction 11/400 11/400 1/40
Marginal Relief
Value Added Tax £
Registration limit 64,000
Deregistration limit 62,000

74  student accountant  February 2008


Capital Gains Tax: Annual Exemption
Individuals £9,200
Capital Gains Tax: Taper Relief
Complete years after % of gains chargeable after relief
5 April 1998 for business non-business
which assets held assets assets introduced by statutory instrument.
1 50% 100%
2 25% 100%
3 25% 95%
4 25% 90%
5 25% 85%
6 25% 80%
7 25% 75%
8 25% 70%
9 25% 65%
10 25% 60%
National Insurance Contributions (not contracted out rates) %
Class 1 Employee £1–£5,225 per year Nil
£5,226–£34,840 per year 11.0
£34,841 and above per year 1.0
Class 1 Employer £1–£5,225 per year Nil
£5,226 and above per year 12.8
Class 1A 12.8
Class 2 £2.20 per week
Class 4 £1 – £5,225 per year Nil
£5,226 – £34,840 per year 8.0
£34,841 and above per year 1.0
Rates of Interest
Official rate of interest 6.25%
Rate of interest on underpaid tax 7.5% (assumed)
Rate of interest on overpaid tax 3% (assumed)
Paper p6, Advanced Taxation (UK)
The following notes refer to Paper P6 (UK) only. Guidance for other
variant papers – where available – will be published on the ACCA
website.
Examinable Legislation
Knowledge of new legislation will not be required until at least six
calendar months after the last day of the month in which the legislation
received Royal Assent. The relevant last day for the June 2008 exams
was 30 November 2007.
exams
Finance Act
The latest Finance Act which will be examined in Paper P6 (UK) at the
June 2008 session is the Finance Act 2007. With regard to prospective
legislation when, for example, provisions included in the Finance Act
will only take effect at some date in the future, such legislation will
not normally be examined until such time as it actually takes effect.
The same rule applies to the effective date of the provisions of an Act
The following relevant articles have been published in student
accountant and are also available on the ACCA website:
finance act 2007 – January 2008
examiner’s approach to Paper P6 (UK) – June/July 2007.
In addition, make sure you read the following articles which are
scheduled for publication:
trusts – March 2008
capital taxes – April 2008.
SUPPLEMENTARY INSTRUCTIONS
The following supplementary instructions will be included in the June
2008 exam:
you should assume that the tax rates and allowances for the tax
year 2007/08, and for the financial year to 31 March 2008 will
continue to apply for the foreseeable future, unless you are instructed
otherwise
calculations and workings need only be made to the nearest £
all apportionments should be made to the nearest month
all workings should be shown.
Tax rates and allowances
The following tax rates and allowances will be reproduced in the exam
paper for Paper P6 (UK). In addition, other specific information necessary
for candidates to answer individual questions will be given as part of the
question.
Income Tax
%
Starting rate £1 – £2,230 10
Basic rate £2,231 – £34,600 22
Higher rate £34,601 and above 40
Personal Allowances
Standard £5,225
65 – 74 £7,550
75 and over £7,690
Income limit for age-related allowances £20,900
Car Benefit Percentage
The base level of CO2 emissions is 140 grams per kilometre.
February 2008  student accountant  75
exams

Car Fuel Benefit Value Added Tax £

The base figure for calculating the car fuel benefit is £14,400.
Pension Scheme Limits
Annual allowance £225,000
Lifetime allowance £1,600,000
The maximum contribution that can qualify for tax relief without any
earnings is £3,600.
Authorised Mileage Allowances
All cars:
Up to 10,000 miles 40p
Over 10,000 miles 25p
Capital Allowances
% 1 50% 100%
Plant and machinery
Writing-down allowance 25
First-year allowance – Plant and machinery 40
– Low emission motor cars (CO2 5 25% 85%
emissions of less than 120 grams per
kilometre) 100
For small businesses only: the rate of plant and machinery first-year
allowance is increased to 50% for the period from 1 April 2006 to
31 March 2008 (6 April 2006 to 5 April 2008 for unincorporated
businesses).
Registration limit 64,000
Deregistration limit 62,000
Inheritance Tax
£1 – £300,000 Nil
Excess 40%
Capital Gains Tax: Annual Exemption
Individuals £9,200
Capital Gains Tax: Taper Relief
Complete years after % of gain chargeable after relief
5 April 1998 for business non-business
which assets held assets assets
2 25% 100%
3 25% 95%
4 25% 90%
6 25% 80%
7 25% 75%
8 25% 70%
9 25% 65%
10 25% 60%
National Insurance Contributions (not contracted out rates) %

Long-life assets Class 1 Employee £1–£5,225 per year Nil

Writing-down allowance 6
Industrial buildings allowance
Writing-down allowance 4
Corporation Tax
Financial year 2005 2006 2007
Small companies rate 19% 19% 20%
Full rate 30% 30% 30%
Small companies rate
lower limit (£) 300,000 300,000 300,000
Small companies rate
upper limit (£) 1,500,000 1,500,000 1,500,000
Marginal relief fraction
Small companies rate 11/400 11/400 1/40
£5,226–£34,840 per year 11.0
£34,841 and above per year 1.0
Class 1 Employer £1–£5,225 per year Nil
£5,226 and above per year 12.8
Class 1A 12.8
Class 2 Small earnings exception limit – £4,635
£2.20 per week
Class 4 £1 – £5,225 per year Nil
£5,226 – £34,840 per year 8.0
£34,841 and above per year 1.0
Rates of Interest
Official rate of interest 6.25%
Rate of interest on underpaid tax 7.5% (assumed)
Rate of interest on overpaid tax 3% (assumed)

Marginal Relief
(M - P) x I/P x Marginal relief fraction

76  student accountant  February 2008


You are advised to bring a calculator to the exam hall for all papers. You are permitted to use a
noiseless, cordless, pocket‑sized, programmable or non‑programmable calculator without printout
or graphic/word display facilities. You should read articles published in student accountant as part of
your preparation for the exams.
Stamp Duty Land Tax
Ad Valorem duty
Residential property Rate
£125,000 or less1 Nil
£125,001 – £250,000 1%
£250,001 – £500,000 3%
£500,001 or more 4%
1
For non-residential property, the nil rate is extended to £150,000
Stamp duty
Shares 0.5%
Fixed duty £5
FINANCIAL REPORTING – INTERNATIONAL STREAM
PAPER 3, MAINTAINING FINANCIAL RECORDS (INT)
PAPER 6, DRAFTING FINANCIAL STATEMENTS (INT)
Knowledge of new examinable regulations will not be required until at
least six calendar months after the last day of the month in which the
document was issued, or the legislation passed. Documents may be
examinable even if the effective date is in the future. The documents
listed as being examinable are the latest that were issued prior to
30 November 2007 for the June 2008 exams. The Study Guide includes
more detailed guidance on the depth and level at which the examinable
documents will be examined. The Study Guide should be read in
conjunction with the examinable documents list.
International Accounting Standards (IASs)/International Financial
Reporting Standards (IFRSs)
3 6
IAS 1 Presentation of Financial Statements • •
IAS 2 Inventories • •
IAS 7 Statement of Cash Flows •
IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors • •
IAS 10 Events after the Reporting Period •
IAS 16 Property, Plant and Equipment • •
IAS 18 Revenue • •
IAS 27 Consolidated and Separate Financial
Statements •
IAS 37 Provisions, Contingent Liabilities
and Contingent Assets • •
IAS 38 Intangible Assets •
IFRS 3 Business Combinations •
Other Statements documents will be examined. The Study Guide should be read in
3 6
Framework for the Preparation and
Presentation of Financial Statements • •
exams
FINANCIAL REPORTING – UK STREAM
PAPER 3, MAINTAINING FINANCIAL RECORDS (UK)
PAPER 6, DRAFTING FINANCIAL STATEMENTS (UK)
Knowledge of new examinable regulations will not be required until at
least six calendar months after the last day of the month in which the
document was issued, or the legislation passed. Documents may be
examinable even if the effective date is in the future. The documents
listed as being examinable are the latest that were issued prior to
30 November 2007 for the June 2008 exams. The Study Guide includes
more detailed guidance on the depth and level at which the examinable
documents will be examined. The Study Guide should be read in
conjunction with the examinable documents list.
Statements of Standard Accounting Practice (SSAPs)
3 6
SSAP 9 Stocks and Long-term Contracts • •
SSAP 13 Accounting for Research and Development •
Financial Reporting Standards (FRSs)
3 6
FRS 1 Cash Flow Statements •
FRS 3 Reporting Financial Performance •
FRS 10 Goodwill and Intangible Assets •
FRS 11 Impairment of Fixed Assets and Goodwill •
FRS 12 Provisions, Contingent Liabilities and
Contingent Assets • •
FRS 15 Tangible Fixed Assets • •
FRS 18 Accounting Policies • •
FRS 21 Events After the Balance Sheet Date •
Other Statements
3 6
Statement of Principles for
Financial Reporting • •
AUDIT – INTERNATIONAL STREAM
PAPER 8, IMPLEMENTING AUDIT PROCEDURES (INT)
Knowledge of new examinable regulations will not be required until at
least six calendar months after the last day of the month in which the
document was issued, or the legislation passed. Documents may be
examinable even if the effective date is in the future. The documents
listed as being examinable are the latest that were issued prior to
30 November 2007 for the June 2008 exams. The Study Guide includes
more detailed guidance on the depth and level at which the examinable
conjunction with the examinable documents list.
The accounting knowledge that is assumed for Paper 8, Implementing
Audit Procedures is the same as that examined in Paper 1, Recording
Financial Transactions and Paper 3, Maintaining Financial Records.
February 2008  student accountant  77
exams
Therefore, candidates studying for Paper 8 should refer to the accounting
standards listed under Paper 1 and Paper 3. Candidates will also be
expected to be familiar with Paper 6, Drafting Financial Statements.
International Standards on Auditing (ISAs)
8 document was issued, or the legislation passed. Documents may be
Glossary of Terms •
Preface to International Standards on
Quality Control, Auditing, Review, Other
Assurance and Related Services •
ISA 200 Objective and General Principles Governing
an Audit of Financial Statements •
ISA 210 Terms of Audit Engagements •
ISA 220 Quality Control for Audits of Historical
Financial Information •
ISA 230 Audit Documentation (Revised) •
ISA 240 The Auditor’s Responsibilities Relating
to Fraud in an Audit of Financial
Statements (Redrafted) •
ISA 300 Planning an Audit of Financial
Statements (Redrafted) •
ISA 315 Identifying and Assessing the Risks of
Material Misstatement Through Understanding
the Entity and Its Environment (Redrafted) •
ISA 320 Audit Materiality •
ISA 330 The Auditor’s Responses to Assessed
Risks (Redrafted) •
ISA 402 Audit Considerations Relating to Entities
Using Service Organisations •
ISA 500 Audit Evidence •
ISA 501 Audit Evidence – Additional Considerations
for Specific Items •
ISA 505 External Communications •
ISA 520 Analytical Procedures •
ISA 530 Audit Sampling and Other Means of Testing •
ISA 540 Audit of Accounting Estimates •
ISA 560 Subsequent Events •
ISA 570 Going Concern •
ISA 580 Management Representations •
ISA 610 Considering the Work of Internal Auditing •
ISA 620 Using the Work of an Expert •
ISA 700 The Independent Auditor’s Report on a
Complete Set of General Purpose
Financial Statements •
ISA 701 Modifications to the Independent Auditor’s Report •
Other Documents ISA 560 Subsequent Events •
8 ISA 570 Going Concern •
ACCA’s ‘Code of Ethics and Conduct’ •
78  student accountant  February 2008
AUDIT – UK STREAM
PAPER 8, IMPLEMENTING AUDIT PROCEDURES (UK)
Knowledge of new examinable regulations will not be required until at
least six calendar months after the last day of the month in which the
examinable even if the effective date is in the future. The documents
listed as being examinable are the latest that were issued prior to
30 November 2007 for the June 2008 exams. The Study Guide includes
more detailed guidance on the depth and level at which the examinable
documents will be examined. The Study Guide should be read in
conjunction with the examinable documents list.
The accounting knowledge that is assumed for Paper 8,
Implementing Audit Procedures is the same as that examined in Paper
1, Recording Financial Transactions and Paper 3, Maintaining Financial
Records. Therefore, candidates studying for Paper 8 should refer to the
accounting standards listed under Paper 1 and Paper 3. Candidates
will also be expected to be familiar with Paper 6, Drafting Financial
Statements.
International Standards on Auditing (ISAs) (UK and Ireland)
8
Glossary of terms •
ISA 200 Objective and General Principles Governing
an Audit of Financial Statements •
ISA 210 Terms of Audit Engagements •
ISA 220 Quality Control for Audits of Historical Information •
ISA 230 Audit Documentation (Revised) •
ISA 240 The Auditor’s Responsibility to Consider Fraud
in an Audit of Financial Statements •
ISA 300 Planning an Audit of Financial Statements •
ISA 315 Obtaining an Understanding of the Entity and
its Environment and Assessing the Risks of
Material Misstatement •
ISA 320 Audit Materiality •
ISA 330 The Auditor’s Procedures in Response to
Assessed Risks •
ISA 402 Audit Considerations Relating to Entities
Using Service Organisations •
ISA 500 Audit Evidence •
ISA 501 Audit Evidence – Additional Considerations
for Specific Items •
ISA 505 External Confirmations •
ISA 520 Analytical Procedures •
ISA 530 Audit Sampling and Other Means of Testing •
ISA 540 Audit of Accounting Estimates •
ISA 580 Management Representations •
ISA 610 Considering the Work of Internal Audit •
ISA 620 Using the Work of an Expert •
 exams
You are advised to bring a calculator to the exam hall for all papers. You are permitted to use a
noiseless, cordless, pocket‑sized, programmable or non‑programmable calculator without printout
or graphic/word display facilities. You should read articles published in student accountant as part of
your preparation for the exams.

ISA 700 The Auditor’s Report on Financial Statements • TAX RATES AND ALLOWANCES
Income Tax
Ethical Standards (ESs) %
8 Starting rate £1 – £2,230 10
ES Provisions Available for Small Entities • Basic rate £2,231 – £34,600 22
ES1 Integrity, Objectivity and Independence • Higher rate £34,601 and above 40
ES2 Financial, Business, Employment and
Personal Relationships • Personal Allowance
ES3 Long Association with the Audit Engagement • Personal allowance £5,225
ES4 Fees, Remuneration and Evaluation Policies,
Litigation, Gifts and Hospitality • Car Benefit Percentage
ES5 Non-audit Services Provided to Audit Clients • The base level of CO2 emissions is 140 grams per kilometre.
ESRA Ethical Standard for Reporting Accountants •
Glossary • Car Fuel Benefit
The base figure for calculating the car fuel benefit is £14,400.
Other Documents
8 Authorised mileage allowances
ACCA’s ‘Code of Ethics and Conduct’ • Cars:
Up to 10,000 miles 40p
tax Over 10,000 miles 25p
paper 9, Preparing Taxation Computations (UK)
The following notes refer to Paper 9 (UK) only. Guidance for other variant Pension Scheme Limits
papers – where available – will be published on the ACCA website. The maximum contribution that can qualify for tax relief without any
earnings is £3,600.
Examinable Legislation
Knowledge of new legislation will not be required until at least six Annual allowance £225,000
calendar months after the last day of the month in which the legislation
received Royal Assent. The relevant last day for the June 2008 exams Rate of Interest
was 30 November 2007. Official rate of interest 6.25%

Finance Act Capital Allowances

The latest Finance Act which will be examined in Paper 9 (UK) at the %
June 2008 session is the Finance Act 2007. With regard to prospective Plant and machinery
legislation when, for example, provisions included in the Finance Act Writing-down allowance 25
will only take effect at some date in the future, such legislation will First-year allowance – Plant and machinery 40
not normally be examined until such time as it actually takes effect. – Low emission motor cars (CO2
The same rule applies to the effective date of the provisions of an Act emissions of less than 120 grams per
introduced by statutory instrument. kilometre) 100
The following relevant article has been published in student
accountant and is also available on the ACCA website: For small businesses only: the rate of plant and machinery first-year
finance act 2007 – January 2008. allowance is increased to 50% for the period from 1 April 2006 to
31 March 2008 (6 April 2006 to 5 April 2008 for unincorporated
SUPPLEMENTARY INSTRUCTIONS businesses).
The following supplementary instructions will be included in the June
2008 exam: Industrial buildings allowance
calculations and workings need only be made to the nearest £ Writing-down allowance 4
all apportionments should be made to the nearest month
all working should be shown.

February 2008  student accountant  79

exams
Corporation Tax
Financial year 2005 2006 2007
Small companies rate 19% 19% 20%
Full rate 30% 30% 30%
Lower limit 300,000 300,000 300,000
Upper limit 1,500,000 1,500,000 1,500,000
Small companies rate 11/400 11/400 1/40
Marginal Relief
(M - P) x I/P x Marginal relief fraction
Value Added Tax shown above should be divided by 52 (weekly) or 12 (monthly)
See Value Added Tax on page 76.
80  student accountant  February 2008
Capital Gains Tax: Taper Relief
See Capital Gains Tax: Taper Relief on page 76.
Capital Gains Tax: Annual Exemption
Individuals £9,200
National Insurance Contributions (not contracted out rates)
See National Insurance Contributions (not contracted out rates) on
page 75.
Where weekly or monthly calculations are required, the Class 1 limits
as applicable.