We explain the link between the AAFRP exam and scoring well in the August 2017 Core Comprehensive and Simulations exams.
At this time of year, FAE candidates await the results of the Advanced Application of Financial Reporting Principles (AAFRP) exam which students sat in December 2016.
While the AAFRP is worth one indicator score towards the overall financial reporting element of the ‘super-six’ for Core, it’s just the beginning of the candidate’s Core examination journey.
Bedrock of knowledge
Candidates should be aware of the requirement to continuously build on knowledge and techniques over the course of their studies. This is especially true in the Core Comprehensive and Core Simulations examinations, which candidates will face later this year.
The knowledge gained from the candidate’s AAFRP studies should not be discarded once the AAFRP exam has been sat. This skillset will form the bedrock of knowledge when students sit down to answer financial reporting indicators in August’s Core examination.
The AAFRP represents one indicator score towards achieving sufficiency and, more importantly, addressing the financial reporting ‘depth’ requirement of Core. It’s also one of the four to six financial reporting indicators examined at Core.
It’s not the end
Students could encounter more financial reporting indicators in the August 2017 Core examination. Candidates will also be required to perform further journal entries and apply accounting standards theory.
It’s therefore essential that candidates, throughout their Core examination journey, are both comfortable and competent with these financial reporting principles.
Boost your chances
In FAE 2016, good AAFRP results in December contributed to the uplift in the overall pass rate in Core. Aside from being a good head-start for your overall Core result in August, your chances of passing the Core examination as a whole increase if you achieve a score of ‘competent’ in AAFRP.
All is not lost if a candidate fails to achieve a score of ‘competent’ or ‘highly competent’, however. There’s still time to learn from AAFRP areas of weakness and turn these weaknesses into strengths through good preparation ahead of the August Core examination.
Be warned
Candidates who adopt a ‘silo’ approach to learning and discard the knowledge gleaned from AAFRP will struggle to cope with the indicators presented in the August 2017 Core Comprehensive and Simulations exams.