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ACCA F9 lectures ACCA F9 notes
December 3, 2016 at 10:35 am
Could you please provide me with your kind assistance?
In the revision kit there are 2 exercise for the same topic. Funds raised through rights issue to repay bonds.
For the 1st question, the Profits adjusted by multiplied the funds raised with the return of equity and then the interest on bonds/tax adjusted.
The 2nd question, simply deducts from PBIT the new interest cost/tax not profits adjusted based the funds raised.
I am confused wheb we should include the funds raised on PBIT based on return on equity or just to adjust NET PROFIT by the reduced interest amount/tax.
John Moffat says
December 3, 2016 at 3:55 pm
Please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.
Also, please give the name and exam date of the questions so I can check (assuming they are past exam questions – if not, then if they are in the BPP Revision Kit then tell me the number of the questions).
August 13, 2016 at 12:53 pm
John Sir, Nothing better than your lecture. I must say its awesome.
August 13, 2016 at 5:03 pm
Thank you very much 🙂
February 5, 2016 at 12:30 pm
where wd bird-in-hand fit in all this? wd it be positive signalling?
February 5, 2016 at 2:28 pm
A bird in the hand is not standard term!
But all it means is that many people would rather have a certain amount immediately than be told they will probably get a bigger amount later.
October 6, 2015 at 1:08 am
If the company pays lower dividends- can we say that shareholders will panic and may sell their shares. In that case there will be greater supply than demand and hence this will pull prices down?
October 6, 2015 at 6:15 am
Shareholders certainly might panic and sell their shares. Whether they will or not depends on how much information they have been given (and whether they believe it 🙂 )
susan makoba says
May 8, 2015 at 11:18 pm
how can i download this videos?
May 8, 2015 at 11:25 pm
You can not.
The lectures can only be watched online – it is the only way that we can keep this website free of charge.
May 13, 2015 at 8:50 pm
Thank you sir
March 29, 2015 at 8:42 am
Hi John, First of all I would like to thank you for such a good lecture.
I have a little question on this chapter.
If the we reduce the dividends, by this upsetting the shareholders, what action can the share holders take in return to this. For example they may sell the share, but as the dividends are lower, the price will be lower as well. I am trying to deduct the options the shareholders have in case of lower then expected dividends.What other options they may have?
I hope this makes sense.
March 29, 2015 at 9:07 am
Whatever the situation, shareholders only ever have the option to either remain invested or to sell their shares. There are no other actions available to shareholders!
The market value of the shares depends on their expectation of future dividends. If the reduction in dividend is due to the company retaining and investing, then shareholders should be expecting dividends to grow in the future, but what happens in practice depends on what information the shareholders have.
March 29, 2015 at 2:31 pm
Thank you John for your prompt answer!
September 10, 2014 at 9:19 pm
@johnmoffat – Hi John, excellent lecture as always. Thank you
Can you clarify point 3? I thought dividends were an appropriation of profit, and as such the retained earnings belonged to the shareholder whether it got paid out as dividend or not.
So, by paining lower divvies, the retained earnings would just grow and grow as a credit on the balance sheet (sorry SoFP), and in order for the company to get its mitts on the retained earnings they would need to issue bonus shares to the shareholders in return. Is that right, or should I put F7 behind me while doing F9?
September 10, 2014 at 9:48 pm
It is true that the retained earnings (and therefore the total long-term capital) would grow and grow.
But think how the Statement of financial position balances – more long term capital means more net assets!
Of think of it this way – if a company pays out all its earning as dividends then they have no cash left to invest. If they restrict the dividend they have cash left over which can be used to invest in expanding the company.
(Issuing bonus shares makes no difference – they would get no extra cash, and the total capital would remain unchanged as well (more share capital but less retained earnings).)
I think you have probably got it by now, but in case not:
Suppose a company is entirely cash based (for ease), and has cash of 100,000 and share capital of 100,000.
They make a profit of 10,000.
So…..cash is 110,000; sh cap + ret earnings 110,000
If they pay a dividend of 10,000, then back to cash of 100,000 and sh cap of 100,000
If on the other hand they only pay dividend of 2,000 (and retain 8,000), then cash is 108,000 and sh cap + reserves are 108,000.
The more of shareholders money that they retain, the more cash they have available to invest.
September 12, 2014 at 12:43 pm
Thank you for the answer.
so, just to clarify,
In the above example where they paid 2,000 they’d have 108,000 to invest
Retained earnings will still be 8,000 even if they used the cash to invest.
So, assuming they made 12,000 profit the following year retained earnings would be 20,000. Using the cash doesn’t actually reduce the equity in the business does it?
September 12, 2014 at 1:34 pm
That is correct. The equity only reduces if they pay a dividend (or make losses 🙂 )
May 19, 2014 at 9:41 pm
Hi Mr Moffat, please explain why in Q2d of Dec paper, the asset beta had to be regeared. Thanks
May 20, 2014 at 6:17 am
The examiner did word it very badly. If the project were to be all equity financed (which is how his wording could be interpreted) then you would not need to rehear the beta.
However, he has assumed that the current gearing will be maintained, and so the equity beta needs to be regeared.
(If you want me to answer a question, then please ask in the Ask the ACCA Tutor forum for F9 – I cannot always manage to read all the comments beneath the lectures.)
November 17, 2013 at 7:18 am
I cant thank you enough for these lectures…. I am really struggling with these exams, I work 7-5pm, I have a house to run etc, and finding time to study is dead difficult. I have been looking for an institution which offers night classes, here in South Africa but non-existant… So thank you, appreciate it completely!!
November 10, 2013 at 5:44 pm
Dear Mr. John,
First of all I would like to have the opportunity to admire your way of teaching, it really is pretty impressive given the difficulty faced by most of the students while studying for any ACCA paper.. the other thing is that I would like to ask you if your lecture and course notes are enough to get a passing rate in the exams… not only for F9 but for F5 as well …
I would really appreciate a reply from your side…. thanks and regards 🙂
November 10, 2013 at 7:57 pm
Thanks you for your comments 🙂
The lectures and course notes certainly contain enough information to pass F5 and F9 well (provided of course that you do really understand them). I would be lying if I said that they contain every single point that could be asked (that is why they are not so big as the Study Texts) but they do cover at least 90% of what is needed, and usually 100%.
However, the one extra thing that is essential is to practice as many questions as possible. As a minimum you must practice all the past questions on the ACCA website, but preferably you should get hold of a Revision/Exam kit from one of the approved publishers because they contain many more questions.
Obviously you must understand all the topics, and that is what the lectures are for, but it is so important to get used to the styles of the exam questions and the sort of answers that are required.
November 11, 2013 at 6:45 am
thanks a lot 😀
October 10, 2013 at 8:59 am
Great vivid lecture, thank you!
September 19, 2013 at 10:22 am
please guys,how do i get to view a full screen with audio
October 10, 2013 at 8:58 am
@mwelwa19 just click on the right icon at the bottom of the video window. It works for me.
September 14, 2013 at 10:14 am
John, I really love the way you teach, it’s very detailed and easy to understand! Applause!!
September 2, 2013 at 4:02 pm
John u are really a gentleman u know well how to teach i really love ur lectures
September 2, 2013 at 4:14 pm
Thank you 🙂
May 11, 2013 at 1:50 am
Good delivery and well explained lecture. Thank you Open tuition.
September 2, 2013 at 4:15 pm
October 30, 2012 at 6:43 pm
dear john,i am going to sit for f9 in this december,i really havent studied at all since my class started.im sitting for f9 and f8 in this december.i have done all the classes though.everytime i watch ur lecture i find it very easy to understand but while i get to solve the exam kit questions it seems very very complicated.i tried with cost of capital, i understood the chapter but while doing the past exam questions everytime i get stuck with new questions.can you please suggest me how to get ris of this problem?and do u think i have enough time to cover 2 papers in 1 month by studying 8 hours at home till the exam?please help.
October 30, 2012 at 7:58 pm
@leonmatthew, It is possible, but you will have to study hard. You must practise as many past questions as you can, and make sure that you understand the answers.
If you ask on here about parts of answers that you are not happy with, then I will try to help.
August 13, 2012 at 9:01 pm
is it possible to open up lectures on my android phone as the lectures they do not play. what can i do? please hrlp
September 2, 2013 at 4:16 pm
Have you looked at the support page? (the link is just below the lecture)
It gives advice on how to view the lectures on android phones.
June 12, 2012 at 10:39 am
server not found…. NOOOO!!! whats happend? when it will be fixed?
June 12, 2012 at 11:12 am
you are probably behind a firewall… so you have to fix it yourself, or contact your internet service provider
May 10, 2012 at 4:25 pm
john god bless ya man, you are an absolute legend and the best teacher ive ever seen, u helped me pass my paper today :D:D
April 24, 2012 at 2:08 pm
WHY AM I FINDING THIS SUBJECT IMPOSSIBLE TO STUDY?
WHEN I TRY TO OPEN THE BOOK I CANNOT CONCENTRATE AT ALL…I NEED HELP !
April 24, 2012 at 3:22 pm
@barbara2012, F9 is by far one of the most interesting subjects to study in ACCA. I obviously can’t pinpoint why you’re not motivated to study it, but perhaps you should just try watching the lectures and diving into exam questions…you might find this more engaging than just reading the notes. You could also join a study group, where you’ll get support and encouragement from your study partners. Try chewing gum while watching the lectures…it actually helps me to concentrate! If you need any more help, just send me an email 🙂
March 20, 2012 at 6:16 am
am failing to play videos,its just loading despite having adobe flash player on my pc
June 1, 2012 at 4:11 pm
@zacks, open the video in explorer rather than Google Chrome/Mozilla.
March 8, 2012 at 7:48 am
video nt available ???? 🙁
March 8, 2012 at 7:55 am
@umair000, video works fine
February 15, 2012 at 4:50 pm
but is their a fixed charge just for one paper like paper 9 lectures? how much does it cost?
August 10, 2012 at 11:05 am
@kwazulu2000, I don’t understand your question. The lectures are free for all of the papers.
February 15, 2012 at 4:49 pm
January 28, 2012 at 4:34 pm
video not found here
January 28, 2012 at 5:07 pm
Your PC is missing something.. check the support page for help
February 11, 2012 at 11:01 am
any means of down loading the video lectures from this site? am failling
February 11, 2012 at 11:16 am
Lectures are not downloadable!
that’s the only way we can keep this site alive and free!
November 20, 2011 at 5:00 pm
video plays fine here, try another browser.
November 20, 2011 at 1:36 am
vidio not found……
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