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I talked about risk appetite and attitude which seemed to be the main focus looking at past paper answers, I included the limitations of BSOP (which are standard in the technical article) and I put big emphasis on the capital structure which might be unlikely that stays unchanged considering the systematic and unsystematic risk with the new investment especially if we consider the full 25 years.
In the report I said the board should ensure there is enough demand, that the jet fuel is safe and then maybe there may be government incentives for environmentally friendly products, also I suggested to delay the replacement of the production facility to retain more liquidity for the investment.I got around that but I added the annuity factor for the years 5-25 so it was much higher but don’t know if it’s right!
I am reading relatively few comments about ROI/RI BCG and pyramid.
What did you write on BCG? There were 18 marks but so little in the evidence!In the morning exam there was:
MBI, sale of assets and company’s valuation before and after the MBI and the sale.
Dividend capacity with foreign tax credits.
Share and buy backs.Interest forward, FRA and interest swaps.
Then NPV with deviation and confidence level and sensitivity analysis.
Not the worst but you never know! Pass is what counts!
This is the first time I comment and I just want to say I’m extremely disappointed.
The scenarios were way too many, worded in an overly complex way that made time management just impossible.In one of the scenario I had raw cotton in exchange of shares and whether or not it as under IFRS 9 or IFRS 2. I mean when does something like this actually happens? Was it necessary to add a 3 mark question with another scenario?
In the examiner reports they complain about students not getting in depth of the discussion, but realistically where is the time?
It takes time to decode the scenarios, understand the rule, state, apply, explain… all of it in 3 hours?
I had around 12 scenarios (3 per question) to understand and at least 8 IFRS standards.Anyways good luck to you all!
