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So I got this text (which I was never received before) from ACCA reminding me that I have 3 weeks to take advantage of the September exam session. I re-wrote my final paper last last diet. ACCA should stop sending these sort texts at this time and quit freaking us out.
how many pages does the acca answer booklet have? cos i finished and asked for extra sheets even though i didn’t complete all the questions. As someone resetting, its clear that going through the the technical articles helps a lot as question 2 and 5 had a bit of that. Good luck to everyone here, hopefully the pass rate will be way better than the last time.
btw, i didn’t perform any analytical procedures in Q1, I don’t think it was required.
they were immaterial except the impairment. On an individual level no impact on the opinion but if considered in aggregate, I proposed an adverse opinion.
Definitely tougher than December. In Q1, one could barely think about the business risk – the question itself gave non away. I mentioned Regulatory risks, Staff Risks, Compliance Risks, Reputational Risks. The Risk of MM were a bit straightforward with FX Risk (IAS 21), FV of livestock (IAS 41), Revenue recognition (IFRS 15) and Provision for restructuring (IAS 37) mentioned.
You can’t be too sure in this kind of paper, just say a prayer and hope for the best.
Q2 was crazy while Q3 & Q5 were fair enough. I learnt from the last exam to start with the optionals first – time is a factor.
Hi, please e-mail tips to adefemi_oyedele@yahoo.com
Thank You
Got same mail too and i’ve been feeling uneasy. Why would they send a request to join a live webcast for March exams especially if you wrote the final paper last time out?. I am wary cos it doesn’t seem that everyone got it, maybe there’s some message to it.
In any case, they shouldn’t be sending such invites until after results are out.
thanks, I stated that WIP is accounted for using IAS16 but valued using IAS2 when it becomes stock. what are the audit procedures for segmental reporting?
exam was fair but too time pressured. anyway one have an idea on the standards for WIP, IAS 2 or IAS 16
michael06,
You’d earn a couple of marks for the points still. Attempted Q 4 but had 15 mins left so could’t articulate my points well (hope the marker sees my writing too).
In the last part I defined what Integrated reporting was – relationship between various units in coy and the capital it uses – and when it was issued by the IIRC. I also mentioned about 5 benefits.
for the (a) just scribbled some 2 points on the eurozone problem and remuneration of the newly appointed FD.
Hoping to scrape some 10 marks here to add to the Q1 which I attempted fairly well, so I can be home dry.
All the best.
michael06
I believe you communicated what they were asking for. What would be the investors preference between a 6% and a 5.25% bond, would they be willing to pay a premium for higher coupon receipts in future?. What is the tax strategy of the bond issue, as a higher coupon payment translates to higher tax benefits and probably lower WACC.
I am sure the examiner would be happy with anyone that communicates something intelligent.
I was confused on the rating to use, whether A – pre issue of AA – post issue.
Question 1
A) Difference between FCF and FCFE 5 marks
B) (I) Issue price of share 10 marks
(Ii) issues with above valuation 5 marks
(Iii) implications of bond issues 10 marks
C) agency issues that might arise 7 marks
D) (I) Macaulay duration of 6 % coupon bond 4 marks
(Iii) difference between bond price using Macaulay and actual bond price 5 marks
4 marks for presentationI am not sure the debt value should have been deducted from the PV of the FCF. The debt only came through after the equity issue and as such should not form part of the current value of the business. Just my thoughts, I might be wrong.
On the face of it look, it didn’t look like a difficult paper. Wasn’t sure what Question 1 (b) (ii) was all about- implications of the debt issues. I ended with a discounted value of $17.7, Question 2 looked easy but just switched off on the inter company cash flow thing and cld write a thing. Had 15 minutes to scribbled down something on the Integrated reporting, memorised the topic 2 nights ago but couldn’t lay thoughts down intelligibly. Hope this 3rd time lucky.
Looks like a sure pass for you. There shouldn’t have been any tax payable after converting to US dollars as the tax rate in Yilandwe was higher than US tax rate.
Also wanted to ask if you used the ticks in question 4 as that confused me. Had no clue what to do in Q2 , was it a case of ratio analysis? what do you do with the Be figures?
We are in the same boat Natalie. Although, this diet was easier than. Dec 2014, if will take a genius to attempt all questions within allotted time. We hope examiners are a bit generous with their marking else P4 is not worth all the trouble.
Hi All,
Fair exam overall. However, when they asked about business risk does’t that mean discussing the risks faced by the business under the 5 main sub-headings of business risk i.e. Operational Risk, Financial Risk, Legal Risk etc?…
I never got time off work to study and from the comments I am reading, it seems I am not any worse off. I do believe the examiners would cut Us some slack in the paper. there were too many variables so it’s quite easy to muddle things up.
Q1 – Attempted only the Probability based NPV & the degearing and gearing bit. Am sure I messed up the figures but hope to get marks for trying at least
Q2 – IRS swaps was straight forward but had a bit of twist, settled for a put option (initially thought it was call) but didn’t get to analyse if this was better than a swap. the listing of the basis risk across the months was a further confusion
Q3 – Only did the IRR – 16%, messed up the MIRR computation and couldn’t attempt the VAR – i did write out the formula before they called time.Let’s hope the examiners are a little more lenient, one would be a genius to attempt at least 70% of this exam within the allotted time.
It was not too difficult but forget a few key points like the 80k cap on a cars listed price & u don’t also pro-rate lease premium received during the year. the GCT was a bit tricky (got 200 exempt days out of 210 in the PPR relief & with annual exemptions there was no CGT).
Overall it was a great exam, had to take a 20 minute toiLet break and still attempted all questions with 10 minutes to spare!
