Forum Replies Created
- Posts
Very time challenging exam indeed! There was so much going-on, you need a lot of time even to read and try to assimilate all the information before proceeding with any answer – especially if requirements are not that straight-forward and similar to the ones that you have practiced upon.
First case was goodwill and reversal of goodwill impairment – never thought this will appear!
Then associate and facts that could mislead for step-acquisition.
Revenue recognition, PPE (Components?, seriously?), Investment property.
Ethics was about NED being appointed in audit committee – seriously again? I thought this is more an SBL, AAA thing.
APMs last question was something never seen before – with restructuring costs and incremental pandemic ones, due to cause of pandemic.
This was the hardest and most challenging thing I’ve ever seen in ACCA so far 🙂 Good luck to all, if we manage to pass this one, that’s an achievement for sure!It helped me a lot that I passed FR first before A&A. A lot of the knowledge there can be implemented in the audit paper 🙂 If you pass this one – do believe me, that you are a true hero!
This was the most challenging exam so far! It required oustanding time management, good writing skills and most of all – knowledge in so many areas of the accounting. I loved the whole exam, how it is provoking you in so many aspects and giving you so much experience. I believe that people that manage to pass A&A are already half way through to their dream career.
For the exam itself – it covered almost the whole syllabus and the only thing that I wasn’t able to recover fully was the updating of the system notes during the interim audit. I just couldn’t recall what was needed in there and I think I wrote what I know for the interim audit, rather than what was required. Nevertheless – good luck to all, let’s hope we pass this one and continue forward :)))Damn, I excluded both 🙁 . I thought marketing campaign costs were also sunk ones and not directly attributable to the project.
Oh yes, this one with the TERP was really tricky and difficult, as it you had to go backwards from it (from value of the rights per existing share).
Section C was NPV & Capital rationing (non-divisible) and there was one really tricky sensence, that made me re-do the whole part – It was something like “The projects can be funded downwards, but not upwards” – how did you all embrase this, I was really shocked?
The other question was pure WACC and dividend policies – here the most notable part was, that the company was actually really highly geared and although the consistent growth of her dividends throughout the years – it should not cut them off a little bit and retain some cash for repayments. Also explanation of all the dividend policies (the M&M irrelevant theory, the signalling effect and so on.) and comments were required, I think.
Section B was Business valuation (I think I messed this one a lot, especially the divident growth valuation), Hedging & Interest rate Forward and I forgot the 3rd case.
Section A was the most difficult part, if you ask me. It consisted everything and it was quite tricky and difficult. There were questions, which I saw for first time and never thought they could examine you on this.
Hope to pass anyway, I gave all my best, especially on Section C, where I wrote as hell and hoping to get most of the points.The exam was decent to hard. I got myself really annoyed how I got confused in A section, where there was a question for impairment allocation and if there is an order right after the goodwill write-off. Usually they are stated as intangibles and then tangibles, but there’s no damn order. Everything is pro-rated. This question was amazingly deceiving I would say. The funniest part is that the next question was the actual calculation and I’ve done it right there, haha.
There was no deferred tax, leases, cash flow or financial instruments. A lot of revenue, consolidation, EPS, assets, provisions.
The section C was really challenging as well, with a lot of things to consider. My statement didn’t balanced at all (around 195k on assets and 179 equity&liabilities), but I hope for good points nevertheless. The ratio question was really nice, giving you a lot of freedom to analyze it accordingly.I manage to correct this at the last moment, I believe.
I think it distorts the Current Ratio, since the rights issue is raising additional cash (Dr Cash), which has an impact on CA.
I initially said ROCE, but the additional Share Premium is increasing the denominator and it actually lowers it down.
