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There something that I don’t get from your calculation. Maximax, etc uses payoff tables and these plotted the profit/contribution per demand scenario. C/S ratio per customer was given then it was just a matter of multiplying the contribution per customer by the expected number of customers by 360 (not 365) by the probability then subtract the fixed cost to get the net pay off. Format A was the best at 80% (1,400) under all instances.
The reason you got C is because you relied only on contribution and disregarded the fixed costs. Incorporating fixed costs would have given you format A for all three decisions criteria.
Passed on the edge at 50%. Lowest mark for all ACCA. Couldn’t be happier. Love it even more! Only P5 left for December.
Didn’t expect cashflow. Tricky question. Disposal very tangled and tricky. Proceeds from disposal not clear plus the discontinued operations element. However there were some easy picks. 1b was about advantage of cashflow and benefits of IR. That’s wasn’t so bad. 1c was much about window dressing of finstats. Ethical dilemma was clear.
2a. Business reconstruction quite tricky. Selling 100% sub to 100% sub permitted but no IFRS guidance. Consolidation not affected.
2b. Deferred tax on disposal of sub and recognition of deferred tax asset. Fairly easy.
2c. Criteria of classifying joint operation. Basically though it had a separate vehicle the substance was a joint operation.3a. Borrowing costs in a non specific borrowing environment. Straight forward.
3b. Treatment of signing contracts of players. IAS 38 and IAS36 on intangible assets and impairment. Assessment and materializing of contingent liability when players scores more than 20 goals. You could smuggle IFRS15 on revenue from selling those contracts.
3c. Was so non routine. Very funny. Masking the grant to avoid penalties maybe. Treating it as deferred income then charging the airline for branding bill board. Such income realized via amortization of the deferred income??4. I didn’t even attempt kikiki