Forum Replies Created
- Posts
Question 2
Impact on SOFP, EPS and WACC. 9 marks
Evaluate decision to sell coffee shops. 6 marks
Evaluate the NED’s proposition. 5 marks.
In regards to the last one i had it down as a demerger? What about everyone else?
Ridiculous paper! This is my 3rd Professional paper and this blows the other 2 out the water in terms of complexity and time pressure. How this is not 4 hours yet SBL is is actually mind boggling.
This exam was strange. The first question for 8 marks was the GW calculation and discussion about how FV method of GW appears in the FS. I think I got a GW figure of $20m with a couple adjustments to Net Assets.
That was the only element of Groups I had. Every other question in Q1 was about other standards. I had no Cashflow, Group structure questions etc, so felt a waste of learning all that! Also, no questions on IAS 19.
Leases and Revenue came up in Q1 and Q3. Bonds came up and the credit loss model. Share Based Payment question came up with the Directors receiving SAR’s and calculating them incorrectly so that needed explaining.
Q2 was weird and I did pretty awful on that. Nothing like the past paper questions whereby you discuss ethical principles from the accountant or Finance persons perspective. This was from one of the owners of the business and it didn’t say if they were ACCA qualified or not.
Overall, a tricky exam with a lot of the syllabus not examined. Q4 had 3 separate questions on APM’s!! They really should broaden the questions to cover more syllabus areas.
I will be very surprised if I pass this.
I felt the same. Nothing on working cap, cash, receivables or inventory and they were literally my stongest areas! The valuation questions were tricky the way they worded them and God i hate foreign currency esp money market hedging calcs and the bloody difference between the hedging tevhniques! Nightmare paper!
Yeah i got the exact same section c questions. My WACC was 13% in the end but that 10 mark on divi policy really stunned me! I had no idea what to write so just blabbed stuff and then started talking about capm and the theories, i.w traditional and modigliani and miller but it was a tough question and not one i had seen before in any past papers! NPV and cap rationing was ok. Did you get the four techniques ques on risk and uncertainty? I put Payback period, sensitivty analysis, probablity analysis and capm.
Did you get the TERP asking for TERP and rights issue price? I got one where i put £5.40 and £6.60 as TERP but my calculations got me £6.68 as TERP so i assumed they rounded but God knows lol
I ignored the marketing cost of 50m as a sunk cost but included the other research costs which hadnt been incurred?
Why didnt you apportion the depreciation for
9 months? I got your figures except 375 instead of 500 for depn.Most of my questions were around PPE, Impairments, Ratios, Investor ratios, revenue and intangibles. Nothing on leases, financial assets, liabilities, convertibles or tax ( i spent a lot of time on those subjects aswell!)
I got £18m for the consideration and £6m for NCI then had negative goodwill. i added the cash consideration even though it was accounted for in the parents books. i just thought it needed to be included as in my all my practice questions i never came across negative goodwill and just thought it cant be right!
Yeah i got that, seemed straight forward at first but the adjustments caught me out and it didn’t balance, i didn’t know how to treat the Financial assets.
Passed first time 70% very happy. Thanks to John for the lectures and notes. After the exam i counted 8 marks that i missed but still came through.
Did anyone get the learning curve question? First unit 100 hours second unit 80 hours what was the learning rate? I completely forgot how to calculate this and got 63% by dividing 80/100 then the answer by 2 (second unit) and then the sq root of that number gave me 63. But i think the answer is 90%. 80+100/2 divide by 100? Anyone know what was right?
