[Geshi]

Hi,

I just want to know other than online and newspapers, where else can I find information about a company? For instance, where can I find data analyst reports?

Also what is the best way to find out the most direct competitor?

[Geshi]

@seannyd said:
I picked 56,500, wasn’t it FV less cost to sell which were 2% sales tax and $1 per one sold?

I chose 47000 which is carrying value because under prudence we can recognise profit when it is sold but loss we have to recognise immediately.

I am not sure if I am right.

[Geshi]

@sahil1234 said:
In Q1 it was based on corporate governance. I don’t remember the option but the answer was due to separation of management and control which gives rise to the agency problem. I gave P1 too so I knew that.

I chose the same one too.

[Geshi]

@twistedheat said:
Was this one of the MCQ? About book value WACC I think?

If it was the one that had “reserves”, I included both the reserves and the bank loan yeah.

I think it was equity + reserves plus a bond plus a bank loan right? I just plugged it all into the WACC formula (remembering to add reserves to equity and adjusting for tax the cost of debt).

I can’t remember the answer it gave me though, but I know that’s how I answered it.

Yes, it was a McQ
What’s your answer for the EAC mcq? Was it both statements true?
Also the limitations of business valuation??

[Geshi]

@twistedheat said:
I was just wonder if people included the Fixed Costs in the NPV question?

I can’t remember how the question was worded but I think it didn’t state if the Fixed Costs were incremental or not, they just said the fixed costs were nominal.

I included them because in the practice questions I’ve done, whenever there are fixed costs that need to be ignored we are told what the “incremental” part is, so I know to just include the incremental part and ignore the non-incremental. However in this question it just stated fixed costs so I was unsure if they were project specific fixed costs or not.

Yes I included fc
Do u remember the answer for the wacc calculation?
Is it 14.7 as I included cost of bank loan aswell

[Geshi]

@aminb001 said:
Correct. Thats if its the Book Value of Equity.

The option state the Market Value of Equity which is using the Market Share Price, not whats all the Balance Sheet.

What’s the answer for this question? B or C?

[Geshi]

@pinkyjovin123 said:
Aqil,almost …

6th Mcq is it about international fisher effect..
forward exc rate and futures pot rate..Is that the answer…

Do you remember??

Do u remember other options?
And also what is the answer for least expensive rate regarding spot rate and forward rate?

[Geshi]

Anyone remember first 3 mcqs ??

[Geshi]

@aqillos said:
I also, calculated shareholder return by using dividend 2014. But, I am afraid we did wrong. Because, we should consider dividend declared. Did anyone take MSCs answers? My answers was shown below: if you have any difference please share.
1 D
2 D
3 B
4 C
5 B
6 C
7 D
8 C
9 C
10 C
11 A
12 C
13 B
14 A
15 A
16 A
17 C
18 D
19 A
20 B
21 A
22 B
23 C
24 B
25 C
26 A
27 D
28 D
29 A
30 D

I think we have to use only dividend paid not declared.

[Geshi]

@aqillos said:
Yes. economic risk refers to the effect of exchange rate movements on the international competitiveness of a company. The rest of the answers mentioned wrongly

Why transaction risk is wrong?

[Geshi]

@aminb001 said:
Opt 1 – Market Value of Equity (Obviously Wrong)
Opt 2 – Book Value of NCA
Opt 3 – CA – CL

So Both even though both opt 2 and 3 don’t give overall Net Asset value, both options added together give most of it. Just NCL is missing basically, so logically both 2 and 3 should be the answer…

Net assets = equity I think

[Geshi]

@aminb001 said:
Technically Net Asset Value = Total Assets – Total Liabilities.

There both elements of NCA and CA-CL would be important.

All thats missing is the NCL which would be the last figure needed.

So i would assume it was atleast options 2 and 3?

Do u remember other options?

[Geshi]

@twistedheat said:
The option said under strong form someone could make abnormal profits which is impossible as strong form immediately includes all information, public and private, into the price and so not even insider trader can beat the market.

The only option that made sense was semi-strong form as that does incorporate all past movements etc, (plus it anticipates certain news such as mergers before official annoucement and it also reacts very quickly to other news).

Can’t remember what the weak-form option was but that did not seem to make any sense either.

So just through excluding the ones that did not make sense, semi-strong form was the only one that did in my opinion. I could very easily be wrong though.

Seems I got it wrong.
Do u remember the question which says what is the least expensive option regarding spot rate and forward rate?
What’s the answer for this?
Also the Wacc calculation I choose 14.7/14.6 something as I included cost of bank loan aswell.

And one more question about book value , share price and current asset -current liability can’t remember the question .

[Geshi]

@kicek7 said:
Correct answer was that semi-strong reflects all past/historical information. Abnormal results cannot be made using inside information if the market is in strong form of efficiency.

Semi- strong doesn’t fully reflects past information, it does reflect present information too and strong form of efficiency reflects past, presents and inside information.

[Geshi]

@mannu388 said:
Yes there was overprovision of 20,000 which decrease the tax liabiality in current year ( not increases ) I feel tricy part is there in deferred tax ..question said increased provision by 8000 but this includes related revaluation gain ……

Year end estimate 240,000
Less: over provision ( 20,000)
Whether add or less **8000**

I feel ans will either be 228000 or 212000 …mine was 212,000 May be wrongly anwered …not sure

was this question related to the deferred tax scenario?

Do you remember the question which had options like
Receivables 0
Payables 5000 or something in the deferred tax scenarion mcq section?

[Geshi]

@emo777 said:
1) Control question: choose three option, 45% with others 1% is also control
2) Consolidated revenue question: include parent and post acquisition subsidiary, ignore associate revenue
3) Going concern as adjusting event
4) Grant bakance of 1325
5) Shareholder wealth maximization and roce for profit organizations, non financial goals for non profit organizations
6) Inventory question: lower of cost and nrv, cost was 51600 or smth and it was lower
7) Lease question: overstated by 2000
8) Only acquired intangible asset recognized as intangible asset
9) Only warranty claims recognized an asset
10) the last question 20 answer was D
11) Impairment was straighforward
12 Comparability: disclosure of accounting policies and restatement of past figures
13) Ration question: only second option
14) Capital gesring measures debt structure and risk
15) Deferred tax should not be discounted
16) there was another question on consolidation, dont remember
17) Lower acid test ration in comparison with industry: it was D, buy materials using cash

I agree with u on 2,3,5,6,7,10,11,12
Others I don’t remember

[Geshi]

@emo777 said:
Yeah, it was

The last was profit for NCI and I got D

Yes, I remember it was D

[Geshi]

16) I think how much profit attributable to equity holders
Is it?

[Geshi]

@emo777 said:
18) asset held for sale question: highly probable and available for sale, two options have to be chosen

Yes, I put the same 🙂

[Geshi]

Gvtftf,
If you remember any mcq, please share here

[Geshi]

@emo777 said:
https://www.accaglobal.com/content/dam/ACCA_Global/Students/fun/f7/j16_hybrid_F7_q.pdf

Yes, you are right
It was cost to sub

[Geshi]

@emo777 said:
Christa and geshi. The questions are out. So ther was not anything like cost to parent? Was it?

Where can I find?

[Geshi]

@emo777 said:
It was about risk and debt structure

Do you remeber anything more than this?
I dont seem to remember

ans also what was the last q in mcq?

[Geshi]

@emo777 said:
I remember it to be 2.43 at cost for subsidiary. It cant be 2.43 at cost to parent, i have made many examples on thus, and acca never gave something like 35/100

Lets wait until we get the paper
I can be wrong

[Geshi]

@christa316 said:
Geshi, if you lok through the thread you would see I had the same thing.

I am sure they said cost to parent… but in this case I thought majority ruled so I assumed I interpreted it wrong

Lets hope for the best 🙂

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