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Hi John,
You advised Ali Khan above to get a Revision/Exam Kit. You made no reference to the study text. Do you think the lectures/notes posted on Opentuition + Revision/Exam Kit are enough to pass the exams?
I personally really struggle with the 600+ pages study texts (find it demotivating as well!!) and I was amazed of how light the study materials are when you buy a face-to-face course! (Unfortunately, you can’t buy those study materials separately and I can’t afford to pay £1500 per exam, including exam entry fee).
Thank you in advance for your help.
Kind regards,
GeorgetaHi Cannceer,
There are way to many exams that you want to sit in same session!! Can you really take on that much info in a short period of time?
Anyway, I sat P3 and passed first time so I believe is easy as long as you learn the models and look at businesses in the real life in a logical way.
P1 is giving me headaches, I am resitting it and didn’t really have time to do any revision (as I sat F9 and P2 as well). So I can’t give advise on that.
To respond to your qu re P2 – I believe you need to learn all the deffinitions by heart and understand them so well that you can apply them quick and logically in any sort of scenario. You have to have the ability to see the substance over form. Also, know all the proformas (e.g. Goodwill, Retained Earnings, NCIs, Associates, Cash Flows) by heart. And if you practice loads of questions on top of that, you should do fine. P2 has a fairly high pass rate.
For all the Advanced papers you need to read bussiness papers/magasines. I got myself a subscription with The Economist – very good!
Best of luck!@orla333 said:
Hi georetav
No definetly not serios left this open at my desk and when i came back my brother had written this. Apologies. I thought paper was fair for question one i did ansoff, i said they should do the investment even though looking at others now it appears this might be wrong i thought 1c was ok. Then in the options i did question three and four i thought 4 was grand 3a was ok didnt have a clue what to write for 3b and waffeled. what was supposed to be the answer for 3b does anyone know. Dissapointed bigger topics didnt come up but all in all thought it was ok.Funny guy your brother 🙂
On question 3b I basically challenged the 4 cost savings:
– Rental savings – how do they know they will find somebody to rent waffled on this one questioning wether the renting contract they have for the old place has any clause with regards ending it any time. Could they swithch rent off straight away? Or did they have to continue pay for long time due to contract (say contract would be agreed for 10 years)
– Energy savings – the targets are not specified. The actual consumption is not specified. The actual ways in which they are going to save energy is not specified
– Improved staff morale – that is an observable benefit, you can’t measure it accurately. Indeed, it can improve efficiency if people are feeling happier but this should be measured differently: number of tasks per hour/day performed compared to previously, time it takes now to perform a certain task as opposite to how much it took before, improved customer satisfaction through better service (number of complaints, number of customers returned, etc.)
– increased revenue – again, no basis for the Profit amount assumed. The country is going through recession, people won’t have more money to spend on entertainment just because the city centre looks prettier. The buying power for people will stay the same. And during recession people care more about what they eat at home and feel like going out less.A question above on E-commerce-is this strategy – maybe, I don’t know for sure. I didn’t put it as a separate heading, but discussed it quite a lot
I think we should now focus on the next exam or if you are lucky enough to not have any more, just enjoy your ‘holiday’ now!. And maybe come back in August and put the mark you got against your comments
God help us all (there’s nothing else we can do now!)
orla333, are you serious?!?! 🙂
I thought it wasn’t hard either. But I am crap at time allocation!!
I got carried away with qu4 and spent an hour on it, trying to get at least 20 marks!
Nobody did qu 3???!!!! I did…But probably only half cause I realized I need to get started on qu1!! On qu 3 I wrote what should project intialisation phase be made of and then discussed why those 4 savings that they are talking about are not accurate/what the issue is with each one of them. Didn’t have time to discuss other issues 🙁
Qu1: Ansoff, although not all were applicable (e.g. developing in other markets – one would have been O….but the treatment received by employees there doesn’t match the Co’s social responsibility. I argued tho that they could implement the same policy about ppl there as well, which might make them a loved brand; on the other hand, they seemed to be extremely good on footware, so there was little room for any new products; the only thing I could think of was a ‘value’ range that they can export for less wealthy countries)
I mentioned outsorcing – but more negatives, the only positive was cost saving.
Also, strategic alliances (didn’t discuss it tho) and selling/renting some of the redundant/underperfoming factories/retail shops (I mentioned a cost/benefit analysis before doing this)
And I discussed about the benefit of improving their web site – that would allow them to sell internationally with minimum costs. I actually ended up with the conclusion that this is the main thing they should focus, as they need to ‘combat’ international competition and they don’t seem to have loads of money for investing oversees at the momentAgain, poor time allocation and loads of things to say!
Really hoping for a pass!!…what a surprise that no big frameworks came up!!!
Can anyone please explain from beginning to end how you would figure out the market values for the equity and debt in WACC calculation?
A few points on other comments:
– I used 12% for NPV and 7% on EAC. The rationale behind it was that in NPV you already take account of tax during all the calculations. Whilst you don’t do that on EAC
– Upper limit was 200k+75k
– Return point is 200k+1/3 spread
– My MMH value was $1m compared to $995k on forward – I am gutted about this, as I never managed to remember how you should do it!!!!
– Finance risk – it is exchange and interest risks, which you manage through hedging, matching, netting, leading, lagging, etc.
– Business risk – the systematic risk – consequences of entity’s activities, decisions, strategies. Minimise by diversification
– Unsystematic risk – market risk, notthing you can do about it. I should have said that you avoid or transfer it (as per P1) but didn’t!
– Compare and contrast fin and invesment policies for WC – that was a bit of a surprise..didn’t really know what to say so I kind of talked about each one of them. they both aim to maximise profits, don’t they – profitable investments and cheapest financeYeah, I think it would be useful if we’d had some answers to the qu in the exam. Have potential, brief answers ever been posted in the previous years?
I didn’t realise there have been so many qu on IC. I’m very bad at time management so in every exam I just answer a qu (if I can!!), forget about it and move on. I think the exam was reasonable enough. And I also think it was enough time to answer all the qu. Fingers crossed in Feb!
Hi,
You can find some (I would say quite a few) formulas in the answers to the Mock exam for December 2010. you can find it on main page https://opentuition.com/acca/f9/
I think the formulaes are under Q3.Good luck!