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@Trephena… Thank you for your help… I finally got passed… Your timely response to my queries helped me to pass RAP… appreciate your help and efforts… keep up the good work…
@ Trephena… Really appreciated your help in crisis situation… I have submitted my RAP to OBU after making changes as per your advises to the maximum extent… I hope and pray that this time I will get through this and get OBU degree…
Though I have one submission session available but I think I worked very hard this time and it is very difficult to take off from work… so I decided to submit…
Thank you Trephena… you are really helpful…
@ Trephena
Thank you for the words of encouragement.
I did SWOT and Porter’s Five Forces before ratio analysis… I will definitely read your article on Evaluation… Can you please give me the link…
Further… I am still trying to reduce my word count… I am almost 700 words above my maximum word count and it is quite difficult task to do… Well I will do it anyhow… But I want to know I have usually discussed 2015 and 2016 in ratio analysis… I made the comparison of 2015 with 2014 and 2016 with 2015 but I did not discuss 2014 because i have nothing to compare with 2014… Can you please clarify how can I incorporate the discussion of 2014… Or is it suffice to discuss 2014 while making comparison with 2015?
Plus I have already passed my SLS except for presentation… So do I need to submit revised SLS? My last submission was dated back in 2011 so do I need to revise SLS or just I need to submit the same SLS again alongwith revised presentation?
In my passed SLS… I mentioned that I used translated FS of GSK for ratio analysis… But now I have changed my approach… Do I need to revise only this element of SLS before submission? I have got the email of OBU in which it is clearly mentioned that I just need to revise the elements of SLS in which I have failed so I believe I need to submit my passed SLS with no revision… Can you please clarify what should I do in this case?
Thank you for your help so far…
Really appreciated your quick response… With your help I have already eradicate the translation effect from my research report… The only thing which I now needed to translate is share price from London Stock Exchange to calculate P/E ratio and Dividend Yield ratio in case of AstraZeneca… Because London Stock Exchange reported share price in GBP but AstraZeneca reported their FS in USD therefore to calculate aforementioned ratios I have to translate share price in case of AstraZeneca… Now I just want to know whether i should use Y/E exchange rate to translate share price or average exchange rate to translate share price… I have used Y/E rate because share price shows the value of company’s share on that particular day therefore i used Y/E exchange rate… Please clarify whether my assumption is right…
Further… should I mention this instance of share price translation as limitation in Part 2?
Ok… I got your point… I will try to reduce words from Part 1 and Part 2 and then if needed I will reduce words from part 3 by removing general reasoning for fluctuation of ratios and lastly I will reduce words by removing some least important facts and reasoning…
Trephena… I have got the email of ACCA today… I can submit OBU in next session as well.. What would you suggest me now… I have changed my research report according to your advice along with ratios… Now I am facing two issues… One is word count and other is discussion of 2014… By tonight I will be able to reduce my word count… But can you please put some light how 2014 can be discussed without comparing it with 2013?
Thank you…
Thank you for your clarification… I understand your point in case of GSK in relation to translation of share price… But in case of AstraZeneca I need to translate the share price in USD because EPS in cents and dividend in USD therefore to calculate P/E and dividend yield ratio I need to translate share price into USD using year end exchange rate… Is my understanding correct?
Further… my part 1 and part 2 almost reach 2000 words so do I need to further reduce it? I heard that there is a minimum word count limit for part 1 and part 2 which is 2000 words so if I am going to reduce words from part 1 and part 2 then I might breach the minimum word count limit of part 1 and part 2… I am going to remove the repetition from my ratio analysis but I believe it will reduce maximum 300 to 400 words therefore it seems that I may need to remove some facts and information from my analysis… which I don’t want…
Can you please clarify if for example EPS is increasing due to increase in Profit After Tax and the reason of increase in profit after tax has already been discussed in Net Profit Margin then can I refer the reason for increase in Profit After Tax to Net Profit Margin in EPS analysis? Or I have to state the same reason again in EPS as well with external reference?
Thank you for your help so far Trephena…
Thank you or your help and answering my queries…
Regarding your clarification on translation of share price… I am still not very much clear… For P/E ratio and dividend yield ratio… I needed to translate it into USD because my complete analysis is in USD… I want to understand that did I do it right by translating the share price from London Stock Exchange into USD to calculate aforementioned ratios using year end exchange rates from published FS… Further, if I translate the share price then exchange rate fluctuation has impact in fluctuation of share price then should I mention the in my reason that share price fluctuated partly due to exchange rate fluctuation…
Can you please clarify that if I have given one reason of fluctuation from external reference in my research report somewhere then if I needed to give the same reason somewhere else in my research report then is it possible for me to refer the reader to the place in my research report where I have discussed that reason in detail? or should I repeat the whole reason with external reference? Basically, I am facing problem in reducing my word count which has reached to 8400 words and I am trying hard to reduce word count. I realized that I have repeated few reasons with external references unnecessarily which resulted in increase in my word count… If I just mentioned the reference of the place in research report where I have discussed that reason in detail then it will greatly help me in reducing my word count…
Further… I am working on your advice to remove currency fluctuation from my research report and try to use GBP published FS for GSK and USD published FS for AstraZeneca… Hopefully tonight I will be able to amend my complete RAP accordingly…
Trephena… sorry I am asking too much questions but I hope you understand the problem in which I am stuck right now and your advise can help me escape this situation…
Trephena… Thank you for your clarification… its of real help…
Can you please clarify on your first answer… What I understand from your answer is if in the analysis provided in FS by CFO, it is mentioned that fluctuation was mainly due to exchange rate fluctuation or XYZ reason, then I just need to cite that in my RAP with reference to annual report… Am I understand your point rightly?
To clarify my question no: 3… I just want to know whether I can refer to analysis provided in published FS in my RAP? specially when I won’t be able to find the reason for fluctuation from external sources?
Further… due to having different presentation currencies… I had to translate the share price… I translated share price from LSE in USD by using year end rates provided in published FS of the company… Did I do it right? and should I mention in my reasons that share price fluctuated partly due to exchange rate fluctuation and partly due to XYZ (i.e. external reference) reason? How can I minimize my risk of failure in this case?
I am trying to address maximum failure points raised by the moderator but from my past two experiences what I understand is OBU marker are quite strict and failed due to small errors… Therefore I am quite wary in this attempt and want to cover my risk of failure from maximum possible aspects…
I hope and pray that I can manage to pass this time!
I really appreciate your efforts trephena to help me minimizing my risk of failure this time…
Thank you for your reply.
Yes I made a mistake… I have already known this fact that ratios eradicate the need of currency translation but during the preparation of RAP it did not click into my mind and neither my mentor pointed out to me this common error.
This is my third and final attempt of OBU plus I am not sure about whether I have reached the 10 year limit or not. I already emailed ACCA for this. I checked my ACCA account I was granted first exemption in June 2008 so I am assuming my 10 years will be completed in May 2018.
But for now I have to wait for ACCA confirmation regarding the last session of OBU meanwhile I have to work on my RAP to prepare it to the standard I can pass it.
I have three questions, kindly answer them at your earliest:
1- I was reading the GSK FS and in the FS GSK’s CFO provided financial analysis, if in that analysis the reasons for fluctuation of various FS line items were mentioned for example “due to exchange rate fluctuation” then how can I provide a different reason other than provided in the published FS?
2- Reasons for fluctuation in FS line items like trade receivables, inventories, cost of sales, trade payables, short term borrowing and long term borrowing are very difficult to get from external sources so for those should I refer to reasons provided in published FS? or should I try to make indirect connections like sales increased due to XYZ reasons (i.e. with external reference) therefore trade receivables also increased?
3- Is it prohibited to refer to published FS for reasons of fluctuation? If yes, then if I am unable to find reasons for fluctuation from external sources then what should I do?
Thank you again for answering my queries. You are of real help.
Hi All,
I need some advice regarding OBU submission.
I am planning to submit OBU thesis in current submission which will be close in 5 days. I have already wrote my thesis but its not final yet and making final changes as my mentor suggested me.
But the problem is this is my last and final attempt for OBU submission and I am submitting thesis on GSK as my main company and AstraZeneca as its competitor. Both companies have different presentation currencies. GSK presentation currency is GBP and AstraZeneca presentation currency is USD.
What I basically did in my ratio analysis I have taken USD translated FS of GSK and compare it with audited and I found no differences therefore I calculated my ratios for GSK on the basis of translated FS.
But I was reading some comments here in the forum in which it is mentioned that translated FS should not be used for RAP instead published FS should be used as ratio analysis eradicate the need of translated FS. However, in my analysis, at some places I had to mention exchange rate fluctuation as a reason for fluctuation in ratios because I used translated FS.
This made me confused at the last moment and it seems that my thesis will not going to pass in this final attempt because I should have use published FS and just need to translate share price at year end rate for competitor.
Please advise me what should I do now. Should I submit with translated FS ratio analysis or should I try to change all the ratios and try to make changes in my thesis by using published FS then submit if I will be able to incorporate all changes before deadline?
Early advice would really help me.
.