Forum Replies Created
- Posts
Dear Mike,
Please explain me when we must use other matter paragraph and when other information section?
Dear Mike,
I have read your notes and the ACCA’s technical article on the new audtor’s report but I’ m also confused when to use KAM, EOM or other matter paragraph. My exam kit is not the updated one and I’m afraid that I will not be able to apply the requirements of tje new standard.
Dear Mike,
My exam kit is not the updated one for september 2016 exam.
Are there any changes to syllabus or updates besides the external audit report?I’m sorry but I didn’t read anything about KAM paragraph within the exam kit. What is it and when should be used?
Thank you very much for your answers.
With the first 2 points everything is clear.
As to the third question, I realise that the adjustment is not the responsibility or the right of the auditor, I simply want to know whether debit record is an expense as in one of answers to exam kit questions it seems that it is not an expense.Thank you very much!
Your answer gives me some hope that I’ll be able to pass the exam with my time pressure.Thanks to open tuition and especially John Moffat, I got 68. Just one exam remaining.
I am so HAPPY!I’m very very sorry. I was asking about modified duration. Probably I was very tired and made a chaos.
I was on my exam yesterday.
Hopefully I’ll pass it. Thank you and I’m so sorry.I’m not asking about the calculation of MIRR. It is clear to me, I can use both ways. The only problem I have is the formula for calculating the change in the price of the bond. It is included within the textbook as well as within the exam kit. But they are given differently. So I don’t know which one is correct. Please help tomoorow I’ll be on my exam.
Dear John,
Don’t waste time answering this question. I understand the reason. The return on capital employed is given pre-tax.)))
I found it. We need to calculate the theoretical redemption value of a zero coupon bond ti find the debt redemption value, which is used for calculating the equity value using Black scholes.
I have another problem with this same question.
Why do we realise working capilatin year 6 instead of Year 5?
I’m sorry, I have just noticed that there is a note to assume that the cost of equity and cost of debt do not alter. Otherwise we’ll have to do the above mentioned, yes?
So even if the information is provided for the calculation of the expected share price, I can use the current share price stating the assumption that the shareholders of the acquired company are unlikely to have that information and get full marks?
Ok, but which one to use during the exam, if the requirement says simply calculate the percantage gain to the shareholders of the victim company?
Thank you!
Now I understand.
In the Kaplan exam kit the discount rates were calculated by interpolating the two rates, which was confusing for me.
Now it’s clear.There is a need for such calculation in the question Arnbrook JUN 06.
The information is as follows: initially it is 5.7% and then moves to 6.2% in six months.
How to calculate the discount rate for
0-6 months
6-12 months
12-18 months
18-24 months.Dear Sir,
I am looking at this question once more. It appears not to be a mistake.
The borrowing is $45m for 2 months and premium is 0.015%
Number of contracts is 60 and contract size is $500.000.
The premium can be calculated as
$45mX0.015%x2/12=$1125OR
60X$500000X0.015/400=$1125
I prefer the second one, the logic is easier.
Am I right?
It is a qestion from December 08 exam.. It says Libor is currently 6%. Phobos can borrow at a fixed rate of LIBOR+50 basis. The treasurer would like to keep the maximum borrowing rate at or below 6.6%.
There are three strike prices for put options:
93.75
94.00
94.25
It says that options at 94.00 should be bought and makes no calculations for the other two.Why?