[Jens]

Hi,

I have been a member for nearly 2 years as well. I am thinking about it but wonder if it is beneficial for me. I do not work in this area and do not have any plans to do so in he future. Also, there will be yearly CPD requirements that come with it after passing. Not sure how I would achieve those if I do not work in this area…

Is there anyone that has done it in the past and can share some experiences?

[Jens]

It would also be interesting to find out if taking an extra exam will count towards CPD?

[Jens]

Just wanted to update what ACCA replied to me:
I was one of the first ones to complete the Ethics Module and it appears that, after I completed it a new chapter (Unit 7) was introduced. So everyone that had completed the module before Unit 7 was introduced will have the module showing as incomplete in the status report. This doesn’t prevent you from applying for membership as the module was completed. There would also be the option to complete unit 7 voluntarily they said.

Perhaps this will help others that have the same issue.

[Jens]

Hello,

yes I contacted them already in May last year and they confirmed that it is completed. the status switched back to completed but now again it shows as not completed. Contacted ACCA again some days ago and they asked me to submit a certificate to send them to confirm that I completed the module… nerve wrecking…

[Jens]

Passed at my third attempt with 72 which is double from the lousy 36 I had last time. This paper has given me my first gray hairs (seriously). But finally it is over, I am affiliated now!

Thank you open tuition and good luck to everyone. If you haven’t passed don’t give up your time will come as well!

[Jens]

@jibri said:
Hello my friends Iryna,Hope and other members who remember me. I have confession to make
I am so tensed, embarrassed, sad that I don’t remember when I felt like this last, I am dumb not clever or intelligent but not that incapable to fail an exam seven times. This APM had drained all my self stream from me.

I deleted my Account and as a result the countdown thread I started deleted automatically for Countdown for finalist only’ for which I am sorry as I was not aware it will be deleted as well’.

But after seen my friends comments and concern about me for which I am very thankful and cannot express my gratitude I decided to mention that I am Chullbulla 🙁

if it was not for my young family, I don’t know what I would had done to my self.

Hi Chullbulla

I have been more a passive member, reading the countdown threads over the last four sessions but I remember you from all of them. I am truly sorry to hear that you didn’t make it! I hope you find the strength to go on. One day you will make it as well!

[Jens]

@hopeneverdies said:
Hi Jen
Please where is the thread for only finalist…i hope talking about this here will not confuse other non finalist as we experienced in Dec 2018…or has OP deleted/remove it?

Hi Hope,

The link was deleted I think. I read that you had the box as well. Congrats man!!!

[Jens]

@jamessalisbury said:
Thread I assume was deleted because of the obsession with a ‘Link Theory’ which as was shown before the thread was deleted, did not work for people. I believe this was something that did work in the past but has now been acted upon by ACCA, something any organisation would do when a potential breach of their systems is identified. People have waited weeks until this point, I suppose it’s not too bad waiting a few more days. Maybe discussion should be around whether it would be best to receive results before the weekend as opposed to the start of a fresh week. I am personally a finalist and know I failed my exam, I will not be eagerly anticipating my result this time around.

The e business platform of ACCA is an official link from ACCA where you can log-in to see membership details. I cannot see any infringement doing that. Apparently when uploading the exam results, a tick box appears on that page when you are a finalist.

If there is a way to see the results earlier by simply logging on to an official link then people will do it , even politically correct accountants :-)!
Therefore I blame ACCA for this.

As concerns me, I have been writing the last exam for three times (AFM) and each time There was no such box and I failed. Today, finally I could see one. This means that my ACCA journey is finally over!!!

Good Luck to everyone!

[Jens]

Even reading this thread makes my pulse go up. Good feeling this time, was my last exam but my 3rd attempt with AFM. Didn’t have too much trouble with the other 13 exams but this one has turned into a minor nightmare for me. Just hope I pass this time…

[Jens]

@ahmadraza2 said:
But in my case future gives higher result in both cases. and collar gives lowest in both case though higher when interest rate rises. I justify it that due to premium payment. I don’t know ausi is right in all his answers so I consider myself wrong but I performed all the steps and reasonable recommendation on the basis of my calculations so hopefully scoring maximum 13 or 14/16 and it should be as I’m in hoping of failing this exam and this is my last attempt 🙁

I think you are right, made a mistake and took the FRA rate as the effective, but you have to deduct the 0.2% premium…

[Jens]

@auseklis said:

Q2 Forward rate FRA4-8 used, got 3.19 eff interest rate and $358 eur reciept or someting, Futures June, 48 contracts, don’t remember the receipt (maybe around $346) but it was worse than for FWD rates. Interest rate collars – sell call, buy put, premium has net from sell and buy. In interest rates rise, collar gave better result, but worse if interest rates declined.

Wasn’t the FRA 4-8 4.1% which is also the effective rate p.a.?

As regards the collar, since it was an investment, the company needed to set a floor and hence, bought a call and sold a put.

In my scenario the FRA was the best choice

[Jens]

Had to do Q3 in a rush, the target value could be calculated in two ways; on share price value that was around 540 m if I remember correctly and based on dividend growth rate. The question stated that 90% of the distributable profit has been paid out as dividends. 10% retention x 14.5% return on capital( CAPM as the beta was given) gave me a growth rate of 1.45%. using the growth formula with the 63m dividend (90% of the 70m profit) resulted in 489.8 MV which was the minimum they would have accepted as aquisition price.

The value of the combined company was the after tax profit figure of the target (70) + the additional synergy cash flow (9) + the profit of the aquiring company (forgot the figure) multiplied by 8 + the increase of 5 % (8.4) which was something like 1100 m.
From this figure the MV of the aquiring company and the 489.8 + the 14% premium had to be deducted to get to the total additional value created.

If 60% of the additional value would have gone to the shareholders of the acquiring company, the remaining 40% would have been the amount paid on top.

Can anyone confirm?

[Jens]

Risk free Rate was the Spot Yield rate of year 1 which was 3% I think.

Asset Beta weighted 0.85

MV Bond was around 105… cost of debt the IRR, roughly 5% pre tax.

Cost of capital 9.2 % something

WACC around 9%

Hedging FRA 4.1 was best
Futures 48 contracts

[Jens]

Second fail with 36 down from 42 last time. Since all the link theory business already indicated a fail I have already come to terms with having to resit. However this is the lowest result I ever got in all exams and does not do justice to neither the knowledge, nor my perceived performance that was way better than last time where I got a higher mark.

This would havebeen my last exam and I honestly get the feeling that, how closer you get to the end of the ACCA journey, the harder ACCA tries to make you a repeating customer.

I went trough John’s notes three times and the BBP revision kit + all available exams twice, spending a good part of 2018 preparing. I am in my 40ies, work for an international organization in Finance and have 10 years actively trading derivatives on my back. I confidently say that I understand 80% of the syllabus in and out. If find it fishy to see that some people pass this with twice as many points that I have now (congratulations to them by the way don’t get me wrong) but how come that there are so many finalists, passing all exams and suddenly get stuck with the last exam???

[Jens]

As regards the foreign currency hedge, it definitely mentioned xxxUS/CHF 1. I checked this three times during the calculation.

For the APV question I think the approach was to calculate the net cash flows and discount them with the cost of equity using the ungeared beta (12%) resulting in a negative NPV. Then get the tax benefits p.a. and discount them with the tax free rate (4%) and add them to the NPV which then, became positive.

[Jens]

Passed on second attempt with 58. Studying the technical articles in depth was the game changer for me. Now, only P4 left what a relief…

Thanks Open Tuition and good luck to all of those who didn’t pass it this time.

[Jens]

failed with 46 on first attempt. Feels very odd as I was well prepared, actually work in the field and didn’t find the exam too hard! Had enough time to cover all questions as well…Reading all the comments of people failing this paper for multiple times scares me!

Problem is when English is not your mother tongue, in this discussion papers you have already lost 10 points before you even reach the exam hall. Simply takes more time to make your point and sort your ideas.

Well back to work and see you again in December!

Good luck everyone

[Jens]

Somebody remembers what the FV of the N/A of the foreign sub was at aqusition? Was not mentioned as usual in these questions, but it said that FV of NCI 20% was 18, so I assumed the N/A were 90 mio

[Jens]

@acaqub said:

It is not worked out in this way.

If you assume nothing are sold or all are sold. There is no need to use minimax.

You should draw a column for demand 500 550 600 650. You then have to draw a row for the supply 500 550 600 650. For instance, for the first situation: when demand is 500, for supply 500 (500 are sold), 550 (500 are sold and 50 are discarded, so the calculation is 500*(5.8-1.6 my be this figure to get the unit selling profit)- cost of each unit production*50).
For the subsequent units, you will be able to calculate. Once you got all figures, for each level of supply, try to get the range.You will then be able to choose the smallest range relating the level of supply that you have toget.

I cannot remember exactly. I but think it should be 600.

This is a much better approach that I have chosen. However, I was not able to detect any hint for the demand level. The only thing given was whether to chose a supply level of 500,550,600 or 650. The only hint concerning demand was that the wholesaler supplies retailers with flowers and that he has a policy of accepting returns for the bunches not sold by the retailers. And that on some days there are no returns. So, it would be also possible that, at a production of 500, to have all 500 returned, or 471 etc. If they had thrown in a couple more words (like they had done in any other similar previous exam questions), like “demand is never smaller than 500″… it would have been clearer. This was a phony one …

[Author]

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