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I am really sorry to hear this my friend! i hope you really do pass. Do not fear that they will fail you if you report, ACCA has professional people working for them and they will not act in such an unethical way, i refuse to believe that and i dont believe that. If i were you i would have gone to invigilators and state that i would report them to ACCA and if you want me to be honest i would have not remain quite until they would have changed my sit. And if they would try to get me out of the exam hall i would have immediately call ACCA and fix the problem right away. i know this looks a bit radical but i would have not SHUT UP. these are ppl who work for ACCA and they have rules of how the halls should be and how to act in situations like this. I believe they also fear a bad report from us to ACCA, i guess. Thank God the hall at my exams center had conditioners and invigilators are very supportive relating the issues students may have
Thanks a lot it was very helpful. I would never attempt this approach in the exam as it sounded so weird to me because of the reasons above but as you explained it makes sense. Thank you again
My equity beta as far as i remember was 0.89….and as for Q4 i did
Lease
Lease payments were (155000)x annuity factor of the short term borrowing it was 7 % i believe im not sure, but since lease payments were at the beginning of the year than annuity would be 1 (for year 0) + 4 yrs annuity i think it was 3.36 not sure though, therefore 155000×1+4.36= x amount
borrowings to buy
750000 x df of 1=( 750000)
maintance cost 20000x annuity factor of 7% 5yrs
scrap value (i dont remember the value) say 10000x PV
total all those up and get the amount of more than 750 000
lease was cheaper@Ayaz how i did it was: 456×60/365 =74959 new payables were 456000×99%x30/365=37105
reduction in payables 74959-37105= 37854. this this needs financed as we are paying early than 37854×5% =1893 cost
benefit is (456000×1% disc) 4560 net position 4560-1893=2667 accept as benefits higher than costsOMG i did the cost of debt wrong how could i miss that . did only the after tax cost of debt and didnt apply IRR…. how stupid of me was that
oh dont worry there is only 1 mark for that i believe……anyway i wish you to pass this exam there were plenty of other easy marks in that exam 1 mark is nothing 🙂
@GT0707 in Q1 part be you are using the real rate of interest meaning deflating cash flows but since the cash flows were before taking in consideration inflation than you are supposed to use those cash flows sales-costs and discount @ 7%
@ala what i did in specific project discount rate is that i calc the asset beta by using 75% equity and 25 % debt and than used the MV values of our equity which was 8000 shares x share price and the MV of the bond 5000x 103.42/100 something of 5100 and something and used these two values to calc the equity beta
i did only incremental wc and i made a note where i would have recovered it all at the end but then i recall of seeing this kind of exercise somewhere and did not recover it in year 4. so year 0, as far as i remember was 131 which when calc tax i would have had a tax benefit in year 1 of 39 in year 2 the diff was (20), year 2 i believe it was negative again and in year 3 it was nearly 240 dont remember exactly and as i said i remembered seeing a question like this going from negative to positive and didnt recovered at the end but im not sure if i am correct
<cite> @donizback said:</cite>
@kriselda
bro it is 20000×75%x2/5*2( the share price of the parent) it comes to 12000 and the loan notes were 20000*75%*100/1000 comes to 1500, and this is correct 🙂 and NCI yea it was 6000it says that for every share 1000 shares it acquired issued 100 loan note he has acq. 20000×75% x 2/5 as it stated in the beginning that for every 2 shares it acq from subs he issued 5. anyway wish you good luck
<cite> @hasanali95 said:</cite>
Did u ppl take the provision for directors bonus as an expense?and did u ppl take it as a liability or ignored it?no i didnt counted as liability as i already deducted in income statement as an expense
<cite> @adman50 said:</cite>
Not very happy to be honest but I think I should have done just enough.1) Was weird as it had negative RE at acquisition and the CV was above FV.
2) Some of the adjustments were weird- hoping the financial instrument and provision for bonus were well rewarded. The depreciation calc was a weird one
3) Cashflow managed to reconcile this back- sneaky divident of 550 hidden away! Ratio- hope this was ok.
4) Discontinued Ops- Never seen this before
5) Investment property just BS’d it
I think cashflow may have saved my ass on this exam as that was 15 solid marks- but we shall see.
Defo the hardest paper in a while.
Its true there were many tricky points that very rare have been shown in exams i manage to do q1 fully and it balanced, q2 fully and again it balanced cash flow and again did balance q4 just wrote some rubbish q5 tried to attempt b i hope that the the first 3 give me the marks as i know examiner hates when students dont do Q4 and 5
<cite> @umerazizch123 said:</cite>
Yeah I hope that is right…I also got 11000 NET assets at Acq….Thank GOD:)FV of sub net asset were 20000
shares 20000
preacq ret ear. 3000
3000 being PPE below its market value<cite> @donizback said:</cite>
@kriseldathe cost of investment was 13500 and the NCI was 6000. I m totally sure with these two figures
cost of investment was 20000×75%x2/5 times the price i remember the total being 12000 plus 20000×75%x2/5x 100/1000 being 600 plus nci being 6000 totalling 18600
<cite> @captmario said:</cite>
what was the goodwill? i could’nt figure out pre and post acq R.E, 2000 loss was pre-acq? and since 8000 was R.E for the year, that would be 10000 for post acq10000 is correct but you had to time apportion for half year so 10000×6/12 5000 all preacq was 5000-2000= 3000
<cite> @kynhonglongbong said:</cite>
oh, i have calculated wrong the value of loan note, i have cal that 20000×100/1000 not 20000×0.75×100/1000, rediculous mistake, hope that it’s small point 😀That should be calc 20000x 75% times 2/5×100/1000 = 600
G/W was cost of investment was 18600 and FVof SNA 20000, and retained earnings were (2000) being preacq plus 8000-(2000) being 10000 multiply by 6/12 minus 2000 plus 5000 is plus 3000 and G/W bargain purchase of 1400. I balance the STOFP in q1 balance STof FP in question 2 meaning profit for the year was correct and SOCIETY, balance cash flow but did bad on Q4 and Q5 cause first 3 took me substantial time i am so scareeeeeeed
I just heard the examiner’s interview and in one question i heard her say that for 2013 ISA 315 has changed. Since i have the last year syllabus could someone please tell me what has changed in ISA 315, cause it has been an update in any area that for sure is going to be tested……..Please help
Looking forward for your answeris this a group just for guys 🙂 im very interested too so tell me how do you do your way of discussion
Im very interested too and available in skype all day my name in skype is Kriselda Maxhelaku……
A big Thank You goes for you OT, you have been very helpful and a great help. Although i had the books you have been a great help because for me it is very important to hear lectures instead of only reading them…. great thanks again, you’re the best OT
@ razor180
i can imagine how you may feel now, but don’t allow the ”depression” of the moment influence your decisions whether you should continue or quit acca. if you do quit you would feel even worse. I know that acca may be expensive or hard but i suggest you to study harder this time and pass those. believe me its not that difficult