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@lotak said:
Q2 was ridiculously easy, but i really messed up with the calculations for some reason. The answers I got just didn’t seem to make sense, however, when looking at the example in BPP, it seems to be correct. I spent too much time thinking “WTF am I doing wrong?” and actually lost 5 minutes, which meant I didn’t quite finish the very last question I did (3c).
I feel similar. I decided tactically just to go with everything that came out, rather than questioning my maths – there just wasn’t time. I recommended the forward as it appeared to come out best. The premiums on the future and option seemed really high. If we got bits of the maths wrong, so be it – we get marks for the bits we got right.
@petus1 said:
Yes, well said. wasnt hard but very very time pressured. Couldnt complete all due to time factor. If 45 minutes more then definitely the easy paper. Dont know how the examiner completes with writing so much(as per model answer) in 3 hours.The model answers are *definitely* not written in 3 hours. Physically impossible.
I agree, it was very time pressured – almost seemed intentional; I thought the NPV was the worst for that – a *lot* to do there! If a candidate started with Q1 (logical enough) part a), and didn’t keep track of time, I think they could easily have got 20-30 mins behind schedule straight off the bat. I am usually an absolute stickler for time allocation but I couldn’t help but go 10 mins over on the NPV, and had to catch it up through the rest.
Technically, though, it was a huge relief – straightforward, I thought. The hedging question was as simple as they get.
@gvanca said:
On the income statement side, operating lease charges should be added back.I have just read this on ACCA technical article RELEVANT TO ACCA QUALIFICATION PAPER P5. So we were correct to add operating lease charge back
Awesome – thanks!
@vatalya said:
i am praying i passed. i didnt get to finish Q4 part b or c and i didnt understand what parts ii and iii required for Q1. How did you guys answer part ii for Q1. i thought that revenue per sq metre didnt make sense.Was ii) where she said she wanted to use revenue & operating profit per sq m as measures of utilisation of resources? I said it was fine to use them (revenue per sq m for a business with lots of shops is a really good measure to compare them by), but the business had far more “resources” than that, then listed all the ‘M’s. Money, manpower, management, MI systems, machinery (equipment), materials (stock), methods (processes & knowledge), markets/marketing, make (brand) – they’re all resources. Looking at only store footprint is a very narrow basis to focus your performance management on.
What was iii)?
@gvanca said:
Another question on EVA have you added back lease expense in NOPAT calculation?I did add back the lease expense in NOPAT but now I’m not sure we should have. Hey ho, they don’t do negative marking, right?!
@narinemalakyan said:
As far as I remembered I got Eva around -20mln for both….I did not adjust capital employed since did not reveal any adjustment which refer to PY… Did you?Agree – no adjustment to opening capital employed. All sounds like a bit of a non-event, this exam, really 😉
I got negative EVAs too – I think Blue was quite badly negative and Green was borderline?
I thought the whole thing was extremely do-able – not an unpleasant exam at all – but time pressured. Stuck rigidly to the 1.8 minutes per mark throughout & hope that was enough to pass.
@maisamzaidi said:
IAS 38 is not Financial Instruments. IAS 38 is Intangible Assets – IFRS 9 is Financial Instruments.I know. I went with IAS 38. I ignored Financial Instruments. That’s what I meant.
@markgibbons said:
A complete disaster, Q1 cashflows I’m guessing most of you, like me briefly overviewed this topic not expecting it to come out, yes there are marks to pick up here and there but hard to get a good mark if you guys get my drift, to easy to get things wrong or leave out things.Q2 Horrible restructuring – but had no choice as hadn’t read the article relating to the revised ED Leases…….. Nice one!
Question from me “what happens when you own 100% of two subs and decide to sell one sub to the other sub with a loan interest free”, we could make a sketch out of this question, I mean you’ll still own 100% as an indirect holding but how do you treat all the transactions?Q3 Required knowledge of revenue recognition and cost recognition, and another random question, you receive 3M to let an airplane line advertise their name on your stadium, how does that affect revaluation? Should this not be simply “Other income” 1 M each year? Must be missing something.
Very disappointed with my performance on this exam and the examiners questions, Re sit in September here for sure.
I’m with you on the cash flow – did loads of consol SoFPs, one cash flow weeks ago. Just – you’ll get marks for the bits you did do.
On Q3, I went with something along the lines of:
– this is IAS16, PPE
– you are allowed to revalue
– carrying value can’t be greater than recoverable amount
– rec amount is higher of FV less costs to sell and value in use
– what’s value in use? – well I guess there must be a floor on that of $100m if someone’s willing to give you that much to put a couple of stickers on it
– get a market valuation and do a DCF of future net inflows attributable to the stadiums
– if the results of both of those are lower than $100m, then you can probably revalue it to $100m?I’ve no idea if this is a load of baloney or not.
I guess if they did go on to do the deal with the airline, then they’d debit cash $100m, credit the asset valuation $100m because you’d then be unable to let anyone else put their sticker on it for however long…
The other bit wasn’t nice either – the footballer contracts. I went with application of IAS 38. I thought it might be something to do with financial instruments but I’ve never understood how the theory of that stuff relates to reality so chose to ignore it.
I chose to scrub Leases en masse from my prep – too time consuming – so def hadn’t read the ED and was pleased in a way that it was a big question I could rule out straight away, rather than a little bit of one.
Good luck everyone.
@abulhasan said:
I dont know how do they set paper,they should have some common sence that student can answer or not.i think no use of doing hard work.its suggested for examiner please think about student first before doing any question.
It was possible to answer taking lot of time to think but not during exam condition.the paper was too tricky and some people they didnt attemp even since they diditnt understood part b.
If this is continuous for future,i think acca will lost their big market.Hassan, I hate to tell you this, but the whole exam was on the P2 syllabus content. It’s not supposed to be easy to pass.
@pauljaco said:
The ACCA produces the answers so why would they need to do it on here as well?Timing, I guess – I don’t see the December exam & answers published on the ACCA website yet. John posted some sample answers to June session exams very quickly after the sitting, I guess just because he is awesome & he can.
@flapper84 said:
The IHT MCQ was £10000 wedding gift to a friend. I thought 3k annual exemption for current and prior year then 1k wedding gift exemption leaving the gct £3,000. Anyone else get this answer?Yep.
@dskinner83 said:
I thought 6 months and 100, but I wasn’t completely certain.Was definitely 6 months. I guessed 100% – have never seen a 50% penalty mentioned anywhere but 100% pops up quite a lot.
@mynameisearl said:
i guessed the cash basis. But now i have been on hear i know stupid mistakes ive made and feel really bad about the exam nowYou only need 50% to pass – don’t stress, it won’t change the result.
@flapper84 said:
The value of the shares received by Marcus’ daughter was 30000 x £5 (£150,000)The tax payable was £228,000
Crazy huh?
Disagree on share value – the transfer of value was £500k-plus. You value the holding before transfer, and the residual holding after transfer, and the difference is the transfer of value to the daughter.
@yentam said:
What did you guys do with the chauffeur? Did you ignore it because it’s allowed wholely and exclusively for business.Did it say she only used him for business purposes?
(ooh, matron)
@yentam said:
I think it was just the one group sub (cant remember the name) as the others were either less than 75% or not an effective 75% group sub.Agreed. “Pie” springs to mind.
@dskinner83 said:
For Samson, When I took the £4800 off, I adjusted his personal allowance as well. His income would have changed so therefore so would his personal allowance as the income was over £100000.What did people put for the MCQ on groups – I don’t know if I misread the question, but I just couldn’t see an answer to fit what I thought was right.
Great spot on the PA – totally missed that. MCQ on groups – ‘only Pie’ springs to mind…
@samirrules said:
That’s what I did too but now that I think about it, was not sure if er wasn’t allowed on both parts.I treated the first disposal as being eligible for Entrepreneur’s Relief.
Yes, I got a balancing charge (because the proceeds they received on sale of the cars were more than the TWDV of the cars – i.e. capital allowances had been ‘overallowed’ in the first year). This increased the loss (I think, anyway!).
@yentam said:
Hi did anyone get a negative capital allowance for the 4 month period in the final question? Did you add this to the trading loss for those 4 months, which reduced the trading loss. Thanks!You have to take photographic identification, for sure – passport or driving license or similar.