[mackawara]

@gillianm said:
The simple answer is that unless the motor cycle operations are run and reported as a separate company you will not be able to do this. If the financial statements include cars and motor cycles you have no option but to use the financial statements that cover the whole company or choose different companies or a different industry sector.

I am doing the rap with my organisation as Netflix. My issue is that almost all its main competitors such as Hulu, Amazon Prime Video are subsidiaries of large public companies and so it is nigh on impossible to find stand alone data for the rival companies
Viacom is sorely in media entertainment and has available financials and metrics but it is so much smaller in terms of market cap and revenues.Its business model is also slightly different as it delivers the content primarily through traditional linear TV .

my question is how much of an issue is it if you leave out the obvious competitor ( for lack of information) and use a company that is in a different space such as Viacom.Or Would i rather use Disney even though it has investments in such thing as theme parks that are not necessarily media entertainment

[mackawara]

Thank you so much Trephena. I can Proceed confidently now

[mackawara]

Hi Gillian and Trephena

May you kindly advise the extent of use of the comparative company. Initially ihad thought to use it only when comparing ratios as that had been muy understanding of the the instruction. However from the above chats I am not sure whether I should be comparing other business aspects also.

Further I would want to know if a company`s letter to investors in 2012 explaining a new strategy (which is still relevant) can be used and referenced. or it is against the instruction below
For your first submission or resubmission involving a new topic or organisation the programme requirement is that: You must use the last 3 years’ accounts available 90 days before the start of the submission period

[mackawara]

PAssed 59% fisrt attempt. HAve finished with all first time passes , self studying. I did in just under 24 months F1 to SBL despite missing one sitting because of exam fees
.
This was my formula throughout
1. Use ACCA materials extensively technical articles and never miss webinars
2. us open tuition notes. (other study packs are unnecessaily long esp the approved ones).
3. start question practise as soon as second week of study. ( you can never understand by simply reading notes
4 . sit mock exams in timed conditions. ( if u dnt have time split into 3 sittings ten mark strictly.

[mackawara]

This is as far as I remember questions and mark allocations

Question 1
a Discuss factor affecting financing decisions (debt or equity) 8marks
bprepare a report which shows
bi calculate asset beta of new construction project 7 marks
bii calculate cost of equity, cost of debt and cost of capital 15 marks
biii explain and justify the methods used calculation of above estimates 6 marks
c show how APV would give better estimate than NPV 6 marks

Question 2
a recommend hedging strategy between collar futures and FRA 16 marks
b Discuss the director view that interest rates should not be hedged or be hedged using internal techniques such as smoothing 5 marks
c explain delta and gamma and how they can be used in delta hedging 4 marks

Question 3
Calculate minimum price that the target shareholders would take
estimate valuation in FCFE if 60% of the synergy benefits accrue to acquiring shareholders.
Estimate %% gain from acquisition 10 marks

Discuss suitability of targets Lagrid and Popham 5 marks
In a due diligence review of acquisition target what would be the main concerns of the BOD of acquiring firm 4 marks

[mackawara]

The question 1 was a total disaster . I could not get around the bond valuation and cost of debt. who knows how many marks that was, \I just ended up guessing to allow me to get cost of equity.

The asset beta was what ?

And on the risk management FRA got 468 000 interest
furture got 483 200 or so
collars I just calculated premium and moved on

[mackawara]

Thank you

[mackawara]

I have seen behavioural finance though recently amounting to about 6 marks in 2 papers

[mackawara]

Passed with 67% at first attempt.
Dr Kashif kamran helped a lot. search for prepare to pass with Kashiff kamran , very helpful with exam technique

[mackawara]

@robertoh said:
Sat the UK variant.

Q1 agree very lengthy but plenty to go at so not overly concerned I didnt get everything that you guys have validly flagged, I think 10 or so solid points will be decent enough.

Other elements of part 1, being procedures on acq goodwill (good q), the component auditor (so so for me) and ethical points (usual rush to stick to exam technique plan I set myself!)

Q2 I got the same as Billy – lease issue my tech was rusty but think other bits were ok.

Q3 part a was great and part b was fantastic as i’m a qualified insolvency practitioner and work doing pfi reviews and insolvency.

Paper overall was fair from difficulty perspective imo but time was ridiculous for volume of info in 1.

I agree to a certain extent. Volume of info mean there was plenty to chose from which is better than looking a scenario then having to imagine answers. time management is of the essence. you just have to stop!! you cant write endlessly . aim for at least 3/4 of the marks a if you are running out of time then you can fall back to 50 %. if you go for all the marks in question 1 you will definitely lose out on easier marks.

[mackawara]

Questionn 1 required a lot of planning before hand. obviously get the 5 marks for the ratios and the n you need 9 risks to give yu 24 marks. i only wrote 7-8 risks because of time but i still had more risks in the tank. I think it was where i did well because i chose my best and most obvious risks as per analytical procedure.

question 1 had a lot of easy marks .
1.evaluation of audit strategy 10 marks
2.audit risks 24 marks
3.goodwill procedures 6 marks
4. ethical and professional considerations on integrated reporting service engagement (e

question 3
legal claim 5 marks
impairment 5 marks
lease 7 marks (very hard for me )
review of audit planning and perfomance 8 marks (easy marks but time was limited)

question 2
consideration before accepting review engagement. 6 marks
procedures for auditing forecast. 9 marks ( saved me som time as i race through)
ethical and professional considerations arising from loan to audit member and request for secondment 10 marks ?

[mackawara]

Thank you

[mackawara]

Thank you. I could not find the original question so i was trying to reconstruct it. Now i see i misread the figures but still your explanation answered me.

[mackawara]

Question is Cooper June 14

The draft financial statements recognise profit for the year to 31January 20X4 of $15 million (20X3 – $20 million) and total assets of $240 million (20X3 – $230 million).
(b) Max noticed that a section of the audit file had not been completed on the previous year’s audit. The incomplete section relates to expenditure incurred in the year to 31 January 20X3, which appears not to have been audited at all in the prior year. The expenditure of $1.2 million was incurred in the development of an internally generated brand name. The amount was capitalised as an intangible asset at 31 January 20X3, and
that amount is still recognised at 31 January 20X4.
Required
Explain the implications of this matter for the completion of the audit, and any other professional issues
raised, recommending any actions to be taken by the auditor.

[mackawara]

@jmmyjimmy said:
Guys, did anyone have goodwill of:

S1 – (28)
S2 – 71.

???

same here .hope got full marks on goodwill

[mackawara]

@anonymous123 said:
why financial instrument in 1a has to be at 49 ? i thought it had to be at amortised cost ? it was kept for the cash flow so it kept until maturity and then sell ? it passed the business model test surely.

If held to maturity it is not sold. The question said it is sold but did not say anything about maturity so i held it at FVTPL

[mackawara]

I got 48m consideration and calculated 10% of net assets and goodwill at year end and got 1,9 gain to equity.

[mackawara]

Dear Sir

I have followed other threads revaluation and impairment but I am still unclear on distinction between revaluation downwards, impairment and subsequent reversal.
1. Does downward revaluation necessarily constitute impairment seeing the only circumstances that would warrant revaluation down would also warrant impairment, or am i wrong??

2.The rule that an impairment reversal cannot result in higher carrying value than it would have been had impairment not taken place does not apply to assets held using revaluation model??

[mackawara]

Thank you Sir

[mackawara]

was sweating on this one but got 57%

[mackawara]

64% on first attempt. now done with F1-F9 Tthanks to open tuition

[mackawara]

On the TERP question.You had to adjust the PBIT for the 20% expansion in caluclating EPS and also adjust for change in finance cost for the debt financing and adjust number of shares for the equity finance.

I based the choice of financing on gearing and interest cover since we were given industry average of those 2.

[mackawara]

Thank you Sir

[mackawara]

Great! Passed with 70% first attempt

[mackawara]

PASSED AT FIRST GO 67%. USED Open Tuition notes and lectures and becker question bank and revision essentials hand book

[Author]

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