[Nadia]

For the business risks I included the following:
-Decreasing market share
-Revenue decrease compared to prior year (divided the 10-month total to get the monthly average amount and then multiplied by 12)
-Decrease in the customer base
-Reputation damage if government investigation becomes public – even more customers might switch to competitors
– I did some trend analysis showing company is giving high discounts which would have a negative impact on profit
– advertising revenue decrease & the government condition for a restriction on the advertising time
-risk of non-compliance with the government conditions on the licenses – might even have going concern implications as the subscription revenue was around 75% from what I remember

[Nadia]

I don’t think so – the detection risk for a new client is a separate risk as the firm is not so familiar with the client business and the client’s environment. Opening balances and comparatives are RoMM as they might indeed be misstated since they were not audited by the current auditor

[Nadia]

I also got the Dolphins Group Q1
From what I remember I included the following RoMM:
-new client – opening balances and comparatives
-revenue might be overstated due to risk that client might be overcharging customers
-related party disclosures might be missing
-licence accounting – does it need to be depreciated over its 5-year life? It does not seem to have an indefinite life as there are conditions to be satisfied
-accounting for the investment – if significant influence can be proven, then it is an associate even if only 18% is owned
-control risk with the payroll system – tax deductions might be incorrect
-investigation started by the government – does it give rise to contingent liability?
-trend analysis – EBITDA 25% decrease vs operating margin – 8% decrease – possibility for understatement of expenses

[Nadia]

Thanks, Kim!

[Nadia]

I am waiting on APM results and then I have 1 more exam left, so for the June session I see the remaining options, but I am not able to book anything for March..

[Nadia]

Hi all,

If you are waiting for December exam results are you able to book an exam for the March session? I tried, but it only lets me book for June..

[Nadia]

I also had the below questions:

Q1 Kaizen, JIT, Six sigma, ERPS
Q2 ABM
Q3 Benchmarking

What did you guys write on the benchmarking question? a) was about the drawbacks of benchmarking based on capacity or something. It was worth 12 marks, so I wasn’t able to come up with so many drawbacks, mostly wrote that the companies compared might have different business models and strategy, but I am pretty sure I failed this question, as I ran out of time. Then the second part was about some press release statements, really had to rush this question.
In general, I found this paper to be extremely challenging not because of the topics examined, but because of the information included in each of the questions, it was a lot 🙁
On JIT I found the annual benefits exceeding the costs, did the complete calculation including and excluding the one-off costs and benefits.
Then for the ABM, I remember I had unit costs for the first model much lower than based on the traditional overhead allocation; for the second model boots, the overheads were much higher based on ABC…

[Nadia]

I would say enjoy you are one of the lucky ones. I did exactly the same, was particularly happy with Q1, then had enough time for both Q2 and Q3 and still ended up with 47 – so I do hope one day ACCA will make the marking process more transparent and allow candidates to actually see how they got their result.

[Nadia]

herbertchan wrote:1st sit 47%, this time 41%, was gutted, will i get marks for each answer if an admin review is requested ?
im thinking it will greatly help to address the weaknesses.

You can find the details for the admin review here:

https://www.accaglobal.com/gb/en/student/exam-entry-and-administration/exam-results/admin-reviews.html

“For Strategic Professional exams, we will issue an outcome via email which will also include a Pass or Fail status for each complete question attempted in your examination;”

[Nadia]

I don’t think it’ll change my result and from what I’ve read it never does. I just hope they will provide me with some guidance on where I went wrong, as I don’t want to believe that passing this exam should be a matter of luck.

[Nadia]

I’ve already requested an admin review – not because I expect my mark to change, but rather to hopefully get some clarity on what went wrong. I did most past exams & all practice questions from the revision kit, reviewed all technical articles and the examiners’ approach, anything I could possibly think of that could’ve been useful. For the first time I managed to complete the whole exam, so really disappointed to see I have failed. I guess the first fail is the hardest to take but still not sure what I can change in my approach to ensure a pass next time. I guess to an extent this is a matter of luck and provided all the time and efforts spent, right now it seems unfair…

[Nadia]

I failed with 47 – very disappointing as I was quite happy with how the exam went, provided usually this is not the case and this is my first fail ever 🙁 To be honest, I am not happy with the fact ACCA do not publish the exam answers after each exam session. Especially with an exam like APM I think subjectivity does play a role in marking, so not sure if there’s anything we can do to request to have those answers? With all the effort and hard work we all put in, this is the least they can do.
Do you know if it is possible to ask from ACCA to provide clarifications on how they do the marking? I just feel very disheartened and am even considering giving up despite I only have the APM + 1 more exam 🙁

[Nadia]

Everyone, something interesting I found – quite relates to question 3
https://www.pwc.com/kr/ko/industries/enm/pwc_miag_issue10_film-cost-capitalisation.pdf

[Nadia]

Yes, NCI at 52% was weird but I did the same 🙂

[Nadia]

@riskyguy said:
hmm I think you’re right about 2 and 16.
Anyway, how did you get B for 17, and u sure about 18?

so we have the restorative cost of $2,500,000
then we need to add the dismantling provision value at 30 Sept 2013 – 0.68*30 mln=20,400,000
however, since we’re interested at the provision amount one year later – ie Sept 30 2014, we need to unwind the discount for 1 year -> 0.08*20,400,000=1,632,000.
when we add these three together -> we get answer B

and regarding Q18, I thought i was sure, but not anymore 🙂

[Nadia]

Ati, you’re right about Q3. Regarding Q19…it is just now that I saw that the operating lease payment was made on January 1..when the year end was Sept.30

[Nadia]

I didn’t tick any question number on the first page of the answer booklet (i was told by the invigilator that this was not applicable to the F7 exam)…but i did tick the question number at the top of the page for each question i was answering on the exam)…maybe you should contact ACCA to be certain?

[Nadia]

riskyguy,

Here are my answers to the MCQs (quite a lot of matches :))
1-a
2-c – options 1 and 4 will be included in the calculation of basic EPS anyways
3-a
4-c
5-c
6-b
7-d – a secured loan?
8-d
9-a
10-d
11-a
12-a
13-b (not sure though)
14-c
15-a
16-a (bargain purchase)
17-b
18-d
19-b
20-d

good luck all 🙂

[Author]

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