[nkmile64]

Oh no! I missed completely the fact that the std. dev. was on an annual basis! I just hope that these 4 (?) marks don’t make the difference between a pass and a fail.

[nkmile64]

Did anyone manage the VaR question? It asked the confidence interval for the final outcome not to be negative, which means we first had to find the probability of the outcome being between 0 and the mean of 6.5. With a std. deviation of 1.3, the std. variable is

z = (x-m)/s =(0-6.5)/1.3 = 5

However, the Tables provided in the exam stop at std. variable 3!. Does anyone have a solution for this?

[nkmile64]

An old Bob Dylan song goes like “If you got a lot of forks and knives, you gotta cut something”. Translated in the context of ACCA exams this means if there are now 4 resits available during the year, students should participate in order to spread fixed costs. As I’ve been informed the P2 exam has also shifted in the same direction. The whole purpose is to “force” students fail and thus have more exams for the same subject during the year. Actually it’s disgraceful watching ACCA using such cheap marketing techniques (market penetration is it called?).

[nkmile64]

First attempt and I got 83%. Was reallly surprised since it was a tough and unpredictable paper and so I was expecting lower grades. Studying as many past papers and OT’s explanatory lectures helped my cause though.

[nkmile64]

If I may suggest a solution, try the following for the Spread calculation:

3 X ( ( (3/4) X 5 X 2000 ^ 2 ) / (0.0511 / 365) ) ^ (1/3)

[nkmile64]

Thank you for your response!

[nkmile64]

Well it is from Parent to Subsidiary but the issue arises because it’s a mid-year acquisition. But if I correctly understand your sayings in this case we should first eliminate the interest, say $2,000, from the Subsidiary’s I/S and then time-apportion the rest of its finance costs, i.e.

Finance Costs [1,800 +6/12(3,000 -2,000)]

[nkmile64]

Please any help would be greatlly appreciated!

[nkmile64]

I certainly did watch the lecture and this is how this issue came to my attention.
I have tried to find information about Available for Sale (AFS) investments but the subject is not mentioned in IAS 32/39 nor in IFRS 7/9. Financial assets classified at Fair Valule through Other Comprehensive Income (FVTOCI) is what most resembles AFS investments but I don’t understand how to treat already accrued existing reserves from gains on these FVTOCI investments in the case of selling them or disposing them:

(a) Are we allowed to “recycle” those reserves In the Income Statement, thus increasing profit for the year or
(b) Recycling should be done only through Other Comprehensive Income, that is my a movement from the reserve to Retained Earnings?

In essence my question is this: if the above question – SANDOWN – was repeated in the June 2013 exams,
(i) would it still refer to AFS investments or to FVTOCI financial assets?
(ii) what would the treatment of existing reserves from past gains on this FVTOCI investment would be? Recycling through income, as the aforementioned lecture suggests, or through equity only i.e. be way of a transfer to Retained Earnings?

Thanks in advance!

[nkmile64]

I knew that I had passed right from the outset, so the 8 Feb 2013 e-mail confirming that as well as a mark of 70% was nothing more than an assurance of hard work not gone unnoticed. F5 is not an easy subject and it requires dedication and focus but if you follow the instructions you’ll pass.

[nkmile64]

First time attempt and got 70% – definitely NOT an easy paper. It requires serious attention, focus and dedication but if you follow the instructions there’s no problem.

[nkmile64]

Thanks for your response!

I understand that all other costs apart from Materials, that is Labour, Variable and Fixed Production Overheads etc are treated as fixed costs in Throughput Accounting, at least in the short-term. What puzzles me though is that the figures I mentioned earlier i.e.

Opening Stock
Purchases and
Closing Stock

are directly extracted from the Inventory of Materials, that is they do not include any labour costs or any other kind of costs apart from materials.

Furthermore, all relevant questions I’ve looked at, they all make use of Standard Costs Cards for the products and these cards refer to Direct Materials used in the production; not purchases for that period.

I suppose it is assumed that material purchases = materials used as you also mention.

I am unable to understand though how we should treat a case where there are actually some inventory levels.

THANKS A LOT

[Author]

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