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I pass with Grade B. Big Thanks to my mentor Antish Dabydoyal from Mauritius. He’s a great mentor, attentive, accessible and professional. Also I wish to say a big ‘thank u’ to Trephena and opentuition.
Hi Trephena
Thank you very much for question 2. If I understood correctly your reply, then i think my proposal sounds reasonable.
Regarding Question 3, i meant one year comparison for the competitor only. For my main company, I’ll certainly do 3 years analysis. What i meant is evaluating main company A
Yr 1, Yr 2 and Yr 3 versus competitor B, yr 3 only or should it be main company A
Yr 1, Yr 2 and Yr 3 versus competitor B, Yr 1, Yr 2 and Yr 3.
For Question 1, I’ll wait for your response.
Once again thanks a lot for your precious assistance.
Hi Trephena
Thank you for your valuable answer. I would be most grateful if you could clarify the following:
Question 1.
My main company deals in several countries in the world but reports in pounds. The issue is I have comparative figures both in CONSTANT currency and REPORTED currency. Under CONSTANT currency, they made a reduction in profit and under REPORTED currency (due to depreciation of the pound), they have an increase in profit.
Do I need to submit ratios for both figures? if yes do i need to make a dual analysis? One for CONSTANT currency and another for REPORTED currency? (Note that the absolute figures are different under each of them). I’m worried especially for key ratios like profit, and REVPAR figures.
On the other hand, I searched for a simpler company ( food sector this time) which deals only in one country, but i have a problem with it;s competitor.
My competitor’s annual report 2016 is 01 Jan 2016 – 31 Dec 2016, however the 2015 report is 01 july 2015 – 31 dec 2015 (6 months only!) because it changed its year end. However, it also includes comparative figures for 01 july 2014 -30 june 2015.
Question 2.
Do I need to pro-rate 01 Jan 2015 – 30 june 2015 in the comparative figures (6 months) and then add in the given figures in the report 01 july 2015 – 31 dec 2015 so that i then have a full year 01 Jan 2015 – 31 dec 2015 ?Question 3.
Is it compulsory to show a 3 year analysis for our competitor, or does the latest financial statements (competitor) suffice for evaluation of the main company?Thank you very much
Hi Trephena
Thanks a lot for your reply. I’ll take note of the points you mentioned.
I forgot to mention that my main company X is a subsidiary of another bigger company Y. Can I use strictly company X as my main company because the parent company Y deals in other sectors. To be noted that I have the detailed financial reports of company X separately.
Thanks
Hello Trephena,
First of all thank you so much for helping so many students like us. Really, I think you should be getting blessings from all around the world!
I have two questions regarding the companies I chose.
1. The main company has a revenue 3 times as much as its competitor and hence is a much bigger company, is this an issue?
2. The main company has approximately 1/5 of its revenue on property sales and 4/5 on hotels. I’m aware business on properties is not among the industry sectors for period 35. However considering that it is a minor sector of its main business (the main business being Hotels), can i continue with this company?
Thanks a lot
That is much better, i thank you very much Sir. Really Tutors like you and Sir John are getting thousands of blessings throughout the world. Thank u so much.
Dear Sir, thank you very much for your response. I’m really grateful the way you have replied point by point. Two issues: WARRANTY and MACHINE revenue (deferral) are crystal clear, although here we have made a vital assumption that NO CUSTOMER has complained. Do you think this would have been an important point to include in the question?
Regarding the interest free credit period, I understand that the company has given an incentive to its customers by selling the machines on credit WITHOUT interest. I mean i understand we have removed from the $500 at the point of sale and then re added as a deferred revenue at the year end, my concern is on the wording “free credit period” (it’s like this in paper F9, when the company gives a discount or waive an interest, it’s a cost to the company, not a revenue.
Thank u sir so if we want to conclude, it goes like this:
RECEIVABLE – Discount given is eventually a COST for the company X (from X’s perspective), so the ANNUAL EFFECTIVE RATE is actually a cost and if % is higher than % overdraft, then it’s NOT worthwhile.
PAYABLE – Discount taken is eventually a SAVING for the company X (again from X’s perspective), so the ANNUAL EFFECTIVE RATE is actually a SAVING and if % is higher than % overdraft, then it IS worthwhile.
is that correct?
thank u Sir, I’ll definitely watch the lectures, the above were just definitions I wanted to fine tune which i did not find in the lecture notes. One last question, so a normal loan can have a change in % interest during the course of the tenure? and a loan note / bond / debenture has a constant % interest throughout, right? Once again thank u very much for your support.
Dear sir
I’ve seen ethical threat as the major topic so I’m asking my question under the same rubric.
In ACCA answers, I’ve seen close family relationships as BOTH a familiarity threat and a self interest threat whereas in BPP it’s only under self interest threat. Familiarity refers to having the same Audit personnel for a long time.
My question is can we refer family relationships as a familiarity threat ?
Thanks
@cloud9ali, indeed you are right, that’s the main issue “fear of being victimized” and this is worldwide. However, I’m confident that if we prepare a good case with concrete examples and taking good care to pass our message gracefully and objectively, they will take it positively. Our intention is not a blatant challenge against ACCA, we respect the institution as well as the markers, but what we want is a clear explanation or clarification on this uncomfortable situation we are all in. Come on ! We are paying for these exams and also the yearly subscription, the least we can expect is some explanations from them.
Send me your email ad and I’ll forward the chain mails to you.Thank you again Trephena, Mr Hammad and amy2 for your responses and advices. I’m really grateful for that.
@ Mr Hammad thank you also for the mail I’ve received though I cannot reply directly on it.
I went through the link you provided and found it very useful.Thank you very much
Same for me, also Question 3 is not clear at all, please check our post “mispint for Question 3” by Vicki and myself.
I completely agree with all the others that ACCA is not correcting well since they have introduced 4 sittings in a year, I’ve the impression they have half the time for correction compared to what they had previously and consequently the quality of correction is impacted and worse the admin review is a complete waste as so many of us has complained. I wrote so many emails via myACCA and all they answered to me is that the admin review is just a re addition of numbers and nothing else. I have the chain emails I can send to anyone who wish to have a look. The main issue is they do NOT re correct anything they just go through the admin part ( addition and summing up) but what we want is a thorough remarking which is not being done and there is no existing process for this. Me too I was thinking to escalate this issue, but I don’t know where. Somebody mentioned about a petition, I’m ok for it but where to post it and to whom it should be addressed.@ D.O.A and SEAGOAT, true what you are saying is right: exam technique, time management, not to use CHECK etc, concretely I compared ALL my answers VS ACCA answers, except for MCQ which I don’t see at all and question 5 which is a September question ( I don’t know why they mixed up September and December in only one paper), I should have scored more than 50% in all areas, yet I got only 47. I’m really worried. Same thing for F7, I got 49 !!
Anyone can suggest to who shall we address this correction issue?
@ Vicky same thing for me, I’ve just posted the below but cannot see it anywhere on the forum so I’m re posting again
Hello Sir, I scored 47 in Dec 2015,
While checking on my answers I found especially for question 3 that the answer is completely the opposite to what I answered, yet I’m still confused. The question asked about FIVE potential indicators that Mercury Motoring Co is NOT a going concern. Note that the word “NOT” is in capital letters, so what I wrote is why the company can still be alive business wise. For eg I wrote that the supplier is THREATENING to sue but not ACTUALLY suing. I also talked about current ration falling to 0.9 for a first time which is not so alarming as it’s not an acid ratio there might be reasons like inventory etc, I also suggested an extension facility from the bank. To sum up, I tried to find all the positive things for which the company might still fare well and have a chance not to collapse. However on seeing the ACCA answer I was shocked to see that the answers are all geared towards a going concern perspective which means that it answers in fact the question that Mercury Motoring Co is a going concern (without the NOT), I would appreciate your comments on this.
Thank you Trephena, Mr Hammad and amy2, I’m really grateful to all three of you for taking the time to reply to my query. I’m considering the precious advices you provided and will surely get back to you whenever needed
I understand it’s January, however I was not expecting a mentorship immediately, all I was expecting was a reply whether or not they are interested to become my mentor in the near future. However, as you advised I shall contact other mentors as well.
@ Mr Hammad, will it be possible for you to provide me a few mentors within the range of £100 to £150?
@amy2, how much Mr. Ali Farooq charge for the mentorship fee?Once again thank u very much.
Hello OT family, I have logged in the OBU site as a mentee since 04 Jan 2016 and contacted two mentors via the list provided and even got a confirmation email in my inbox saying the mentors have eventually received my request, however we are now on the 16 Jan and I still haven’t got any reply from any of them yet. That’s very discouraging as a first contact on the OBU site.
Also, I would like to know why are we being compelled to contact listed members on the site while OBU clearly says that they do NOT approve these mentors, they are only listed mentors who have passed the mentor test online. I’m not discrediting any mentors, I’m sure they are very competent to have reached that level, my point is on TWO issues. a) familiarity / trust and b) Financial. Previously we could find ANY mentor ( in our local area whom we know and are acquainted with, they could have been our managers, seniors or a professional whom we know). Being familiar with these mentors not only allowed us being more comfortable with them in terms of communication and interaction but also in terms of proximity. We are in the same country and a face-face would be very easy ( though I’m aware this is not a compulsory requirement). My second issue is about the mentor fees. My goodness ! OBU is forcing us to find a listed mentor who charges at least £300. This represents more than a whole month salary for me. I could have arranged for half that amount under the previous conditions.
I started ACCA as a self study student in 2012 and when I referred to the then OBU info pack, I immediately made up my mind to go for the OBU to achieve the degree. This was my main motive which has now been completely jeopardized by the new requirements. My concern is today even if we comply by these harsh requirements, tomorrow with a re-sit it can even be worse and we’ll continue struggling and paying without achieving the degree.
Your comments and views on this would be most welcome.
Yes Tinaboy you are right. :), I think we need to always cross -check with the study guide.
Also thanks a lot to Open Tuition.Dear Sir, I thank you very much for your fast response. Ok, so does this include non-pool assets (eg car for partial private use) or short-life assets (eg photocopy machine). I refer to examples 2 and 3 on pages 35 and 36 respectively where I see a balance allowance when the non-pool assets have been disposed.
