[Rana]

Same.
i was expecting the curve yield topic because the technical article on it was updated november 2017 but i was so confused in the exam and didn’t know what we were meant to estimate exactly?
change in value and coupon rate? wasn’t sure if we were meant to mathematically work out the coupon rate.

so frustrating cause now when i think of it i feel maybe given more time i would’ve been able to attempt it.

didn’t touch the mcaudly duration question as i had no idea how to do it (only studied it ages ago)

question 1 was horrible i couldn’t estimate anything at all.

really frustrating 🙁

@mbarrington said:
My last ACCA exam and by far the hardest I have done so far.

Question 1 being on corporate reconstruction threw me, I was so unsure about adjusting the coupon rate and the new value of the bonds…

Then the Macauley duration part?

I ended up doing questions 2 & 4 then coming back to 1 to avoid sitting in the exam panicking the whole way through.

[Rana]

Dude looking at your answers now i’m pretty sure you passed hahaha
I did not think twice about subtracting the costs didn’t even occur to me they gave us the contribution figure

ugh looking back now i feel like i didn’t do well at all.
aw well, we can only hope for the best!

@dt1988 said:
For Q1 I feel unsure about.

For contextual features I always feel a bit unsure, for example, the time element I found hard to relate as I couldn’t seem to see any info regarding time constraints!

Preservation was also hard as the suggested change was such a major overhaul I couldn’t think of what to preserve although just now it occured to me I should have mentioned the quality assurance team perhaps.

I also found it difficult to relate financial ratios so tried to throw numbers in with an apendix showing their current performance.

Part C of Q1 threw me a bit. I wasn’t sure if it wanted me to advise actions to take as well as identify. I started off trying to suggest solutions but in the end gave up and just stated the apparent barriers and how important they were.

My biggest fear of Q1 is that I didn’t relate it enough to the scenario.

Q4 I think was the easiest of all of them. It essentially gave you all the answers without having to think about it.

I did the decision tree Q3. I actually drew the whole thing very quickly on the blank page of the question paper, very messy and then re-did this on my paper. I did not subtract the $1.5m costs as we were provided with the contribution figure so all three results resulted in a positive with option 3 being the best. (I also did check if I subtracted this and both option 1 & 2 provided losses which to me didn’t make sense).

In limitations I questions how predictable and reliable these probabilities and figures were. I also obviously mentioned that they has used an inappropriate model for static growth as this represented the industry as a whole and not themselves. I also mentioned that option 3 had the most amount of estimation and runs the risk of being less profitable if the forementioned occupancy and contribution amounts were less than predicted, although I did not calculate any figures for this.

For sources of finance, I was unsure. I literally just mentioned all three, internal funds, debt capital and equity capital and that realistically only equity capital seemed their best option, with risks mentioned about some shareholders gaining too much power.

[Rana]

aaah i didn’t pay attention to that part at all. used the 320 as it is.
hoping for the best cause question 1 was horrible for me the scenario was so long i couldn’t do much
hoping for at least 50 ?

[Rana]

I went for the decision tree as well, even though mid way i was skeptical abou the calculations as it’s been so long lol but yeah i went with option 3
did you deduct the fixed costs and spendings from the expected value in your evaluation?
i did that and both options 1 and 2 generated losses for me…

[Rana]

saaaaaaame wooohoooo had to double check the text and the email and also make sure both carried the same result hahahahah
two more to go!

[Rana]

was the question about gains on losses on pension schemes as in defined contribution plan or defined benefit scheme? I think i messed that one up big time cause i thought it said the increase was in the ‘final’ salary? so treated the whole thing as actuarial gains and losses and so should be on OCI not PL.
aw i’m screwed

[Rana]

i was absolutely clueless regarding that question, but now that you’ve mentioned it i think that could’ve made sense

[Rana]

was the goodwill adjusted to reflect the actual fair value of net assets at acquisition? or did you leave it as 28?
also? i got a gain on disposal of 13.2
i had trouble remembering how to calculate the carrying value of NCI, but i think i didn’t it correctly

[Rana]

same here! and the problem is i really didn’t know much about impairment of financial instruments or anything for that matter that came in question 4, so i just had to do question 3. I’m still so confused as to what it was all about

[Rana]

does anyone know anything about question 3 part B and C?
that was horrible

also, i ran out of time and didn’t calculate the profit attributable to NCI, also didn’t have time to actually do the statement and include the adjustments 🙁 i did all the workings though except for working number 7. how bad does that sound? i really don’t wanna fail ?

[Rana]

thanks. what are the chances we get a statement of cash flows? they’re a nightmare i never know where to start. has anyone used the opentuition lectures?

[Rana]

Do you think practicing all the exams down to June 11 would suffice to help me pass this exam? i’m taking your advice and practicing making bullet points for the optional questions during the first 15 minutes. but would 10 exams practice be enough to cover what i need to pass? it’s my first attempt

[Rana]

okay so if we encounter the same case scenario or something similar (operating lease being capitalized) should my accounting treatment be the same as this answer or should it be according to the current treatment of just recognizing the gain without deferring it?

[Rana]

so they couldn’t access it?

[Rana]

lol i know I’m glad I wasn’t the only one but I should’ve used some common sense there bc how could a system be inaccessible to ALL employees right? ? aw well I hope I pass that question!
haha for real they had some great controls I was like well what deficiencies, examiner?
ugh I really hope I pass =[

@gianina said:
Yeah Rana. I understand your frustration. I spent like 2 minutes trying to figure out what they meant by that, hence i recall even now the paragraph “access to the master file is restricted to all employees of the purchasing department”. Then i said what the hell…they must mean that all the PD employees have access and nobody else…was worth a shot as i was running low on finding 7 deficiencies…those guys had some pretty darn good controls set up in place 😛

[Rana]

I said to do a reconciliation too but didn’t say discuss the difference, I think half my answers lacked necessary detail ?

@david1988 said:
I wrote carry out a detailed reconciliation between the supplier statement and the ledger, discuss the difference with management, if this an error at the supplier end no action required, if it was an error at our end we should amend the balance

One not received I said at clients permission send another circulisation, potentially call them if required, carry out a reconciliation if this shows any differences.

[Rana]

oh I think I mentioned something about the fire being a non adjusting event and that it should just be disclosed in the financial statements. I was really confused cause it was material so I didn’t know if I should write down the value of assets on the financial statements or not. I don’t remember what I did about the inventory but I think I messed it up as well

[Rana]

yeaaah that phrasing was really weird I’m not sure I understood it right it said it was restricted to all employees? as in accessable to all employees?

[Rana]

did it say that all staff had access to the supplier’s master file? why did I think I read otherwise? =\\\

[Rana]

hey what did you guys do for question 4 I think? I’m not sure if it was 4, the fire that damaged 40% of assets, and the defective inventory?
also what kind of procedures did you do about the payables and accruals with the supplier’s responses?
I feel like I messed up those two questions really bad =\

[Rana]

okay I understand now, I think I didn’t make the connection that the 90 million paid is meant to be the total market value. think I read way too much into it. thank you so much!

[Rana]

I get that thanks. but I’m still confused as to why we have to get the total nominal value of the bonds rather than the total market value of the bonds redeemed? I mean shouldn’t we get the TOTAL market value of the notes and compare that total to the cash we spent? because they’re being redeemed at the market value not nominal value.
I’m really confused about that part :/

[Rana]

Dear Sir,
my enquiry relates to the same question Bar Co.
if the loan notes are being bought back at their market value rather than their nominal value, why do we have to compare the amount spent redeeming them to their nominal value rather than their market value? shouldn’t we get their market value when redeemed and compare that to the cash spent redeeming them? I.e shouldn’t it be 90 X 112.5/100 instead? can you please explain?
thank you

[Author]

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