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I got:
Grocery store. Can’t remember the business name. Business risks, then ROMMs. Auditor’s responsibility regarding NOCLAR. Procedures on joint venture acquisition. I thought of a lot more risks than I had time to write down unfortunately, so my marks are limited there. I think quite a lot was already materially misstated so it wasn’t too difficult to find ROMMs.
Geller Co… lots about going concern and auditor’s responsibilities, evaluating management’s assumptions on a forecast cash flow (whoever prepared it was kinda delusional). 10 marks then 2x 5 marks – went ok but I left it until last and didn’t 100% understand what i was being asked for. I should’ve studied PFI more.
Forsythia Co… quality management 25 marker – went terribly tbh. Also should have studied quality management more.
I think this is the first exam I’ve really messed up, it somehow brought up everything I wasn’t strong in. But you never know, I wrote SO much that it might get me enough marks. I definitely have the professional marks at least.
@GeorgeB169, I got the same questions as you. I felt it was a narrow range of questions and I got no questions on anything I felt really confident about. I definitely haven’t passed. How do you feel about it?
@alique I believe it’s because the companies we write about in SBL are fictional, from fictional countries, and set in random years like 20X5. COVID-19 is an anomaly in today’s business environment and I assume ACCA would want us to analyse/evaluate (etc) issues that arise in the normal business environment. Pandemics and their effects are not in the syllabus so ACCA can’t expect students to write about them, as well.
I found it slightly annoying that they mostly didn’t refer to most people by name. I had to write out “managing partner” “senior partner” etc throughout it. I find it a lot easier when they at least name them, because I can remember who each person is a lot better!
I reckon I’m probably going to get somewhere between 40% and 50% hahah. Good luck with results everybody. I can’t believe they chose an LLP!
In case it helps anyone, I had these questions and wrote these answers, I could be completely wrong about most of them tbh:
1. benefits/drawbacks of a change in governance structure to multi-tier – spat out theory here
2. sale of management consultancy subsidiary – used SAF for this, but I didn’t use it well
3a and b. ethical conduct of partner – scepticism about allegations, how to investigate and implementations which will help this in future. I said they should believe accuser but keep a questioning mind about it because the accuser had just been made redundant etc. Wrote some threats to independence, and used COPIP. Said they need to ask for evidence from accuser, maybe have confidential chats with staff who dealt with unethical partner, obtain prior years’ audit files. For implementation I said to rotate audit partner and I can’t remember what else.
4a and b. benefits and drawbacks of automation, benefits and drawbacks of establishing internal audit. Common sensed my way through this one!
5. slides about implications with competitors, external opportunities and recommendations for a culture change – this one was awful, I just churned out a couple of random things like becoming more collaborative and participative, using automation, establish core competences in non audit services if possible, some other stuff
I got it too and I just discussed aggressive, matching and conservative policies & short-term and long-term funding of fluctuating and permanent current assets. I don’t think I wrote enough for 7 marks though!
I got that and I answered investment bank. Wasn’t in any of my study texts or lectures so I guessed. It made the most sense to me.
Oh gosh I really think I’ve messed up my answer to that leasing question. I got that buying was cheaper at 6% discount (it was mainly because of capital allowances), then in the next question I wrote about how buying was cheaper, however if they choose the lease it’ll be more beneficial from because if the machine goes obsolete they can break the lease. Did anybody else get that buying was cheaper? I think I may have missed something in the calculation.
I ended up getting 6% for the cost of capital on Grout. I just multiplied the bank loan interest by 1-T (can’t remember if tax was 30% or 20%) and I used the same for the lease. Because I didn’t revise leasing enough I couldn’t remember what to use as cost of capital so I just used the same one haha!
Holy moly I am an idiot. I didn’t revise factoring or lease vs buy that much because I thought meh, they’re easy, it’ll be fine…
I got factoring and lease vs buy in section C (Blank Co and Grout Co I believe). Oh well, I tried my best!
I didn’t even have one question on CAPM or WACC which was my favourite topic…!
Hi afraansar, I attempted this question a month or so ago, I’m taking the FM exam next Friday. this is how I did it. I hope it helps.
Revenue for 20X6 is $3.5m (given in question).
Gross profit margin is 40% (also given in question).
Gross profit is therefore 40% of revenue, giving $1.4m as gross profit. (gross profit / 2,100,000 = 40% then I rearranged formula)
Therefore cost of sales is $2.1m (the difference between the two).
Hi sjkk, I’m not sure if we can message via opentuition but feel free to message me on Reddit if you have it. My username is pessirnist. Would be happy to discuss the questions with you if you still want to talk about it. 🙂
@alexf said:
I have same question about Golden AveThe scenario was something like this
“The bank introduce Golden Ave card for four year. Total advertising costs was 50000. Every year new 1000 customers coming and paing for each year $300. 500 customers cease card after 1 year and another 500 customers cease card after second year. Bank spend $400 for first year support and $50 for second year support”.
The question was something like this:
What is life-cycle profit per customer?Answers somthing like this
A $12.5
B $15
C $22.5
D $25I’m spend time and at the end decide to guessing $12.5.
Today my solving is:
Costs:
1000customers * 4 year * $400 = $1600000
500customers * 4 year * $50 = $100000
Advertisement $50000Total costs: $1750000
Revenue:
1000customers * 4 year * $300 = $1200000
500customers * 4 year * $300 = $600000Total revenue: $1800000
Total profit: 1800000-1750000=$50000
Profit per customer: $50000 / 4000 customers=$12.5I think my guess was right
Hey alexf, I didn’t get that question in my exam, but there is a question exactly like this in the BPP P&R kit, which I attempted a few days ago. The P&R kit states that it appeared in the March 2018 exam. The answer debrief is in the examiner’s report linked here: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f5/examinersreports/f5-examreport-march-2018.pdf
Good luck!
Section A and B were horrible, but I may have scraped a pass. Section C I found quite easy but I feel as though I may have misunderstood the questions, I had transfer pricing and relevant costing.
I was dreading getting a Section C question on transfer pricing but I think I did pretty well on that one. Time will tell!
Good luck for January 13th everyone!
I genuinely found my MA, FA and LW exams more difficult than FR. This is my first applied skills exam so maybe I was just lucky, does anybody feel similar? I feel as though most of the exam was on consolidation and had ZERO questions on leases, 2 marks for financial instruments, 2 marks for revenue, but AT LEAST 30 marks (not exaggerating) on consolidation. We’ll see if it actually went well on July 15th, I suppose.
