[rochellev]

Q1 cash flows – 10 marks for calculating the cash paid to acquire additional shares in associate (holding is now subsidiary). Part payment was also made via share issue.
Several workings needed for this (FV existing holding, FV NCI, FV uplift land etc, work out FV of shares transferred). OK, fair enough. If it stopped there.

I also arrived at the 3million cash paid as several others. You also had to describe the effects of the changes in consolidated statements in general.

Was then required, for an additional 16 marks, to prepare statement of cash flows from investing and financing activities with possibly the largest amount of supplementary notes for adjustments I have seen in a question, on TOP of the work undertaken to obtain the figure in the first 10 mark question.

No employer would expect you to prepare all of that, with any level of accuracy or completeness, in one hour, which is roughly the time you have if you stand any chance of completely the other questions, so I am unsure why ACCA expect us to do so, let alone in exam conditions.

[rochellev]

First attempt. Failed with 49! So frustrating.
On the plus side I passed FM.

[rochellev]

I also had the NPV 4 vs 10 years. And nominal cost calculation then real cost.

I calculated my NPV workings based on 4 years due to the director comment at the bottom saying that they are appraised over 4 years. I used a depreciation value of 10 years. Not saying whether this is right or wrong, it was a little confusing.

With regards to the wrong question Paris Co, some people in my room were not even aware. We were not told before exam started, or even early on. A lady just randomly slid a peice of paper on our desks part way through the exam which I assumed was scrap and ignored initially. Fortunately I did not have the question containing the error.

[rochellev]

I’ve just realised after reading this that I didn’t actually touch my calculator during exam.

[rochellev]

I will add my responses, should it provide any relief, though I mirror the uncertainty felt by everyone else.

1a – I completely forgot the terms of the matrix e.g star etc. However I answered not to invest in the corded declining market, they should invest in the cordless as they have a strong market share. Large sales and the market is still growing. I advised against further investment in the robotic due to the initial high sales price which has attracted a lot of competition and will ultimately lead to lower long term margins.

1b – if this was the question about the restructuring or refocus. I was stuck for theory so I just suggested that the marketing would need to change and be prioritised as this is a much higher value purchase and a brochure will not suffice etc. I also said they could tap into their existing customer base and offer them promotional offers on the new vehicle given their loyalty to the brand with previous purchases.

2a – external factors to speed – government and local council resistance to large coverage of charge points. Ppl will not want to buy if planning permission is hard to obtain if they wanted to build their own charge point near home, or if there are not enough across country. Won’t buy car if not large coverage of charging facilities.

2b unanswered.

3 – used porters diamond and found this question OK.

4. Email was a joke. No theory applied. I just emphasised the project managers point of first to market being critical, therefore confidentiality needed to be maintained. And that we as an intraprenurial company encourage ideas from anyone who believes the process to market can be made quicker. We have a strong brand and demand, just need to get it done first.

The most shocking part of all, was the guy sat a few tables in front of me who put his pen down at 12.30 and genuinely didn’t pick it up again. Wish I had that confidence (or glad I didn’t)

[rochellev]

Areas not tested at all in section A, B or C (pretty much the areas you would revise!):
Transfer pricing
Pricing decisions (shadow price, price elasticity of demand, demand function, optimum selling price & quantity)
Linear programming
Limiting factors
Sensitivity analysis
Maximin/max/regret
Decision tree
Value of perfect information
Risk

Section A questions:
2 x relevant cost (one of materials, one of new machinery for one off contract)
1 x throughput accounting – place products in order of priorty
1 x CVP
2 x target costing (one general knowledge & one working out cost gap)
1 x ideal standards
1 x environmental accounting (select 2 out of 6 options which relate to internal failure costs)
1 x return on investment
1 x difference ABC to absorption cost per unit
1 x management information systems knowledge

Section Bs
1 x Life cycle in relation to two aeroplane designs. Heavy data. (10 marks) – hardest questions I have personally seen in my life.
1 x Make vs buy and shutdown (10 marks) easy.
1 x Sales planning operational variances.(10 marks)

Section Cs
20 marks for the “3 E’s” based on 3x universities performance.
15 marks – rolling budgets – preparation of next 4 quarters for 9 marks, and benefits of adopting the approach for 6 marks.
5 marks – explaining beyond budgeting

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