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@P2-D2 said:
Hi,

You would have to use a quarterly discount rate, so convert the annual rate to a quarterly rate, but that is off syllabus.

Thanks

Once we get to quarterly rate, We will get the interest rate? But what year to pick for calculation of the discount factor ? Like we could do that for year 1, 2 & 3 tgen multiply tge discount numbers obtained with lease payments, what should be done in such case?

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How should i advance my career as management accountant?

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@eagledave said:
You’re welcome. Please would you mind sharing your experience so far, which aspect of accounting and how did you find it? or are you still completing your PER? Would be useful and interesting to know how you have found your previous accounting experience.

It also depends on the industry you are in, how intense the interaction is, etc.

Yes still completing PER,

I made the mistake of picking up procurement operation role in a related organization.

However, I took part in Financial Reporting, Payables Reconciliation, Preparing Consumption & Re-Work Reports as well voluntarily.

I love data and stuff, KPI Monitoring/Reporting.

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@eagledave said:
I understand, a lot of the roles now including technical accounting roles do involve dealing with senior management, auditors, and business managers one way or another. It is a skill that you need to develop within you. Anything can be learned, you just need to have the right attitude.

I would say, as an ACCA, Financial Accountant or Accounting Manager maybe an option? Perhaps the interaction may not be as intense as Business Partnering roles.

Co-ordinating with internal business functions or management is not a big problem.

Also with accountants its always limited as most time is spent with figures.

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@eagledave said:
I think, FP&A type of roles would be a good career to step into considering your interest. It would require business partnering though. A lot of high level roles would require you to deal with all key stakeholders, but I don’t think you are expected to be the life of the party, just be able to connect and align with them would be the expectation, I would think.

Not really a dealing type of person. Mostly into facts and figures

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@hampine said:
“What is Balance in Balance scorecard” somebody help me with that. Never seen it in the approved study material. Why can’t he just ask to Explain Balance scorecard directly.

See my post

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@boringaccountant said:
i thought Q4 was the easier of the others. lengthy but was more to the point..

when compared to questions like “what is balance in a balanced scorecard”? -_-

Balance is building a blend of financial and nonfinancial objectives and kpis to encourage long term company success.

[sa1pw]

@seagoat said:
Article from PQ magazine – a word from Examiner

https://www.pqaccountant.com/pmag-FFFF0050018001D002171957.html

What?

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@jsmp said:
Hi guys, I felt Q1 was ok but have realised I left out some key bits (probably to be expected from a consolidation question – just get the easy marks).

I then did question 3 which was ok. I was not sure about some things so just make some assumptions which seemed logical.

But question 2 was a disaster! I really did not know what to write. I ended up writing stuff about performance obligations which I am pretty sure is wrong but I had to write something!

Overall I believe I have got a high 30s/low 40s mark. I gave it my best attempt so will take some time away from exams then start planning revision for the inevitable resit soon.

What did you guys write for question 2?

Q2 part b was easy rest was tough, I got JV In first part wrong. Last one was to recognize credit loss and liability.

Q3 was

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What did u guys write in ifrs8?

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@michelmichel said:
It’s so hard to believe in this.. Seems like a completely unrealistic achievement… How much time can you devote to each subject is you pass 10 exams within 13 months? 1.3 months? Is that enought even to read the study book, let alone revise anything? I think someone is just exaggerating..

Its possible. F series in 6 months, Then P1 P2 in 3 months. Rest of Pseries in another 3 months

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@kengarrett said:
Delighted to hear about your successes.

Thank you for your kind comments.

Always welcome.

Its an honour to have grasped knowledge from a person of your calibre. God Bless You, Again lots of love from my side.

[sa1pw]

@gulfishan said:
The good old 50%

What are highest mark in your class

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@gulfishan said:
Hi Everyone

By the blessing of ALLAH, I passed my exam in the first attempt

Was so scared when I realised 75% of my class was revising for their 2nd attempt

Finally can sleep.

How much did you score

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Passed with 58

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I think held for sale can be shown on face in p&l or disclosed in notes, while in balane sheet it will be shown in current assets as operations held for sale.

While the discontinued operation is one which should be shown on face in p&l as discontinued operations. For balance sheet there will be nothing as operation will be sold and no asset and liabilities will be there relating to it, You also charge loss/gain on disposal in the profits/loss from discontinued operations.

@tutor Please correct me if I’m wrong?

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@P2-D2 said:
Hi,

Yes, any exchange gains/losses are non cash items and are adjusted accordingly.

Thanks

Thanks 🙂

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@P2-D2 said:
Hi,

The entry for the share of profit from associate would be DR Investment in associate CR Share of profit from associate.

The entry for the dividend received is DR Bank CR Investment in associate.

Thanks

So how do we account for reduction of dividend received from share of profit in SPL?

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Yes, just study them in depth.

Use technical articles and exam information alongside.

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@tobi6 said:
This seems to cover most of the points on the dashboard. I used a balanced scorecard approach as the dashboard covers financial perspective, customer perspective, innovation, and internal perspectives. I then drilled down on each of the indicators under each perspective. Overall the dashboard is strategic, simple, and shows clarity in terms of PAIL, purpose, intended audience, information provided, and length.

Balanced Scorecard could’ve been used but I refrained and went for an overall comment because it wanted to know why the dashboard got the award in which you had to mention good points of the dashboard as well as it’s indicators although I mentioned some drawbacks as well but overall it was good because it’s positives we’re alot more than negatives.

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@vaskont7 said:
Well we havee some reconciling items…hehe. :p :p. just kidding… more or less is the same .. we are the same at 4 from your points (i didnt write down the 1st one..but i saw that most of you did…so itt was a kind of clisee, but my practise at exam kit book wwas poor)… i also mentioned that it was not a good choise to benchmark against a company that its on a different b phase… (the had already moved into electr cars 2 years ago) cause is a kind of “manipulating” benchmarking exercise…it would be better to benchmark against a company that is exactly on the same phase….however i dont know whether that was a good one. it may be stupid…anyways..just wrote it down to have 5 points ( it was a 7 points question, isnt it?)

@vaskont7

It was 9 marks question and I wrote about 7 points in it.

What did you write in dashboard question?

These are my points from dashboard question:

-Benefits of EVA being a very good measure in dashboard(3 Sub points)
-closer to cash
-shareholders long term value
-supports non financial behaviors like r&d and discourages dysfunctional behavior

-TSR: – considers shareholder return and dividends which will be vital
-in particular thyme recently lost cash and TSR will show it’s share performance and incentives it’s taking

Operating Margin: Basic measure will show profits from the operations, so good to evaluate profitability

Design: Very key part in manufacturing sector, leads to competitive advantage and critical factor to customer satisfaction, But there was no measure regarding design quality/safety as thyme’s engine recently failed

Delivery: Sells internationally so delivery is obviously very vital, also it leads to customer satisfaction as they will be depending upon us and is a good measure of level of customer service we provide (also one of thyne’s main objective)

But I did find out one flaw with it that there was no measure for the customer service such as TECHNICAL QUERRIES RESOLVED, now if we are producing engine and our customer is producing planes, their staff and management may have technical querries, We may need to respond to those immediately to help our customers.

-# of products set right at first, Also supports TQM approach of the, very good measure to evaluate how good our quality standards are and how well do we produce the things without defects that lead to lower wastages as well and efficient business cycle.

-Revenue Growth: Shows the growth in revenue and if we are to aim to be world class, we need to broaden ourselves up, so need to ensure a good revenue rise so worthwhile to have that in benchmark.

-Market Share: We need to know where to we stand right now and this is what market share in the dashboard tells us, if we are aiming to be higher and better we need to know where we are currently. Also takes account of competition as how good we are against them

-Dashboard was well presented and was not overloaded which will lead to board having ease to use these figures

-Management commentary also provided ease to know what the figures represent and making use of dashboard areas

-It showed a good trend from past two years which definitely shows how we are SHAPING UP to the future, including policies like TQM

-However they may have produced some external information rather than budgets to make it more useful (this could be due to govt being obsessed with budgets) and also some graphical representation of KPI would’ve been better

-All in all it was a well designed dashboard which covered good areas. And was rewarded due to it’s positives with respect to dimensions of performance being covered

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@pecukinjsh said:
Did someone noted, that for benchmarking exercise financial data was given for different years for both companies? If I remember correctly, that for second company it was Y2015, but for first one it was Y2016 or half of Y2017, something like that.

I didn’t notice this.

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@vaskont7 said:
more or less we have the same points… i think I have 4 points as you….most of them are comon sense points….i just had an extra point (but i am not pretty sure whether its a good one), telling that the benchmarking exercise is better to have been performed against a company that is on exactly the same phase and not on a company that has already moved to the new electr sector 2 years ago..and that due to the fact that it could be seen as a “manipulation” of benchmarking exercise to select a company that has performed a shift to a new Indurstry and the results are already known…

And what did you mention for ROCE and EBITDA as performance measures for benchmark?

I suggested, For ROCE:

-Considers company size (both companies were of different size so different capital base)
-Considers returns for shareholders as how much profits made against capital, measuring business efficiency
-Can be very much encouraging dysfunctional behavior by supporting company that uses old depreciated asset (it was evident that the company with old assets had higher ROCE)
-Discourages Capital Expenditure and does not consider long term value for SH
-Company in veeland was capitalizing development costs, so it was likely to have lower ROCE as it’s capital base got higher

EBITDA:
-More closer to cash as removes assumptions like depreciation, so shareholder perspective better evaluated
-Less subject to manipulation with a assumptions like depreciation that can be easily manipulated by accounting treatments
-Better shows earnings and returns, As removes uncontrollable factors, so better evaluated performance of both companies With respect to their earnings
-But does not take account of finance costs and WACC, nor the capital invested, So potentially investors could be seeking a very high return and coat of capital for company( Veeland company had invested alot in debt)
-Also does not take account of size of the companies as evident that one company had significantly higher capital base so, A larger company is bound to generate more profits/earnings (It’s a nominal measure)

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@lucamucciaccia said:
Yes Impairment was given in the 1st paragraph but how did you treat it?

I didn’t add it back to arrive to EBITDA….

Deducted impairment from p&l expense, and add answer to operating profit

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@vaskont7 What did you mention in Benchmarking Problems for Performance Management?

Let’s see if points reconcile:

-Only financial data given but it’s non-financial data that shows difference between the two business and what board should really plan for
-There were issues with benchmarks such as the choice of measures for benchmarking, Also one company was capitalizing development so by nature will be tough to evaluate them using certain financial measures and then use figures to assess
-Benchmarked company’s customers had moved to electric cars while in our country there was no such trend so benchmark and all these figures will be useless if we can’t manage by carrying these operations and going ahead in operations
-Economies of both countries were different so by nature their performance will be different making it rather tough to evaluate if benchmarking will provide value and how can business take account of varying environment in our country to manage(Developing economy vs an economy on low)
-Govt and other such factors were clearly in favor of of electric cars and development expenditure (Benchmarked company hd even made expenditure on new IT Systems), So due to such external issues performance difference will arise and provide trouble in managing performance
-Reliability of data can be questioned which will make further issues when managing performance using the data which in first may not be reliable (profits and capital can be manipulated figures)

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