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First attempt – passed 61%. this was my last exam.
Congrats everyone and never give up!I left a comment yesterday but it seems it did not get posted. Too bad.
I also got the one with due dilligence, the one that wants to close 3 of the facilities in Europe and the one with business risk, materiality and data analytics (clothes retailer).
Good luck, everyone, fingers crossed!Pass 62% on my first attempt, what a lovely surprise. One more to go….
Thanks OpenTuition for the lectures!! It really helped.I did noticed and I left a comment before answering stating this. I also mentioned “I will assume the request refers to euros, and therefore I will consider 22.7m euros”.
Hi, I got in part A a NPV investment in a subsidiary in another country. I got a negative NPV over 4 years discounted cash flow, is that correct? I am sure I did something wrong but hopefully I might score something there. For the exchange rate I used the interest rate parity formula. There was also a question requiring ups and downs of investing in a country that has free trade, stable economy, low taxes.
Question 2 was about a club which was incurring losses and was within an reorganisation and two proposals were provided. The requirement was to re-do the SOFP for current year and do the P/L – both for each of the proposals. I remember proposal two was not actually duitable, because it was breaching condition no. 3, but not sure I calculated correctly. I recommended maybe an aproach between the two of them (raise some money by equity finance and also sell less players)
Question 3 involved some currency swaps and some exchange rate hedging to calculate. I only had time to do forward rate, money market hedging, and I stopped there because I had no time do to the option one. The other quesiton related to what the interest would be if the company to swap with another one in another country.
Hopefully I would score enough.
Good luck to everyone and I am curios what you did in your exam.First attempt, passed with 68%. It was a difficult paper, indeed! Congrats to everyone that passed, and those who did not, don’t lose hope! It is doable with devotion and practice.
I got for question 1- goodwill calculation, there was a matter if contingent consideration payable to a director should be considered, I said yes and GW resulted in 1 mln.
There was some impairment of assets – how they are treated in the financial sts of the entity and also in the consolidated statements- I wrote that any impairment is first allocated to GW and then on a proportionate rate to any assets, and then the question of reversal of ipairment, where I wrote that impairment of Gw is not reversed, and any reversal can happen as far as the amount does not exceed the carry amount considering the initial impairment has not happened. All amounts were provided.Q2 was about the issues in appointing as NED a retired lady, which basically had little idea of the company’s sector; also the same lady having some toughts about the use of AI and big data of the new company – I think here I messed it a little bit. What did you write here?
Then I noticed I only have 1 hour left and so I panicked and there is little I can remember, altought I did not treat the requirements in detail, only superficial. There was some depreciation of PPE with multiple components and different useful life. There was something to re-calculate profit from some APM on a weird proforma given. Also, what principles should the entity use when disclosing APMs, I superficially mentioned about materiality, comparability, relevace….stuff like that.
Another one was about some investment property- to discuss about the fair value measurement proposed (national rate x square meters)- the scenario did not offer much , only that similar buildings in the area is being sold…..
I am curious to see what you can remember and your answers!What was the question about segments that you are mentioninf? I don’t seem to remember the particular quesiton/case about segment reporting question in the exam.
mirmubashiralikhan9@gmail.com wrote:I missed out on this one. Kept this question for the end. I did complete the risk question but by the time i tried answering internal controls to reduce waste my time was up.
I have no idea, I was thinking in general. it was so vague! Good idea you had, I did not thought about that.
zamanii wrote:How about internal controls to reduce waste?? Waste in what exactly??
For internal controls to reduce waste I recommended quality checking the products when they arrive from suppliers, monitor waste in each of the locations regularly, train people (altought this is not a control measure…. I think)
For the areas of improvement in the value chain I considered all categories one by one. i had improvements, only that I did not do the first part, which was to assess or something like that, the value chain.zamanii wrote:How about internal controls to reduce waste?? Waste in what exactly??
Fully agree, those two were the weirdest!!!
Saber132 wrote:oh were there 2 different Eve case studies? Mine went
1) Analyze the competitive position of the company + identify risks and recommend what the board should do about them (think around 12/14 marks?) w/ the 5 forces analysis as one of the exhibits<br>2) Some stupid “characteristics of effective and responsible leaders for Eve” followed up with “how they help with the culture at the company” esque questions (14) + how Eve can reduce their environmental footprint in context of a specific exhibit (6) and you didn’t really have much to write about<br>3) How aspects of the marketing mix can be changed for a competitive advantage (marketing mix was an exhibit)<br>4) Evaluate the investment appraisal of a gardening centre for sale (12)<br>Forgot 1b and 3bThat is weird, I did not had investment appraisal nor mk mix… maybe there were different questions….
I dont remember the task, but it was a B part of a task, about preparing a memo, I think, to the marketing manager about changes in operations that needs to be done in order to adress the issue with the soil which was not environmentally friendly. I proposed stopping the commercialisation, promote the company as eco-friendly, return all products to suppliers and announce them, in order for Eve not to be associated with companies that damage the environment. it might sound dumb but I had no other ideas….
Risk map- I made paragraphs with each possible use Eve could had of the risk map. I wrote how it can support into responding to risk (mentioning TARA), how mgm can implement controls, how they are able to respond quickly to risk, how they can prioritise the risk based in the map, whatever crossed my mind.
I actually think that my answers were quite superficial, as I consider that I had no actual points to stick to.
I had the Eve gardening company. Tasks that I remember- Evaluation of the financial position, financial performance and recommended KPIs; Evaluation of the value chain and to recommend improvements; how can heat map can support risk mgm; evaluation of the talent management proposal; propose changes to operations to adress the soil issue; and effective and responsible leadership supporting in maintaining competitive advantage.
I found it quite a difficult one, as I was more prepared to do by myself the value chain, evaluation of risks n so on, I did not expected to receive them directly.
I found it difficult to find solutions when this company seemed to perform quite well….I did not use any of the theory, altough I was thinking afterwards that maybe the capitals should have been used for the creation of value?
How did it seemed to you?
Hi, Is anybody else waiting for it’s peer review these days? 😀 I reviewed all five at the moment (initially I had three, but after 20 minutes other two were available for download), and for mine it says that it is currently in progress….I hope it will be done soon :-/
I also got operating profit and payables. OP I put with one decimal I think, but payables days I rounded, and I remember that there were fewer days (they were paying quicker).
Yes on the corporate governance questions. For the remuneration I suggested to implement a remuneration committee formed of non-executives so they can decide on the remuneration of executives. Remuneration of non-executives is determined by the board, but this I forgot to mention as I was not sure.
For having a friend on the board – I don’t remember 🙂Substantive procedures I remember: non-current assets, purchases.
For the audit risks and auditor’s response I identified that capital expenditure might not have been classified correctly, if someone remembers the scenario it would help me remember more :))I had the same questions mentioned here. Also, I remember the questions on safeguards when three people had interest in the entity (because someone had shares and another one was a close family member or something like that and it was also a self-review risk).
On the service organisation: Type 1 report =report on description and design of controls at a service org) and type 2 report = report on the description, design and operating effectiveness of controls at a service organisation). I have chosen type 2, I still don’t know if that is correct.
The descriptions of components of internal control system gave me a bit of a trouble.
Substantive procedures, controls, risks and auditor’s response, those were fine. Multiple choice questions I found difficult.
Last question I wrote qualified except for, with a paragraph Basis for qualified opinion because the amount is material but not pervasive.
Ratios were simple.
Good luck everyone!Also, the computer screen extremely small, and the display view in section C questions, especially, it was A BIG JOKE! My response area occupied almost 10% of the entire screen. I did not have the horizontal line, to hide the request. It was a joke to consolidate in spreadsheet in such a tiny space, you had to scroll like crazy, and completely hide the scenario in order to see something a bit decent from the response.
Section A and B were quite tricky. I got a bit lost on the questions regarding deferred tax in section B. Calculations of goodwill, profit attributable to NCI, bonus issue of shares, calculation of weighted average number of shares, those were quite straightforward (I can’t remember the results I go, though), but I got lost on the text questions, especially with multiple choices.
Section C I got adjustments to P/L, quite easy, preparation of financial statement for single entity, and calculation of EPS. For sure I failed on the calculation of the convertible loan note. The 2nd question with the interpretation…I expected a bit more information. Only 3 ratios, revised profit without subsidary, interpretation and there was something else…. I got a lower profit without subsidary, therefore the result was that the parent is not performing well, not the group of the acquired entity. I hope I did not mess it up.
I don’t know about the score, I oscilate 50-50 between pass or fail.
Does anyone remember particular details & responses of questions?
Good luck to everyone!First attempt pass with 61%. I was expecting a failure, therefore, it was a really nice surprise!
iamar wrote:As far as i know that the financial and operating gearing ratios were out of the syllabus as it comes in F9 syllabus and the that the 2.4m$ question i randomly selected the answer 48. was i right?
operating ratio and financial gearing ratio were part of the syllabus. I also had them in F3 if I recall correctly.
