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I should add, my issue isn’t with the final answer but with how they arrived at said answer, especially with regards to the treatment of the initial deposit and the figure on which the interest is calculated thereafter.
Passed, 78%
Exam was a lot harder than I expected, came out thinking I got only 55-60.
Sorry for you guys that were so close, you will make it next time. Good luck!
The notes are Opentuitons own notes, which go hand-in-hand with their lectures. They are not derived from a study text as far as I am aware.
The point of them, I think, is to kind of replace any study text you may be using.
In reality, I’ve found the best methodology of revising (for me at least) is to watch the lectures and use the lecture notes to learn the basic, broader aspect of the syllabus and then to
1. use a revision kit (I prefer BPP) to practice questions
2. use a study text to refine that knowledge and pick up the more finer details
3. read ACCA technical articles to really drive the points homeIgnore the above ^^
I made that post like straight after the exam, no idea how it how only just posted now lol. Most of what I’ve asked has already been covered.
Man that whole question 31 gave me problems.
I definitely got no marks for the current ratio and overdraft bit. Left me so confused with all the different stuff.
What did people do for 31c? The question about 5 ways of managing receivables. That kinda confused me too. I assume it wanted things like invoice discount and factoring etc but I also wrote about doing aged receivables analysis and creditworthiness etc. Bit all over the place lol.
Did people use 10% for the discount rate for 32b?
Fingers crossed for the pass
In my opinion, the declared dividends thingy is just like cash vs accruals basis argument.
I think, if I remember the question correctly, the declared dividends were for the year that was in the same time period as the capital growth but paid the next year, where as the paid dividends belonged to the period before but were paid in the same year as the capital growth.
So if you believe that Total Shareholder Return is calculated on cash basis, you would have answered with the dividend received and if you think it should be calculated on accruals basis then you calculate with the declared dividend.
@gawcram said:
Yes, it was a McQ
What’s your answer for the EAC mcq? Was it both statements true?
Also the limitations of business valuation??I can’t remember exactly what those questions were, sorry. If you can remember them, or some of the answer options then i might be able to tell you but right now my mind is blank!
@gawcram said:
Yes I included fc
Do u remember the answer for the wacc calculation?
Is it 14.7 as I included cost of bank loan aswellWas this one of the MCQ? About book value WACC I think?
If it was the one that had “reserves”, I included both the reserves and the bank loan yeah.
I think it was equity + reserves plus a bond plus a bank loan right? I just plugged it all into the WACC formula (remembering to add reserves to equity and adjusting for tax the cost of debt).
I can’t remember the answer it gave me though, but I know that’s how I answered it.
I was just wonder if people included the Fixed Costs in the NPV question?
I can’t remember how the question was worded but I think it didn’t state if the Fixed Costs were incremental or not, they just said the fixed costs were nominal.
I included them because in the practice questions I’ve done, whenever there are fixed costs that need to be ignored we are told what the “incremental” part is, so I know to just include the incremental part and ignore the non-incremental. However in this question it just stated fixed costs so I was unsure if they were project specific fixed costs or not.
@aminb001 said:
Dividend paid is always considered. Check open tuition notes, all questions on TSR include dividend paid.Q1 was about corporate governance. Answer was option C. A is a close second but it is wrong.
I don’t know if this is Mike or John (or anyone affiliated with Opentuition) but they do have the username “Opentuition Team” but they answered that the dividends declared are included in the TSR, at this link:
@mailand20 said:
Do you remember that question about the inventory turnover?
I remember picking the answer A but dont remember the content of the question…I don’t remember the question, or what answer I gave.
I just remember doing 365/turnover ratio to get the days, but everything else is blank about that question.
@mailand20 said:
In the MCQ about islamic finance which option was that? Sukuk?The question sounded like a Musharaka to me. At least that’s what I picked. That is when expertise and capital is provided by both, and profits shared in a pre-defined ratio, and losses distributed in same ratio as capital provided.
A mudaraba is when all the finance is provided by one person, and the expertise by the other.
A sukuk is the islamic version of a bond with an underlying asset, and the ijara is a lease, and murabaha? is a credit sale.
I can’t remember exactly what the question asked but at the time I did think it was a musharaka.
@pinkyjovin123 said:
So is it strong form??option cDo you know Mcq about Sme is it option d) Sme choose any source of finance who support them.
The option said under strong form someone could make abnormal profits which is impossible as strong form immediately includes all information, public and private, into the price and so not even insider trader can beat the market.
The only option that made sense was semi-strong form as that does incorporate all past movements etc, (plus it anticipates certain news such as mergers before official annoucement and it also reacts very quickly to other news).
Can’t remember what the weak-form option was but that did not seem to make any sense either.
So just through excluding the ones that did not make sense, semi-strong form was the only one that did in my opinion. I could very easily be wrong though.
@tomlloyd393 said:
I wrote about;Trade references for new customers
Length of Credit Terms
Early payment discounts
External Credit Checks
And about accounts receivable department using aged debt reports and contacting customers regularlyWhat did you do?
Yep I pretty much wrote exactly the same stuff, aged receivables and utilisation reports, credit references, using public information like accounts, contacting customers. Also threw in early payment discount, factors, invoice discounting lol. I was just writing everything I could because I was confused by the question!
What did people write for question 31 last part, about the receivables management.
Think the was 5 ways to manage receivables?
So the other two options, which are:
1. Splot put option – useless to us, we do not want to sell SPLOT we want to buy it
4. Dollar call option – again useless to us, we do not want to buy dollars we want to sell them
I can help answer this I believe.
Firstly, what is an option?
An option is where you pay for the RIGHT (i. “have the option to”… hence it’s name) to exercise a trade at a pre-set price.
A PUT option is an option to sell. A CALL option is the option to buy.
So a PUT option on £500 is the right to sell £500 into say $ at a pre-set price. So sell £, buy $. If the price is in your favour compared to the spot rate, you exercise the trade. If it isn’t, you let the option expire and use the spot rate.
A CALL option on £500 is the right to buy £500 using say $ at a pre-set price. So sell $, buy £. Same as above, exercise the right if it is in your favour compared to the spot.
So this company in based in Farland (let’s call the currency ‘Splot’) is expecting to receive $1,000,000.in 3 months, what option do they require to hedge?
Well if you are receiving $1,000,000 you will have $ in your possession. How do you convert that into the currency you want, ‘Splot’.
The first option is to SELL dollars (put option). In this case we are selling the $1m we will receive to get ‘Splot’.
The second option is to BUY ‘Splot’ (call option). In this case we are buying ‘Splot’, using the $1m we will receive.
Ah perfect, I must’ve missed where you mentioned that, in my haste.
I appreciate you taking the time and effort to respond. Thank you, this place is a great help to me especially as a self study student!
I rewatched the lecture on Management of Receivables and Payables Examples 2/3 here: https://opentuition.com/acca/f9/management-of-working-capital-management-of-receivables-and-payables-example-2-3/
and noticed you did a similar question based on a 1% discount. In this, you did not reduce the credit sales by the amount of the discount before calculating the new receivables so I will assume that is what I should do in the exam. I still don’t quite understand why I should / shouldn’t apply the discount to the credit sales, although I’m sure I’m just missing something simple.
Passed with 85%. Little disappointed, was hoping for 90%+.. wish they gave papers back to let us know our mistakes.
@anny786 said:
Am I the only one who put 60,000 for PPRTimings messed up, I just about managed to complete this paper without having time to go over my answer, MCQ’S rushed?
If I remember correctly the property was owned for 12 years, and had been lived in for 10 continuous years from purchase.
The last 18 months are always exempt, and the other options (any time for overseas job, 4 years for UK job or 3 years for any other reason) all require you to have lived in the property after those periods of absence, so cannot be claimed.
Therefore the answer should have been 11.5/12 x gain = PPR relief.
Yes.
Also, any text books or revision kits that are for the Finance Act 2014 (for example all the books labelled to March ‘ 16) are all still relevant.
“It is expected that the Finance Bill will be enacted before Parliament is dissolved on 30 March 2015 prior to the General Election on 7 May 2015. The clauses that will be included in the first Finance Bill (Act) of 2015 will be those on which there is agreement between the political parties. After the General Election there will be further Finance Bills (Acts). In the last General Election year, 2010, there were three Finance Acts.
In order to provide certainty to learning providers and students, ACCA will extend the examinable legislation which applies to the exam year 1 April 2015 to 31 March 2016 for one further exam session to include June 2016. As such exams in June 2016 will examine Finance Act 2014. This change to examinable legislation for June 2016 will apply to papers FTX UK, F6 UK and P6 UK.
The following exam year for these papers will therefore be 1 September 2016 to 31 March 2017 (December 2016 session only for FTX UK).”
@laura4789 said:
Was this the corporation tax one? It was split over 2 years and the answers were 21% 21.5% 22.5% 23%?If I remember correctly it was (3/12*23%) + (9/12*21%) = 21.5%.
@shyamal said:
as result of her death iht would be 40% of (1,800,000-325,000)her husband NRB cannot be considered as he died more than 7 yrs ago
Erm… I don’t think I’ve read anything about NRB transfer having any sort of 7 year limitation?
The only limitation I know of is that on the death of the second spouse, there is a 2 year limit to make a claim to transfer the NRB remaining of the first spouse that died.
So the answer SHOULD have included the husbands NRB.