[Yvette]

My sequence of completing the exam is question 2, question 1 and then question 4.

I spent also too much time on question 2, trying to score as many marks, then I tried to wrap it up quickly and start question 1.

I find question 1 very tricky. Part ii) and iii) were so confusing… You really have to read the case to identify what the examiner wanted you to do. I re-read that part of the case at least 5 fives, to make sure I did the right thing.

You are only supposed to evaluate whether the performance measures listed in Appendix 1 are appropriate to the stakeholders they mentioned. It is not until part iii) that you actually have to do the calculations for the mentioned performance measures and then suggest 2 more performance measures (remember the case said maximum 7 performance measures, and I think there were 5 already in the Appendix 1).

I’d say compared to the past exams that I practiced on, the exam itself is quite decent, nothing too difficult and not do-able, you just have to watch out for time.

Good luck to everyone, and I’m also hoping to scores above 50%. Fingers crossed!!

[Yvette]

Illustration 3-5: Intercompany loan that is of a long-term investment nature
Assume a US parent has a loan denominated in USD to its foreign subsidiary whose functional currency is the local currency. The loan does not have a stated maturity date, and the US parent does not intend to seek repayment in the foreseeable future. Therefore, this intercompany loan qualifies as an intercompany transaction of a long-term investment nature. Since this loan is denominated in the functional currency of the US parent, the US parent does not deem this loan to be a foreign currency transaction on its books. However, since the functional currency of the foreign entity is its local currency while the loan is denominated in USD, the foreign entity deems this loan to be a foreign currency transaction.
In the standalone financial statements of the foreign entity, the foreign transaction gain or loss related to this intercompany loan is recorded in income. However, the transaction gain or loss would be reclassified as a translation adjustment and recorded in other comprehensive income in the US parent’s consolidated financial statements since both parties to the intercompany transaction are included in the US parent’s consolidated financial statements.

Found this from https://www.ey.com/publication/vwluassetsdld/financialreportingdevelopments_bb2103_foreigncurrency_18july2013/$file/financialreportingdevelopments_bb2103_foreigncurrency_18july2013.pdf?OpenElement or you can google (foreign currency intercompany loan in consolidation)

[Yvette]

Hello all,

I struggled a lot with time as well. Q3 was alright, I thought. Just worried I didn’t have enough points.The whole exam was ok, however like what some of you said, I could have worked much faster if information was given in the case, rather than generating from your own. Thinking takes time…

Got carried away answering Q.1 as well. Only had 10 minutes left to do part c…

I can’t seem to find something to write for supporting and related industry, so I just started saying how Machine shop is from a prosperous industrial country, the gov must’ve contributed to make this happen…

Someone asked about factor condition, you can actually write how the industrial country has experienced workforce.

I was especially lost on Q4.b.), write a short report to address specific concerns that victor has over the impacts technological/media change has on subscribers, on advertisers and on the financial viability if BA Times. How do you address his concerns? He’s the one who assumes people don’t have internet access and that he assumes there are people like himself who wish to remain reading from printed magazines.

I’m very worried that I didn’t write enough to pass the exam. I did ok in Q1 and 3 but struggle with Q4 b.) which still worthed 10 marks. Really don’t want to resit P3. Hope for a PASS!

[Yvette]

I didn’t like Kaplan. I don’t find the study text contains enough information for me to understand the topic. It doesn’t explain things properly and causes confusion. Furthermore, it is not helping to build connections between the different chapters it contains.

I have studied with BPP textbook before for P1, although, the text repeats a lot of previous chapter materials but you see the links between the different topics in the syllabus.

There are also so many typos in the Kaplan textbook that made it seem very unprofessional.

[Author]

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