*** ACCA P5 September 2017 Exam was.. Instant Poll and comments ***

@olshevskiy said:
In Q1 I had cost gap of 300 per one engine.
Does anybody match?

Yes, 300 cost gap.

Sorry, I didn;t do Q2

Hi All

In Q4 – Part A – As far i remember the examiner asked Evaluate how performance of New Tax division will be improved by introducing reward system.

I linked it with mission statement – it was mainly broken down in three Headings as below:

To be top firm
Have Skilled Staff
Profitable and get business

I Analysed each sub heading that current system does not sufficiently reward and encourage staff to achieve aim of business. The implementation of reward system with ( examples provided ) will improve the performance of company and it will achieve the aim of business.

Part B) Evaluate new rewards system introduced by Firm for Tax division

I Evaluated ( Good/ Bad comments ) new reward system and compared it with mission statement

New reward system was direct measure of To be top firm and contained reward for staff to gain new business.

But they did not have any measure for improving skills of Staff.

As Tax firm nature of business depends on skilled staff. If they cannot invest in improving skills of staff. they will lose out on every thing ( i.e. profit, market share etc )

I hope examiner considers it.

We have exactly the same results in all figures… for target cost gap its good cause i spent a lot of time on that during the exam date so i think that it cant be wrong for both of us… for roce (i caclulated the average capit employed (beg+clos)/2) and ebitda we have the same results as well…however i did them super fastly..so i dont know if there are so simple as what i wrote down…

Was a bit rough for me but was fair for well prepared candidate

@anastell said:
I also received 300 cost gap per engine.
The paper was fair in comparison with the previous! Hope for a pass.
What about the quality costs. The casus stated that the CEO has calculated the prevention costs and is aware of them but wants information for the other three categories of quality costs. Then the Q requirement was calculate and determine by group the costs of quality. The Appendix contained data for training costs which are prevention costs. I was a little bit confused between the casus text and the Q requirment. However, decided to group the prevention and appraisal quality costs in one column with commented of my assumption.
What about you guys?

Well anastell, that was a confusing question… as many times in acca you are not pretty sure about what are you are being asked for…(at least this happens to me the last 4 years in many differene acca papers). in that list in the appendix…there were for sure external failure quality costs…so taking into account that i assumed that the ceo wanted to categorise all those different types of costs into the 4 different q.costs categories… so i did that.. and then gave some proposals for extra cost categories where quality costs can be hidden

@vaskont7 said:
Well anastell, that was a confusing question… as many times in acca you are not pretty sure about what are you are being asked for…(at least this happens to me the last 4 years in many differene acca papers). in that list in the appendix…there were for sure external failure quality costs…so taking into account that i assumed that the ceo wanted to categorise all those different types of costs into the 4 different q.costs categories… so i did that.. and then gave some proposals for extra cost categories where quality costs can be hidden

I did the same for last part of q1, there were fault finding costs, potentially lost revenue, PR costs, Rework costs in both external and internal failures.

And I believe quality control is an appraisal cost as you train your staff to control quality (checking) rather than assuring it

@sa1pw said:
What if we use closing figure for ROCE?

well I calculated the avg capital employed, because somewhere in the scenario it was mentioned that the ceo was cared about average capital employed, or something like that…. i really dont remember what exactly it was mentioned…but it was a phrase like that…

@debbielynch said:
It definitely said the CEO used average capital employed so you had the Opening Balance and the Closing balances and then divide by 2 to get average Cap Empl.

I missed this part of CEO. Although used correct operating profit figure and made comments on ROCE like it favoring depreciated equipment, discouraged investment like the benchmark company had made, both were listed company so ROCE may show returns but will not evaluate long term value companies are creating for investors.

I added back impairment of goodwill for EBITDA calculations. Was it correct?

But i found examples of ebitda calculation with adding back goodwill 🙁 maybe someone made the same calculations as me?

@sa1pw said:
How did you calculate ROCE? I deducted current liabilities from total assets.

And EBITDA I think was same, although I may have screwed up in totalling by calculator

Yes capital employed=Total assets-current liabilities=(the same as)Total equity+Long term liabilities (balance sheet equation)

@olshevskiy said:
Yes capital employed=Total assets-current liabilities=(the same as)Total equity+Long term liabilities (balance sheet equation)

But I did not use Average Capital Rather Closing Capital.

There was no impairment costs, it had given depreciation costs in notes i gues