FRACCA Paper FR December 2020 Exam was.. Instant Poll and comments

Thank you Iraitis. I failed f5 with a 47 previously and had a very similar question on ratios and commenting on performance so not a good history. Similar to what I put although yours sounds much more developed. I said it was highly geared and debt financed Said operating profit reduced due to the prof expenses and increased cos. Further debt not a good idea would decrease roce and eps? Said they were diff to a supermarket as not cash sales so could be high receivables? Don’t know if this was completely wrong.

Section A was quite hard for me. Section C was fine. Hopefully, we can get the 50% guys. Im guessing it's gonna be this close for me. Hope for the best for everyone here!

oh.. F5! My nemesis, I absolutely hated that exam. I passed it on my second attempt (lets hope I do the same on F7) I don't recall seeing high receivables in the SOFP? One last comment, not sure what you made of that revaluation model comment, I just commented that it appeared that the non-current assets had increased by $20m over the year and it made sense for the company not to revalue their assets despite the fact that industry practice is to revalue rather than keeping it at cost basis.

Sec A was all mixed, with Revenue, Group disposals and consolidation. Sec A is really a tricky one for me. Loved Sec B though, l had Revenue, leases and Impairment of Assets. Sec C was actually a surprise as l was expecting consolidation, but l got Bike Group, to calculate ratios and gain/loss on disposal of a subsidiary. I also got a Single entity P&L and SOCIE! I was not prepared for that, l was expecting consolidation, either SFP OR P&L. Guess l have to wait for the results

I hated f5 took me almost a year! 47 first attempt and only a 53 second. There wasn’t any high receivables there were no liquidity info think I made that up. I thought usually supermarkets have high payables days so I thought being a supplier to supermarket they might have high receivables and low cash That’s a good comment I put historic cost model overstates profit and understates depreciation and something about not being of predictive value but that was all just guess work??

Hi everyone, I have found the exam tricky, bit confusing and challenging as well. I was very nervous about the time pressure and tensed. Looking at the time, ticking every second made me worried and could not think properly. My Brain refused to work as normal. I have done a lot of practice and I was very confident to pass the exam now I am not sure whether I will pass or not. I didn’t have the time to answer Section C - Ratio Analysis Question at all. So out of 80 marks, I have to get at least 50. Q 31 - SOPLOCI and SOCIE with lots of (7 notes) adjustments. This Question took longer than expected it was very challenging to what I learned from Kaplan and BPP and ACCA pass papers, Question was slightly Differently set. Redeemable preference shares etc. I could not think clearly under pressure. NBhinder - I think I got the same paper as you. If you reply to my message we can talk about it. SECTION A - Q2 Dividend yield 12% MV Share $16 calculate price per share? 12% = $1.92/$16*100 answer is $1.92 . Anyone remember this Question? First I entered the right answer because I was rushing to answer this question only 30 seconds to finish the exam I changed to $1.30 got confused because I didn’t have enough time to read the Question fully. Exam was ended automatically. After the exam I realised the mistake I should not have changed the answer. Anyone else got the same paper? I had my exam in London Oval. Self study.

Hi Lalitha, I got same paper, for the question you mentioned i think the answer is 1.92, redeemable shares should be treated as long term liability not into equity, and we need to calculate interest same like lease i guess. I did that way

Q31 Do you remember the name of the company? Contran Co. or something did you get the same question SOPLOCI and SOCIE? 7 notes adjustments.

Yes i got 7 notes question and 31) question is related to bike co and scooter co

Yes. I did showed on the separate column in SOCIE. 600 dividend paid.

Im not sure if we have to show that dividend, as that dividend is not actually dividend its financial cost, it should be treated as interest. I might be wrong

Sorry Q 32 Contran Co or something. not Q31 Ratio analysis question - I didn’t have the time. I didn’t even read the name of company or question no time.

Preference redeemable shares - Only remember showing in the SOCIE I don’t remember whether I included in the P/L Finance Cost. I was just rushing.

Pjashu1995 - How did you find the exam overall?

I dont think i did well,,, i struggled a lot in exam and find it really challenging.... Just hoping to get passed. However i some how attended all questions... Not sure if they are right or wrong

I think you are right. 6% Redeemable preference shares - Non Current Liabilities . You have to pay interest. I know that. Irredeemable preference shares - Treated as EQUITY shares. But I don’t remember whether I included in the Finance cost or not I was very tensed.

Hi, I got so fed up with section C question, I lost the plot mid way through it. Why do they want to test every thing in each question. It's like setting up to fail the exam. I got so fed up that I could not concentrate on easy questions as well. It's hard to work on that small work space with so many requirements linking into each other. It could be just me only. I felt even the OTs were all trying to through a googly at you. In real world scenarios you don't have to remember each and everything.....you can always refer to related material available.

Hi Jaswanth, Which book did you study BPP or Kaplan? Self study? I didn’t come across any question with redeemable preference shares interest .

BPP, even i didnt come across it,, its just my guess as in accordance to ifrs 9 financial instruments. And i find so many questions in this exam which are not in BPP, i thought BPP alone is enough to crack the exam and im confident with my preparation however, the exam was a disaster. I find so many concepts new, i struggled to answer revenue questions in section B as well and very much confused over Ratio analysis question i literally change my answer 4 times for the analysis couldnt able to come to any conclusion.

For the persons that got Python Co and snake Co in section C, what was the consideration in terms of shares paid? The question didn't specify the amount of shares exchanged neither did it say how much python co shares were worth. I struggled because of that and had issues calculating goodwill because I just wasn't sure of the total consideration paid other than the $1.2 per shares acquired in Snake.

Hi Navneet, When I just started the exam the SBR Students started typing the answers very fast and furious it was funny I couldn’t concentrate on my exam panicking. Laughing now. I couldn’t concentrate on my exam too noisy. First I refused the earplugs then after ten minutes I realised I needed for my concentration. Because our FR exam we have to read our question carefully without any disturbances. They should not mix the SBR Students with FR Students. Not a good idea.

Does anyone remember in Bike co ratio analysis question if the disposal resulted in gain or loss

Hi Jaswanth, None of the questions are exactly the same question from books. But the Knowledge , Skills and Techniques acquired to answer the question I think not entirely there on the books. Always more to learn and think and Figure out.

This is the 1st time of ACCA exam. I don't know whether the exams is the same or differ for each candidate. My exam's main content is lease, revenue, NCI...for section A and B. Section C is preparing SPLOCI and SOCE; and the other relating to analysis of consol group with the disposal comparability.

Rowe 992, I had the same issue on the shares thing I just used the price per shares by the number bought based on no of shares they had (75% of), which is why I think my goodwill was wrong but I’m hoping for marks for calculating the other points like consolidated reserves and adjustments.

Yeah I mean at least they could have made the question a bit clearer as it relates to the share exchange on acquisition. I got thrown off and spent too much time on that question and failed to finish the other section C question about Box co.

I got the Cheese company paper. ROCE were similar but the gross profit and net profit decrease. The coy expanded business in budget market in 20X7, hence selling price decreased but cost of sales no change. The coy has plan to expand further into the budget market, this could eventually eat up their profit from the luxury market. Cost of sale increment is more than revenue in turn of %. Administrative cost increase mainly due to professional fee. So I think the coy have to keep their staff turnover low in order not to incur further expense. For expansion, I suggest to use retained earning and issuance of new shares or rights as compare to bank loan. Shareholder should support the move with good plan. Bank loan not recommended as they already have increased loan as compare to 20X6. Suggestion for the coy: improve their sale on the luxury market as that is where the profit is coming from. Get cheaper but goos quality product from other supplier in order to expand into the budget market segment.

Last question got a loss in the consolidated statement of Profit or Loss... hope that is correct.. haha Had not come across part B of that question, do not know how to comment of that portion.

@rowe992 The amount of investment for the share exchange was in the non current assets of the parent company individual SOFP and I think it was 34,000. Total consideration paid would have been that plus the deferred consideration.

anyone got the foreign exchange questions in section B.. please did you multiply or divide the 750,000EUR by the closing rate?? and the 500,000 EUR in the second question