AFM*** December 2022 ACCA AFM exam – Instant Poll and comments ***

ACCA sends out a survey after every exam. It in you can give your feedback. It is taken into account because I have raised issues in it before about exam center problems to which ACCA did respond. I completed the survey this morning giving highlighting many of the issues above. We all had the same experience so I doubt “we are the problem” Of course professional exams are tough we accept that but to get an exam which is not in line with previous sittings and also diametrically opposed to the information provided by ACCA itself in the Dec pre-mock exam webinar doesn’t stack up

Absolutely Agree. I don't know what was examiner goal during the AFM Exam I realized Examiner want Intentionally to Fail student let ACCA Know Gap between Examiners and student Candidates horrible and ridiculous Exam what a waste of 3 month time and energy

I have written and failed AFM in previous diets. This is the only paper left for me, read so hard because I really wanted this to be the last attempt was confident on the exam morning just to be faced with horrendous set of questions, cried for hours after the exam and had a mental breakdown cos there is no hope of passing. I only feel disgust towards ACCA now and don’t even care about the certification any longer ‘cos this makes no sense.

Can anyone tell me how many questions in Q1 , I only got to answer an and b :(

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Completely agree with everyone here. The extreme focus on risk management as a 50 mark question threw me off. But the 6 mark on what a delta hedge was AND asking us to hedge options using futures? I have worked my way through all the ACCA articles on this subject, and still failed this question by a country mile. It also tried to throw us off by not giving us the option/future prices on the current date. So how can we calculate basis? We would have to ASSUME that the basis relationship is linear one month behind, but throwing that for the first time into a question was awful & I only realized that assumption after the exam. Think this one is a write off unfortunately. Has been all first time passes up until here.

I was really prepared and studied really hard but unfortunately unable to complete 100 of calculations As you said John future increase in base rate wasn't given or I couldn't find although read twice the para My hope was on this exam now I feel affiliation dream not reached after all this hard work

Does anybody knows how to answer one of the Q1 sub question "whether Sancherz can avoid the remittance ban introduced by local government?"

jamesgao2204 wrote:Does anybody knows how to answer one of the Q1 sub question “whether Sancherz can avoid the remittance ban introduced by local government?”

I discussed transfer pricing, low interest loans from the subsidiary to parent, or subsidiary paying royalties instead of a dividend.

Thanks, I almost answered the same contents as you did. It is glad to see I am not mile away from the question asked as it is a 11 marks question!

The exam paper was so disappointing. The amount of marks on risk management in question 1 was extreme. Reassuring that so many think the same. Think this will be my first ACCA fail.. roll on March :(

I agree. I would add that reconstruction question was more suitable for paper based exam than for CBE exam, very long question for section B. Questions were very different from questions in past papers and from questions in Exam Kit. What was the aim of the examiner? The Pre-Mock exam was just waisting of time. Everything was opposite from that.

If i completed the first part of SWAPS calculations ,how many marks would get ? And i got the financial futures as the best choice anyone same? What about limitations in delta? I dicussed BSOP Model weakness And that other variables assumed not changing when delta change Any one same variant?

johnwick12 wrote:The extreme focus on risk management as a 50 mark question threw me off. But the 6 mark on what a delta hedge was AND asking us to hedge options using futures? I have worked my way through all the ACCA articles on this subject, and still failed this question by a country mile.

This was an issue for me as all the information before the exam, even from tutors whom ACCA had on their own webinars stated that risk management questions form part of ONE of the questions of Section B. It's frustrating that the exam didn't mirrored ACCA's own guidance on it. Obviously they get to set whatever questions they please but we prepare based on what their guidance is. Also felt the weighting of marks was far more heavily weighted towards calculations, when the official guidance was that the discursive elements would be roughly 60% of the paper as per September 2022. Anyway it is what it is, roll on March 2023

Hi, Can anyone tell me if the questions that everyone got were same? Or did everyone get different questions in Question 1, 2 and 3?

dabirparth wrote:Hi, Can anyone tell me if the questions that everyone got were same? Or did everyone get different questions in Question 1, 2 and 3?

From the looks of it, there were a minimum of 3 variants for this exam. I had the following: Q1 - Hedging forex and interest and then questions about internal hedging methods and margin requirements Q2 - Restructuring - Preparation of forcast cashflows and financial position post significant reduction in debt to obtain further debt financing, calculation of interest cover and then a discussion on how would the finance providers react to the restructuring. Q3 - Investment appraisal with calculation of risk-adjusted WACC and then a question on how BSOP could have been incorporated in the calculation and its limitations.

Warning for anyone using the ACCA Virtual Learning Centre as revision for exam I complained to ACCA since the Risk Management Module (Recap Knowledge) and 'Forex Risk' Slide 13 states: "Note that for currency futures and currency options, you won't be expected to perform calculations". As I found out too late this is absolutely not accurate - the exam does of course require calculations for this area of the syllabus. As someone who studied distance learning /online I took this as gospel. I did see these calculations in a few previous past papers but thought it must have been a change in syllabus requirements. As much as its on students to check all the details I don't believe ACCA should state inaccuracies such as this in revision slides.

It is only for Paper FM that calculations on futures and options are not required. They have always been required for Paper AFM as is made clear in our free lectures and in the Revision Kits from the ACCA Approved Publishers.

Hi John Yeah thank for your comment - so yes there should be no place for a comment saying not required in AFM Virtual Learning (Risk Management recap)

I did study it but later on closer to exam since I started with the ACCA Virtual Learning Centre which in this section said no calculations required - which was completely inaccurate of course