Forums › ACCA Forums › ACCA FM Financial Management Forums › *** December 2023 ACCA FM exam – Instant Poll and comments ***
- This topic has 88 replies, 20 voices, and was last updated 10 months ago by Huzaifapol.
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- December 8, 2023 at 7:00 am #696298December 8, 2023 at 5:47 pm #696395
That was awful. Section c not too bad but still think I messed them up NPV was one of my 12 mark questions which was nice. The section A and B were horrific didn’t know any of them
December 8, 2023 at 5:48 pm #696396I had the NPV section C as well. Got confused if development costs should be included . Was your NPV – or +?
December 8, 2023 at 5:49 pm #696397Had the same issue for section A & B , too many theory questions with multiple answers per question 🙁
December 8, 2023 at 5:56 pm #696399I was told if they have ready been spent then it is sunk costs and not to include them. Even the 1m absorbed costs in fixed costs shouldn’t have been included. I got a + NPV don’t know if it’s right though. I’m so annoyed studied so so much took all week off work to study and nothing really came up relevant to what I have been studying. Nothing on Islamic finance when I learnt all of the different terms
December 8, 2023 at 5:57 pm #696400I understood that they have been already incurred them, so they should not benn included in NPV…
But I also lost in this question..
If the net CF is negative for the first year what tax payable should be? I indicated zero..December 8, 2023 at 5:59 pm #696401Yes I messed that bit up I hadn’t come across a question like that before
December 8, 2023 at 6:00 pm #696402Totally agree.
And even smth that I learned and practiced (again NPV) I completely forgot some things related to tax and working capital… Like just blank peace of paper into the headDecember 8, 2023 at 6:02 pm #696404What was it with all the market hedging questions??? Defo no what I was expecting
December 8, 2023 at 6:05 pm #696408Mine second section C question was to calculate gearing, interest cover and EPS. But they told “for both favourable and unfavourable cases”. But here were also 2 ways of investment, so I calculated for 4 cases ?? Rights issue Unf, Rights issue F. Loan notes unf, and loan notes F ?? hope at lease smth is correct ?
But I messed up with gearing because in last minute decided to change RE and in addition some formulas I used moved…
Oh, it is too emotional to take this ACCA
December 8, 2023 at 6:15 pm #696411Section A was good and section C too – AgeAid which was a NFP with a lease or buy decision and then a WACC for the other Sect C Q. Lots of commentary / discussion marks available – CAPM & DVM, 3Es and VFM, why a lease v buying, and link between cost of finance and creditor hierarchy.
However – section B was brutal!!!! FX question & Working capital were horrible but the business valuation was ok. So overall I voted ok and am hopeful for a first time pass.
December 8, 2023 at 6:19 pm #696414I had the same section C,
Did you get that AgeAid purchase PV was cheaper? I did but the the next question seemed to imply lease was cheaper
The exam was okay I didn’t feel completely lost at any pointDecember 8, 2023 at 7:38 pm #696419Phew that was full on. So many choice questions in A where I just had to hedge my bets. Section B I had a right panic on. Section C the NPV I think I did well but not sure if tax was starting in period 1 or 2? I think the first year loss got a tax rebate as indicated to do that in the question.
My second C question was accounts receivable offer discount or factor. I had net costs for both with the discount cost huge so feel I might have been off on it by quite some way.
Barely any WACC or Capm etc, so odd to learn so so much stuff that doesn’t crop up then 8 marks on difference between real and money rate – I can’t think of how you can say enough to get to that level of marks – bananas!
Enjoying reading comments everyone
December 8, 2023 at 8:02 pm #696420Yeah even i got that question. I literally did the whole bpp and kaplan but never came across a sum like this.
December 8, 2023 at 8:04 pm #696421I think the NPV development cost is suppose to be a sunk cost so it will become an irrelevant cost so we do not take that. Fixed cost should be 6m-1m=5m
December 8, 2023 at 8:35 pm #696422My 2nd qstn in section C was disaster. The first 12 marks required calculation of Gearing, interest cover EPS in 1 yr for both favorable and unfavorable where there was rights issue or loan note issue.
I don’t think I will get any mark on those 12 marks.December 8, 2023 at 8:43 pm #696424Anyone with an idea on the section A sensitively analysis question. Sensitivity to savings options answer were for A around 20K, another around 13k, another around 2k and another around 4k
Then there was loan note conversion in sec A again option A while said conversion premium was around $500 other options I don’t remember.
December 8, 2023 at 8:48 pm #696425I adjusted fixed cost but considered the development cost 🙁
December 8, 2023 at 8:57 pm #696426That question was terrible for a last question in an exam. You have to think hard when the exam is almost time up. I don’t think I will get any mark on those 12 marks.
December 8, 2023 at 9:03 pm #696427I did the same. Do we start adjusting for inflation in year 1?
December 8, 2023 at 9:06 pm #696428That is what I did year 1 would be for example x 1.04 , then 2nd year x1.04^2 and so on
December 8, 2023 at 10:30 pm #696430Does anyone remember answer to the question that asked purchase power parity for 18 months loan payment in section B? I chose the first option.
December 8, 2023 at 11:31 pm #696434I had the lease as slightly cheaper and the next q implied this was correct … it said other than NPV cost
December 9, 2023 at 12:11 am #696435The question related to finding the foreign currency payment in dollar using the purchasing power parity theory what the hell was this? I really wanted to understand what is this concept
December 9, 2023 at 12:14 am #696438Who solved the Early settlement discount and the factoring question in Section C? Did it end up choosing the benefit of factoring as it was a net benefit and the other option ( early settlement resulted in net cost ) so the option was to factor?
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