Hi there, so far I've been advised of the following topics to be ideal to choose from:
Preferred OBU topics: 8, 10, 16, 17 and 19
8) An analysis and evaluation of the business and financial performance of an organisation over a three year period.
10) A review of the effectiveness of the use of costing techniques within an organisation.
16) A critical evaluation of the financial and operational risk management within an organisation.
17) An assessment of the quality of the corporate governance within an organisation and the impact on an organisation's key stakeholders.
19) An analysis and evaluation of the financial and operational consequences of a merger between two organisations or of the acquisition of one organisation by another.
Now here are the two popular opinions I have received so far:
a) Go for topic 8, as that's a thorough financial analysis, portrays good skills and since its based on a company of your choice and their financial reports, there are least chances of plagiarism.
b) Don't go for topic 8, as a lot of students submit on that already and the chances of passing that are lesser. With so many students submitting on that topic, the benchmark is higher as well and it's hard to predict what the checker is expecting.
So since I'm already running out of time, I'd appreciate any possible advice on which topic to proceed with any why. They're all the same to me as far as my interest in concerned. I've been talking to mentors and so far haven't been able to get a single decent advice on this. Would appreciate your help a lot.
Thanks.
Other Accountancy Qualifications
RAP Topic Selection including specific current rules for Topics 8 & 15
I'm quite stuck on how to choose a topic. Especially if you need internal and external information. Surely you can only get internal information if you do it on the company that you work for?
@Chloe
Should I choose this Topic or that?
Decision of selection will be based on three things:
Topic itself:
You should be interested and have proper understanding of topic, its basics to comfortably pass OBU criteria of BSc Hons. RAP. In addition, unless you don't have sound knowledge of any area such as Working Capital, you cannot select relevant models which you clearly explain & apply for doing a critical analysis necessary for A Grade in RAP..
Organization & Availability of Information:
You must be confident that organisation you are selecting is suitable for topic and you have bunch of information available on it. Further, if you use primary data it require different referencing and questionnaires compared to secondary. If you go for topics like 8 and 15, then you will also have to look at competitor information availability for doing critical benchmark analysis.
In overall terms, look more on the area in which you have expertise and organisation on which you can easily access much information. Information that you will use must also include third party as if you use too much internal data, it may lead to a biased analysis.
It is not necessary that you can get internal information only if you are employee of organisation. You can get it from any authentic and acceptable source if they allow you to disclose it and you will also have to make questionnaires & other references on how did you get information.
Regards,
Hammad Ahmed Qureshi - OBU Registered Mentor.
@Chloe
If you can please let me know here your interested topics, i will post detailed specific guidance for each topic which will help you in selection.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.
@Chloe
Hi hope you are doing well.
i suggest students to select the following topics
TOPIC 8: Evaluation of Business and Financial Performance Over Three year period.
AND TOPIC 19
AN ANALYSIS AND EVALUATION OF THE FINANCIAL AND OPERATIONAL CONSEQUENCES OF A MERGER BETWEEN TWO ORGANISATIONS OR OF THE ACQUISITION OF ONE ORGANISATION BY ANOTHER.
Both are interesting topics and you are already familiar with them in your ACCA studies plus these topics will be helpful for you in future to get job as a Financial Analyst/Advisory Associate. Most of the companies are doing acquisition frequently these days all around the world. they are looking Financial Analyst who can join and contribute their role in acquisition.
Hope the answer of the question.
Regards,
Ali farooq
BSC Registered Mentor
Topic 17 has the highest pass rate - FACT! :-D
You use annual reports, corporate governance codes, sustainability reports etc (depending on the topic chosen). Neither T8 nor T17 require primary data collection. Unless you are good at statistics or operational research think very carefully about doing a topic that involves primary data collection.
I suggest that you look at the final part of my article on Evaluation and analysis on our homepage www.opentuition.com/obu
Evaluation is the key to passing so consider what this entails and the availability of your data and sources when selecting your topic.
Good luck! :-D
@brightsambo -you can compare with a South African telecomms company or another African company e.g. Safaricom. ( It is no different from when using an airline as students usually have to use airlines registered in different countries). OBU has no problem with this as long as you discuss the specific problems in your limitations.
Remember to tailor your ratios to the industry. Customer churn is something you need to look at and discuss. You might also look at how well covered areas are particularly if using companies in different countries. If the infrastructure is not so well developed and signal strength poor it will of course impact on demand. Trends in revenue and profit per customer and costs per customer if available would be useful as well as the 'usual' ratios.
Hello everyone, i have chosen topic 8 for my RAP and Pharmaceutical industry. I want to avoid complications and save time as much as i can. I want to choose an international company with same year end and financials in the same currency.
Firstly i was thinking about GSK vs AstraZeneca but the problem is that GSK's financials are in pounds while AstraZeneca's financials in USD when both of them are UK based
then i was thinking about Pfizer vs Merck but then again merck's financials are in Euro. Would appreciate your help much. Thanks
Rehan1o1- the currency issue is not a major problem - please see my post on the forum topic RAP Topic Selection dated 10 Feb for advice on this
thanks trephena, also if one comapny is following IRFS and the other one is following US GAAP would that be an issue? Please let me know if GSK vs AstraZeneca would be appropriate? thanks
on what basis we have to select the second company for analysis? Any listed company or the company should have a specific criteria? If there is a criteria then what is it?
@Handsome
My recommendation for competitor selection is its listed status and company's performance must be challenging your main company. Further, you should have its annual reports including financial statements to be provided to OBU in RAP. Comparison should be like with like with reference to operations, geography and comparing consolidated with consolidated & unconsolidated with unconsolidated accounts. Rest is your choice.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.
@hammadahmedqureshi now your reply made is more complecated for me to select the second company because i want to analyse GSk who is earnring in billionsi in Pakistan where on other hand, all the listed companies are earnring in millions. :/
can you help me to select the company against GSK Pakistan? while how does this ICB thing works?
@hammadahmedqureshi do you think Highnoon with Sanofi would be a good selection?
@Handsome
It is not financial numbers that you will compare but relative figures such as %, ratios, trend in performance etc. So, you can compare a million earning company with billion because a billion earning company with loss is worse than a million earning profitable company. Its about performance not numbers.
Highnoon and Sanofi is also a good choice but it all depends on you. Further, my point was that their performance challenge your main company not it should earn same.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.
You may find the posts on https://opentuition.com/topic/comparator-company/
useful as it sets out the sorts of things you should consider before making your final choice
Also the topic on whether problems with financial statements and whether they are comparable may help you with your selection. (I think there may also be a section in the OBU information pack about putting your company in an industry context - something I touch upon in the article on Evaluation on our homepage - so read those too)
10y ago#76The company i have chose is listed but the competitior is not listed is that ok?
@salman1 - you will have to provide the financial statements for any comparator so if you won't be able to do this then the comparator is not suitable. Normally similar sized companies are listed but there are some large companies that are not plc's eg Virgin Atlantic. Otherwise if the size difference is too large, performance comparisons are not so valid.
10y ago#78Thank you for the prompt reply. I have chose British Airways. What you think should be the best competitor ? any suggestion? I looked Virgin Atlantic but they dont have three years annual report. Every company which i choose dont have annual reports showing on their website :(
Hi all,
I submitted my RAP on topic 15 in period 31 (Nov 2015) and failed. I am going to resubmit my RAP again, perhaps on this May 2016, still under Topic 15.
As I am confusing at some points, could you please give me answers on several questions?
My questions are:
1. I passed SLS and failed on RAP, so If I resubmit on the same topic, with the same organisation, I would have to submit my RAP and relevant proofs of calculation, and I will not have to resubmit my Presentation and SLS. Did I understand it right?
2. For new requirement on using Industry Classification Benchmark, "apply to students submitting for the first time or for students changing topic in both the May 2016 (Period 32) and November 2016 (Period 33".(accaglobal). So for resubmitting purpose on the same topic like I am going to do, I am not required to using this ICB, right?
I am looking forward to your reply, thank you so much.
Hi there i have looking on lufthansa air line and i have noticed that on there website they have annual report and other is financial statments. Both are differente one is cosolidated and other is not. Which one should i use should i go for consolidated financial statements and compare with the consolidated one?
@asalman1 said: Thank you for the prompt reply. I have chose British Airways. What you think should be the best competitor ? any suggestion? I looked Virgin Atlantic but they dont have three years annual report. Every company which i choose dont have annual reports showing on their website :(I have chosen KLM as BA's comparator
@Tuan Anh - yes you are right on both counts: No presentation and no SLS required and no restriction on topic provided you resubmit on the same company you used before.
Hi, i want to know that in T8, I chose a company that has consolidated f/s. In my financial AND business analysis, where do i have to explain the effects of subsidiary eg in what areas and how to mention subsidiary issues?
@ricko -you need to be consistent either group level for both companies or individual company compared with individual company.
Please note: I have created a special forum topic for airline specific queries so please use that if you (or any students) have any further questions that are related to using an airline fir Topic 8
would it be a problem to use unaudited figures from a Financial statement?
Thank you I am comparing Cosolidated group financial statements with consolidated ones. Please pase link here of Airlines queries Thank you
https://opentuition.com/topic/using-an-airline-for-t8/page/4/#post-309997
@makinbabu said: Hi, i want to know that in T8, I chose a company that has consolidated f/s. In my financial AND business analysis, where do i have to explain the effects of subsidiary eg in what areas and how to mention subsidiary issues?On any area or aspect of the company's performance that has been significantly affected by the performance of a subsidiary, eg if revenue has increased/decreased as a result of one subsidiary's performance mention that and also mention why the performance has changed in that subsidiary. basically the subsidiary can affect any performance ratio be it profitability, liquidity, efficiency
10y ago#89Hi,
I have decided to select two foreign multinational pharmaceutical companies after I observed that our local pharmaceutical companies do not provide adequate information. From my review, I observed that both companies have different currencies and do not operate in the same country. One is located in the UK and the other in France. The Company in the UK uses the dollars as its functional currency whilst the company in France uses the Euro.
Would this affect my chances and analysis?
Is Verizon vs At & t or United Airlines vs American Airlines a good company to select for RAP?
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