*** P5 June 2016 Exam was.. Instant Poll and comments ***

@gvanca said:
On the income statement side, operating lease charges should be added back.

I have just read this on ACCA technical article RELEVANT TO ACCA QUALIFICATION PAPER P5. So we were correct to add operating lease charge back

Awesome – thanks!

@rushzer said:
Much better paper especially in terms of timing and examiner has probably understood the previous papers were a bit too long to finish within 180 mins.

1.
a) Performance Evaluation – 14 m
b) 2 Measures on Rev/ OP sqm – 8 m
c) RI to replace as main measure over Operating Profit Margin – 8 m
d) ROCE Calculation and suggestion of another techniques (New Store) – 8 m
e) Loyalty Programme/ IS Benefits – 8 m
f) Structure of Answer – 4 m

2.
a) BPR and 3 Initiative Evaluation – 14 m
b) Reward System Evaluation – 11 m

4.
a) EVA Calculations for B/G – 10 m
b) EVA for Divisional Performance – 7 m
c) Value Based Management – 8 m

Hi

For Q1 part D) i kno dat it had asked for ROCE calculation but i dont think so if it asked for any suggestion for measures?
Can you or anyone please confirm because i dont remember the suggestion part to this question.

Many thanks in advance

what about the ROCE calculation, I think I have 33% which is above the target roce of 30%

@AmaraFofanah said:
what about the ROCE calculation, I think I have 33% which is above the target roce of 30%

I think you mean 13% was the target ROCE and I got for the Medium and High demand a higher ROCE, but for the Low demand, a lower value

@Alexandra said:
I think you mean 13% was the target ROCE and I got for the Medium and High demand a higher ROCE, but for the Low demand, a lower value.

Am sorry it was 13% the targeted ROCE I got 13.3% more than the target as we have to add all the three possible outcome.

I applied Mckinsey 7s model to evaluate how BPR affected systems, staff, skills, etc., and in each area tried to propose new performance metrics or at least comment on possible issues, e.g. possible conflicts due to downgrade of supervisors

update: sorry, did not notice you asked about the 2 part. I did not do it due to lack of time, shame

Q1- part a- analysis of report that was gud alot to write but some of my friends forget to link it with boards problem of short-ism
Part 2 was little confussing so first i calculate both ratios and then disscuss it on both negative n positive way
Part 3 was also easy so i write alot
Part 4 i calculate Roce then make a chart of probabilties and compare it with targeted also comment
Part 5 was also easy i linked it with companys goals and write alot

Q4 part a- calculate but i got positive npv and calulation of wacc is not gud i thnk how ever i explain all exemptions
Part b was awsome
Part c was ok

Q3 time was only 20 min left so i didnt attempt this question that gud just main points 🙁

How did you guys calculate the expected ROCE?

I did it like this:

Multiplied each operating margin and revenue with their respective probabilities to calculate the expected values, then applied that expected margin to the revenue to calculate the operating profit. Then the usual calculation…of ROCE

Does anyone know when will be published the answers of the exam paper?

Thanks

It was a doable paper although time pressured. it was my third attempt and still am not sure of a pass. To become an affiliate I need to pass P5 and P7. Am not sure I passed this P5 so I will study P7 between now and September. When results are out next month, I will know whether I do both or just P7 in September.

The exam was not bad this time. I think I was able to write better answers this time around.

Question 1(i) was about the discussion of the performance report in Appendix 1