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Hey Mike,
So Q1 was SOFP.
The examiner threw in something about a P/E ratio to measure the NCI. Told us NCI was full goodwill method. I was like hooray.
Then I went to slot in that figure, and said where the hell is it. Next page and some racket about P/E ratio. Based on market price or something. I actually do not know what it was about. Is it normal for the examiner to throw in that? It is not covered in the syllabus. Now I KNOW he says ‘someone would expect a professional to know the answer to these types of questions’. I MADE UP the figure, slotted it it, Spent 2 mins trying to understand it. Time was ticking. So I said to hell with it, make it up.
What does P/E ratio mean? How on earth would I measure that? If it is FULL good will method for measuring NCI, can there really be a price to earnings ratio ( whatever that means, sort of know but not entirely sure).
Also, NO intragroup inventory adjustments. Fair value measurements but they were tricky. At least I thought.
A lot of focus on FV measurement in Section B Q2. So made a good stab at that (though secretly I wanted to stab someone else lol! )
Q1 part c was about Principles Based and Rules based approach and the effect this can have on the ethics of accountants. So he brought in a touch of P1. Not entirely fair though if students had not done P1 before P2 BUT it did feature in F8.
He is one mean guy – sometimes.
And yes, how would I handle the P/E ratio to measure NCI? I did ENDLESS consolidations for P2. Endless. Never saw this anywhere. Hammered in about 35 hrs a week on this paper since last weekend in Feb on top of a 40 hr work week – no joke.. Surely this is enough. But VERY doubtful.
Let me know what you think.Isn’t that strange – you found the exam to be, let’s say, testing. But I bet there were thousands around the world who found it …………testing. It’s the same for everyone! And if you couldn’t work out the nci on the p/e basis (I’d need to look at that before I pass further comment) then there won’t be many of your contemporaries who could.
It’s over. It’s gone. And no amount of time nor worry is going to change your performance. It sounds to me that you did absolutely the right thing. Make up a figure, use that and move on
Anyway, not long to go now to results day 🙂
Let me know what you think of the NCI treatment. Paper is available on the ACCA website. Though as you said too, it is over.
Must not dwell!!!! But it’s difficult not to when it consumes your life for so long.
Thanks Mike for your input – you are right nothing will change my performance, it is done !!I gather from reading the feedback posts that the nci was to be valued using a price / earnings ratio. You’re a P2 student! Price / earnings should be within your repertoire.
But, given that you couldn’t remember it from your Interpretation of Accounts lectures, videos and course notes for F7 (and probably F5, F8 and F9 and maybe from university, high school, elementary school and kindergarten) then you did absolutely the right thing! Well done 🙂
If you can’t remember something, put in a guess figure and move on? Spot on. Good technique
That is very true Mike. I don’t think I will ever forget what P/E ratio means ever again! Nor any other student.
I was looking though the examiner’s workbook on IFRS and cannot see it anywhere but must be something he said yeah yeah yeah let’s do that! See how these ones handle it. Will they move on or dwell for 15 mins?
Anyhow, When I saw it, I said (bad word). Then said no starting with q1 parts b and c. By the time I got to the SOFP q(a), I’d gotten over it and decided to make it up. Only thing about that is I got negative GW when I knew it wasn’t so had to knowingly (and wrongly) say it was a bargain purchase and put it to RE of the parent when I knew it wasn’t ‘really’ a BP.
Anyway, my mantra now is: If I do not pass, I am not ready to move on. And when I do pass whenever that may be, then I am ready to move on.
In 20 years time, this exam will not matter. Because I will have passed it at some point.
Love the ACCA 😀Ciara, may I respectfully ask you not to name the examiner – the ACCA wishes their examiners to remain anonymous
I have edited out his name from this and your previous posts
Thanks
Just wanna say something here.I share the same feeling with u when I saw the Q1.I checked paper title twice just hope I have got UK version not the internetional paper I should sit for.
I am not afaired of hard work and investing time into the study but it seems like there always something catch u off guard. If there is a way to past the exams I am willing to do it.Weijang, you’re less than a week away. My previous comments are about how everyone will have been affected in exactly the same way. It’s perfectly within the examiner’s remit to set “tricky” points within the exam – surely that’s what you can expect in real life …. or do you think that you’re going to retain all this accumulated knowledge into your later years as an accountant.
ACCA is testing you to see how competent you are at handling unfamiliar situations.
Let’s see what August 1 brings for you!
Hi Mike,
Hope you are well.
So unfortunately I didn’t make the pass for P2.
Obviously considering the work I put in (and of course the same for many others) I am pretty under the weather about it.
I am not sure what more I could have done (spent countless quality hours on it) – it was a big step up from F7 as I know and I was exempt from that some time ago. I am going to go for it again which I cannot do in September, it will have to be December due to the city I am based in.
Please can you help me with a strategy/plan for the next 4 months. Best to start with OT F7 notes/lectures instead first?I am also asking for your advice, should I go for another paper aswell. P3? Considering I have done a lot for P2 so far. Or best to stick to P2 alone with the volume in the course?
Really need some advice here.
Thanks very much,
CiaraHi Ciara
I’m obviously very sorry to hear that you didn’t make the grade in P2 but you’ve laid a lot of groundwork as the basis for a second attack on this beast of a paper in December
It’s a pity that you didn’t tell me about your F7 exemption some months ago! I cannot imagine anyone trying P2 without having first suffered the basics at F7!
However, there’s now some time available for the luxury of ploughing your way through the F7 course notes and getting totally on top of the basics
How to prepare? I imagine from your previous posts that it’s pointless me saying “Work through previous exam questions”. However, as you now are well aware, numbers account for only around 35% of the exam so a thorough knowledge and understanding of IAS and IFRS is also required
The most user-friendly site that I have found is http://www.iasplus but there could well be others equally useful
Try those (and particularly for IFRS 15) and work your way through the “examinable documents” list for the P2 exam – as well as maintaining your full understanding of consolidations and F7 material
Hope all that helps
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