OBU have announced the prescribed industry sectors for Period 39 and 40 for topics 8 & 15
The new Information Pack is also available on ACCA global. Please note that the revised Appendix 1 gives more detailed information about what is required in terms of the Assessment Criteria both to pass and for higher grades so is worth consulting
For the above topics and submission dates you MUST use organisations from the following specific sectors, based on the Industry Classification Benchmark (ICB):
The Industry Classification Benchmark is being updated with a new structure adopted on 1 July 2019. The codes used below are the new codes (the codes in the older version are given in brackets).
This link maps new codes to the older version of the definition of the sectors
https://www.ftserussell.com/files/support-document/current-new-icb-structuralconversion-map-detail
This is the link to the older version of the sectors
https://research.ftserussell.com/products/downloads/ICBStructure-Eng.pdf
1. 4010 Automobiles & Parts (3350 in older version) 4010020 Automobiles (3353 in older version) - Makers of motorcycles and passenger vehicles, including cars, sport utility vehicles (SUVs) and light trucks. Excludes makers of heavy trucks, which are classified under Commercial Vehicles & Trucks, and makers of recreational vehicles (RVs and ATVs), which are classified under Recreational Products
40101025 Auto parts (3355 in older version) - Manufacturers and distributors of new and replacement parts for motorcycles and automobiles, such as engines, carburetors and batteries. Excludes producers of tires, which are classified under Tires.
40101015 Tires (3357 in older version) - Manufacturers, distributors and retreaders of automobile, truck and motorcycle tires.
2. 4030 Media (5500 in older version) 40301010 and 40301035 Broadcasting & Entertainment (5553 in older version) - Producers, operators and broadcasters of radio, television, music and filmed entertainment. Excludes movie theatres, which are classified under Recreational Services.
40301020 Media agencies (5555 in older version) - Companies providing advertising, public relations and marketing services. Includes billboard providers and telemarketers.
40301030 Publishing (5557 in older version) - Publishers of information via printed or electronic media.
3. 502060 Industrial Transportation (2770 in older version) 50206010 Trucking (2779 in older version) - Companies that provide commercial trucking services. Excludes road and tunnel operators, which are classified under Transportation Services, and vehicle rental and taxi companies, which are classified under Travel & Tourism.
50206020 Railroads* (2775 in the older version) - Providers of industrial railway transportation and railway lines. Excludes passenger railway companies, which are classified under Travel & Tourism. (Topic 8 or 15 * see note below).
50206025 Railroad equipment (2753 in the older version)
50206030 Marine Transportation (2773 in the older version) - Providers of on-water transportation for commercial markets, such as container shipping. Excludes ports, which are classified under Transportation Services, and shipbuilders, which are classified under Commercial Vehicles & Trucks.
50206040 Delivery Services - Operators of mail and package delivery services for commercial and consumer use. Includes courier and logistic services primarily involving air transportation.
50206060 Transportation Services - Companies providing services to the Industrial Transportation sector, including companies that manage airports, train depots, roads, bridges, tunnels, ports, and providers of logistic services to shippers of goods. Includes companies that provide aircraft and vehicle maintenance services.
* if you are considering topic 8 or 15 please be aware that this sub-sector may be difficult as much infrastructure is publicly owned. There may not be sufficient information to support your analysis, or the accounts may be very complex.
Other Accountancy Qualifications
Topics 8 & 15 Period 39, 40 and 41
1. If you consult the information pack it states:
40101015 Tires (3357 in older version) – Manufacturers, distributors and retreaders of automobile, truck and motorcycle tires. I am not sure what the difference is between this and 22111 but the definitions seem to be more or less the same
2. You just need to justify this in Part 2 and ensure that you include the appropriate extracts from the financial statements in your appendix
3. Fine
4. This might be due to the group structure so see if you can find any definite reasons for the difference in share price but otherwise the whole point about using ratios for the rest of the analysis is that ratios even out many of the disparities because you are not comparing absolute numbers. For example. an organisation with a GP figure of 15% in the first instance would appear to be operating more efficiently than one with say GP % of 10% regardless of actual revenue (which might in fact hypothetically be much less than its rival)
Don't forget to look at strategies - for some reason this passage seems only to be in the resubmission guide it applies equally to first submissions:
that for a ‘sound financial analysis’ the report should:
…put the analysis in the context of the industry or industries concerned, the relative risk of the industry, trends in the industry where appropriate and the impacts of changes in the economic, political and regulatory environment. Due cognisance should be accorded to environmental factors and sustainability in arriving at conclusions and recommendations.
In other words look at company strategies and don't just do a SWOT and PEST as a routine exercise - ensure that you apply the factors where possible when analysing and evaluating the ratios. The decisions taken by management will be reflected in the strategies and these will have been on the factors from the SWOT and PEST - so both parts of your report should be linked.
Thanks a lot @trephena for your response. your response has build up my confidence. However i am still in confusion regarding industry allocation according to ICB.
I wonder if there is any basis to compare national industrial classification(NIC) of India and ICB. How do I know whether these companies under NIC falls under the category of ICB. Should I go further for these companies?
Hello,
I am planning to do RAP with Hyundai motors, and KIA motors as a comparison target.
I wonder if i can use two companies in a same group as KIA is a subsidiary of Hyundai.
Thank you!
@binodbaniya - all I can suggest is that you contact OBU yourself at [email protected] and check with them about the classifications
What is the period number for May 2020 submissions please?
@hossnu said: @GilliaM Hello, I am planning to do RAP with Hyundai motors, and KIA motors as a comparison target. I wonder if I can use two companies in the same group as KIA is a subsidiary of Hyundai. Thank you!
@phillips - Period 40
@hossnu- I don't think this is permissible but you could check yourself with [email protected] so that you get a definitive answer
Hi everyone. I have chosen Topic 8 and the companies both have the same year end, June, but what I wanted to just confirm is that the 2019 Annual Reports have been released (i.e. SOFP and SOPL for June 2019) so obviously the 2020 will be submitted by June 2020 that would be out of the timeline for May 2020 submission.
So I am required to consider AR June 2019, 2018, and 2017 right?
Also, if both the companies issue Quarterly reports am I required to consider those as well in the analysis or just the audited Annual Reports are to be considered as a basis of analysis for Topic 8. Of course the changes or any significant impact on the companies that has been discussed in any of the quarter would need to be discussed in the RAP right?
Looking forward to the reply.
@tasbihak said: Hi everyone. I have chosen Topic 8 and the companies both have the same year end, June, but what I wanted to just confirm is that the 2019 Annual Reports have been released (i.e. SOFP and SOPL for June 2019) so obviously the 2020 will be submitted by June 2020 that would be out of the timeline for May 2020 submission. So I am required to consider AR June 2019, 2018, and 2017 right? Also, if both the companies issue Quarterly reports am I required to consider those as well in the analysis or just the audited Annual Reports are to be considered as a basis of analysis for Topic 8. Of course the changes or any significant impact on the companies that has been discussed in any of the quarter would need to be discussed in the RAP right? Looking forward to the reply.I am sorry I found the answer to my first part of question by looking at the information package, my bad. Apologizes. May I have some input on the last question.? Also if the comparator has consolidated F/S as well we should use the individual F/S as our main company has Individual F/S?
Hi GilliamM,
There are some question i wanted to ask,
1. I'm choosing Media for period 40. I wanted to choose Walt Disney as my company which is under Mass Media. Is it acceptable?
2. If it is acceptable, i'm kinda struggling to chose which competitor to benchmark against. I found some of the competitor such as AT&T (Parent of WarnerMedia) and Comcast, but the industry are kinda unrelated.
Thank you for your time
Regards
@reorawrr - l really do not see an issue with the two companies as they are both in relatively similar areas of publishing. You will rarely find two identical companies -it is a case of finding two in the same main industry that have similar business environments.
@UdinAzmani - there certainly seem to be some commonalities here. I think it is a case of you presenting a reasoned argument of why you have chosen them as comparators in your introductory section.
To be honest as I don't mentor for this Topic I am not the best person to ask when it comes to Topic 8 company selection-and you should always discuss com poo any selection with your own mentor for confirmation of suitability
Hello Everyone, I have chosen to go with Topic 8 for my RAP, I understand that suggestions /ideas for selecting company is something to discuss with my mentor but nevertheless I am still looking for some suggestions.
I am keen towards the Automobile sector, Tesla Inc. seems the most appealing but my mentor suggested against it as there is no likely comparator there. Anymore interesting ideas ?
@Gilliam.am submitting in may ..but I would like to know about my business analysis..I have used three business models Balancedscored,PESTEL and SWOT..however I have only focused on main company for business analysis..what would be your advise.
Thanks..Dennis
@gillianm
Hi,
This is with regards to topic 8 - automobile industry.
The chosen company is BMW and the comparator will be Mercedes benz which is a part of daimler.
However daimler also produces heavy trucks which is excluded in the industry specifications. Are you to please clarify if this alright to go ahead with for P41?
Thank you.
Hi Gillian,
Does my industry for topic 8 have to be limited to Automobile & parts, Media and industrial transportation for period 40? Can i not chose any other industry from the Industry Classification Benchmark (ICB) such as Soft drinks for topic 8 for period 40 (May 27 2020 deadline)?
Hi Everyone,
Please I need guidance in the following areas:
Do I need to leave my charts in the excel sheet?, Because I deleted them once I copied them to my report.
How do I reference the source of the financial statements in the excel sheet?
How do I reference the source of the data on the charts I copied to my report word document?
What that means is that if the latest annual report was released in September because that is with 90 days of the submission period you would not be expected to use it.
However if the Report was released by 30 July you would have to take that as the latest annual report as it was over 90 days before the submission period opened (1 November)
You are not obliged to use interim unaudited accounts but if the two companies' years are more than 3 months apart you may choose to use them, just as in the first case cited above - you could CHOOSE to use the report made available in September but are not compelled to do so.
6y ago#109Hello,
I am planning on doing one these companies you have mention and/or Meredith Corp, E.W. Scripps, Gannett, Tegna, Fox Corp, New Corp. for period 41.
Was your company a correct choice?
Hello everyone,
I hope you are doing well. I have a question for ROE. for ROE calculation, should I take both income from continued & discontinued operation or just income from continued operation? which one is more appropriate?
Thanks
Hi @GillianM and @trephena
Please me regarding the following confusion.
In this attempt i am resubmitting my SLS. as per Examiners feedback there was some issues in Q1 Q3 and Q4 for which i made some changes and finalized the file.
Now I just need to confirm whether at the time of review of resubmitted SLS will Q2 be constant and will be ignored as it was approved by previous examiner or Q2 will also be reviewed by the new examiner.
Keeping in mind that there were no issued pointed out by the previous examiner in Q2.
Please help me out as 11th Nov is the deadline.
Please do no post the same question in more than one place - this is unnecessary.
This question has been answered elsewhere as it has nothing whatsoever to do with Topics 8 and 15!
5y ago#113Hello GilianM,
Hope you are doing fine.
I am planning to submit my RAP for period 40.
The company I have selected is BMW and Mercedes. But thier is problem in making balance sheet and income statement. Thier is a lot difference in Financial statement pattern.how to make thier Financial statement.
Thanks.
5y ago#114Hi .I think kia is the subsidiary of Hyundai.
Sorry I do not mentor for this topic so am not able to give any advice on this - try asking your mentor who should be able to help you. Apologies that I cannot be of any help.
I have decided to write my rap on topic 8 but I’m a little unsure about some things.
1) do i need to choose a competitor along with the organization that I’m choosing to write the topic on?
2) does ups qualify for industrial transportation (delivery services) in topic 8?
1) Most definitely or you are likely to fail on analysis and evaluation
2) I believe it does:
50206040 Delivery Services – Operators of mail and package delivery services for commercial and consumer use. Includes courier and logistic services primarily involving air transportation.
Hello, please would you be able to help with these questions?
Fot topic 8 part 3 of the report, for the analysis of SWOT, PESTEL and the ratio movements should we paraphrase the information obtained from the annual reports and external sources or is it expected that we include comments based on our own opinions?
For the conclusions section, should we use and reference external sources or are we meant to make our own conclusions?
Many thanks.
The SWOT and PESTLE are based on what you have found from your research, and should be paraphrased using your own words and would come from a variety of both internal and external sources. The SWOT and PESTLE must be fully referenced
Furthermore it is important that the factors you have outlined in these models are then used to underpin your analysis and evaluation where relevant. The whole purpose of these models is to show how iperformance is influenced by business strategic decisions based for the most part on factors from a company's external environment and on an appraisal of its strengths and opportunities. So the models are not to be viewed as an exercise done in isolation and the marker expects to see strong linkages between the two sections
Hi, Would it be an issue if the prior-year financial statements are not restated by the company to reflect the adoption of standards?
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