[Stephen]

Hi Kim, thanks for your reply. I left the company last year around April-May. But I started asking for their signature few weeks ago. Will contact Acca to explore other options. Thanks.

[Stephen]

Hi have you solved this issue? I’m experiencing similar situation.

Former employer who is a qualified accountant said he is unsure whether he can help me to sign since I no longer work in the same company. Though there’s no written agreement that the employer must sign, but isn’t it basic human decency to help other fellow human being? It doesn’t cost him or his firm money or reputation anyway.

I’m very disappointed with the fact that this issue has to be delayed for over a month with no result despite signing off being a simple short process.

[Stephen]

Hi please add 0193873922, thanks

[Stephen]

Passed with 75 marks! One more paper to go! Praise God!

[Stephen]

Can’t believe what will happen tomorrow.

[Stephen]

Sorry. For positive goodwill there should be no entry. Impairment calc applies to both positive n negative GW.

[Stephen]

hi sir, thank u for ur explanation. can we conclude as follows:

Negative GW
DR NCA-Cost of investment in assoc (to increase CA of Assoc, hence the ‘add back’)
CR P/L Gain on bargain purchase

Positive GW
DR P/L Impairment
CR NCA-Cost of investment in assoc (to decrease CA of Assoc, need to minus as per IAS 28 formula)

My apologies for the awkward question. My final mock class exam is this Saturday. Need help urgently. thanks!

[Stephen]

hi, anybody here who managed to pass by self studying?

[Stephen]

Brobs91 wrote:Question stated in the first section it was considering a 600m investment in Rupees. It gave the after tax inflows in the 3rd section.

On Apv q…ok I didn’t notice the 600m…I only notice the rights issues and loan part which make up the initial cost… maybe my bad…

On swap, could you email me at stephenlausw@gmail.com please..I would love to discuss further…if you are ok..no forcing..

You rmb the second part talking about currency swap? Isn’t that related to IR swap as per past year practice? How did you managed to convert IR swap into spot exchange…..I thought IR swap is about paying less interest costs based on lower rates……

Any advice from you is greatly appreciated…
I may fail but I want to know where is my fault so I could prepare better next time…this is my second attempt already with 48% being my previous attempt in Dec 20 session….

Thanks!

[Stephen]

@Brobs91
Can I know how you got negative base case when there’s no outflow in the first place…

And how did you work out the hedging part for Npv with and without swap? Is it in our past year practice?? Based on past year practice, the closest is Buryecs question where the swap is strictly exchange rate. But this question it’s more on interest rate swap….meaning in part (b) you work out IR swap but in NPV q you convert IR swap into exchange rate????

[Stephen]

can anyone remember the mark allocation for calculation for Q1 unbundling part as well as theory part?

I am doing a post audit review on this paper….please let me know if interested to discuss further.
My email stephenlausw@gmail.com

[Stephen]

Hi John, I can agree that M&M2 formula we should use Rf for the Kd as one assumption behind the M&M model is all debt is risk free.

But in Tippletine question (Mar/June 2018-Q2), the solution suggests to use pre-tax cost of debt 5.4% instead of risk free rate 2.5% in the M&M2 formula.

Will we be penalized if we use risk free rate in that question?

Please kindly advise.
Thanks.

[Stephen]

Hi John, sorry to ask, if I can apply the changes under forecast PAT to Current Asset and let Retained Earning be the balancing, will I get penalized?

In Ennea question, for Proposal 1, their Retained Earning is the balancing while for Proposal 2 and 3 we could balance without any need for balancing, which means we are able to:
1) apply all changes under forecast PAT to Current Asset
2) at the same time add the difference of PAT to RE yet still able to balance

Appreciate your kind advice.

Thank you.

Note: Edited post due to inaccurate information on Ennea part. Amended after checking with the model answer.

[Stephen]

Noted and Thank you so much sir for your time 🙂

[Stephen]

Hi sir, thank you for your kind reply.

I have tested this by subtracting the TAD first (before Op profit) and then adding back TAD (after PAT) – Unfortunately I could not get the same answer.

My working as follows:
TAD:
T1) 800 x 50% = 400
T2) 400 x 40% = 160
T3) 160 x (1-40%) = 96
T4) 96 x (1-40%) = 57.6
T5) 57.6 x (1-40%) = 34.56
T6) Balancing = 11.84
Total: Initial 800 – scrap 40 = 760

Note: (1-40%) is a scaling factor due to reducing balance method.

For your information, I have attempted many past year questions using this same method and I always could get thru. But I can’t help but wonder why this time my method is not working.

I am sorry I was hoping to stick with the same method to avoid confusion.

Would appreciate if you could shed some light on this difficult part.

Thanks a lot.

[Stephen]

hi sir, sorry for messaging an old post. I was wondering why is the ‘add back TAD’ method not working here..please advise…

[Stephen]

Can share how did you tackle question 2 please..I did the apv radio question but got not enough time for the unbundling question in Q2…Q2 mixing the asset beta together with business valuation topic… which is confusing.. the question requirements are also not clear….can anyone help please..

[Stephen]

Failed at 48..my first P paper..I am aware I screwed up on Q2…but did not expect to lose so many marks in Q1 and Q3…

How did you all managed to do Q2..such as using PE to find asset beta…any similar question in the past…

[Author]

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