[syeduzairnaqvi]

I want to attend AFM classes from OT. Please let me know the process

[syeduzairnaqvi]

How can I take classes from Open Tuition for AFM

[syeduzairnaqvi]

Does anyone remember that profit/loss question figures…what was the consideration and the amount of assets and liabilities

[syeduzairnaqvi]

Passed second attempt @65.

[syeduzairnaqvi]

Will patent (brand name) be considered for impairment?

[syeduzairnaqvi]

@aniam said:
Also for audit risks I did :

– new client
– assets held for sale/disc. operation
– development and research capex
– inventory – possible impairment due to flood
– share based payments
– listed client : possibility of earnings management/ additional disclosures
– FX (this one was a long shot…)
– revenue and operating expenses poss. misstatement
– possible impairment of investment due to drop in revenue
– possible provision for redundancies – it wasn’t clear if they will be announced in that year so just said if announced then provision should be booked

anyone had anything else?

Branch could be recorded as subsidiary and consolidated

[syeduzairnaqvi]

@aniam said:
Also for audit risks I did :

– new client
– assets held for sale/disc. operation
– development and research capex
– inventory – possible impairment due to flood
– share based payments
– listed client : possibility of earnings management/ additional disclosures
– FX (this one was a long shot…)
– revenue and operating expenses poss. misstatement
– possible impairment of investment due to drop in revenue
– possible provision for redundancies – it wasn’t clear if they will be announced in that year so just said if announced then provision should be booked

anyone had anything else?

Insurance claim receivable could have been recorded despite not covered in policy

[syeduzairnaqvi]

@aynat said:
Yes, of course. (1000*1.7*(1000-150))/3 Yes?

Was it 2.5 FV at grant date or 1.7?and no of employees to taken were 1000.

[syeduzairnaqvi]

@aynat said:
But there is yet NO announcements have been made to employee, so the criteria are not met for such provision.

Management has started to implement that plan by appoiting surveyor and negotiating with buyer so provision for redundancy could be recorded.

[syeduzairnaqvi]

I calculated 1000 options * 1.7 FV * 1000 employees=1700000/1000000 to convert it into millions so got 1.7 and it was material so recognise the expense over the vesting period.

[syeduzairnaqvi]

@acca20199 said:
Q1
– Dividend impact on parent and consolidated financial statements
– Disposal of investment held at cost in parents accounts
– Disposal of investment impact on consolidated financial statements with a FV adjustment required on original acquisition (5 and a half years depreciation) + an impairment
– Deferred tax on URP and tax asset recognition i.e. non-reoccurring items and previous taxable profits
– Lease whose value changes over the lease term???
Q2
– Share based payment, non- disclosure of RPT and operating segments (absolute profit to be used to determine if a reportable segment)
Q3
– Change in accounting policies and estimates + how to account for new IFFSs and how transitional rules can lead to inconsistencies
– Impairment calculation including a bit of FV highest and best use
Q4
– FX gains and losses (OCI and P+L) explanation type question and how measurement is not taken into account on subsidiary consolidation in relation to FX. FX loan transaction + FX URP

That’s what I can remember ????

What was Q3(a) part 1 about?

[syeduzairnaqvi]

Yes agrees with u…rote learning the IFRS is not the key, its all about the application of IFRS…This format is worst

[syeduzairnaqvi]

But 4 M as an investment income in TCI of subsidiary

[syeduzairnaqvi]

I recognised 4 M in TCI of parent considering 4 M was paid 4 M to parent…Is it right.. Second, I recognised the gain on disposal of subsidiary as profit from discontinued operations…will it be the right treatment in consolidated FS..

[syeduzairnaqvi]

@demetrios21780 said:
very correct.Kp=8/06%.For the discounted payback period if u found the correct 2.75 years tha means that your NPV MUST be correct??????so if someone found the 2 marks question the corect result that means that he took 9+2=11 points!!!!!??????i think this thought of me is correct!

Payback period was 2.9 approx.

[syeduzairnaqvi]

@heychi said:
My WACC was wrong because I didn’t include the cost of the irredeemable preference shares. I couldn’t think to figure out the interest % for that. Hopefully that and the real answer maybe worth 4/5 marks out of 11.

Cost of preference shares was 250000/3100000*100=8.06% I think

[syeduzairnaqvi]

@heychi said:
I hope you are right as we have similar answers!

For the ordinary share according to market values i got 396 or 369..something like that but I honestly can’t remember if this is even the same question.

I wish I wrote down all my choices but the invigilator took my paper so quickly.

In limbo for for now but trying to focus on passing F5 for December.

How much WACC did you get? I got 11 point something.

[syeduzairnaqvi]

@davea said:
MCQ 1-got A.
MCQ with exchange rate forecast got option $/EUR1.2654.
MCQ with 2 statements, selected none of them right.
Question about factoring debt got 90k reduction of profit (A?).

Q31. I excluded bank loan from calculation of wacc and added a note that can be ignored as the balance of bank loan represented only 1.6% of capital, impact should not be significant. I think alternatively can make assumption and use Kd for similar type of finance. Just because question stated variable %, did not want to make that assumption.

In calculating div growth used (cum div-ex div), not 20X6 (not sure), growth was 5%.
Got wacc 11 and smth %.
Kd for loan notes was 5 and smth % through IRR.

Q32. NPV was 10-11m. Inflated sales and var costs accordingly and used after tax nominal DF@12%.

Payback ~2yrs 9m.

I think terminal value was 5% of the initial investment if I remember correctly… So we should take 5% of 25mn at the end of 4th year

[syeduzairnaqvi]

@gdjames said:
There was on MCQ with answers of 11.2% and 11.3% and I went for 11.2 after about 5 minutes of checking the roundings! That was a cruel question for 2 marks.

I went for 11.3 because my answer was 11.29million so i chose 11.3.

[syeduzairnaqvi]

@heychi said:
Hi,

To calculate that you needed to find the dividend growth first before using the dividend growth model.

Think there were 4 payments according to the table.

So Dividend growth = cubed root of (the last dividend/first dividend). Think that gave me 1.04..so 4% growth.

Then you times 1.04 with the ex.div amount/market value + 4%. This gave me 11% if i remember correctly..

what was your WACC? I got 11 point something.

[syeduzairnaqvi]

@heychi said:
Hi,

To calculate that you needed to find the dividend growth first before using the dividend growth model.

Think there were 4 payments according to the table.

So Dividend growth = cubed root of (the last dividend/first dividend). Think that gave me 1.04..so 4% growth.

Then you times 1.04 with the ex.div amount/market value + 4%. This gave me 11% if i remember correctly..

OK….I took 2006 div as latest and 2003 as ref div and then calculated the growth? Then I calculated the Ke by putting the value of 2006 div and then multiplied it with 1+g/MV+g…was it right?

[syeduzairnaqvi]

@lemarrec said:
I also said neither 1 nor 2

How you calculated Ke in q31

[syeduzairnaqvi]

@heychi said:
VFM answer: Economy measures Inputs and Effectiveness measures Output. I think that was option B or C. Efficiency is the process (i.e whether the process is efficient or not).

I chose Aggressive approach but I’m not sure this is right. I think they had more of long term liability balance which suggests they’re using that more. So I guess that’s conservative.

What did you pick for the one where you had to work out the forward rate (FEC?) something like that?

How you calculated Ke in q31a

[syeduzairnaqvi]

@france125 said:
What is the marking scheme for Q31 (b) on price penetration and price skimming? The total marks is 8%. What would be a good enough answer to score full marks?

Q32 (a) I got Division C and E ROI = approximately 19% plus and 17.79% respectively. Both Divisions performed well as they made a profit but Division E although made a high profit did not meet the target ROI of 18% because of new investment of $2M.

RI = revised profit – (average net asset x 12%)
Average net asset was opening net asset +closing net asset/2

I messed up on the advantages and disadvantages of RI as I did not revise same and did not remember. After checking now I remember how easy and logical the answer is.

My MCQ were:
1.C
2.C
3.D
4.A
5.B
6.D
7.D
8.A
9.C
10.B
11.A
12.C
13.D
14.A
15.D
16.C
17.C
18.B
19.A
20.D
21.C
22.A
23.A
24.C
25.B
26.B
27.C
28.D
29.B
30.B

The paper was fair, however the questions are too lengthy and I always seem to have exam phobia and doesn’t think well in the exam. I wish ACCA will make the exam questions shorter and to the point. I did paper base exam.

The answer for Q1 was I think consider both the VC and FC for that product and Price willing to pay?

[syeduzairnaqvi]

What was the answer for q1…I selected the both 1 and 3….we should take take VC n FC for target cost and price willing to pay?

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