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@nikaido said:
Hey! Did u guys add cash flow after 5 years to calculate Value in use?? I think we just add till 5 years. Did i mess it up there??

And i screwed the operating segment. Company was getting listed not listed so operating segment would not apply

Last question on foreign currency was devised difficult.. Rest of the paper quite straightforward.. It was so predictable ifrs 2 and ifrs 13 and ias 36 would be examined and they did.

I added the PV of Cash flow too. I think my impairment charge was something like 1.3m.

For the operating segment, we were commenting on what to do at YE September 2016, which is the date they became listed. Thus, operating segments do apply to them.

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Much like the consensus, difficult paper. Questions 2 and 3 were the best in the paper. But even on aspects of that I wasn’t too sure. Anyone know whether you have to disclose the sales to suppliers?

Also, I had no idea what to do on that lease question

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@rsi88 said:
It’s wierd because I do remember seeing something like that in my initial read-through.. but then we I got into the question I vaguely remembered it but couldn’t actually see it anywhere I checked a few times to try and find where I’d first seen it. Now to have someone on here mention it too gets me thinking, is it possible it was written in the little italic bit where it says what the professional skills marks are for

nah it definitely wasn’t part of the professional skills marks. It was either in the actual question requirement or the brief bit just before it.

In all honesty, I don’t think it makes much of a difference. My answer used those three points around the 6Is model. My only point was that the wording threw me off and I had to take a few minutes (and multiple read overs) to understand what they were asking. I think the answers would be very similar even if not focused around those three points

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@arm2250 said:
I can’t remember seeing phrase ‘how to retain and attract customers in relation to the highlighted headings for Coming Soon ‘ I just talked about social media directly, competions, emails, q and a with authors, partnership with finance company acca, use Twitter Facebook better, improve search tool

It wasn’t that exact phrase, but something like that. I think it may have been in the brief text before the actual requirement

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By any chance does anyone remember the mark breakdowns?

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I think this was a decent paper, but time management got the better of me. I was quite confident for the first half of the paper, but 4b and 5 threw me off completely. There was something about the wording of 4b which said something along the lines of “how to retain and attract customers in relation to the highlighted headings for Coming Soon”. So I wasn’t sure whether to focus on the three things that were mentioned under the ‘coming soon’ title which were student/teacher resources, mobile app, and one other I’ve forgotten.

Question 5 wasn’t difficult but they insisted on that table which meant my entire answer was messy and I didn’t get to develop points.

Models I tried to use (that I remember) were 6Is, SAF (though for the latter I ended up writing numerous different points after the ‘model’ because i thought it restricted my answer. Hope I don’t lose professional marks for that (but I probably will)

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could you also clarify why there is a $10m move on the derivative?

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Hi, would it be possible to get a response on this question? I’m still struggling to understand

Thanks,

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Sorry ignore me. Found it

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@supermesiah said:
Some of you are knew to ACCA so you don’t know they operate a scam. I have spent over 10 years with ACCA and still not finished.now because of the 7 year rule I have lost papers I have passed already.they just interested in the money they get from us. If I had someone who advised me to do another professional exams or my local country accounting exams I would have been happier by now. All my friends who did the local Accounting exams are chartered now whiles am stuck with ACCA. They determine the number of students who is supposed to pass before the exams.my friends am not surprised by what you people are saying or the frustration.they just don’t care. After all they know you have invested up to level 3 so you will lose out. If I was starting the professional now I would have quit ACCA and transferred to another course. All the emails you send won’t change ACCA mind. Am afraid we have use our money to buy pain, frustration,depression.some of you will understand more by the time you get to the options.

No, they don’t operate a scam. The qualification is designed to be difficult; that’s what adds merit to the letters.

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By the way, can anyone define what portfolio restructuring is?

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@corinneh said:
Multiplied. I think it was quoted US$/CHF 1.034… so it was 1.3some US for every 1 CHF so you always had to multiply to get the US$.

Yeah I did this

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Does anyone remember what they got for the APV? All i remember was that the financing impact had a big positive effect for my base case NPV calculation. I assume I went wrong somewhere, but couldn’t figure it out.

How did you treat the tax relief for the bank loan? The question said that the loan is paid back evenly over the 4 years, so did you deduct the repayment per year, and then calculate interest and tax relief of the netted amount?

I thought b) was quite weirdly worded, still not really sure what they were asking

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ahhh thank you!

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Is it because Stanzial is FCFE and when calculating FCFE we include interest (ie, take away every debt element form the equityholders)?

So does that mean:
FCFE: take out interest payments
FCF/NPV: ignore interest payments

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I hadn’t as the previous Swap questions I’ve come across I was fine with. This question shows I need to revise the topic so I will watch your lectures.

Thank you for responding

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A follow up question on that: why do we use the PV for years 0-2 but use the non-discounted CFs for year 3? I had done your calculation above, but using the Present Value figures for all years 0-3

Thanks,

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Is there a simple way of doing this simplification, because I’m struggling with it

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I’ve just looked at this again, and I understand that we split up tax relief savings from interest payments and the interest costs of debt (please confirm if correct). If so, why do we not incorporate the interest costs on both sets of debt and minus this out from the NPV?

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Thanks for this. I found it misleading to call it depreciation rather than additional investment, for example. But that makes sense.

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