F3

F3 - thoughts on the exam paper12 next › last »

So strategy exams are over.What do you make of today's paper guys? It was not easy and did you manage time and attempt all of it? what are the probability of success on this one & how would you rate F3 against P3 and E3

NPV?Posted by Praveen Muthuth... on Thursday 27 May 2010 09:50what u got for NPV calculation?

Reported

ouchPosted by Sam Richardson on Thursday 27 May 2010 13:23just got home from the F3 exam - that was a nightmare... so time constrained especially with the NPV calculations...

I realised a misake in my calcs half way through appraising Project 1... the cash inflows were in USD! completely missed that so had to go back and convert to $C using fx rates 4, 4x1.05, 4x1.05 squared etc.

I doubt my NPVs were correct but I got a negative NPV of Project 1 of about $7m or something, and Project 2 a positive NPV of $1.7m - sure they're wrong though!

what did everyone think about the rest of Question 1? Hard right? Really open ended questions with not much theoretical knowledge. Don't think I did well there.

Question 2 was alright, although I got stumped on the first part which was to calculate short and long term borrowing requirements. Had a mega brain freeze and forgot how to do it. The rest of the parts were OK though

I avoided Question 3, as I didn't study MBO/divestment in detail

Question 4 was excellent, good CAPM stuff with an easy 6 marker on systematic/unsystematic risk. We even got to draw a graph! Got a bit bogged down by the theory questions though

All in all very tough I thought. I think I'll only pass if all my calcs are right.

In comparison I was pleasantly surprised with E3 and P3. I'll be happy if I pass 2 out of 3

See you at the pub

Sam

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F3Posted by Matt on Thursday 27 May 2010 13:27I got 20m for first npv then 17.9 for second - the dollar was getting stronger so should have reduced the exchange rates by 5% i think?

Q 3 was okay but couldnt decide on 2 or 4 - i eventually went for 4 and had a brain freeze and ran out of time.

If my calcs are right in Q1 i should be okay otherwise its a resit :-(

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F3Posted by Chris on Thursday 27 May 2010 13:33To calculate the forecast FX rates in Q1 should it not have been 4.000 DIVIDE by 1.05 etc as the dollar was forecast to strengthen? IE less US$ required to buy 1C$ in the future?

Overall I found the paper much harder than I thought it was going to be having flicked through section B during the reading time.

I got +ve NPVs for both projects in Q1, i think one was roughly C$17m but can't really remember.

What did everyone else get?

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F3Posted by Naeem on Thursday 27 May 2010 13:34Found it incredibly time pressured, Q1 was ok but struggled with last part of it and sec B.

Notice that the forumla sheet has changed! Wasn't informed until I got home to see June copy of FM in the post with a tips article by F3 examiner mentioning the change. Thanks CIMA for your wonderful organisational skills!

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F3Posted by Matt Ellis on Thursday 27 May 2010 13:44

Q1 I multiplied the spot rate by 0.95 each year to get the forward rates. I think I got project one at either 14 or 17 +ve, and project 2 as approx 20 +ve.

The trick with the USD revenues nearly caught me out too!

Did question 3 on the MBO, found that quite tough as with all 3 papers, it was quite open ended.

Q4 I just realised I made a mistake. I calculated the asset betas correctly, but then I used the kadj MM formula, think the debt beta for investment 1 threw me.

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F3Posted by Rita Westlund on Thursday 27 May 2010 13:54Agree it was incredibly time pressured. I came to similar results as Chris. Totally ran out of time and was left with 15 minutes to attempt Q2. Didn't have time to read it properly to relate much to the scenario at all.

Roll on November for me I think. Just have to wait and see until the results are out.

At least we have a bank holiday weekend to look forward to! There is something positive to focus on....

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f3Posted by Louise Tighe on Thursday 27 May 2010 14:00oh no another fail for me I think. I uplifted the 5% when probably should of decreased and got negative 20m for project A and positive 24 for project b. it initially thought this was meant to happen as the report part asked for other factors to consider. so i thought of real option and that although negative NPV it was the better option to use

thought overall ok paper, glad NPV and not business valuation.

Did Q2 and Q3. Had half hour to look at Q2 very rushed throughout

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F3Posted by Dave on Thursday 27 May 2010 14:05disaster for me, this was the one out of the 3 papers I was certain i could do well in and it went the worst cos I was shattered.

Had a relatively easy NPV in section 1 which I totally messed up realising half way through the second investment project so started it again, so spent and hour on the NPV, the rest of the question was a bit of a blur as I only spent half and hour more on it writing nonsense as i needed to move on.

The working capital section B question was ok I think. The other section B I made the wrong choice and went for the management buy out question but it was too late too change and was running out of time and that went pretty awfull.

Was too mentally drained after the first 2 exams to perform well on this, I think there should be at least a days gap in between exams. I would never normally make mistakes on the npv like the ones I was making today.

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COULD NOT FINISH!!!!Posted by Tyson on Thursday 27 May 2010 14:09I must have missed at least 14 marks!!!!

So frustrating.....defo fail for me i think....

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Invigilator was a disgrace too...Posted by Tyson on Thursday 27 May 2010 14:11Idiot fell asleep and was snoring...!!!!

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F3Posted by Matt on Thursday 27 May 2010 14:20Big Dave wrote:

disaster for me, this was the one out of the 3 papers I was certain i could do well in and it went the worst cos I was shattered.

Had a relatively easy NPV in section 1 which I totally messed up realising half way through the second investment project so started it again, so spent and hour on the NPV, the rest of the question was a bit of a blur as I only spent half and hour more on it writing nonsense as i needed to move on.

The working capital section B question was ok I think. The other section B I made the wrong choice and went for the management buy out question but it was too late too change and was running out of time and that went pretty awfull.

Was too mentally drained after the first 2 exams to perform well on this, I think there should be at least a days gap in between exams. I would never normally make mistakes on the npv like the ones I was making today.

Yeah i know what you mean - they should be Mon-Wed-Fri i reckon!!

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I need a drink!Posted by Olivia on Thursday 27 May 2010 14:26I feel violated by that exam....uuggghhh!!

Did Q4 first which I thought went ok...nothing too difficult.

Thought Q1 was ok but seriously time pressured, spent way too long on the NPV so had no time to do any calcs for Sensitivity Analysis which there were 6 marks going for?? Just waffled through the report.

I also realised half way through that the cash inflows were in USD for Project 1 so had to go back and fix it. Grrrrr!

What did people put for the last part of Q1 - think it was advise on how to manage the implementation etc?? Thought 11 marks was quite alot for that....ran out of time so answered that quite poorly.

Then went on to Q2 which I thought looked ok to begin with and then found it really difficult. The only part I think I answered ok was the WACC part of it the rest was awful!

Really think Q2 dragged me down....will be sitting this again in Nov! :(

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disasterPosted by Carla on Thursday 27 May 2010 14:28was so time pressured I was in a panic on Q2&3 and just wasn't sure what they were asking. Blanked on working capital,and shouldn't have done Q3- it was just odd.

Got 2 positive NPVs but I never really care about that- the chances of any of us getting the answer spot on are tiny. Just after method marks.

In section B started to do IRR- but discounted using the wrong side of teh table and used annuity factors- only realised too late howlarge resuts where- abandoned it for time.

I realy waffled in this exam, I'm certain I failed.Oh well, for me its the kind of exams where everything falls into place second timeround :)

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F3Posted by Dave on Thursday 27 May 2010 14:32 Got caught out on the USD first too, for project 1, I spotted it in the reading time and then forgot to convert it when i was actually doing it, so I did it all again. should of just moved on.

Wasnt sure on that implentation part so just wrote waffle, I would of thought that sort of question would be on an E3 exam not F3.

Really wish I had gone for Q4 instead of 3, might have had a slight chance of passing then.

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f03Posted by Louise Tighe on Thursday 27 May 2010 14:33Olivia wrote:

I feel violated by that exam....uuggghhh!!

Did Q4 first which I thought went ok...nothing too difficult.

Thought Q1 was ok but seriously time pressured, spent way too long on the NPV so had no time to do any calcs for Sensitivity Analysis which there were 6 marks going for?? Just waffled through the report.

I also realised half way through that the cash inflows were in USD for Project 1 so had to go back and fix it. Grrrrr!

What did people put for the last part of Q1 - think it was advise on how to manage the implementation etc?? Thought 11 marks was quite alot for that....ran out of time so answered that quite poorly.

Then went on to Q2 which I thought looked ok to begin with and then found it really difficult. The only part I think I answered ok was the WACC part of it the rest was awful!

Really think Q2 dragged me down....will be sitting this again in Nov! :(

for the final part on Q1 was not sure what was asking so waffled about a project team, PCA and steering committee as previous projects have not worked as overspent. just said needs reviewing etc

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F3Posted by Matt on Thursday 27 May 2010 14:40Quote:


Yes me too, said about cost monitoring, checking document and system for accuracy / errors, pca and getting in experts such as surveyors to help forecast costs etc.

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f3Posted by Louise Tighe on Thursday 27 May 2010 14:42Matt wrote:

Quote:


Yes me too, said about cost monitoring, checking document and system for accuracy / errors, pca and getting in experts such as surveyors to help forecast costs etc.

thats good. hope got a few marks there

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F3Posted by George on Thursday 27 May 2010 14:42Argh I too made the error of multiplying the $ by 1.05... so ended up with -ve NPV for project one and +ve for the second.

Worst thing is that I originally calculated it correctly!! Only a small mark lost but obviously this then influences a lot of what you write later on.

Anybody know if you still get marks if you make correct & relevant recommendations etc on the figures you have - even if these are wrong due to a basic error like this?!

Toughest paper to date in my opinion. What a week! Anybody else had to go back to work this afternoon like me?!

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f3Posted by Louise Tighe on Thursday 27 May 2010 14:46George wrote:

Argh I too made the error of multiplying the $ by 1.05... so ended up with -ve NPV for project one and +ve for the second.



Toughest paper to date in my opinion. What a week! Anybody else had to go back to work this afternoon like me?!

this is exactly what i did. from what ive heard they cant penalise you for the same mistake twice. as long as you go through with what was calculated you will be fine (hopefully)

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F3Posted by Philip Horan on Thursday 27 May 2010 14:53Thought Q1 was ok, Nearly got caught out in project 1 with the US inflows, but spotted it in time, so put that 1st in my NPV followed by the exch. rate, which went down. Used 2011 as T0 and therefore the rate that year was 3.8

Got 23.9M for that

and about 19.7M for the 2nd project.

then talked about the time horizon, I said if it was ongoing - into perpetuity and then calculated that from T5's cashflows. Still left project 1 as the highest NPV.

Mentioned about the conditions for the 15M grant not being met and exchange/interest rate risk.

Chose USD for the loan and said about matching with the USD assets.

Mentioned about objectives being specified and measurable from outset and using internal audit, and about the o/spend from the DEC building. Mentioned about regular reports to the board etc.

In section B, I chose Q3 and Q4. Just mentioned each s/holders issues, economic environment - shares had gone up, despite fall in market, I said that was to do with market knowing about talks of divestment and were happy. I calculated the compound value of what would need to be paid to the VC, but didn't put it into present value, as couldn't see a discount factor. For the alternative funding, said about earn out arrangements, loans with warrants.

For CAPM, I got 8.5 and 7 discount rates? and said CAPM could help find a maximum return for minimum risk etc.

having failed this last time, I didn't think this was that ugly.

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F3Posted by Matt on Thursday 27 May 2010 14:54George wrote:

Anybody else had to go back to work this afternoon like me?!

Not a chance :-)

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DittoPosted by Sian Broughton on Thursday 27 May 2010 15:43Louise Tighe wrote:

George wrote:

Argh I too made the error of multiplying the $ by 1.05... so ended up with -ve NPV for project one and +ve for the second.



this is exactly what i did. from what ive heard they cant penalise you for the same mistake twice. as long as you go through with what was calculated you will be fine (hopefully)

I did exactly the same. Only realised after the exam lol

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CAPM?Posted by Cherry on Thursday 27 May 2010 15:50One thing that's confusing me though is when calculating the CAPMs using the Betas in Q4 - the Rf and Rm they gave were post tax values - were we supposed to gross them up to pre-tax?!

I've tried to look it up since I got back but can't find anything to say whether they should be post or pre-tax rates used in the CAPM equation. I'm sure normally they are pre-tax though as if using the Rf to work out cost of debt, normally we would adjust using 1-t to get the post tax rate?!

Also I completely missed the fact that a report format was required for section a until after I had completed that question. Can't believe it! I did squeeze onto the top of the first page the to, from etc. so hoping I might get one mark for trying!!

Definitely the worst paper of the 3 for me!

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F3Posted by Julie Bowmer on Thursday 27 May 2010 15:51Q1

Yep, I also made the mistake of x rather than dividing the ex rate; but realised at the end and had to rush back to do it. This then turned my project 1 into a negative NPV - probably because I had about 2 mins to do it in! Didnt really do much on the time horizon, basically just extended the project 2 to 10 years and then changed the cost of capital to that of the parent company to give 2 alternatives. I am just glad I remembered the capital allowances as I usually forget about them.

Talked about matching, swaps, foreign currency loans and Eurobonds (even though it wasnt enough money for them) and advised them to borrow in US$.

Feasiblility study, project committees and post completion audits.

Q3

This was a bit wierd; seemed very open ended and a bit waffly - just went on about various stakeholders; how it would affect them and how venture captialists want high return - pressure put on finances with high

interest from investment bank and the fact that they were taking on the lowest margin business...... mind went blank and couldn't think of any calculations to do in last part (5 marks)

Q4

Panicking about time at this point. Managed to ungear and re gear the betas, talk about the difference between unsystematic and systematic risk. I then got all mixed up and said that systematic risk could be diversified away... oops.

Why would they be better off using an asset beta, is it because they are unlisted?

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F3 - horrible examPosted by Lisa Samuel on Thursday 27 May 2010 16:03What asset betas and discount rates did anyone get for question 4?

I got 1.1 & 1.6 asset betas and 11.15% & 11% discount rates.

I have no idea how I even remember this or even how I calculated them at this point. I couldn't answer what an asset beta was even though I had done the calculation to degear the stupid thing in the first place. I waffles some rubbish about debt being removed - when I should have said finance risk.

Q2 - Looked easy but what a nightmare. Definately stuffed that up.

Q1 - I'm amazed I actually did calculate the exchange rate correctly and was convinced I'd done it the wrong way. Really time pressured - spent over an hour doing the NPV calcs and then my head was completely wrecked by the time I started writing.

Another fail for this paper. I don't think I can face sitting it for the 4th time.

Well done everyone for making it through today. Time to relax with a glass of wine or a beer or if you are pregnant like myself a cup of tea nad a large bar of chocolate. :-) Fingers crossed we all do better than we expect.

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Point of Tuition?

Posted by Samuel Roberts on Thursday 27 May 2010 16:10What was the point of all that work learning calculations when nothing hardly came up?

I did the same, missed the us cashflows in project 1, seems stupid to have inflows for a project refitting a current factory which the pre seen says sells within th ehome country and europe? What was the point of the pre seen if they not gonna follow it??

And i also found section 2 really waffly and lacking a real spread of the sylubus we have spent 3 months studying!

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F3Posted by Kelly Parry on Thursday 27 May 2010 16:32Found this even more time pressured than yesterdays!!

Does anyone remember the breakdown of the marks:

Q1

NPV - 17, report format - 3, Other considerations - 11?, Project managing - 7?, Loan in US$ - 6?, what was the rest?

Q3

Shareholders - 7, Negotiations - 11?, Pros / cons of the capital structure - 7?

Q4

Systematic / Unsystematic - 6, Beta, ke calcs - 6, limitations of WACC etc - 6? Asset, equity beta explanations and something to do with capm - 7?

Thanks

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amusedPosted by Sonia Takyar on Thursday 27 May 2010 16:36Well guys here is something amusing.......got home from the F3 exam to find the financial management magazine at my door. opened it and saw

an examiners article with reference to F3 changes! What is the point of releasing an article that doesn't get to us until after the exams! duuur

luckily it didn't have anything useful in it but that is not the point!

time to forget about CIMA until mid July!

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F3 ChangesPosted by Matt on Thursday 27 May 2010 17:12Sonia Takyar wrote:

Well guys here is something amusing.......got home from the F3 exam to find the financial management magazine at my door. opened it and saw an examiners article with reference to F3 changes! What is the point of releasing an article that doesn't get to us until after the exams! duuur



May 2010 ExamsPosted by Graham F on Thursday 27 May 2010 17:35In case you're sad like me and want to go through it all again (without the incredible time pressure), the May 2010 papers have been posted on the CIMA website. They're under Students>2010 Qualification>then the level, then on the right are the paper number and study resources. They're all there with the mark allocations. No answers as yet so you cant see how you've done.

Im just glad its all over for a while. My head was about to explode

Good luck

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F3Posted by Matt on Thursday 27 May 2010 18:13Graham F wrote:

In case you're sad like me and want to go through it all again (without the incredible time pressure), the May 2010 papers have been posted on the CIMA website. They're under Students>2010 Qualification>then the level, then on the right are the paper number and study resources. They're all there with the mark allocations. No answers as yet so you cant see how you've done.

Im just glad its all over for a while. My head was about to explode

Good luck

Its such a shame that they didnt put them up yesterday by mistake :-)

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CAPMPosted by Vicky on Thursday 27 May 2010 19:54Anybody else get thrown by the WACC calcs??

The finance risk changed as they were originally 100% equity but the new project was equity and debt .... therefore adjusted NPV should have been used???

Confused me a lot so calculated one using CAPM with the new finance structure, and for the second tried it the other way assuming financing remained the same and therefore equity beta was the same as the asset beta.

Thought it was a lot of workings to ungear, regear and on top of that work out not just the cost of equity but also the WACC which would have meant calculating cost of debt also. ONly a quick calc but seemed a lot for 3 marks per investment.

Any thoughts???

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f3Posted by Louise Tighe on Thursday 27 May 2010 20:02i think i got 11% ish for the WACC

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all I can do after today is stare into space and shake my head..Posted by David Roberts on Thursday 27 May 2010 22:56I'm 33...

just done a few calculations that lead me to believe that I must have taken at least 175 exams since I was 11.....possibly more.....

Today was the most leftfield...undermining...moral-sapping...exausting....thinking it's not worth my while.... exam of the lot...

I'm not quite sure what CIMA are trying to examine me on?

Is it my potential Management Accountancy skills?

Is it my ability to read an NPV scenario that would take an organiston months and several highly paid consulatants to analyse in real life...and then reccomend a solution?

Surely there this sylabus needs to be less diversified....concentrate on more core areas....with bonus marks elsewhere......

Today felt more like playing the lotto.... absolutely gutting.....

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awfulPosted by Shalini on Friday 28 May 2010 01:33I thought that paper was bloody awful

of all three, most time constraining,

excessively random,

David Roberts, i agree 100% with your comments,

Really i cant even comment properly because of how taxing that paper was.

If you are going to examine ppl in such a time constrained manner, then word the questions better and ensure that people do not have to spend too much time trying to figure out how to answer, because they have to try and figure out exactly what is being asked

Additionally, even when it is apparent what is being asked, these answers really dont roll off the top of ur head, they require plenty thought and planning, and it is not really that easy for it to be done in 3 hrs with 20 mins reading time

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F3Posted by Isabelle on Friday 28 May 2010 08:33David Roberts wrote:

I'm 33...








Couldn't have put it better!! sums up how i am feeling perfectly!

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F3Posted by Matt on Friday 28 May 2010 08:51David Roberts wrote:

I'm 33...








Yep agree with you there. I was reading about MIRR in our study texts and the disadvantages were.

* It is never used in practice as the results are inaccurate and nobody understands it.

So of what benefit is me learning it??

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Strategic drift?Posted by Rayhan on Friday 28 May 2010 11:13I entirely agree with comments and the above.

As someone has already mentioned on this forum, I only return from the F3 exam to find the examiner’s guidance in the June CIMA FM magazine.

Included in the guidance was tips from the specimen paper – that was available from August 2009. That meant CIMA had 8 months to do this... (…something like CPA and slack time from P5 (E2) comes to mind).

Can’t seem to understand why the examiner wants us to do low level, ‘un-strategic’ calculations (partial exchange rates) in more detail which most have done under key stage 3 maths (or bus. Maths) and financial leases already covered in F1 (P7).

Disappointing that so much of article dedicated to towards this too.

The strategic outlook of the old P9 is certainly no longer evident in the new F3 and the greater flexibility of the section C of the syllabus has only blurred question requirements for candidates.

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F3Posted by James Dellot on Friday 28 May 2010 11:47Question 1 was a bit of a nightmare. My NPV calculations were dramatically off. I didn't convert the project one flows into US dollars so had a massively distorted NPV (something like $300m+!) and it sounds like my Project 2 was way out as well.

I spent too much time deliberating the timing of the cashflows, having the end of 2011 as T1. The initial investment in project one was stated as being incurred during 2011 not on the 1/1/11 or 31/12/10 and as all cashflows were assumed to be incurred at the end of the year I put this down as a T1 flow. (Also If exchange rates were at 1:4 at 31/12/10 was this at time 0 or time 0-1?!)

This then contradicted the timing of the government grants in project 2 which left me in a mess! Also, in project 2 the tax relief was available in the first year but the cash outflows were in two payments of $60m. Was the relief based on $120 in the first year, or $60m in the first year, or $120m split between the first and second years?! I think I just confused myself mainly. I'll be lucky to scrape together a few of the 17 marks available.

After a brief moment of panic I managed to fumble my way through the rest, finishing the NPV calcs after 45 minutes but this left me short for the rest of the paper.

Did anyone else have any issues regarding the timing of the flows?

I managed to stick to the report format and hopefully managed to collate enough marks on the discursive side. When you're questioning the figures that you've generated though it makes it difficult to use them convincingly in a discussion!

I found section B relatively straight forward opting for questions 3 and 4. Only stumbling point was the WACC calculations in queston 4. It seemed like a lot of work for only 6 marks so I was unsure if I followed the correct method. I had to skip the section d requirement on there so I could move on to question 3 which was a shame as I could have picked up a few at least.

If I had opted for section B first it could have been quite different and hopefully I've mitigated my awful NPV answer elsewhere but it could go either way.

Easily the most difficult CIMA paper I've taken so far.

Traumatic.

Apologies for the essay, I needed to vent!

James

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F3Posted by Philip Horan on Friday 28 May 2010 12:19I had the investments down as T0, and wrote that down on my report, that I assumed they occured in T0. So I used an exch. rate of 3.8 for T0.

In project 2, I split the cost over the 2 years, but I took full WDA in the 1st year on the 120M I then converted all the cashflows to C$ using the exch rates calculated in project 1.

I did Q3 & 4, for the CAPM, I only ungeared them, I didn't regear them, think I might have boobed on that?

To be honest, I've failed this a few times, and it's not the worst paper I've sat!

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F3 - NPV calculations on spreadsheetPosted by Rajat Dhingra on Friday 28 May 2010 12:55Have a minor chance of passing this one. Did Sec B first and completed it in 90 mins. Was fairly confident until then that i would scrape through.

Then came to q1, the NPV calculations seemed to have some complexity....but was still doable.

I had to rework my calcs a lot of times due to this.....and by the time i finished the NPV calc for the first project it was already 1 hr gone and i had just 30 mins left. God knows what i did in that 30 mins....was juggling between the theoretical questions and the NPV calcs for project 2....could not do justice to the either...could not even write a single bit for the 14 marker sensitivty analysis question.

Really feel that CIMA is testing us on our calculation and time mgmt skills rather than management accounting skills.

The F3 paper was uploaded to the CIMA website today.....had a shot on the NPV calcs on the excel spreadsheet and guess what, i did the calcs for Inv 1 and Inv 2 in 10 mins flat....sensitivity analysis was even quicker....

The paper suddenly seemed to be so much easier than yesterday.

Request CIMA to consider having a Computer based assessment for students....this would allows students to concentrate on the analytical part rather than just doing calculations.

Afterall this is the information age and in the real world we do everything on the computer.

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question 4Posted by salu on Friday 28 May 2010 15:38Cherry Hibbert wrote:

One thing that's confusing me though is when calculating the CAPMs using the Betas in Q4 - the Rf and Rm they gave were post tax values - were we supposed to gross them up to pre-tax?!

I've tried to look it up since I got back but can't find anything to say whether they should be post or pre-tax rates used in the CAPM equation. I'm sure normally they are pre-tax though as if using the Rf to work out cost of debt, normally we would adjust using 1-t to get the post tax rate?!

Also I completely missed the fact that a report format was required for section a until after I had completed that question. Can't believe it! I did squeeze onto the top of the first page the to, from etc. so hoping I might get one mark for trying!!

Definitely the worst paper of the 3 for me!

lol, i did same with report format. Rf and Rm would be used as it is which was 8% and 3% if i am not wrong.

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cima magazinePosted by Praveen Muthuth... on Friday 28 May 2010 17:18Sonia Takyar wrote:




ya i've received it after i came home....so hopefully they dont give exam tips in that magazin cz d exam is over

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cheer up people

Posted by Sonia Takyar on Friday 28 May 2010 20:24hmmm alot of people seem to be worried about the quality of their NPV clacs etc. I just wanted to say that you don't need to worry too much, of course as an accountant you will need to be able to understand and compute NPV's...obviously you will have time to do this properly. The point in an exam scenario is to have a quick shot at it and then demonstrate the implications of your result....(i.e. which option is better, how do we finance it, what are the risks etc). If you can grasp the bigger picture you will fair better in the long run, regardless of the results of this exam.

hope this makes you feel better :o)

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F3Posted by MW on Saturday 29 May 2010 15:53James Dellot wrote:

Question 1 was a bit of a nightmare. My NPV calculations were dramatically off. I didn't convert the project one flows into US dollars so had a massively distorted NPV (something like $300m+!) and it sounds like my Project 2 was way out as well.

I spent too much time deliberating the timing of the cashflows, having the end of 2011 as T1. The initial investment in project one was stated as being incurred during 2011 not on the 1/1/11 or 31/12/10 and as all cashflows were assumed to be incurred at the end of the year I put this down as a T1 flow. (Also If exchange rates were at 1:4 at 31/12/10 was this at time 0 or time 0-1?!)

This then contradicted the timing of the government grants in project 2 which left me in a mess! Also, in project 2 the tax relief was available in the first year but the cash outflows were in two payments of $60m. Was the relief based on $120 in the first year, or $60m in the first year, or $120m split between the first and second years?! I think I just confused myself mainly. I'll be lucky to scrape together a few of the 17 marks available.

After a brief moment of panic I managed to fumble my way through the rest, finishing the NPV calcs after 45 minutes but this left me short for the rest of the paper.

Did anyone else have any issues regarding the timing of the flows?

I managed to stick to the report format and hopefully managed to collate enough marks on the discursive side. When you're questioning the figures that you've generated though it makes it difficult to use them convincingly in a discussion!

I found section B relatively straight forward opting for questions 3 and 4. Only stumbling point was the WACC calculations in queston 4. It seemed like a lot of work for only 6 marks so I was unsure if I followed the correct method. I had to skip the section d requirement on there so I could move on to question 3 which was a shame as I could have picked up a few at least.

If I had opted for section B first it could have been quite different and hopefully I've mitigated my awful NPV answer elsewhere but it could go either way.

Easily the most difficult CIMA paper I've taken so far.

Traumatic.

Apologies for the essay, I needed to vent!

James

James I totally agree, the most difficult paper I have ever sat, and excuse the arrogance, I am no slouch when it comes to exams. Very technical in terms of knowledge

I felt that the exam was not only time pressured but the questions were tough. Ultimately it doesnt matter whether you get the answer spot on in the NPV or whether you got everything perfect, you will pick up marks. And it is about mark accumulation throughout the paper.

I know full well my NPV was wide of the mark, but I left it as it was and continued the report with my figures, and you will not lose marks for doing this. You have used what you have generated, and if you said to go for the project with the highest NPV as it returns a greater level of shareholder wealth then you have applied your knowledge correctly regardless of the figures generated.

My Project 1 was negative, and Project 2 comfortably positive, so this is what I carried through the report, and at the end I concluded that

should the board be comfortable with the new risk profiles bought by undertaking a foreign project then go for that.

By making assumptions under those lines, doesnt mean anyone is incorrect or correct in this instance, it is more about making the correct assumption based on your figures. If you did that in the exam, sure you will be fine.

The problem with Forums like this is that it lulls people into feeling inferior, especially when people come on spouting about how they feel they have done in the exam and that they are sure that they have the correct figures, especially because they have redone the paper again, or that they felt the exam was "do-able" or "easier" compared to previous F3 Exams.

Only in July will people know how they have done. Best thing to do is enjoy your Summer and forget the last few weeks. Never benchmark yourself against anyone else on here because you will drive yourself mad and think you have failed.

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F3 Exam paper - May 2010Posted by KCSM on Saturday 29 May 2010 17:49Guys, CIMA has now posted the exam paper on line in the student information section of mycima. Now we can really be sure of how much marks we missed! what a torture. I dread July 15 now even more :<

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F3 Exam Paper - May 2010Posted by Ros on Monday 31 May 2010 21:24I totally agree about the time pressure!! how are you supposed to think straight and apply questions to scenario when you dont even have time to complete basic answers - the F3 examiner leaves very little time for thinking - you just have to do it and that is NOT real life.

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F3 & P3 exam hints on the FM magazinePosted by Rukshan Fernando on Tuesday 01 June 2010 06:41Praveen Muthuth... wrote:

Sonia Takyar wrote:




ya i've received it after i came home....so hopefully they dont give exam tips in that magazin cz d exam is over

CIMA should really look into this, what is the purpose of providing exam hints when we receive it after the exams are over! I'm a student in Sri Lanka and I got the May issue after I did the P3 paper on the 26th, which had the P3 exam hints!!! I haven't even received the June issue as yet but not like its going to help me now! Sorry about ranting on and on but this is hilarious!

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Q1Posted by Premkumar Krish... on Wednesday 02 June 2010 18:27Guys,

Dont worry too much on NPV Calculation. The total mark worth is 17. So even if you messed up, but writing the concepts clearly for other sections and sensitity analysis, i think you would roughly 20-25 marks in section A..

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Q1 NPVPosted by Poonam Kapoor on Thursday 03 June 2010 16:53Did anyone get the NPV for project 1 as UK £8m and Project 2 £8.2m or nearabouts??

I did the worst thing by calculating the exchange rates right, i.e. times 95% but in the next part worth 5 marks where they asked to comment re choice of loan to be taken in US or UK, I chose US then stroke it off (cut it) and put down UK£ , incredibly sad about this :(

Very eager to see answers now...

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F3Posted by Mehul Vakharia on Saturday 05 June 2010 19:01I agree all , the paper was very time pressured & some requirements were also not clear ... on top of that I was soo ill before / during the exams which didnt help :(

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Y to sob...chillPosted by Anil Kshatriya on Friday 25 June 2010 08:21A big hii to any1 and every1 who felt like falling down from 104th floor while writing F3...i too did...but my falling hardly left any wounds behind...coz i had a parachute..bla bla bla...well you all will be happy to know that CIMA is arranging a special dinner in London for all guys who wish to sit together and sob in chorus...oh i lost F3 ;,,,-( ....take full advantage of this opportunity to cry ur heart out....but rmmbr

1. Nov is a fresh attempt

2. You have a great learning from May'10 attempt

3. Your boss is not gonna fire you if u fail

4. Your spouse is not gonna ditch u either

5. River Thames will continue to flow despite of bad F3 on 27 May 2010

6. CIMA will not ask you again...are you ready...

Its u ...ur mind..u r the architect of ur destiny...

Cheers,

Anil

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Well saidPosted by Poonam Kapoor on Friday 25 June 2010 10:17Well said Anil, :) tis too late to sob and some facts to keep us cheered in this situation of dilemma, but atleast if CIMA could give us the answers now we can predict our score to an extent, may be prepare if required

for the resits if that's what is a definite prediction..... Moderators kept saying - answers at the end of t

Predictions for F3 & P3 - August PaperPosted: Sunday 19 August 2012 by AshReplies : 6Keywords: F3

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Does anyone have any predicitons for these papers?

P3 - 12 days and counting!Posted by Faron Scott on Sunday 19 August 2012 13:45Haven't seen a nice Futures or Options question for ages on the P3 papers. These are potentially 6 or 7 easy marks, if you can master the steps required in the calculations. So many advantages/disadvantages with these two heding techniques that the discussion element should be straightforward too.

Environmental auditing featured in the Specimen paper, but hasn't really been examined since. With a large chunk on environmental issues in the pre-seen, this may be a direction the examiner wants to go in the un-seen.

With regard to risk quantification, Value at Risk (VaR) appeared in the May 11 exam. Expected Values is another method of risk quantification that is in the study text as a formula to learn. Can't recall it being featured in any previous exams, and again, a couple of easy marks to be had if you remember 'probability of loss x impact (size of potential loss).

The board composition is an area, rich for discussion. The current set-up is quite unwieldly and there may be some restructuring needing to be carried out. Involvement of one of the Committees may be a requirement here, as an independent view of how the Board should look in the future would be necessary.

There is no un-examinable area of the syllabus and the pre-seen has been designed to tackle any of these areas.

http://community.cimaglobal.com/print/78326

http://www.addthis.com/bookmark.php

Question spotting is least successful with P3, as this is a very practical exam. Think inside the business referred to in the given scenario and ... be cynical. If it doesn't say the organisaton does something - assume it doesn't do it!

We've got nearly 2 weeks left, so plenty of time to sort out all of the grey areas. Make sure you have a good appreciation of the whole syllabus and how different parts inter-link.

Be familiar with the pre-seen, but don't let it consume your revision time. And read widely. Subjects like Directors pay, bribery and LIBOR rate setting have all been hot topics lately. This makes the syllabus content of Performance Strategy alot more real, as you can make connections with things actually happening in the world today.

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Predictions for F3 & P3 - August PaperPosted by Joy Roshan on Friday 24 August 2012 08:47Hi Faron,

thank you very much for your valuable ideas. I hope in section A there can be questions in risks in supplychain, managing suppliers & ethical implications in selecting suppliers from Africa & Asia.

Pls can you briefly explain about the LIBOUR rate setting. how it works?.

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Never trust on predictions !Posted by Clare S on Monday 27 August 2012 16:03I'd say never trust on predictions. Predictions are just predictions and in my view they are used by tuition providers just to mock the students :-( It's hard to trust even the best tutor of the town in predictions, unless the prediction comes out of the mouth of the examiner himself ! :-(

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No predictions made!Posted by Faron Scott on Tuesday 28 August 2012 10:23I did make it clear that there were no un-examinable areas of the syllabus and that question spotting is an absolute no-no at Strategic Level.

It was merely a discussion about areas that haven't featured in a 2010 syllabus exam as yet and, therefore, not to discard them as possibilities.

I'm excited(!) about showing the examiner that no stone has been left unturned in the study/revision process and to enthuse people and instigate ideas and thoughts about this week's P3 exam.

Good luck to everybody and hopefully this is our time to say 'we did it right'!

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Good LuckPosted by Kiran Kilambi V... on Wednesday 29 August 2012 05:32Good Luck guys for your PC exam. Do well and share your thoughts as i'm going to sit for P3 in Nov 2012.

Kiran

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Good LuckPosted by Ash on Wednesday 29 August 2012 16:06Good luck to you too Kiran. I am also doing P3 on Friday, and F3 on Saturday.

And all the best wishes to everyone else!

10:56 CIMA: Welcome to our F3 ‘Ask a tutor’ session. Joining us today is Doug Haste from BPP.

Good morning Doug!

10:58 CIMA: A few tips for submitting questions:

- Try and only ask one thing at a time – you’ll get a clearer answer than if you ask a multiple part question.- Make sure your question is readable by using correct punctuation and spelling.

11:00 CIMA: Also, don't forget to check out our excellent study resources for this paper at:http://www.cimaglobal.com/Students/2010-professional-qualification/Strategic-level/F3-study-resources/

11:00 Comment From Doug Hi - I am Doug Haste, I am a subject specialist working at BPP and I will be pleased to answer your questions today

11:01 Comment From Guest Regarding Cash Flow Forecast, can you please explain the difference between 2 formats, IAS 7 and Retained profit?

11:03 Comment From Guest The format of a cash flow forecast will be for you to decide - there has never been a question that instructed you to use a specific format. Hope this helps! Doug.

11:04

Comment From Julia from CIMA See F3 past exam questions and answers here:http://www.cimaglobal.com/Students/2010-professional-qualification/Strategic-level/F3-study-resources/-exam-papers/

11:06

Comment From Joanna Hi Doug, what are the special features of post completion audit of investment projects?

11:10 CIMA:

Please note all questions are moderated so it might take a little while for your question to appear – we want to let as many people as possible get a question answered. :)

11:11 Comment From Doug Haste, BPP the points that I would pay most attention to are that post audits are an independent review that take place during the project's life, and that it allows for learning and correcting errors while a project is still live. The existence of this sort of independent review will also encourage more realistic forecasts to be submitted by project managers. The danger is that post audits can create a blame culture and discourage innovation. I hope that this answers your question.

11:12 Comment From Guest In what circumstances would you use E1/P0 to calculate the cost of equity (Ke)?

11:13 Doug Haste: I would only use this approach if there is no other data provided to allow you to work out the cost of equity (ie beta factor, or dividend + growth rate). This approach has only been required very rarely in the real exam, and is an approach that gives a crude estimate of Ke.

11:14 Comment From Trang Thanks for your answer on Cash Flow Forecast. But IAS 7 starts with Operating Profit (before interest), and the other starts with Retained Profit (after payable Interest,

tax & dividends). How would you treat the payments for these (paid) in arrears? Same for both formats or different? Please explain.

11:18 Doug Haste: The IAS7 approach is the better approach because it allows you to correctly identify that tax and dividends may be being paid in arrears (ie adjust by deducting the previous year's tax and dividend); the retained profit approach works most easily when both tax and dividend are not being paid in arrrears. Personally I always use the IAS7 approach because it is clearer.

11:18 Comment From Dave Hi Doug. Could you explain the rationale for wanting to switch between fixed and variable interest on Long term borrowing? Is this purely for speculative reasons, or is there more to it?

11:22 Doug Haste: Hi Dave - if we assume that we are thinking about switching from fixed to variable, this might be because we expect interest rates to fall (unlikely!) or because variable rates are cheaper and we decide that we do not think that interest rates are likely to rise - or even they do we decide that we are able to cope with the risk. The considerations would be similar to an individual switching from a fixed rate mortgage to a variable rate mortgage. So to sum up the main issues would be - speculation, cost and risk.

11:23 Comment From Nikita

Could you please explain efficient market hypothesis in the context of business valuations.

11:24 CIMA: Want more tips for exam day? See this video:

11:29 Doug Haste: Hi Nikita - the semi strong form of the efficient market hypothesis assumes that a stock market is quick to re-price shares in the light of any new information that comes into the public domain. This view of efficiency helps in business valuation because it creates a strong argument for only paying more than the share price if you can identify and quantify extra cash flows (synergy) that you (the bidding company) would be able to extract from the acquired company. The weak form efficiency argument suggest that the stock market is not quick and accurate in its re-pricing of shares and where this is felt to hold would mean that less weight could be placed on the share price for valuing a potential acquisition. Finally the strong form effiency view would suggest that insider trading affects the share price so in fact it is even more accurate for the purpsoe of valuation. Sorry I couldn't be more concise!

11:29 Comment From Guest With MIRR, why do we compound the cash flows rather than discount them and what

does the 'terminal value' actually represent?

11:32 Doug Haste: The purpose of MIRR is to correct a flaw in IRR, whicha assumes that cash flows are reinvested at the projects return (its IRR). MIRR corrects this by reivesting cash inflows at the company's cost of capital which is seen as being a more realistic assumption. That is why we are compounding - to show the cash that we would have at the end of the project; and this is its terminal value.

11:32 Comment From Guest Why is CIV valued at perpetuity cost of capital? I am not sure why is perpetuity relevant here. Thanks

11:35 Doug Haste: The perpetuity approach assumes that the company will develop extra cash flows for ever ie for the foreseeable future - this is a reasonable assumption but other assumptions would also be possible i.e. it is not set in stone that you must always value as a perpetuity.

11:36 Comment From Usman Sajid Dear Tutor, Can you please advise me the best approach for valuation question (specially for 'Free Cash flow method' and P/E method?

11:40

Doug Haste: Usman - the free cash flow method can work

in 1 of 2 ways. First if the cash flows given are after interest then you should discount the cash flows of the company at the cost of equity (because the interest cost has been deducted from the cash flows and therefore the cost of debt should not be included in the cost of capital). Second, if the cash flows are before interest you will need to discount the cash flows at the weighted average cost of capital and then as a final step deduct the value of debt form the NPV to obtain the value of the equity. Please let me know if you have any other questions on this.

11:40

Comment From Julia from CIMA Have a look at the F3 post exam guides - they are essential reading and include examiner's comments. Go to:http://www.cimaglobal.com/Students/2010-professional-qualification/Strategic-level/F3-study-resources/Exam-guides/

11:41 Comment From Lyndall Hello Doug, I study on my own and follow my study plan and do lots of past questions but even though I feel prepared I get very nervous in the exam and make silly mistakes. Do you have any advice on how to make sure I perform well on the day?

11:44 Doug Haste: Hi Lyndall - a good way of settling your nerves is to spend the first 5 minutes of your reading time focussing on which two of the optional questions look manageable. This can help to build your confidence. Another key point is that noone (or very few people) can do all of a question so if you do get stuck

just make an assumption (e.g. invent a cost of capital if you have to) and move on. Always focus on what you can do and don't worry obsessively about what you can't do. Good luck with your exam.

11:45 Comment From guest Hi Doug, Could please tell me what are the key syllabus areas I need to concentrate on to get through the F3 exam? Thanks

11:46 Doug Haste: This is a hard one because so many syllabus areas are inter-related, but it would certainly be fair to say that business valuations and overseas investment appraisal are two absolutely critical syllabus areas.

11:49 Comment From Sita What are the key functions of management buy-outs and venture capitalists?

11:53 Doug Haste: Hi Sita - the main reason for a management buy-out is to create a focussed management team to drive a business forward, instead of allowing that business to be neglected as a marginal part of a bigger group. Venture capitalists will often provide finance for an MBO, because they are looking for risky ventures with potentially very high returns. Venture capitalists will provide equity and also often structure some of their investment as debt.

11:53 CIMA: Looking for more great advice? Watch our highly popular study tips video:

11:54 Comment From guest Hi Doug, Do you have any last-minute revision tips for us?

11:58 Doug Haste: One important issue in this exam is that business valuations are one of the last areas that you study, and one of the most difficult areas to master. This area is also critical for the exam. So my tip would be to place a heavy emphasis on business valuation questions in your final revision - they bring together lots of different syllabus areas (cost of capital, financing, discounting, objectives) and are therefore a great way of touching on a number of different syllabus areas.

11:59 Comment From Lisa How would purchase of non-current assets depress the rate of return on shareholders funds?

12:00 Doug Haste: Hi Lisa - in the short term the purchase would increase the asset base without generating significant (if any) increases in returns

12:02 CIMA: Sadly, that’s all we have time for today. Thank you to all who submitted questions; we hope this session has helped you. Also, a huge thanks to Doug who answered them all so well!

You can find many more great study resources on the CIMA website. The strategic level preseen material for the May exams and two articles analysing the material are available here:http://www.cimaglobal.com/en-gb/Students/2010-professional-qualification/Strategic-level/Pre-seen-material/

For more information on F3, make sure you check out these useful articles:http://www.cimaglobal.com/Students/2010-professional-qualification/Strategic-level/F3-study-resources/Useful-articles/

Also see our study videos, and read tips in our student magazine Velocity.www.cimaglobal.com/studyvideos www.cimaglobal.com/velocity

Good luck to all of you sitting the May exams!

How to use Excel in PC based examsDecember 2010

Excel creates both challenges and advantages when answering exam questions on PC - particularly questions that have a significant numerical bias such as those in the F3 paper. By the F3 examiner.The aim of this article is to provide some guidance to candidates sitting PC-based exams in March 2011 on the appropriate layout of answers. These recommendations are based on experience of marking the first pilot sitting of F3 in September 2010.Layout proved to be important to success in the September exams, with a strong correlation between clear layout and clarity and accuracy of approach. This was particularly evident in the case of complex numerical calculations such as those involving net present value (NPV).How can Word best be used and to what extent should Word be used rather than Excel?In general, candidates appeared to be more comfortable using Word rather than Excel for simple calculations such as gearing ratios. This can help maintain the flow of an answer. It also reduces the extent of cross-referencing and labelling of tabs in Excel and the time spent switching between Word and Excel documents.One danger of using Word that was observed by markers in the September 2010 exams was the tendency of many candidates to combine a number of key issues into one short paragraph. In paper based exams it is normally recommended that each key issue should be given a separate paragraph and this technique can be applied with equal advantage to PC based exams. This encourages candidates to give each valid issue greater coverage and development and therefore gives access to higher marks.How can the two documents be cross-referenced and labelled clearly?It is important to markers that a separate worksheet is used for each question within the same overall workbook. In some cases, it may be helpful to start a new sub section of a question on a new worksheet. Worksheet tabs should be changed to show the relevant question or sub section number. In a report format, tab references such as ‘Question 1 appendix A’ and ‘Question 1 appendix B’ etc may be more appropriate.Clear labels are also important for both row and column headings in NPV calculations and markers will take the clarity of labelling into account when awarding structure and presentation marks. Answering exams on PC is no excuse to overlook such basic principles that would largely be taken for granted when sitting paper based exams.What is a suitable pro forma for use in NPV calculations and how should workings be shown?As a general principle, workings should be kept in close vicinity to the underlying calculations and, where appropriate, form an integral part of those calculations. This enables both the candidate and the marker to check the underlying logic at

each stage in the calculation. It also reduces the number of mouse movements required in switching to and from workings held elsewhere.One possible technique is shown below. It involves adding two new columns in an NPV calculation table, one for stating the underlying calculation, and the other for base data such as a growth rate. Such tables or line extracts can then be copied or base data changed easily if similar calculations are repeated later.Extract NPV calculation to illustrate the approach suggested above:

Year ending 31 December:

20X0 20X1 20X2

Base data and workings

0 1 2

1. Number of passengers using the airport

Growing at

6% 100,000 106,000 112,360

D$ D$ D$

2. Average ticket price

As given in the question

N/A

80 90 100

3. Income from sale of tickets

Number of passengers x average ticket price

Row 1 xRow 2

8,000,000 9,540,000 11,236,000

4. Costs Fixed percentag

30%

(2,400,000)

(2,862,000)

(3,370,800)

e of income

5. Net income

5,600,000 6,678,000 7,865,200

6. Tax at Deduct tax

25%

(1,400,000)

(1,669,500)

(1,966,300)

7. Profit after tax

4,200,000 5,008,500 5,898,900

(Discounting calculations follow)

To what extent can Excel functions such as internal rate of return (IRR) be used and how should workings be shown?Excel provides a number of helpful function keys such as ‘IRR’ and ‘MIRR’ (modified internal rate of return) that only a small minority of candidates took advantage of in the September F3 exam. It is still important to understand how the formula works in order to make sure that the correct base data is used and be able to explain and, indeed, provide full workings if required in an exam. However, there will be instances when full workings are not required, and even if they are, the function key provides a useful check of the final result.When using such function keys, a preliminary note would be useful to explain how the function has been applied. For example: ‘Using the IRR function key on the two NPV results of X and Y and discount rates of a and b, respectively, IRR = …’ConclusionIn PC-based exams that contain a significant element of numerical calculations, clarity of layout and approach and clear workings are crucial to success. I hope that this article will achieve its provide students and tutors with a few tools that can be applied in and practised on past exam questions in order to achieve even greater success in the March 2011 PC-based examinations.

Tackling StrategicPosted: Friday 10 February 2012 by Sarah RobertsonReplies : 6Keywords: E3, F3, P3, Sstrategic, Study method


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Hi,

Was wondering if anyone has some advice as to how best to study for the strategic exams.

Is it best to study a week of F3, then a week of P3 etc

or

Is it best to split each week into the 3 papers.

Thanks,

Sarah

Typo!!Posted by Sarah Robertson on Friday 10 February 2012 13:03Oops just noticed my typo in the title and not sure how to amend the thread!!

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Tackle ..... ;-)Posted by Monika Rycak on Friday 10 February 2012 19:14Hi Sarah,

Yeh. I also noticed the typo ..... ;-) Learning strategic ...... I think learning style differes from person to person ..... commonly used way is, I think splittig each week into 3 papers ... isn't it ?

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fixed! :)Posted by Rebecca McCaffry on Friday 10 February 2012 19:58CIMAsphere moderator http://community.cimaglobal.com/blogs/rebecca-mccaffry

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strategicPosted by Michael Archibald on Saturday 11 February 2012 14:09Sarah

Are you distance learning on your own with the textbooks?

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.Posted by Sarah Robertson on Saturday 11 February 2012 16:20

Yes distance learning, Im getting married in the summer so think it would be too much for me to sit strategic in May, aiming for November, I've ordered P3 distance learning kit from Kaplan as dont want to get too out of touch with studying.

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Sarah Robertson: StrategicPosted by Monika Rycak on Monday 13 February 2012 10:22Hi Sarah,

The best way to study for CIMA Strategic is to first learn the theoritical area first and then proceed to do practice questions at the end of the chapters. If you felt the questions given in the study text were not enough, then go to the Practice kit and do some more questions there (if you understood the topic well after doing questions in the study text, then do not attempt the questions in the practice kit - keep it for revision phase).

Also, write down the key things you understood from each page in a paper. Use CIMA study system as it is better than other brands. Do NOT buy mind maps from any tutor or publication. Because the best mind maps are those you make yourself. Tuition support is a must to pass Strategics I think $$ I recommend INSAF business school as they offer highest quality tuition at a very lower price on 1-2-1 basis ;-) Plus - watch the following video by CIMA ex-examiner David Harris who gives so many insights into what examiners wan

Tackling Strategic Level Exams After ExemptionsPosted: Thursday 27 October 2011 by Andrew FarrierReplies : 1Keywords: E3, exams, F3, P3, Strategic


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Hi All,

I'm currently studying for the Startegic level exams sitting in November but I'm having a bit of trouble.



When I started my CIMA qualification I was exempt from the old P7 & P8 (F1 & F2). This was due to my degree which I finshed a good few years ago. I've since past the others and am now due to sit the strategic level exams.

I set about it in the mindset that i'd pay for all of the exams and attend courses for P3 and E3 and just leave F3 as i'm clueless about it. Since then i've found out that a valid attempt must be made of all 3 exams which leadsme to my problem. I purchased the materials for F3 and have been working through them myself for the last few weeks but I don't really understand any of it. In doing this im sacraficing the time I could be spending on the modules i know.

Has anyone ever attempted the strategic level exams without knowing much about one of the modules. And if so what sort of mark would be classed as a valid attempt? If i turned up and had a bit of a go at both sections and maybe picked up say 5-10 marks would CIMA void my other results?

Hope somebody can shed some light on this as im stressing out!

Thanks in advance,

Andrew

F3Posted by Jamie on Thursday 27 October 2011 14:20Firstly, I'm sure many people have done exactly that. No one (to my knowledge) has ever reported here that they have been marked void with one very low mark. I don't know how they judge it but if you have a go you should be alright. Indeed I bet if you have a go you will score a lot more than you think you will. F3 always feels worse than the marks you get.

Secondly, F3 has next to nothing to do with F1 and F2 (in terms of assumed knowledge) and has more in common with the 1st 2 levels of the performance pillar. It is a difficult one to understand but don't feel it's because you missed out on studying F1 and F2... they really don't help.

Good luck.

Strategy & T4 in May 2012 ?

Posted: Thursday 12 January 2012 by Balvinder BollaReplies : 4Keywords: advice, E3, F3, P3, strategy papers, T4


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Hello,

Can someone please clarify for me the process to complete this stage.

As i understand it you have to sit all three papers at first time sitting.

Do i have to them pass them all before i attempt T4?

Thanks in advance for your replies.

Strategy &T4 May 2012Posted by Chimfwembe Bwalya on Friday 13 January 2012 07:21Pass all three strategic level papers, only then will you be allowed to sit for T4

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Strategy and T4Posted by Arnaud Gaudin on Friday 13 January 2012 19:551. You should sit all THREE Strat papers in one sitting. I wish you pass them all with flying colors at your first sitting :)

2. If in case in the unlikely situation of a failure - you can resit PC based exams (NO need to repeat all three papers again. Just the failed paper/s only)

3. After passing all three strategy papers, you should sit T4. There are 2 parts of T4. It's highly advised to complete Part "A" (Work based assesment) first and then move onto Part "B" (written exam). Because if you first did Part "B" and then failed to fulfil the work experience requirements (Part "A") within 4 years of completing Part "B", then you will be removed from the register.

Hope this helps.



Best regards,

Arnaud Gaudin

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thanksPosted by Balvinder Bolla on Saturday 14 January 2012 23:03thanks for the response.

can't wait for it to all be finally over!

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T4 May 2012Posted by Vanitha Chandra... on Monday 30 January 2012 04:50Hi All,

Can we start a discussion on Jot in preparation for May 2012 exams? T4 B is so different from Strategic Level and I would appreciate any help from anyone out there

F3 Studdy buddyPosted: Tuesday 27 July 2010 by Poonam KapoorReplies : 12Keywords: buddy, F3, Studdy


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Is there anyone retaking the F3 exam in Sep and interested in buddy sitting for practice? This paper esp as it needs so much practice would be ideal to practice together to keep the momentum going...

Btw I'm based in North West London and I'm working in the City if anyone is keen....

Buddy, F3Posted by Shahid Khan on Tuesday 27 July 2010 17:13I am retaking F3 and need study buddy as well, I am based in southall, work in Hammersmith..

If anyone interested??



Shahid

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F3 Studdy buddyPosted by Shahid Khan on Wednesday 28 July 2010 10:00Hi Ponam,

Harrow would be bit far from where I live, looking someone local. Best of luck in your study.

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f3Posted by P on Wednesday 28 July 2010 11:42Hi Poonam,

I also work in the city.

I dont mind but also depends of work commitments, drop me an email if interested?

Thanks

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P - Please E-mailPosted by Poonam Kapoor on Wednesday 28 July 2010 11:59P,

I've tried getting in contact with you via CIMA Sphere, but I keep getting the message " there is a problem accessing this page", can you please E-mail me so we can arrange re place and time etc..

Thanks,

Poonam

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F3 study buddyPosted by Erika Audi-Jones on Thursday 29 July 2010 18:09anyone revising for it in South Germany - Bavaria? :-)

it is the hardest paper so far...

Thanks

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Help with Tips on F3 computer ResitPosted by Eleanor on Sunday 01 August 2010 16:15Guys

I am also resitting F3 in Sept and wondering on how to prep for this given that it will be a PC based exam. Anyone with tips in terms of how you use the word & excel functions. Do you still use calculator to solve formulas.

Any clues??

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My approachPosted by Poonam Kapoor on Monday 02 August 2010 10:42The only fact I know so far is that the markers will be using split screen to check and mark our answers in Word and Excel.

I'm still waiting anxiously to know facts re Word and Excel versions etc.

Suggestion from Kaplan tutor is to rename various tabs on excel with the Question numbers you are answering in those tabs, and answer every question in new tab and new page in Word.

Regarding calculator, I would only use it for complex formulae viz square roots etc, for everything else Excel is perfect medium...

Practice is the only other thing which can prepare us the best for the day..

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My ApproachPosted by Shahid Khan on Monday 02 August 2010 12:58Hi Ponam

Would it be possible for you to share Revision material you have received from Kaplan.

And what do you think about question 1 in terms of importance, valuation vs NPV.

Best Regards,

Shahid

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Hard copiesPosted by Poonam Kapoor on Monday 02 August 2010 15:38Shahid,

I'm afraid I only have the hard copies of the material from the revision class. But, if I do receive anything on E-mail, then I will E-mail them on to you.

Drop me an E-mail to let me have your E-mail ID, you can contact me via this community to send your E-mail ID to me.

There is no such biassed views re importance, even though they have already assessed NPV in section A in May, they may still examine in Section B. I'd suggest, just as we now have ample time and only paper to focus, just practice as much as you can in all areas.

Just a clue for PC based exam could be Ratios and Working Capital as they are easily examinable on Computer...

Poonam

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F3 PC Computer ResitPosted by Eleanor on Monday 02 August 2010 17:31Thanks Guys for your response. I can see that practice will help ease the PC Nerves.

Thanks for the clues too! Am loving this forum.

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F3 study buddyPosted by Dot on Wednesday 04 August 2010 20:20I'm taking F3 in September and want a buddy to study on line. I do self study and use the Official Cima exam practice kit. I just cannot afford any course fees. I would appreciate anyone giving me tips for revision, eg what topics have been covered in some of the revision courses, please. Also what to be aware of in the PC exam.

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f3 study buddy

Posted by P on Wednesday 11 August 2010 09:12Hi

I am based in London and also sitting the F3 resit in September.

Would be interested in sharing ideas via email , going through past exam questions together getting feedback, ideas on preseen etc.

Please email me or let me know if your interested and i can contact you.

Thanks

P3 resitters

Hows it going then, less than 48hrs to go.

Not great for me, haven't done anywhere near enough work & less prepared than i was for the may sitting - not looking good. Dont want to go on Fri as i feel as if it will be a waste of time but know ive gotta go just in case.

How are others feeling, & what are you planning on concentrating on tomorrow.

Good luck everyone

ResitsPosted by Donna-Marie Brammer on Wednesday 29 August 2012 20:15Hi

I'm with you totally on that one. I'm also resitting F3 on Saturday.

If I could cancel my placement and defer it until November I'd surely be doing this.

Some questions I look at and just don't know where to start. I'm not prepared at all I've just ran out of time. I really don't know where to focus my attention - I've covered the whole syllabus but its just remembering it all........ and then being able to apply it.....

Good luck everyone - lets hope we can do this and get that magic 50!

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36 HoursPosted by Faron Scott on Wednesday 29 August 2012 21:29The syllabus for P3 does seem huge, but this is a very practical exam.

Every exam scenario has been and will be different, so you can't learn any of this by rote.

A smaller amount of this exam is theory and the majority is application, meaning no regurgitation of memorised facts on the day.

I have read all of the relevant recent P3 articles in FM Magazine - Foreign Currency Hedging, Information Strategy, Evaluating Risks and the ASAP approach to answering exam questions.

I think tomorrow will be looking at the previous exam PEGs and the model answers from all of the 2010 syllabus question papers to see the examiners' 'style'.

You'll be surprised at how much you have learnt so far and it's all about applying that knowledge.

Any ideas on what the numerical question will be this time round? In the last 12 months we've had money market hedges, multilateral netting, Currency swaps, Interest Rate swaps and Forward contracts!

Good luck folks.... all you need is 50!!

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Numercial QPosted by Smidge on Wednesday 29 August 2012 21:46Hi guys,

Nice to see there are others out there - feel as if i am living in a parallel world to everyone else just wanting to get back to 'normal' life

I think the numbers will be either, future or options.

I know 50 dont sound like much but it has been so hard to achieve on this paper.Just wanna get on & do topcima.

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P3 - FridayPosted by Faron Scott on Wednesday 29 August 2012 21:59This is my umpteenth time of sitting the nemesis that is P3.

Futures and Options haven't been tested since 2010 and every time I get more confident with them, only to not see them on the paper when I turn up for the exam. Expected Value (Probability x impact of loss) is in the 2010 syllabus and hasn't been examined either numerically or discursively yet.

Corporate Governance and Corporate Social Responsibility occupy a large part of the pre-seen. I did also notice environmental targets and reporting were given a chunky paragraph in the preseen.

This is my last Strategic level paper and I am so looking forward to moving onto T4.

Let's do this!

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Me tooPosted by Simon Wan on Thursday 30 August 2012 16:20I thought I was the only one feeling like this too lol. I feel like I know less than in May sitting - in fact I know I have less knowledge now because I have forgotten a lot of the exam techniques.

This is my only resit and wish I didnt sign up to this resit tomorrow and just waited for November. But hey-ho its only money at the end of the day. I'm just going to do my best.

P3 has a great deal of common sense and sometimes helps if you just state some of the obvious as opposed to seeking too much framework from your knowledge bank.

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P3 Sept 2012

Posted by Alexis Gregory on Friday 31 August 2012 15:29Hi

Just wanting to know what everyone thought of the exam after sitting it today

It was my 3rd attempt and still unsure what i though. ALways think ive got it but narrowly miss

Any discussion on the exam greatly appreciated

Thanks

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Not hopefulPosted by Smidge on Friday 31 August 2012 16:09Well another P3 resit and still dont think ive passed it.

It wasnt a tough paper as such but didnt incorporate most of the stuff i studied, corp gov, futures, options, env auditing. Cant say i used the pre-seen at all. Or maybe it was just me.

Dont really know the way to go forward? Dont think if i spent anymore time studyin it would have helped with the paper.

What about anyone else?

Oh well Nov here I come.

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agreedPosted by Simon Wan on Friday 31 August 2012 16:37I have to agree with you there smidge. There was not a wide expanse of P3 content in there are the whole paper seemed to focus on a very small part of the syllabus. There were some very obscure questions which I was too sure what they were after.

For instance, not too sure how to explain the purchasing power parity theory in stopping exporters from changing prices...

I did reference the preseen as part of the natural hedging question and also referenced it when explaining why employees may overlook the health and saftey manual (strict targets set by regional boards etc).

Resit again this November for sure but I dont feel too upset as I really dont think I could have made any difference with more study. Completely down to luck of the draw this paper.

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agreePosted by Alexis Gregory on Friday 31 August 2012 16:41Hi

I agree too. Felt like common sense was required rather than revision!

WHich questions did you pick in section B?

I chose Q2 - random one on ROCE (which not sure i even calculated correctly)

Q3 - loss of the memory stick data

Really cant tell how i did at all

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P3 ArrghPosted by Crispy on Friday 31 August 2012 17:13 I am fully expecting to have to try once again in Nov. Questions I didn't like were the two about internal audit in Q1 - something aboout a note from the head of IA to not cause any problems with employees whatever country they were in ? I had no real ideas and think it was for 8 or 10 marks ?? Hedging question I mentioned risk as only 20 % was only sourced local - although my answer is probably complete rubbish.

Jumbled some numbers around for Q2 but only concluded with the obvious using ROCE as performance appraisal encourages managers not to invest.

Q3 - running out of time so rambled out some common sense points that anyone could of come up with - again probably dross.

I think I fillled about 6 pages- but think there is more chance of me being on the next space shuttle than passing. I am kind of hoping that the memory stick used for my answer ends in the same fate as the one on Q3 - lost and hopefully destroyed!

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I did Q3 & 4Posted by Smidge on Friday 31 August 2012 17:20I did the Lost memory stick q3 & q4 buying goods from neighbouring countries.

It was difficult cos some of the questions i could think of loads of things to write but there werent many marks ie ways to stop the memory stickin thing happening again but only 5 marks but then there were ways to improve confidence for existin & new customers in the same question but for 10 marks - cldnt think of enough to write.

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AgreePosted by Crispy on Friday 31 August 2012 17:35

Totally agree - I feel like this in general with P3, some questions are worth 8/10 marks and can think of very little - then a nice question comes along but alas is only worth 5 :-(. Ways to improve costomers confidence hmmm...., well do I have full confidence to have only scored about 1/2 at best on this Q - very random.

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what time was exam todayPosted by RG on Friday 31 August 2012 17:44was the exam not until 5pm or 5.30pm for P3 today....some of these posting are at 3.30pm.....

how was it doing it on PC.... did you find more time constraining, what you wanted to write down as opposed to writing>

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Q4Posted by GGG on Friday 31 August 2012 18:34

I found the paper quite application focused with very little theory needed.

Q4: I am unsure of answers for Q4. I have no idea how the government could check if G's competitor was evading taxes. What did people write?

Q1: did not like the questions on auditing. Again what did people write about? what were the factors that the auditor should take into account, and the relevance of the memo?

Gaurav

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Decisions...decisions....decisions!!Posted by maccaronda on Friday 31 August 2012 19:07Hi everyone.

I felt that the choice between question 2 or question 4 was tough. Q4 looked a little difficult for my liking but I couldnt really remember the ROCE formula so was left with a difficult conundrum.

I went for the ROCE one anyway.

Think I got the return part right (EBIT?) but didnt get the Capital employed as assets-net working cap. Think I may get one or two more marks though as I correctly adjusted the assets to thier depreciated value based on reducing balance.

Thoughts the merits of using ROCE for performance measurement part was fairly straightforward though, and the final part of the question I rambled enough to hopefully pass that!

The internal audit questions were very diffcult in Q1. I think I went on about likelihood and impact for the ai) and I chose my two risks as risk of injury/death to employees and reputation risk from the press stories.

Question 3 on the Amazon type company I am really unsure how I did there but I was always going to attempt that one. A nervous wait beckons....

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P3 resit

Posted by Natalie Fong on Friday 31 August 2012 22:19Q3- the memory stick question, can't really think too much how to prevent such things happen again, just wrote the company needs to set rule and policy not to allow employee to bring company document to home , Company needs to backup file often in case lost of data etc.

Q4- Government may set up whistle blowing for other compaines to tip off any wrong doing of their competitors.

Government may visit the company to check the inventory and invoices , investigate if any evading taxes etc.

Q1- I ran out of time and did not answer the 8 marks questions about the memo of not making employee feeling resentment :(

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P3 Sept 12 paperPosted by Alexis Gregory on Monday 03 September 2012 16:04Just seen the paper is out and have been torturing myself with it!!!

Really can't tell how i have done

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resitsPosted by Balvinder Bolla on Monday 03 September 2012 20:01hi,

I had to sit all three strategic papers and did a lot less actual revision.

However, surpirsingly i found it OK and like others just applied some logic to the answers.

Hope i have passed (50% will do!)

Fingers crossed to all.

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P3 ResitPosted by Ramdas Ramakrishnan on Monday 03 September 2012 20:49Hi,

Q1)Instead of writing the factors to consider so that employees will comply with health and safety act,I have just written factors to consider when planning a audit.

10 marks lost on this question for not reading the question properly.Not happy.

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NightmarePosted by Benoni Molete on Tuesday 04 September 2012 09:50This paper is becoming a nightmare for me. My mind just freezes during exams, and I don't think reading the textbook for the third time (in preparation for November rewrite) will help much. I'll just go over past papers over and over again until I eventually crack it.

I anticipate that I may have done well in section A (possibly 30 marks out of 50). This had better be the case, given the amount of time I spent refining my answers to this section (which jeopardised my section B answers, which shouldn't yield more than 20 marks all in all, if I'm lucky)

Oh well... November here we come

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Will the P3 nightmare end ?Posted by Crispy on Tuesday 04 September 2012 10:18

Having printed this paper off and showing it to colleagues - the reaction I receive is - is this actually an accounting exam ? I really have no idea what to expect to be asked in this exam - the past papers are so variable in what is being asked, it feels like a waste of time even looking at them. I think to pass you need to be good at pulling ideas off your

head, and then getting them down and communicating them effectively on paper -something I struggle with.

I feel the seat is already awaiting for me in Nov - ready for another failed attempt, feel close to admitting defeat and giving up..

F3

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Transcript of F3