ACCA: AFM,TALAM Co March/June 2019, Hathaway Co March/June 2020

Introduction

This tutorial is designed to guide you through solving ACCA AFM exam questions using the CBE practice platform. Based on a live class recorded on August 9, 2020, it focuses on two specific case studies: Talam Co from March/June 2019 and Hathaway Co from March/June 2020. Following this guide will enhance your understanding and preparation for the AFM exam.

Step 1: Access the CBE Practice Platform

• Open your web browser and navigate to the ACCA CBE practice platform.
• Log in with your ACCA credentials.
• Familiarize yourself with the user interface, including the dashboard, navigation menus, and available resources.

Step 2: Locate the Exam Questions

• Use the search feature to find Talam Co and Hathaway Co questions.
• Select the relevant exam period (March/June 2019 for Talam Co and March/June 2020 for Hathaway Co).
• Review the question papers to understand the structure and requirements of each question.

Step 3: Analyze the Questions

• Read each question carefully, identifying key components such as:
  • Main objectives
  • Financial metrics to analyze
  • Any specific calculations required
• Take notes on any terms or concepts that are unclear, and look them up to ensure full comprehension.

Step 4: Develop a Structured Approach to Solving

• For each question, outline a systematic approach:
  • Identify the financial statements required (e.g., income statement, cash flow statement).
  • List the calculations needed (e.g., NPV, IRR).
  • Determine any assumptions that must be stated.

Step 5: Perform Calculations

• Use the appropriate formulas for financial analysis:
  • Net Present Value (NPV):

    NPV = ∑ (Cash inflows / (1 + r)^t) - Initial Investment
    

  • Internal Rate of Return (IRR): This is usually calculated using software or a financial calculator.
• Record your calculations clearly, ensuring you show all workings for transparency.

Step 6: Interpret Results

• Analyze your calculations in the context of the question:
  • What do the results indicate about the company's financial position?
  • How do they compare to industry benchmarks or previous periods?
• Formulate conclusions based on your findings and be prepared to justify them.

Step 7: Review and Practice

• After completing the questions, review your answers against model solutions if available.
• Engage in additional practice by attempting different questions on the CBE platform to reinforce your skills.

Conclusion

By following these steps, you will gain a comprehensive understanding of how to approach and solve AFM exam questions effectively. Focus on mastering the calculations and interpretations, as these are critical for success in the exam. As a next step, continue practicing with various questions on the CBE platform and consider participating in study groups or forums for collaborative learning.