Dfs

nag17

Hi every body.. I wish good luck for every body

I did a very bad mistake on section 2 on analysing the gearing ratio and that has been reflected on my recommedation on whether to invest or not.. I hope that won't be counted as major mistake that affect my overall performance in section 2.. Does any body knows how the marking system goes?? please If anybody knows anything just can calm me down

Helen C

You're not on your own

I know the feeling of walking out after the exam and then making the fatal mistake of checking your notes to see how you got on. I spent all afternoon yesterday, last night and now again this morning beating myself up and now my head is pounding because I revised every IAS and IFRS inside out except you guessed it IAS16!. I answered the questions but when I checked my notes my heart sank as I realised lots of stuff i'd completely forgotton but I knew i.e. IAS23, capitalisation etc.

Everything else in the paper went well I think but i've been trying to find out if you can fail the whole paper if you dont get the IAS question right?? my tutor at Kaplan said they have no idea about the marking system so she couldn't put my mind at ease.

I wish you all the luck in the world and I if do find anything out I will let you know. I'm sorry I couldn't put you mind at ease but you're not on your own at the moment.

Take care
Helen x

GemmaLouise

At the end of the day in an exam silly mistakes are made - you can get about 25% of the paper wrong to fail - one ratio or one standard wont have 20 -25% of the marks attached to them surely!?

Anyhow its done now and im sure there are 100's of other students kicking themselves for daft mistakes made. We dont have to be perfect - just competent!!!

Fingers crossed for the results eh!

daly

Helen I have done the same I feel

Hi Helen after speaking to a friend today I think i have done the same as you

I used the formula debt/debt + equity x100 when they used the formula debt/equity x100. I did wonder why there gearing ratio provided was so high but it didn't click at the time. I then using the formula I stated to get a low geared ratio of 46% and said to invest as it was low geared, i.e. low risk to her investment, i ma hoping they take into consideration the formula i stated was correct technically, that my answer was correct and based on my answers my advice was sufficent.

nag17

Relief

Thanks so much for every body... I wish the best for all of you.

I was so annoyed yesterday about my mistake .as I mentioned on my report{email} that the gearing ratio has increased from 76% to around 88% as far as i can remember and interest cover was below the industry average as well.. then surprisingly on my overall advice I recommended for investor not withdraw investment as the company's liquidity and financial position is not at risk at least for short run So I don’t really Know how the AAT will evaluate my comment??? But overall I think there is no wrong or right on comments as it is just a matter of how would you look at the situation and I believe it is the same as when you visit a doctor and he gives an advice on something and other doctor gives a different opinion on the same situation as long as they all follow the same standards and ethics, What every body think…..?? hope that would give us a bit of relief till we get our result very soon{hint hint} in February. Good Luck For Every Body

Helen C

In it together

I just wanted to say thank you and good luck to everyone.

I kicked myself so much after I left the exam and have been rationalising my mistake ever since as i'm sure you all have. Thanks to Gemma for putting things in perspective for me and to everyone for sharing how they are feeling after the exam the gearing ratio is a tough one because I did find different formulas for it and a quizzed my tutor over which one I should use, she said that both ways of working were correct. Daly your way of working is the one I used I was told I could either use L.T debt / L.T Debt + Equity x 100 or L.T Debt / Capital Employed x 100. I think as Gemma said we take the exam to prove we are competent so even if the formula brings you a different answer you may be ok as long as you can explain what the ratio means and how it affects the entity.

AnnieN

Having read what you have said, I feel abit better now, cos I used LT Debt/ LT Debt + Equity x100, and was devasted on Wednesday when I read it was wrong. Thanks