What was the Mistake in the Exam?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi All,

I've read a few posts about a mistake in one of the exam papers you all sat this week. What was it?

Assuming it is a genuine mistake, I would have thought the AAT would have spotted it.

Regards
Steve

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    Hello Steve,

    I thought there were a few unclear questions on the DFS paper;

    The first I thought was regarding which net profit figure to use. Chief assessors have commented on this in the past so it was annoying that this was asked for again without the proper clarification;

    http://www.aat.org.uk/forums/posts/list/14086.page

    While the AAT merely advise us which one to use, it is actual confirmation we need rather than this advice, since Osborne and AAT don't seem able to agree an absolute definition for net profit

    They also asked for the asset turnover ratio based on capital employed which as far as I know isn't even in the Osborne books. Asking us to define something we have never seen is tricky to say the least.

    Finally, there was confusion over a good will figure to be used in one of the written answers - whether we should have used an impaired or unimpaired figure. The wording was dubious and there seems to be 50/50 split over who used which one!

    Regards,

    Robert
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    the mistake was on PEV, they said 'refer to page 6' when it was 8. I thought it was quite clear what information you needed but a lot of people seemed to have waisted time on this.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?


    I don't think the examiners will accept any claims on the page numbering. I didn't notice it during the exam.

    It seemed pretty clear where the data would come come from.

    I think they will argue that if everything had been read properly, no time would have been lost.

    There was an error in another paper (Intermediate?) where the debits and credits were on the wrong sides. That is more serious and candidates should contact the AAT to complain through the proper channels.

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    It would depend on what exercise you were doing regarding the profit figure. For example in a cash flow, I would have always used operating profit (PBIT). If you would have used PAIT there would have been an element of confusion with the interest and taxation charges as these should be amounts "paid" not "accrued" in a cash flow statement. Like I say, it depends what the actual question was asking you to do.

    In terms of asset turnover, I always use the formula Turnover divided by total assets less current liabilities. Again this is open to interpretation depending on the question being asked.

    Regarding goodwill, if it was a question calculating goodwill on the acquisition of a subsidiary/associate, then the impaired goodwill amount would give a more realistic carrying figure as it has been impairment tested for certain circumstances. Unimpaired goodwill is equivalent to fixed assets being stated at net book values rather than recoverable amounts.

    Those are just my comments - I will look at the paper next week when it appears on the website and can comment further if you like.

    Kind regards
    Steve

    p.s. bet there's lots of alcohol flowing this weekend in celebration of the end of the exams!!!

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    Debits and credits being on the wrong side is unforgivable and makes the examiner looks like they don't know the basic concepts.

    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    You would be very right about the alcohol flowing this weekend Steve.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    I passed my ACCA two years ago and the alcohol is still flowing to this day! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    I have already had a curry, several beers, vodka and magners and a roast beef dinner in celebration - not all at once I might add. More to come.... will be a right fat turkey by christmas!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What was the Mistake in the Exam?

    Good going Tori - keep it up I say!

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