This my summary of yesterday’s ACCA AFM March 21 Exams. Let’s look at each in turn. For simplicity, I will call them Exam A & Exam B.


Q1. Business Valuations – asset & earnings methods were prominent. Bootstrapping was there as expected. Gain to shareholders based upon two purchase consideration options. Easy written on pros & cons of the methods & ethical issues.

Expected score 30/50.

Q2 Forex NPV – with an interesting angle. Dividend restriction* issue in the early years. Theory parts were OK.

Expected score 15/25

*This is second time Dividend Restriction has appeared in recent exams.

Q3 Forex Risk Mgt – Two nice parts. Forward Contract hedge & MMH are easy marks to earn. Defining Translation, Transaction & Economic Risk is even easier.

However, the SWAP & NPV re the SWAP are challenging. There will be a lot of “OFR” marking been undertaken.

Expected score = 13/25


Q1 Corporate Reconstructions – what I call “ a bit of this, bit of that question”. Calculations of WACC, P/E value & DVM. The latter calculation based upon the past question “Lirio”. Theory parts were fine.

Expected score = 25/50

Q2 APV – a lovely question. It had a fixed repayment loan as in the past question “Amberle”. Theory parts were not challenging.

Expected score = 20/25

Q3 Forex Risk Mgt – Futures & Options hedge, but with a mix of direct & indirect rates. Premiums on the option were flicked around. A challenge for sure.

However, discussion on treasury & centralisation ( or not) was fine.

Expected score = 13/25