University of Malaya
BUSINESS 1244
SUPPLEMENTARY NOTES & QSU
COMPILATION OF ACCA PAST YEARS QUESTIONS
SUPPLEMENTARY NOTES & QSU
COMPILATION OF ACCA PAST YEARS QUESTIONS
Part E
PERFORMANCE MEASUREMENT AND CONTROL
1. Performance measurement (ratio analysis,
financial & non-financial) Chapter 19)
2. Balanced scorecards & Building Blocks (Chapter
19)
3. Divisional p
...[Show More]
SUPPLEMENTARY NOTES & QSU
COMPILATION OF ACCA PAST YEARS QUESTIONS
SUPPLEMENTARY NOTES & QSU
COMPILATION OF ACCA PAST YEARS QUESTIONS
Part E
PERFORMANCE MEASUREMENT AND CONTROL
1. Performance measurement (ratio analysis,
financial & non-financial) Chapter 19)
2. Balanced scorecards & Building Blocks (Chapter
19)
3. Divisional performance (Chapter 20)
4. Transfer pricing (Chapter 20)
5. Not-for-profit organization (Chapter 21)
Dr Adibah Jamaluddin & Madam Nazreen binti Sahol Hamid
Department of Professional Accounting Studies
2
Fakulti Perakaunan, UiTM
Performance measurement (ratio analysis)
(Text J’19 Ch16, CN’J19 Ch15)
1. Read the question requirements:
a. Verbs: Assess, Analyse, Comment, Advise
b. Allocation of marks - To determine:
i. The time to allocate 1.7 min = 1 mark
20 mark question (sec C) = 34 min
ii. The number of headings you should at least have
c. Identify if there is a particular audience e.g. director, shareholders
(different needs)
d. Identify if there is specific format e.g. memo, report, letter.
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2. Read through the question:
a. Extract as much information as possible (relevant to have impact on
ratios)
i. Significant change (increase or decrease)
ii. Occurrence of new events
iii. Issue of substance over form
b. Identify the need to make comparison:
i. Trend analysis (compare with prior year) à improve/worse
over time
ii. Competitor analysis à better/worse than the rivals
iii. Industry average comparison à better/worse than other
similar types of companies
c. Identify information that requires particular consideration
E.g. certain arrangements that make the current results are not directly
comparable with previous results, related party transactions, etc.
i. Make reference to such circumstances
ii. Address any particular concern e.g. select one company for
acquisition, effect of a disposal of a subsidiary, to grant loan
renewal, etc.
3. Calculate the ratio
a. Make sure you use % changes (relative measure) / specific ratio
(ROCE, average length of time) ROCE (2019) = 20%, ROCE (2018) =
18%, increase of 2 percentage points
Sales (2018)
Sales (2019) |
= $100,000
= $120,000 |
Increase by $20,000 à absolute measure (can provide this)
Increase by _____% (relative measure) à compulsory = +20%
b. Show your working clearly
c. Remember to cross-reference it with our analysis
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