Hi Q2) how does avoiding short term measures and any subjective measures reduce costs associated with performance measurement? short term measures make sense, as do not have to calculate as frequently, but why would avoiding subjective measures reduce costs? Q3(i) I stated the three purposes for including investment restrictions in investment agreements found on page 21 of Ch 9; are the items in the solutions from an old set of notes? Would we be expected to know this, state usually suggests that the solution is from the notes somewhere, but I cannot find the solution in this year's version of the notes. Any guidance would be appreciated. Q6)(i) would it be acceptable to suggest an asset back security where the payouts to investors are based on cashflows from the 5 new restaurants? General question: Are pass marks available for older papers or is this something that has only come into place since 2019? Thank you, Rachael
Q2 I suspect the examiner just wanted to say that we should avoid making too many short term perormance measurements calcs, as it increases costs for very little upside. Q3 The core reading hasnt really changed here. The examiner was not designing the solution around a specific piece of core reading, but just putting down his/her thoughts. The solutions in the examiners report are modelled around the fact that this is a small company (eg ventue cap). An asset backed issue would be for a large entity. Pass marks were not published in the 'olden days'.
Hi Colin Thank you for your responses. Q3 certainly makes sense that ABS would only be used for larger entities, thank you for clarifying. Rachael
