Use of Financial Data Given in the Question

[Snehal K]

In the P3 exam paper, financial and quantitative information is provided in Section A question as well as in Section B questions. As per the Examiner’s Report for Dec 2007, many candidates ignored this information completely. It is very important to use and apply this information in the answer appropriately.


Make sure that financial data provided in the question is analysed and interpreted properly in the context of given scenario.


Avoid repeating the same data in the answer or extracting superficial data which is obvious from the given information.


Financial information can be used to calculate and interpret financial ratios relevant in the context of a case study scenario. Relatively easy marks can be available for calculating and interpreting standard financial ratios.


Calculating financial ratios alone is no substitute for incisive analysis, its interpretation is important. Specific marks will be available for interpreting financial ratios that can be calculated from the financial data.

[abida_hassan]

Hii Sneha...I wanted to know whether P2 syllabus is different from old paper 3.5 - Corporate reporting ? as i am not having P2 text books

[Snehal K]

Hi Abida

Paper 3.6 - Advanced corporate reporting relates to the new Paper P2 – Corporate reporting. Paper 3.5 - Strategic business planning and development relates to the new Paper P3 – Business Analysis (especially sections A, B and C of the P3 syllabus).

[kusum]

My suggestion on learning the ratios is to learn one per week thoroughly, we have enough time to the exams to learn them all. Remember they will show up in exams.

[kusum]

Check if it is wise for a business to sell their net assets and invest the funds in the bank at higher return instead of carrying on the business and making less return than the bank offers. However there is need to consider other factors such as likelihood of problem children turning stars, the need to be good corporate citizen by keeping staff employed , etc.