FINANCE WITH USMAN

📊 Finance | Accounting | Financial Modelling
💡 Breaking down complex finance concepts into simple, practical lessons📈
🎓 ICAN | Finance Career & Exam Tips

[FINANCE WITH USMAN @UsmanOladehinde]

Calculate Free Cash Flow to the Firm (FCFF)

ICAN may provide operating profit, tax, depreciation, capital expenditure and working capital changes.

Formula:

FCFF = EBIT(1 − Tax rate) + Depreciation − Capital expenditure − Increase in working capital

Example:

EBIT = ₦100m
Tax = 30%
Depreciation = ₦15m
Capital expenditure = ₦25m
Increase in working capital = ₦10m

FCFF:

= ₦100m(1 − 30%) + ₦15m − ₦25m − ₦10m
= ₦50m

[FINANCE WITH USMAN @UsmanOladehinde]

Example:

A machine has:
•Carrying amount = ₦50 million
•Fair value less costs of disposal = ₦42 million
•Value in use = ₦45 million

Required: Calculate the impairment loss.

Solution:

Recoverable amount = Higher of FVLCD and VIU

= Higher of ₦42m and ₦45m
= ₦45m

Impairment loss:

₦50m − ₦45m = ₦5 million

Exam trap: Do not use the lower amount. Recoverable amount is the higher of the two.

[FINANCE WITH USMAN @UsmanOladehinde]

Good Tips

[Tomi Akinwale @TomiTalksTax]

𝗗𝗲𝗮𝗿 𝗜𝗖𝗔𝗡 𝗦𝘁𝘂𝗱𝗲𝗻𝘁𝘀, 𝘀𝘁𝗼𝗽 𝘂𝘀𝗶𝗻𝗴 𝗽𝗮𝘀𝘁 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗲 𝗪𝗥𝗢𝗡𝗚 𝘄𝗮𝘆!!❌

Do you flip to the answers page right after checking the questions? That’s not going to help you in any way!

Having written plenty exams in this life 😂, I only discovered the right way to use past questions with 2 papers left during my #ACCA journey, thanks to a Youtuber, Hassan Dossani.

This technique took my scores to over 70% from then! 🌟

With just about a month to go, here’s how to maximize the use of past questions:

1️⃣ 𝗦𝘁𝗮𝗿𝘁 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗶𝗻𝗴 𝗘𝗮𝗿𝗹𝘆: Begin at least 1 month before the exam. Practice at least one question per day.

2️⃣ 𝗦𝗶𝗺𝘂𝗹𝗮𝘁𝗲 𝗘𝘅𝗮𝗺 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀: Time yourself without distractions and stop when the timer goes off.

3️⃣ 𝗦𝗲𝗹𝗳-𝗠𝗮𝗿𝗸𝗶𝗻𝗴: Use the answers as a guide to mark your script objectively.😁

By practicing under real exam conditions, you 𝙗𝙪𝙞𝙡𝙙 𝙩𝙝𝙚 𝙧𝙚𝙨𝙞𝙡𝙞𝙚𝙣𝙘𝙚 𝙩𝙤 𝙩𝙖𝙘𝙠𝙡𝙚 𝙙𝙞𝙛𝙛𝙞𝙘𝙪𝙡𝙩 𝙦𝙪𝙚𝙨𝙩𝙞𝙤𝙣𝙨. It also helps you 𝙧𝙚𝙖𝙡𝙞𝙯𝙚 𝙬𝙝𝙖𝙩 𝙮𝙤𝙪 𝙩𝙧𝙪𝙡𝙮 𝙠𝙣𝙤𝙬 𝙖𝙣𝙙 𝙬𝙝𝙖𝙩 𝙮𝙤𝙪 𝙩𝙝𝙞𝙣𝙠 𝙮𝙤𝙪 𝙠𝙣𝙤𝙬.

Trust me, there are some things you think you know, but you dont!🤣

As the big day approaches, be disciplined, gather those past questions and start practicing!

#MondayMotivation #ICAN #ExamSuccess #TomiTalksTax

[FINANCE WITH USMAN @UsmanOladehinde]

For ICAN Financial Management (FM), foreign exchange questions can be tested in several recurring ways

1. Spot exchange rate conversion

ICAN may give you an exchange rate and ask you to convert one currency into another.

Example:

$1 = ₦1,500.
A Nigerian company needs to pay a US supplier $40,000. Calculate the naira amount required.

Solution:

₦1,500 × $40,000 = ₦60,000,00

[FINANCE WITH USMAN @UsmanOladehinde]

@iam_lawkey 😂😂

[FINANCE WITH USMAN @UsmanOladehinde]

ICAN students, which topic looks easy until the question lands in the exam?
IAS 36, IAS 33, Consolidated Accounts, or Cash Flow Statements

[FINANCE WITH USMAN @UsmanOladehinde]

One of the most confusing topic if you don’t understand

[Olufunmilayo Adeyemo @OASpeaks]

One of the tips to know your Direct and Indirect Quote in FM/SFM

Firstly, identify which is the home or foreign currency.

Nigeria (NGN) = Home Currency
America (USD) = Foreign Currency

$1 = ₦1,500
Direct Quote: When multiple units of home currency go for 1 unit of foreign currency.

₦1 = $0.00067
Indirect Quote: When multiple units of foreign currency go for 1 unit of home currency.

Attempt this
1. $2 = £
2. £0.50 = $

USD = Home Currency
Pounds = Foreign Currency

What quote is each?

[Olufunmilayo Adeyemo @OASpeaks]

One of the tips to know your Direct and Indirect Quote in FM/SFM

Firstly, identify which is the home or foreign currency.

Nigeria (NGN) = Home Currency
America (USD) = Foreign Currency

$1 = ₦1,500
Direct Quote: When multiple units of home currency go for 1 unit of foreign currency.

₦1 = $0.00067
Indirect Quote: When multiple units of foreign currency go for 1 unit of home currency.

Attempt this
1. $2 = £
2. £0.50 = $

USD = Home Currency
Pounds = Foreign Currency

What quote is each?

[FINANCE WITH USMAN @UsmanOladehinde]

What’s harder to learn?
Accounting theory or practical accounting?

[FINANCE WITH USMAN @UsmanOladehinde]

Continuation

[FINANCE WITH USMAN @UsmanOladehinde]

Finance people
what’s the ONE Excel function you use the most

[FINANCE WITH USMAN @UsmanOladehinde]

One of the most important accounting habits:
Never be afraid to ask, “What is this transaction actually for?”

[FINANCE WITH USMAN @UsmanOladehinde]

Your degree tells people what you studied.
Your skills show people what you can do.
Your results show people what you can deliver.
Build all three.

[FINANCE WITH USMAN @UsmanOladehinde]

A financial model isn't impressive because it looks beautiful.
It's impressive when the assumptions, formulas and outputs actually make sense.

[FINANCE WITH USMAN @UsmanOladehinde]

The finance professional of the future will probably need more than accounting knowledge.
Accounting + Data + Technology + Communication = a powerful combination.

[FINANCE WITH USMAN @UsmanOladehinde]

Accountants, what's the most common phrase you hear at work?
“It's urgent.”
“Just post it.”
“I'll send the document later.”
Or something else? 😂

[FINANCE WITH USMAN @UsmanOladehinde]

What's harder to learn?
Accounting theory or practical accounting? 👀

[FINANCE WITH USMAN @UsmanOladehinde]

Would you rather have:
₦1m salary + no time to yourself
OR
₦600k salary + strong career growth + time to build other income streams?

[FINANCE WITH USMAN @UsmanOladehinde]

Your degree tells people what you studied.
Your skills show people what you can do.
Your results show people what you can deliver.
Build all three.