Hi Everyone,
If you're reading this, it may mean that you either have challenges with your RAP (Topic 8 ) or just passing by.
For those finding Topic 8 challenging, help is here. Simply email consultsip@gmail.com and we will give you the
edge you so desire to stay on top of your game.

Consult Sip

Sip Consult is back to discuss your RAP with you.
As long as it is topic 8, you have nothing
to fear as Sip Consult is ever ready to assist you
in your analysis and evaluation of your main
company and your comparator.

So email Sip Consult to guide you through the RAP process
and you will never regret having Sip Consult
as your guide.

Please feel free to drop any questions or comments.

One of the reasons why topic 8 is the most popular topic choice is that it is supported 100% by secondary research of material in the public domain. Any attempt to try to arrange an interview with a senior executive of a major organisation will probably not succeed. Indeed, if all the interviews alleged to have taken place in student RAPs actually did take place, the executives concerned would have no time to carry out their duties! In any event, you are less likely to obtain objective comments and answers from the company than from an independent commentator - John Playle (chief moderator for Oxford Brookes University BSc (Hons) in Applied Accounting).

Latest News from OBU



Oxford Brookes University announces a number of changes to the
BSc (Hons) in Applied Accounting
CHANGES TO THE RESEARCH REPORT

New for 2016 and ongoing:

Topics 8 and 15 new requirements: May 2016 (Period 32) and November 2016
(Period 33)
All students submitting a project on topic 8 or topic 15 in either May 2016 or November 2016 must use sector specific organisations, based on the Industry Classification Benchmark (ICB).

These sectors are:

Airlines
Pharmaceuticals and Biotechnology
Mobile telecommunications


These sectors will apply to students submitting for the first time or for students changing topic in both the May 2016 (Period 32) and November 2016 (Period 33). Sectors for future periods will be released on 1 December each year and will cover the following two submission periods. The main focus of your project research must be an analysis/evaluation of the project topic area issues in the context of your chosen organisation.
CHANGES TO THE SLS

New for 2016 and ongoing:

SLS new requirements: November 2016 (Period 33) onwards
The assessment is changing and students will be required to write a 2,000-word critical reflection ‘what you have learned from undertaking the Research and Analysis Project’ supported by personal examples. This change will take effect from November 2016 (Period 33 onwards) and not as originally planned in May 2016.
CHANGES TO ELIGIBILITY CRITERIA

Students must have met all the eligibility criteria at least two months prior to the start of the submission period in which the student is seeking to submit. (In practice, this means that students who have sat the last of their Fundamentals exams in the March ACCA exam session – and who subsequently pass them – will not be eligible to submit a RAP in the May submission period of that same year, and students who have sat the last of their Fundamentals exams in the September ACCA exam session – and who subsequently pass them – will not be eligible to submit a RAP in the November submission period of that same year.)
CHANGES TO MENTOR REQUIREMENTS

All students must use a registered mentor who has successfully completed the online mentoring course and who is registered with Oxford Brookes University to mentor BSc (Hons) in Applied Accounting students. This will apply to students in the following categories:

First-time submissions
Students resubmitting who have changed their mentor since their previous submission


Students who are resubmitting and who submitted prior to the requirement for having a registered mentor and who have not changed their mentor will be able to use their previous mentor’s details.

If you have any further queries, please email Oxford Brookes University at acca@brookes.ac.uk

Some Useful tips for Topic 8.

TOPIC 8: UNDERSTANDING THE 3 PRE-DEFINED INDUSTRIES

Pharmaceutical and Biotechnology:

What This Industry Is About

Definition as per Industry Classification Benchmark (ICB)

Pharmaceutical:
Companies engaged in research into and development of biological substances for the purposes of drug discovery and diagnostic development, and which derive the majority of their revenue from either the sale or licensing of these drugs and diagnostic tools.

Biotechnology:
Manufacturers of prescription or over-the-counter drugs, such as aspirin, cold remedies and birth control pills. Includes vaccine producers but excludes vitamin producers, which are classified under Food Products.
Examples:
Pfizer, GlaxoSmithKline, Merck, Takeda

How to Analyse This Industry
This industry is more complicated than others and requires a student to do a significant amount of external reading. The following are areas to look out for as a student proceeds with the business and financial analysis.

Revenue Growth:
This is driven by releases of new drugs and the expiration of patents on existing drugs. When a patent expires, other companies can “copy and produce” the same drug at a cheaper price – this is known as the generic drugs industry. The expiration of a patent will lead to a drop in revenue as the company must lower its prices so as to compete with the manufacturers of generic drugs.

% of R & D to Sales:
A company invests in its future by entering into R & D for new drugs. It is very expensive to develop new drugs and can easily take more than 10 years. There is a trend of companies lowering drug development risk by acquiring promising biotechnology start-ups instead.

% of Marketing Costs to Sales:
It is costly to advertise and convince the public that a drug is useful. Marketing spend for pharmaceutical companies tend to be high and must be closely watched.

Government intervention:
There is a trend of how governments intervene and either (a) demand price reductions for certain drugs or even (b) neutralize the patent on a drug and allow generics to be made.

Consolidation and Tax Inversion:
This is the latest way for pharmaceutical companies to grow and to reduce their tax liabilities at the same time.

Litigation:
A common issue within the industry, especially when certain drugs lead to fatal outcomes.

How to Bench-Mark within This Industry

Similar product mix:
Understand the product mix of your target company and select an appropriate comparator. Some pharmaceutical companies derive the majority of their income from sale of drugs while others may derive a much lower proportion.
For example, Eli Lilly has most of its revenues from drugs while for Bayer, drugs constitute a minority
of its revenues.

Similar scale:
Scale is a big advantage within the pharmaceutical industry due to how it allows for better economies of scale in R & D, clinical trials and marketing expenses.

Similar accounting standards:
Be mindful of the challenges when selecting a UK company alongside a US one. This will lead to difficulties in comparing their results and adjustments may have to be made.

...consultsip@gmail.com/08020663116/08078793213

There has been some changes to the BSc (Hons) in Applied Accounting by Oxford Brookes University for (periods 37 ) November 2018 and (Period 38) May 2019

This affects all students undertaking the OBU RAP on Topic 8 and 15. These changes effect the November 2018 (Period 37) and May 2019 (Period 38) submission periods

All students submitting a project on topic 8 or topic 15 in either November 2018 ( perios 37) or May 2019 (period 38) MUST use sector specific organisations, based on the Industry Classification Benchmark (ICB). These sectors are:

Mining
a. Coal Companies engaged in the exploration for or mining of coal.
b. Diamonds & Gemstones Companies engaged in the exploration for and production of diamonds and other gemstones.
c. General Mining Companies engaged in the exploration, extraction or refining of minerals not defined elsewhere within the Mining sector.
d. Gold Mining Prospectors for and extractors or refiners of gold-bearing ores.
Health Care Providers
Owners and operators of health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes, rehabilitation and retirement centres. Excludes veterinary services, which are classified under Specialized Consumer Services.
Electronic & Electrical Equipment
a. Electrical Components & Equipment
Makers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. Includes makers of cables, wires, ceramics, transistors, electric adapters and security cameras.
b. Electronic Equipment Manufacturers and distributors of electronic products used in different industries. Includes makers of lasers, smart cards, bar scanners, fingerprinting equipment and other electronic factory equipment.
These changes on sectors will apply to students submitting the OBU/ACCA RAP for the first time on Topic 8 and 15, or for students changing topic in both the November 2018 (Period 37) and May 2019 (Period 38).

My advise to Students is to read the Industry Classification Benchmark (ICB) rules by FTSE International Limited (FTSE), to confirm whether their chosen company falls within the confines of the approved industries.

How about topic 6?