FAE 2011 Where to begin

ManwitaPlan

RonaldRayGun wrote: »

Didn't bother with any FR reval adjustments, thought they could use the cost model if they wanted.

Yeah surely they could just be using cost model? That was my reasoning.

If that was an FR indicator Ive failed.

ManwitaPlan

Do people reckon KPI's in sim one was a PM indicator?

Fiona44

If you don't refer to the actual IAS in a PM indicator but give the right advice is that an automatic not competent? If so then I am screwed! :eek:

RidiculousHair

Anyone fancy a bet on the pass rates this year?? Maybe 30%? Totally ridiculous how anybody could put together a half decent answer in the time given and have it make sense....not to mention the huge amount of financial reporting and auditing in there....what was the point of the continuous assessment?

burgerking1

For what it's worth, my take on today was:

SIM 1
Charity, we were and audit accounts firm in an advisory role, doesnt mean to say you dont give advice on accounting issues and we would have had a practicising certificate.
1- fraud triangle, misappropriation and Int. control weaknesses and improvements
2 - evaluation of the two systems, NPV, payback also. Qualitative, clear to go for system B provider
3 - KPI's specific to a charity, load of tosh. obviously non financial were key, gave general discussion on

SIM 2
1 - IAS 2, IAS 1, IAS 8 and IAS 21. was the most difficult PM indicator and required some time. I said was prior period error for the FX and that the IAS 2 adjustment of £41k was nowhere near material enough for adjustment on the basis that the FS's had been approved. Yes also said the IAS 8 would cause the EPS figures to be readjusted.
2 - 3 - tax enquiry. yes was prompted careless mistake as was not deliberate. went on generally about the enquiry etc.

Thought 2 was by far the hardest sim.

SIM 3
1. - IMP again, 3 over core, unbelievable. benefits, current weaknesses and new system recommendation
2 - IAS 36 and 16 property impairment
3 - Cash extraction for Jim (not Louise) although her agreement was needed. salary, dividend, a pension, co. buy back of shares and termination payment. gift of an indicator for the tax i thought. gave you current salary and dividend too so could throw in some numbers.
4 - BL - co. vs partnership - stated the commercial as well as tax etc aspects of company vehicle. said easier for funding and liability etc as well as usual taxes
5 - Assessment of current finances and funding needed. Co. was highly geared and said they would struggle with more debt. recommended getting O/D down currently and negotiating interest only on the LT loan first for 1/2 years. Then equity from Michael re expansion as had no security to offer for any further funding and OD was repayable on demand etc.

Didnt pick up any ethics which I thought was strange but for one didnt want to dream up indicators in it if i wasnt seeing them.

There was no management accounting, very FR orientated, loadsa IMP and TAX. was expecting worse today too be honest

apologies for typo's tired this evening :-(

Madeline M

Totally messed up auditing and financial reporting - thought Sim 1 and Sim 3 where pretty ok but 3 was a disaster. Don't think ill pass auditing and PM after that! Unless there's some kind of a miracle between now and 18 November!!!

burgerking1

also the stock taking proceedures in sim 2, weaknesses and again recommendations on how to improve.

ManwitaPlan

burgerking1 wrote: »

For what it's worth, my take on today was:


SIM 3
1. - IMP again, 3 over core, unbelievable. benefits, current weaknesses and new system recommendation
2 - IAS 36 and 16 property impairment

What did you say around ias 36 and 16 burgerking?

Hanley

burgerking1 wrote: »

For what it's worth, my take on today was:

SIM 1
Charity, we were and audit accounts firm in an advisory role, doesnt mean to say you dont give advice on accounting issues and we would have had a practicising certificate.
1- fraud triangle, misappropriation and Int. control weaknesses and improvements
2 - evaluation of the two systems, NPV, payback also. Qualitative, clear to go for system B provider
3 - KPI's specific to a charity, load of tosh. obviously non financial were key, gave general discussion on

SIM 2
1 - IAS 2, IAS 1, IAS 8 and IAS 21. was the most difficult PM indicator and required some time. I said was prior period error for the FX and that the IAS 2 adjustment of £41k was nowhere near material enough for adjustment on the basis that the FS's had been approved. Yes also said the IAS 8 would cause the EPS figures to be readjusted.
2 - 3 - tax enquiry. yes was prompted careless mistake as was not deliberate. went on generally about the enquiry etc.

Thought 2 was by far the hardest sim.

SIM 3
1. - IMP again, 3 over core, unbelievable. benefits, current weaknesses and new system recommendation
2 - IAS 36 and 16 property impairment
3 - Cash extraction for Jim (not Louise) although her agreement was needed. salary, dividend, a pension, co. buy back of shares and termination payment. gift of an indicator for the tax i thought. gave you current salary and dividend too so could throw in some numbers.
4 - BL - co. vs partnership - stated the commercial as well as tax etc aspects of company vehicle. said easier for funding and liability etc as well as usual taxes
5 - Assessment of current finances and funding needed. Co. was highly geared and said they would struggle with more debt. recommended getting O/D down currently and negotiating interest only on the LT loan first for 1/2 years. Then equity from Michael re expansion as had no security to offer for any further funding and OD was repayable on demand etc.

Didnt pick up any ethics which I thought was strange but for one didnt want to dream up indicators in it if i wasnt seeing them.

There was no management accounting, very FR orientated, loadsa IMP and TAX. was expecting worse today too be honest

apologies for typo's tired this evening :-(

I'd most of that too - comforting.

Sim 2 was murder. Spent 2 hours on it.

Did sim 1 first cos I knew it wouldn't take 65 minutes and I did it in 45, the extra 20 I saved was gonna be split between the other 2 sims but I ended up starting sim 3 with slightly under 90 minutes on the clock.

Timing was a massive headache today imo.

CPJM

Time was always going to be a problem today..reasonably happy with today.

Overall in terms of Core the examiner made it clear not to under estimate IMP, although there were three indicators, they were pretty easy..

Remembering that 9 is the maximum indicators that could appear yesterday, maybe three of them could related to PM. The AAFRP counts for one. Sim 1 and Sim 2 definitely had one each. (Non financial measures appear under PM rather BL in the competency statement)

Therefore without Sim 3 we have 6 PM indicators out of c20. Even at that PM would be above or at 25%. Therefore I really don't think in Sim 3 they were going for a PM indicator. I think the revalue issue was not a PM matter but related to financing and making the point that the company is heavily geared and will not be in a position to obtain additional debt to fund the expansion and is therefore reliant on an equity injection from Michael.

*The comprehensive paper might have had only 2

p13

dchitz wrote: »

also not really sure point of aarf exam (if thats what if was even called) as about 12 standards came up over the two papers

If I got RC in advanced thing in March does it map to a C compared to the 'not advanced' indicators today & yesterday?! No harm in asking!

RonaldRayGun

FAEStudent1 wrote: »

Thanks again RonaldRayGun.

If by any chance you have Core Session 7&8 Q pack handy - can you upload? Cant seem to find it.

Here's the Audit Core S 7&8 Q and Sol packs (Q1 & 4 are the same but 4 solution has ISA updated to ISA 402, instead of SAS 480, only difference) and some ACCA notes on the new (and therefore prime exam fodder) ISAs.

Ignore the new ISAs 700, 705 and 706 if your ROI, use old ISA 700 only.

NI heads, use new three, ignore old one.

Rickyroma

CPJM wrote: »

Time was always going to be a problem today..reasonably happy with today.

I think the revalue issue was not a PM matter but related to financing and making the point that the company is heavily geared and will not be in a position to obtain additional debt to fund the expansion and is therefore reliant on an equity injection from Michael.

This was my interpretation.

I also interpreted "It is agreed that you should use your skill and industry knowledge to report on the business" as a PM indicator meaning we should report on Financial performance based on the year on year reports received (e.g. Rev growth, PBT, Cred days etc). Can't see any reason why we would have requested two years of financial statements otherwise.

Anyone else similar?

FAEStudent1

Thanks burgerking1 - makes me feel a little better that there wasn't anything else you picked up.

Agreed on SIM 2 being the hardest - I also felt that the timing was very mis-leading. For me at least - there was no way SIM 3 would take longer. Timing is hard enough in SIMS without bad timing advice from the examiner. IMO.

FAEStudent1

RonaldRayGun - your a legend. Thanks. Wear a 'RonaldRayGun' name tag in the pub after and I'll buy you a beer!

LightningBolt

Rickyroma wrote: »

This was my interpretation.

I also interpreted "It is agreed that you should use your skill and industry knowledge to report on the business" as a PM indicator meaning we should report on Financial performance based on the year on year reports received (e.g. Rev growth, PBT, Cred days etc). Can't see any reason why we would have requested two years of financial statements otherwise.

Anyone else similar?

That's the angle I went with myself though I twinned it with finance and the information management system.

Hackysack

FAEStudent1 wrote: »

RonaldRayGun - your a legend. Thanks. Wear a 'RonaldRayGun' name tag in the pub after and I'll buy you a beer!

I'm totally going to get a post-it and write RonaldRayGun on it & wear it in the pub tomorrow.

Student456

Quick question, does anyone know what we need to get tomorrow to pass? would reaching competent be enough to pass the elective?

Stabshauptmann

dchitz wrote: »

also not really sure point of aarf exam (if thats what if was even called) as about 12 standards came up over the two papers

Because at the end of the day we are accountants!
All the other stuff is important, to add context to our work, and for me its more important since I'm in advisory, but fundamentally it is an accountanting qualification.

RonaldRayGun

FAEStudent1 wrote: »

RonaldRayGun - your a legend. Thanks. Wear a 'RonaldRayGun' name tag in the pub after and I'll buy you a beer!

Ha! I should point out that my predictions track record is 100% abysmal. I called Marketing for today - absolute-cast iron-put the house on it-guaranteed - and, well, you all saw what happened. This is the audit stuff I plan/hope to have covered by 1 tomorrow, thats all, because it served me will in the mocks.

Prezatch

Just on the topic of boozing tomorrow, I sat the FAEs last year and after the last exam, I'd say about 10 people and the DCASS people were in the pub. Not sure if they're doing free vouchers this year but there were lots going last year due to the lack of people showing up. I was ossified coming out of the place so it's worth heading over!

Rickyroma

JoeyD wrote: »

Just on the topic of boozing tomorrow, I sat the FAEs last year and after the last exam, I'd say about 10 people and the DCASS people were in the pub. Not sure if they're doing free vouchers this year but there were lots going last year due to the lack of people showing up. I was ossified coming out of the place so it's worth heading over!

Yep - free vouchers this year again - think there might be finger food too but don't hold me to that - from 5:30 in the Horseshow.

Stabshauptmann

burgerking1 wrote: »

For what it's worth, my take on today was:

SIM 1
Charity, we were and audit accounts firm in an advisory role, doesnt mean to say you dont give advice on accounting issues and we would have had a practicising certificate.
1- fraud triangle, misappropriation and Int. control weaknesses and improvements
2 - evaluation of the two systems, NPV, payback also. Qualitative, clear to go for system B provider
3 - KPI's specific to a charity, load of tosh. obviously non financial were key, gave general discussion on

SIM 2
1 - IAS 2, IAS 1, IAS 8 and IAS 21. was the most difficult PM indicator and required some time. I said was prior period error for the FX and that the IAS 2 adjustment of £41k was nowhere near material enough for adjustment on the basis that the FS's had been approved. Yes also said the IAS 8 would cause the EPS figures to be readjusted.
2 - 3 - tax enquiry. yes was prompted careless mistake as was not deliberate. went on generally about the enquiry etc.

Thought 2 was by far the hardest sim.

SIM 3
1. - IMP again, 3 over core, unbelievable. benefits, current weaknesses and new system recommendation
2 - IAS 36 and 16 property impairment
3 - Cash extraction for Jim (not Louise) although her agreement was needed. salary, dividend, a pension, co. buy back of shares and termination payment. gift of an indicator for the tax i thought. gave you current salary and dividend too so could throw in some numbers.
4 - BL - co. vs partnership - stated the commercial as well as tax etc aspects of company vehicle. said easier for funding and liability etc as well as usual taxes
5 - Assessment of current finances and funding needed. Co. was highly geared and said they would struggle with more debt. recommended getting O/D down currently and negotiating interest only on the LT loan first for 1/2 years. Then equity from Michael re expansion as had no security to offer for any further funding and OD was repayable on demand etc.

Didnt pick up any ethics which I thought was strange but for one didnt want to dream up indicators in it if i wasnt seeing them.

There was no management accounting, very FR orientated, loadsa IMP and TAX. was expecting worse today too be honest

apologies for typo's tired this evening :-(

The ethics was in Sim 2, I didnt have time to answer it so I just said best to have everything reported up the line to the FD, and let him wory about agency theory. I was trying to think if there was anything re: AIM rather than FTSE but dunno.

I rushed the IMP in SIM3, I shouldnt have since I rushed it in the comp yesterday. It would be a pity to fail on IMP since Im actually really good with IT in real life! The irony.

I think in SIM3 it was important you evaluate the investment opportunity, I would have done a SWOT if time (but spent 2 hours on Sim2), and recommend against it. The company was insolvent with barely any interest cover, how could they expand?!

RidiculousHair

Rickyroma wrote: »

Yep - free vouchers this year again - think there might be finger food too but don't hold me to that - from 5:30 in the Horseshow.

Hmmm, the taste of a nice cold pint....heaven!

On a slightly different note, going back to today, buggered up timing badly on the last sim, meaning i didn't really get much on that finance or it stuff...anyone think that's me failed? overall think i gave the other finance and it stuff a reasonable go...lookin for a bit of comfort at this stage boys and girls that i'm not the only one who feels this way..

William Ralph Dean

Did anyone talk about BES funding or seed capital funding (for Michael) in Sim 3??? They are definitely not entitled to it - would that be a red light if you advised them to take it??? I left the legislation in my car!

William Ralph Dean

Did anyone talk about BES funding or seed capital funding (for Michael) in Sim 3??? They are definitely not entitled to it - would that be a red light if you advised them to take it??? I left the legislation in my car!

dchitz

William Ralph Dean wrote: »

Did anyone talk about BES funding or seed capital funding (for Michael) in Sim 3??? They are definitely not entitled to it - would that be a red light if you advised them to take it??? I left the legislation in my car!

Yeah i included these aswell, completely forgot about manufacturing company stipulation....surely this isnt a straight red is it???

Colts

Student456 wrote: »

Quick question, does anyone know what we need to get tomorrow to pass? would reaching competent be enough to pass the elective?

I'd also like to know this. I assume it's competent but just want to know what I'm aiming for!

limklass2011

Feck I did talk about this as I saw on my notes that some service industries apply..s****it plz god let the other tax stuff get me over..

trixabello

limklass2011 wrote: »

Feck I did talk about this as I saw on my notes that some service industries apply..s****it plz god let the other tax stuff get me over..

I gave a good page on seed capital, I thought it would be ok due to the ' some service industries' part... Can't believe it, you think that would be enough to fail? Tax was always my strongest subject so will be so annoyed if I fail because of this...