CAP 2 Financial Reporting

toobeyshaw

Consolidations....aaaaaaaaaarrrrrrggggghhhh :mad:

*Rant over*

Regina2009

Hi guys,

Does anyone know what we're supposed to do in consolidations of the companys in the group have different year-end dates?

Also, I know we're not allowed use red pens on the answer booklet but what about using other pen colours or highlighters for underlining, circling and the like when we're doing workings?

Regina2009

Any word on this?

Pawwed Rig

I think it will be very unlikely that there will be different year ends. Is there not enough they can beat us with???????????? Is it in one of the standards that a parent and sub should have the same year end?
If not I would imagine you would need to apportion which can just as easily be examined through a mid years acquisition. Have yet to se a question that they didn't have the same year end

Hating FR

I would say use whatever pens/highlighter helps make your workings clearer

HeinekenTicket

Regina2009 wrote: »

Hi guys,

Does anyone know what we're supposed to do in consolidations of the companys in the group have different year-end dates?

Look at paragraphs 22 and 23 of IAS 27.

Regina2009

Thanks.

I wonder if that rule about red pens just referes to WRITING in red pen as opposed to circling workings and the like?

R0N BURGUNDY

one thing i absolutely hate about cap2 (that most other people probably havent even noticed) is the large text size they use!! it does my head in everything being so spread out. i would much prefer smaller text with more fitted onto a page. basically the way they used to do it back in the day..

Pawwed Rig

R0N BURGUNDY wrote: »

one thing i absolutely hate about cap2 (that most other people probably havent even noticed) is the large text size they use!! it does my head in everything being so spread out. i would much prefer smaller text with more fitted onto a page. basically the way they used to do it back in the day..

That's the only reason I hate it too

QueenV

Is anyone else finding this tough or is it just me:mad::mad::mad::mad::mad:????

Trainee2010

Hi, In barry smiths notes for IAS 18 Revenue(IFRC Customer Loyalty Scheme) there is ia Question on the last page about AL,an airline..... etc. Does anyone have the answer to this? I have notes written down from that lecture, but cant see any notes in relation to the answer for this?

Also for IAS 11,Can someone tell me where I can find questions posted for this Ias on the chartered accountants website, because I cant find it, I have the solutions though?

Thanks in advance

KingEnda

The sooner this is over the better, I've never done so much work in such a short period of time and still a bit at sea with the stuff

aka accounts 2010

KingEnda wrote: »

The sooner this is over the better, I've never done so much work in such a short period of time and still a bit at sea with the stuff

Totally agree, I've been fairly solid for the past few weeks with regards the hours I've been putting in but still feel well off the required standard for FR and SFMA....Tax and Auditing are alright, I feel nearly ready to sit those papers.. How is everyone else holding up?

DonnaDarko09

I think Auditing has to be the biggest load of waffle ever...it will be pure luck if I 'happen' to throw down the right answer on the day..

KingEnda

The audit can catch you, main areas are all the practical stuff such as audit of the SOCI areas and the SOFP, audit reports, ethics, analytical procedures.
I hope I have that one at least sorted
FR just goes on and on and on
Tax seems OK
SFMA OMG

daddydick

QueenV wrote: »

Is anyone else finding this tough or is it just me:mad::mad::mad::mad::mad:????

Looking at the pass rates from last year, I sincerely doubt that you are the only person finding this tough

RT2010

Can anyone post up this years FR Mock paper and solution?? Would be greatly appreciated.

Cheers

pissedoffcap2

Getting so pissed off with this now. Is anyone else finding that the solutions to the SFMA past papers are always wrong or presented in the wrong order? Really annoying cause it's difficult enough trying to figure out answers which are not detailed enough in the first place without them being wrong as well!!!

ferike1

Yup, SFMA solutions are all over the show. Was doing out a paper and there were some horrendous mistakes. Quite annoying because you think you are going crazy when clearly you know something is amiss.

Pawwed Rig

KingEnda wrote: »

The audit can catch you, main areas are all the practical stuff such as audit of the SOCI areas and the SOFP, audit reports, ethics, analytical procedures.
I hope I have that one at least sorted
FR just goes on and on and on
Tax seems OK
SFMA OMG

Agree with all of the above. Be careful with Audit. Sometimes it is not 100% clear in what you are being asked.

FR I am just hoping for the best.

Whiplash85

Went through additional notes relating to disposal of subsidiary that were posted on institute website.I was under the impression that partial disposals were not examinable and that it was only disposals of a 100% shareholdings that is examinable.

Pawwed Rig

Trainee2010 wrote: »

Hi, In barry smiths notes for IAS 18 Revenue(IFRC Customer Loyalty Scheme) there is ia Question on the last page about AL,an airline..... etc. Does anyone have the answer to this? I have notes written down from that lecture, but cant see any notes in relation to the answer for this?

Also for IAS 11,Can someone tell me where I can find questions posted for this Ias on the chartered accountants website, because I cant find it, I have the solutions though?

Thanks in advance

Hi I have questions for IAS11. Are the ones you want Q1 Bulb. Q2 Emerald etc?

tomfoolery60

@Whiplash85 - The Competency Statment says that changes in group composition (explicitly saying that includes piecemeal acquitsitions and disposals) are not examinable. I'm assuming that means we would only be asked a full disposal?


@ Trainee2010 - My undestanding of that airline thing is that IFRIC 13 says you have to deffer the revenue associated with the loyalty scheme at the value to the customer and not the marginal cost. So the treatment would be incorrect. But I'm not certain!

Trainee2010

Pawwed Rig wrote: »

Hi I have questions for IAS11. Are the ones you want Q1 Bulb. Q2 Emerald etc?

Yeah, that's them. Are they available online?

Pawwed Rig

Trainee2010 wrote: »

Yeah, that's them. Are they available online?

Yeah they are on the site. If you can't find them PM me your e-mail and I will fire them onto you

QueenV

Does anyone know how to calculate the CAPex for the Free cash flow to the firm?

Thanks

Whiplash85

I think I know what you are referring to i.e. cap ex.It is the difference between the non current assets from one year to the next.So say for arguments sake NCA in 2010 is 1m and in 2011 its 3m then Your CAP ex for the purpose of your calculation will be 2m.

Btw has anybody got sales mix variance questions by any chance.

aorourke23

Oh my god. These stupid consolidation questions are doing my head in. im so confussed and less than a week to go. Any one got any tips on which questions to focus on and what questions could be topical as I am completely lost !!!!!!!!!!!!!!

aka accounts 2010

aorourke23 wrote: »

Oh my god. These stupid consolidation questions are doing my head in. im so confussed and less than a week to go. Any one got any tips on which questions to focus on and what questions could be topical as I am completely lost !!!!!!!!!!!!!!

I think you just explained how 99% of people on here feel...:D I'm just trying to work through exam papers and develop some sort of pattern..Extremly difficult though...Only a week and a half to FR and I'm lost aswell..Seriously need to try and come up with some exam strategy...

QueenV

I'm the same tbh!!My consolidation strategy doesnt seem to be working and time is running out! My back is killing me for sitting at home all day for past 8 weeks!
At this stage I'm just hoping for the best

tt1

I'm the same tbh!!My consolidation strategy doesnt seem to be working and time is running out! My back is killing me for sitting at home all day for past 8 weeks!
At this stage I'm just hoping for the best

Think we should claim compensation of the institute for back pain cause mine is killing me as well from sitting reading **** for the last 8 wks!!

I think everyone feels the same about these exams nect week, tax aint to bad, auditing and sfma are do able but will depend on the day but financial reporting is such crap. The examples giving in the notes are so basic compared to past exam papers and even the solutions to past exam papers are poorly laid out!!

Pawwed Rig

tt1 wrote: »

The examples giving in the notes are so basic compared to past exam papers and even the solutions to past exam papers are poorly laid out!!

And full of errors

KingEnda

Those ques and answers from the notes are disgrace I have spent a lot of time trying to reconcile the answers with my own solutions and in a lot of cases it is the suggested solution that is incorrect.
Try to get your hands on the Chartered Grind School notes and work through them I am going to stick with those for my remaining studies especially for Consolidations at least the approach is consistent and easily understood and I am just going to learn the adjustments in those notes and hope there is enough in them. You can spend too much time on the accounting and suffer with the other subjects
If you cannot get the CGS notes just pick 6 or 7 consol questions that you have the correct solutions for and just work with them

thisguy

my confidence keeps fluctuating for these, its really hard to know how its going to go. Theres none of the exams that i'd be a 100% confident for, could fail any (or all :eek:) of them at this stage....still have so much i need to do for them and they are less than a week away!

BESman

The Institute notes for consolidation are very poor, I would advise against using them. Hopefully your lecturer provided additional notes or else try find Dave O'Donoghue's notes, I hear they are good.

I think the Institute are trying to get students to focus on their double entry and they present all their solutions in a T-account format, which doesn't work when you're trying to follow a solution, it becomes messy and confusing.

I've done a few exam questions in my own format, which ain't perfect either but at least I can follow it to some extent. Its a step format. It fails at times when an awkward question comes up.

In my opinion, this subject is more difficult than the rest by a significant margin. I heard a lot of talk about SFMA, but I honestly cannot understand how someone could find SFMA more difficult than FR. The past exam papers have been reasonably similar over the last two years. If a nice variance question, transfer pricing question or currency question comes up you're laughing. On the other hand, in FR you get the absolute nightmare that is question one which is all over the place. They throw in standards which can be difficult to even identify, never mind accounting for them. You then have to somehow turn that mess into a consolidated SOCI & SOFP. I guarantee that there are qualified accountants all over the country that would not be able to do these questions.

Having said that, I do believe the exams are passable (obviously). Just requires a lot of work, organisation and a bit of luck on the day.

smiley00

Does anyone have any tips for approaching foreign currency questions in SFMA, I am getting really confused, don't really understand this topic and feel every question/solution is so different..

TokenWhite

What textbook do you guys use for FR? I will be doing FR as part of my business degree next semester and wouldn't mind having an idea of what I can expect, maybe even a headstart.

An Citeog

TokenWhite wrote: »

What textbook do you guys use for FR? I will be doing FR as part of my business degree next semester and wouldn't mind having an idea of what I can expect, maybe even a headstart.

The FR textbook is CAP 2 specific and published by the ICAI. I'd go with International Financial Reporting by Melville if I were you.

jdooley28

thisguy wrote: »

my confidence keeps fluctuating for these, its really hard to know how its going to go. Theres none of the exams that i'd be a 100% confident for, could fail any (or all :eek:) of them at this stage....still have so much i need to do for them and they are less than a week away!

Yeah i hate that, the confidence fluctuating

QueenV

smiley00 wrote: »

Does anyone have any tips for approaching foreign currency questions in SFMA, I am getting really confused, don't really understand this topic and feel every question/solution is so different..

Here's a link for ACCA F9 notes just scroll down to Foreign exchange risk and Interest rate risk.It's explained perfectly and in steps

http://www.scribd.com/doc/52097085/ACCA-F9-Text-from-Emile-Woolf-Publishing

louise1985

In relation to Question 4 on Mock 2011, cashflow question does anyone know how they got the figure in solution for investments in tangible assets???? They have no workings for any of there figures.
Also can we do the computational answers in pencil??

prinz

Another June, another CAP2 thread, another set of CAP2 exams I have been here before and I wish I had actually gained some nuggets of wisdom to give people sitting them for the first time but truth be told I don't have many. I have slowly figured out what not to do.

The main thing I'd advise is time management. Stick to your timeplan and be ruthless when it comes to leaving one question unfinished and moving on to the next.

I'll be sitting FR and Audit this year (again). Still feeling just as uncertain especially about Fin Rep as I ever did.

louise1985 wrote: »

Also can we do the computational answers in pencil??

From what I remember you are instructed not to use pencil in the Exam Regulations unfortunately. It would be a big help, especially in FR.

Edit: May not still be the case, see below.

An Citeog

louise1985 wrote: »

In relation to Question 4 on Mock 2011, cashflow question does anyone know how they got the figure in solution for investments in tangible assets???? They have no workings for any of there figures.
Also can we do the computational answers in pencil??

According to the instructions that were posted by the Institute last week, computational answers may be written in pencil.

SBWife

Consolidations are F7 (simple groups) and P2 (complex and International) in ACCA. Kaplan give a very clear method for doing them.

In terms of the CAPEX Cash flow definition given above, that's really not the full story, the number for Cash Flow purpose is normally found as follows:

Opening P,P & E
Less Depreciation
Less Sale of Non-current assets
Plus Purchase of P,P & E (Balancing Figure)
Closeing P,P & E

Mark1916

FML. That is all.

Username2011

Mark1916 wrote: »

FML. That is all.

I dunno.
3 days before the exams and study leave is still kicking work's a$$!

louise1985

An Citeog wrote: »

According to the instructions that were posted by the Institute last week, computational answers may be written in pencil.

Just got an email from Robert Barry from Examinations Department. Computational answers can be done in pencil but everything else should be done in pen. Will save tippex anyway

An Citeog

Username2011 wrote: »

I dunno.
3 days before the exams and study leave is still kicking work's a$$!

I'd prefer 9 to 5.30, weekends and evenings free and beer tbh!

aka accounts 2010

An Citeog wrote: »

I'd prefer 9 to 5.30, weekends and evenings free and beer tbh!

Totally agree. I can't wait to get back to the office and some sense of a normal routine with weekends free for important things like the pub and a general social life. Role on next Friday afternoon.

Username2011

aka accounts 2010 wrote: »

Totally agree. I can't wait to get back to the office and some sense of a normal routine with weekends free for important things like the pub and a general social life. Role on next Friday afternoon.

9-5 would be a dream.
unfortunately its back to windowless rooms and not seeing the light of day for me.
ah audit. the dream job....



but anyway. besta luck everyone!

KingEnda

Disposal of sub must be a defo for a ques after that e-mail from the Institute
It doesnt look too bad