FAE September 2012

Jame Gumb

ferike1 wrote: »

That is correct that the exam papers were set a long time ago but I know I read somewhere that in exceptional circumstances it can be amended to reflect massive current events (which doesn't mean that it will be changed but just something to be aware of)

Also as for the IT comment. The level we are expected to have is bloody ridiculous. Specific features of IT systems for companies in different industries. Its a joke but no one is laughing!

It's ridiculous.

Their logic is that you need to be able to engage with IT people if you end up finance director of a large organisation.

Sure why not throw a few medical indicators in there too! We might end up finance director of somewhere like Metro Clinic..."As you're tucking into the projections, Nurse Betty bursts in with a child on a stretcher. She confesses that she's actually a geriatric nurse and knows little about paediatric medicine. She asks for your advice on how to proceed. As you put down your Locust coffee and reflect on your next move, you wonder aloud at how your old accountancy lecturer Professor Plum would react to the reality of modern accountancy. The child's medical chart is reproduced in Appendix Two."

froggatt2011

Jame Gumb wrote: »

It's ridiculous.

Their logic is that you need to be able to engage with IT people if you end up finance director of a large organisation.

Sure why not throw a few medical indicators in there too! We might end up finance director of somewhere like Metro Clinic..."As you're tucking into the projections, Nurse Betty bursts in with a child on a stretcher. She confesses that she's actually a geriatric nurse and knows little about paediatric medicine. She asks for your advice on how to proceed. As you put down your Locust Coffee and reflect on your next move, you wonder aloud at how your old accountancy lecturer Professor Plum would react to the reality if modern accountancy. The child's medical chart is reproduced in Appendix Two."

:D:D:D:D:D:D:D

Thanks for the much needed giggle

ferike1

We are like swiss army knives

Jack of all trades master of none. To be fair I would consider going into consultancy after this (McKinsey, BCG) but even that would be more straightforward than this bollocks.

costacurta

Guys I need some help. I feel completely lost! How are people tackling things? I've been revising material for the past week and feel worse of than when I started. Please guide me in some direction! Should I continue revising material? Should I just be doing case study questions? If so, where should I start? Started looking at the management accounting question in the book and felt really dumb and lost!

hubert_ie

costacurta wrote: »

Guys I need some help. I feel completely lost! How are people tackling things? I've been revising material for the past week and feel worse of than when I started. Please guide me in some direction! Should I continue revising material? Should I just be doing case study questions? If so, where should I start? Started looking at the management accounting question in the book and felt really dumb and lost!

Case Studies , Case Studies, Case Studies is my advice....

You will notice as you go through that all the notes/books are way too in depth. I suggest get all your case studies, start going through them, tab all the solutions and use the solutions as your reference material.

There are like 50 case studies so I would advise actually attempting the last 20. Like I am spending like 30 mins attempting the case studies. Just doing out a rough answer plan and then checking against solution.

That's my advice anyway.... It might not work for everyone though....

froggatt2011

St Bernards case study - just remembered there was a lot in there about the legal aspects of incorporation. Might be worth taking this into the exam. I got an exemption from law at CAP1 and remember absolutely feck all from my IATI course which got me the exemption.

Any other legal stuff worth noting that spring to mind? Just thinking of the cumulative principle here.

froggatt2011

NI Tax peeps. Leontia has put up a recap session on the site. Worthwhile if like me you can't see the wood for the trees in tax. Touches on all the main areas and has been a good basis for tax revision in my case.

costacurta

hubert_ie wrote: »

costacurta wrote: »

Guys I need some help. I feel completely lost! How are people tackling things? I've been revising material for the past week and feel worse of than when I started. Please guide me in some direction! Should I continue revising material? Should I just be doing case study questions? If so, where should I start? Started looking at the management accounting question in the book and felt really dumb and lost!

Case Studies , Case Studies, Case Studies is my advice....

You will notice as you go through that all the notes/books are way too in depth. I suggest get all your case studies, start going through them, tab all the solutions and use the solutions as your reference material.

There are like 50 case studies so I would advise actually attempting the last 20. Like I am spending like 30 mins attempting the case studies. Just doing out a rough answer plan and then checking against solution.

That's my advice anyway.... It might not work for everyone though....

Thanks so much for the advice! Seems to be the best way to go. Feel like im achieving nothing so far

MPBC123

Anyone have a good example for deferred tax? Can't seem to get my head round it at all!

supernova84

MPBC123 wrote: »

Anyone have a good example for deferred tax? Can't seem to get my head round it at all!

Derry Cotter case study book and AAFRP book. Go through these questions and you'll be fine.

MPBC123

supernova84 wrote: »

Derry Cotter case study book and AAFRP book. Go through these questions and you'll be fine.

Thanks, going through Derry Cotter book here now.

Think I'm gona take 2moro as day off!

costacurta

MPBC123 wrote: »

Thanks, going through Derry Cotter book here now.

Think I'm gona take 2moro as day off!

How are you finding the book?

costacurta

Hey guys i'm hoping someone will be able to hook me up with the following cases studies, i seem to have the answers but missing the case:

Green Homes
Jones Fine Furniture
Runways Limited
Telco

Thanks so much for this in advance and also thanks for the advice today.

MPBC123

costacurta wrote: »

How are you finding the book?

Only gone through few cases yet but it's good. Deals with each issue separately so easy enough to follow.

Moorstown

Locust Coffee Limited

So Please, can anyone help? I just did this case.

I spotted the indicator to be as it says in the case "verbal briefing from Jim on the factors affecting the suitability of the local market for Locust"
I took this as to be assessing the factors of why not to expand in Ireland and not as it was in the solution where it addresses the opposite - "potential suitability of Locust to expand in Ireland"

chursy

MPBC123 wrote: »

Anyone have a good example for deferred tax? Can't seem to get my head round it at all!

Do the Derry Cotter Notes - and the question that is attached with the lecture handout! - Move to the derry cottor Book then - follow the grid at the beginning of the book to focus on IAS 12 questions only

chursy

Can someone elaborate on the break-even figures in Locust Coffee for me please?

Also is the 500k euro sales figure calculated as follows (10000 sterling a week x 4 x12) and then just convert it to euros using an exchange rate of your choice!

chursy

Moorstown wrote: »

Locust Coffee Limited

So Please, can anyone help? I just did this case.

I spotted the indicator to be as it says in the case "verbal briefing from Jim on the factors affecting the suitability of the local market for Locust"
I took this as to be assessing the factors of why not to expand in Ireland and not as it was in the solution where it addresses the opposite - "potential suitability of Locust to expand in Ireland"

Just did this case - I think its was a bit of a general case altogether - I didnt get many of the point he raised!!! Wasnt thinking in the same frame of mind specially around the retails etc!

ferike1

I am doing some of the audit elective cases to help with the audit indicators and finding it helpful to catch ethical stuff and risks etc (stuff that is examinable at core too).

For anyone doing the tax elective is it worth while doing the same or is the core and the elective very different?

FAE_UCH

chursy wrote: »

Just did this case - I think its was a bit of a general case altogether - I didnt get many of the point he raised!!! Wasnt thinking in the same frame of mind specially around the retails etc!

I was the exact same, I would say the Irish coffee market is absolutely saturated and the only way to come in would be to buy existing coffee shops and then build brand awareness. When I was jotting the solution i thought I had come up with a strong case on why they shouldn't.. Would I get NC cause I am advising the client wrongly?

As for that stupid Loyalty System why would you ignore the Development cost just saying you'd be well able to afford it and then ignoring it (It hasn't been spent so it is not a sunk cost yet). I also couldn't think of anything more annoying than getting a text asking me if i want coffee just because I walked past a coffee shop.. <<Rant Over>>

ferike1

I dunno, there have been a few cases where I thought a compelling argument could be put forward either way. Hopefully the institute see it that way when it comes to marking.

I also said that there were 3-4 large competitors and 80 smaller ones. To be able to compete quickly they should purchase some but ultimately the Irish market was appealing. Is that wrong? According to the solution yes but you could argue either way I think.

froggatt2011

Norman Epstow in DC book - disposal of building.
Wondering if anyone can help.
It states in the question that buildings are carried at historical cost. The building that was disposed of had been revalued before disposal, but I ignored that fact in my solution, calculating the carrying value at cost less acc depreciation.
Is is the case that even if the company policy is to use the cost model, that you still calculate the revaluation surplus upon disposal?

Maybe once again I am being totally dense and missing a key point...

chursy

FAE_UCH wrote: »

I was the exact same, I would say the Irish coffee market is absolutely saturated and the only way to come in would be to buy existing coffee shops and then build brand awareness. When I was jotting the solution i thought I had come up with a strong case on why they shouldn't.. Would I get NC cause I am advising the client wrongly?

As for that stupid Loyalty System why would you ignore the Development cost just saying you'd be well able to afford it and then ignoring it (It hasn't been spent so it is not a sunk cost yet). I also couldn't think of anything more annoying than getting a text asking me if i want coffee just because I walked past a coffee shop.. <<Rant Over>>

Couldn't agree more - I commented around that the growth wasn't strong and market was saturated as it commented that starbucks and Costa who are big giants were either recovering or recorded growth like 7 %. couldnt get my head round the fact that just because you can lease a coffee shop for cheap now in Ireland its the best place to open a coffee shop in the world! most of the points were around this!! - I would have considered the market demand/Growth/ Costs to be key factors ... I also commented on the fact that since this was a low cost didn't really matter as Coffee industry is not a very price sensitive market - i.e whether you pay 3 euros for a coffee at starbucks or 3.50 euros do you really care!... Dont think so.

Costs would be higher in Ireland - and that that owner should perform a cost benefit analysis in detail before committing fully

Now on the Smartcard - Why would you use Bluetooth for this! range isnt great so say if i want to order a coffee while i am out of range i cant do that - need this to be linked with the databundle so can be ordered anytime not just passing outside the coffee shop and also how will the timing work! so if i turn up to the shop i expect that you have my coffee ready for me??? but if I am early or late i can easily be disappointed due to the nature of the product.

Couldnt get my head round the breakeven calculation can someone please explain this?

chursy

froggatt2011 wrote: »

Norman Epstow in DC book - disposal of building.
Wondering if anyone can help.
It states in the question that buildings are carried at historical cost. The building that was disposed of had been revalued before disposal, but I ignored that fact in my solution, calculating the carrying value at cost less acc depreciation.
Is is the case that even if the company policy is to use the cost model, that you still calculate the revaluation surplus upon disposal?

Maybe once again I am being totally dense and missing a key point...

I havent seen the questions but since you have choice in IAS 16 the company may decide to revalue the asset before disposal in which case you have to revalue the asset before disposal and then account for the disposal in line with IFRS 5 (lower of carry value or fair value less cost to sell) --- Could be wrong!

Chalk_Farm

How come in the Dodgy Construction case study the final indicator is Business Leadership - Ethics and the whole answer for this indicator is about Audit Ethical Standards 1 to 5 and ethical matters in relation to the audit engagement!!?? Should this not be an audit indicator

chursy

Chalk_Farm wrote: »

How come in the Dodgy Construction case study the final indicator is Business Leadership - Ethics and the whole answer for this indicator is about Audit Ethical Standards 1 to 5 and ethical matters in relation to the audit engagement!!?? Should this not be an audit indicator

Ethics is part of BL isnt it?

Chalk_Farm

chursy wrote: »

Ethics is part of BL isnt it?

I didnt think the ES1-ES5 was part of Business Leadership, thought it was more general business ethics that was the BL. Could be wrong so maybe if someone can tell me.

The whole indicator seems very much audit focussed

Accrual Intentions

Chalk_Farm wrote: »

I didnt think the ES1-ES5 was part of Business Leadership, thought it was more general business ethics that was the BL. Could be wrong so maybe if someone can tell me.

The whole indicator seems very much audit focussed

Having read the 2011 FAE Board report this is one of the things they've advised students to try and get away from - mapping. As in, trying to link an indicator back to a specific point in the competency statement. They say that indicators can overlap on points in the competency statement. Also that you may decide to deal with one indicator in two parts or you decided to deal with two indicators in one part, but you would not get marked down with this.

I think they also specifically mention Ethics in this regard with not being concerned about what part of the competency statement it is relating to.

chursy

Chalk_Farm wrote: »

I didnt think the ES1-ES5 was part of Business Leadership, thought it was more general business ethics that was the BL. Could be wrong so maybe if someone can tell me.

The whole indicator seems very much audit focussed

Ethics covers Es 1 - 5 and Business Ethics as well. This is per Pauls Lecture but would worry too much about which part is falls to be honest.

chursy

Accrual Intentions wrote: »

Having read the 2011 FAE Board report this is one of the things they've advised students to try and get away from - mapping. As in, trying to link an indicator back to a specific point in the competency statement. They say that indicators can overlap on points in the competency statement. Also that you may decide to deal with one indicator in two parts or you decided to deal with two indicators in one part, but you would not get marked down with this.

I think they also specifically mention Ethics in this regard with not being concerned about what part of the competency statement it is relating to.

Agree there is no point thinking where it falls you just got to focus on adressing the indicator which is hard enough! but professional ethics is part of BL for sure