FAE September 2012

supernova84

chursy wrote: »

I have a case study in my file names perfetto focussed on Corporate governance - Does anyone have a solution for this?

can you please upload. Thanks in advance

I've no way of uploading. It basically just says Perfetto is not complying with the highest standards(lists areas of non compliance, usual stuff) and shows a range of improvements that they should implement(nothing new here either).

supernova84

froggatt2011 wrote: »

I have just attempted B & W and it was a fricking nightmare. I feel totally deflated after that.

I like to play Black or White by Michael Jackon full blast after doing this case.

But if You're thinkin'
About my baby
It don't matter if you're
Black or white...

I change the lyrics

When I'm thinkin'
About doing a case
It will never be
Black and White

froggatt2011

supernova84 wrote: »

I like to play Black or White by Michael Jackon full blast after doing this case.

But if You're thinkin'
About my baby
It don't matter if you're
Black or white...

I change the lyrics

When I'm thinkin'
About doing a case
It will never be
Black and White

Someone needs to go for a wee nap

supernova84

froggatt2011 wrote: »

Someone needs to go for a wee nap

I can't sleep ever since Bill Williams introduced me to the Locust brand

Jame Gumb

Hopefully Paul's working on "Locust Coffee 2" at the moment...

froggatt2011

Jame Gumb wrote: »

Hopefully Paul's working on "Locust Coffee 2" at the moment...

I swear if we get a case about coffee shops I will need to be carted off

supernova84

Jame Gumb wrote: »

Hopefully Paul's working on "Locust Coffee 2" at the moment...

I can't wait for the movie

Jame Gumb

supernova84 wrote: »

Jame Gumb wrote: »

Hopefully Paul's working on "Locust Coffee 2" at the moment...

I can't wait for the movie

Christopher Walken to play Bill Williams?

I can almost hear next season's induction lecture...

"Now this is a nice little case...Locust Coffee...I wrote it by the way...somewhat bizarrely it was particularly popular with your predecessors...some more than others admittedly...especially a cabal of very strange individuals on boards.ie."

chursy

supernova84 wrote: »

CAP 2 results are not published online this year, they have to log in with their username and password to get results. Hope this is the same for FAE in November.

Jame Gumb wrote: »

Christopher Walken to play Bill Williams?

I can almost hear next season's induction lecture...

"Now this is a nice little case...Locust Coffee...I wrote it by the way...somewhat bizarrely it was particularly popular with your predecessors...some more than others admittedly...especially a cabal of very strange individuals on boards.ie."

some skills james! u nearly took to one of pauls lectures there!!!

chursy

Guys

I have gone through pretty much most of the cases and still struggling to get confidence over the BL ( Strategy/Finance/ Strategic Options stuff) - I get points down on the paper but when i look at the quality to analysis done in solutions its just very de-motivating. I know they are HC solutions but i think my BL is weak as well. Now Can someone suggest any handy tips that i can take when approaching these in the case studies? I certainly need to revisit the Materials which i was going to go back to the notes of the Deloitte guy!

any tips would be handy at this stage! Thanks

faer2203

Hey guys, just wondering if anyone done Green Homes, just in the valuation of the co, how are they getting the express valuation formula? looks like there multiplying profit by 6.6, but dont know where the 6.6 comes from

supernova84

Just a quick question on retirement relief when selling business where both husband and wife meet criteria. Say business is valued at €1,500,000, does this mean there will be no CGT liability as both husband and wife can claim relief (750k x 2). Or is 750k the max relief?

7upfree

supernova84 wrote: »

Just a quick question on retirement relief when selling business where both husband and wife meet criteria. Say business is valued at €1,500,000, does this mean there will be no CGT liability as both husband and wife can claim relief (750k x 2). Or is 750k the max relief?

As far as I can remember once both meet the criteria that is the case. They are both entitled to the 750k. So as long as they own enough of the business then the relief is 750k each.

figrolls

7upfree wrote: »

As far as I can remember once both meet the criteria that is the case. They are both entitled to the 750k. So as long as they own enough of the business then the relief is 750k each.

Provided they hold 50% each, if not they would be advised to change the shareholding to make it 50% 50% which can be transfered tax free of course between husband and wife

levi

figrolls wrote: »

7upfree wrote: »

As far as I can remember once both meet the criteria that is the case. They are both entitled to the 750k. So as long as they own enough of the business then the relief is 750k each.

Provided they hold 50% each, if not they would be advised to change the shareholding to make it 50% 50% which can be transfered tax free of course between husband and wife

It can only be transferred tax free between husband and wife before the age of 55, once over 55, I think it takes up some of the 750k threshold that's why when planning have to transfer the assets before 55...

figrolls

levi wrote: »

It can only be transferred tax free between husband and wife before the age of 55, once over 55, I think it takes up some of the 750k threshold that's why when planning have to transfer the assets before 55...

ohhh thank you, I over looked that!

funkymonkey9

Hey guys,

Wonder if someone could help me with a q on Jones Fine Furniture.

In appendix 1 they do a valuation for the company. In the assets based method they reduce net assets by 30k to account for the bad debt and write down of equipment.

In the earnings based method, they do not adjust the profit for these when doing the valuation. Why is this?

Also in the P/E method, I thought you applied the p/e ratio to EBITDA and not profit after tax?? Is there a reason its computed differently in the cases?

notanocelot

funkymonkey9 wrote: »

Hey guys,

Wonder if someone could help me with a q on Jones Fine Furniture.

In appendix 1 they do a valuation for the company. In the assets based method they reduce net assets by 30k to account for the bad debt and write down of equipment.

In the earnings based method, they do not adjust the profit for these when doing the valuation. Why is this?

Also in the P/E method, I thought you applied the p/e ratio to EBITDA and not profit after tax?? Is there a reason its computed differently in the cases?

P/E method is about what's available to shareholders. Shareholders can only be paid out of distributable reserves, which are accounting profits. Hence it has to be PAT.

Net assets method is about liquidation value, so you have to write down assets.

figrolls

funkymonkey9 wrote: »

Hey guys,

Wonder if someone could help me with a q on Jones Fine Furniture.

In appendix 1 they do a valuation for the company. In the assets based method they reduce net assets by 30k to account for the bad debt and write down of equipment.

In the earnings based method, they do not adjust the profit for these when doing the valuation. Why is this?

?

My thinking on this would be that the bad debt and write off are one offs, the earnings valuation should be reasonable earnings - so removing exceptional items

could be wrong on that, it wuld just be my way of approaching it

figrolls

faer2203 wrote: »

Hey guys, just wondering if anyone done Green Homes, just in the valuation of the co, how are they getting the express valuation formula? looks like there multiplying profit by 6.6, but dont know where the 6.6 comes from

they are dividing profit by 15% - the required rate of return as mentioned on the first page

faer2203

figrolls wrote: »

they are dividing profit by 15% - the required rate of return as mentioned on the first page

Thanks that was wrecking my head!!!

mrduffy

Black and white

Finance lease adjustment 22 000

where do they get this from ?

BESman

Anyone do the 2011 Mock Core (Brilliant Bee)? I found this one very difficult. The indicators are a lot more cryptic as you're not really asked for a memo or anything. I missed two big indicators on Management Accounting. Normally I'd consider myself decent at identifying the indicators (not so good at competently answering them...). If I can't even identify them I'm in big trouble.

There's also a whole indicator on designing a cartoon bee character (no lie). My boss will be really pleased when he hears all I have learned as a result of these expensive exams.

faer2203

In mechelec does anyone know where the 13% cost of capital comes from?

ferike1

Oh that, that is an assumption that a company of that size should use it.

Did you not know that? It is common knowledge or so the institute think

Its like knowing that banks are willing to lend x4 EBITDA or that DCC traded at x6 its EBITDA.

faer2203

ferike1 wrote: »

Oh that, that is an assumption that a company of that size should use it.

Did you not know that? It is common knowledge or so the institute think

Its like knowing that banks are willing to lend x4 EBITDA or that DCC traded at x6 its EBITDA.

Haha, sure we could make up any figures and it could be right, such a s*** exam this is!!

dee359

ferike1 wrote: »

Oh that, that is an assumption that a company of that size should use it.

Did you not know that? It is common knowledge or so the institute think

Its like knowing that banks are willing to lend x4 EBITDA or that DCC traded at x6 its EBITDA.

Oh yeah I came across all that as well. The institute would disgust ya. Dunno what will happen on the day of the exam if my mind-reading skills fail to work..

ferike1

To be fair though, I'd much prefer this type of work. My day goes by tying out bank statements. I'd much rather be telling CEOs/MDs/Finance Directors that their proposed valuation is horsesh*t or that their IT budget is arbitrary. I am sure they will only too happy for a twentysomething year old to tell them that they are running their company into the ground or that they have bad Corporate Governance.

The world as described by these cases is an exciting one indeed.

mrduffy

sample paper 2

mrduffy wrote: »

Black and white

Finance lease adjustment 22 000

where do they get this from ?

anyone know how they get or is it assumed !

ucd.1985

Just did the infamous Locust Coffee question.

What an absolute shocking question.

Anyone ever figure out how to calculate the breakeven?