FAE September 2012

figrolls

mrduffy wrote: »

sample paper 2


anyone know how they get or is it assumed !

its yearly payment of 132K less the one year depreciation (1m over ten years and 6 months in this year) of 50K, giving 82K less an assumed 60K of interest expense

some of these cases are awful, im finding the sample papers particularly difficult to pick up indicators on and know where they're getting these numbers from!

froggatt2011

Mavic09 wrote: »

In relation to the above indicator, could someone give me a steer on the following:

i) P/E Method- How is the profit in Yr 2 of 79k calculated (it's not the 8% from Yr 1 that I imagined it would be from the case)

ii) Accounting Rate of Return Method- How is the average profit calculated of 112k? Why does it differ from the average profit under the PE method.

Any help on the above would be great...

froggatt2011 wrote: »

I was just about to ask the same! I have no idea where these numbers are coming from and am totally losing the will. Anyone able to help?

Anyone got any ideas? This is doing my head right in.

mrduffy

figrolls wrote: »

its yearly payment of 132K less the one year depreciation (1m over ten years and 6 months in this year) of 50K, giving 82K less an assumed 60K of interest expense

some of these cases are awful, im finding the sample papers particularly difficult to pick up indicators on and know where they're getting these numbers from!

Cheers did not cop on to accounting 'year' the 6% interest rate is on the nextpage line of credit

cheers for that !

supernova84

froggatt2011 wrote: »

Mavic09 wrote: »

In relation to the above indicator, could someone give me a steer on the following:

i) P/E Method- How is the profit in Yr 2 of 79k calculated (it's not the 8% from Yr 1 that I imagined it would be from the case)

ii) Accounting Rate of Return Method- How is the average profit calculated of 112k? Why does it differ from the average profit under the PE method.

Any help on the above would be great...

froggatt2011 wrote: »

I was just about to ask the same! I have no idea where these numbers are coming from and am totally losing the will. Anyone able to help?

Anyone got any ideas? This is doing my head right in.

It's a nuts question and 4 pages of info is a lot to digest for a 70 mins sim.
154,932+61,972*8%=17,352. 61,972+17,352=79,324.

As for the ARR I can't work it out, the closest I got was 154,932+61,972+79,324+85,670+92,523+99,312/5 which gives 114,747.

levi

BESman wrote: »

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.

Wouldn't worry too much about the marketing indicator in this one too much, just keep in mind that this paper was set solely by Paul Monaghan whose main area seems to be marketing from his lectures, he seems mad into it... seems a bit excessive to expect that sort of 'creativity' from an accounting student - let's be realistic here!

Szewinska

Hi All

For what now seems like my daily post in a request for help on my problem

Mocks 2010

Comp Paper Indicator 6

For the IAS 11 solution, why is revenue of only 5m recognised. I think the costs are 5m as its 50% complete.

Second problem

Mocks 2010 again

Sim II Indiator 2

Probably being a bit too fussy on this but its niggling me. At the end of the second tutorial note it mentions that if 166k was paid for the shares that the CAT liability would be eliminated. How does one work that out.

Thanks in advance. Hopefully if iv figured something out I can repay somebody the favor on here sometime.

Szewinska

supernova84 wrote: »

It's a nuts question and 4 pages of info is a lot to digest for a 70 mins sim.
154,932+61,972*8%=17,352. 61,972+17,352=79,324.

As for the ARR I can't work it out, the closest I got was 154,932+61,972+79,324+85,670+92,523+99,312/5 which gives 114,747.

from the chats on here I think I may leave them sample papers as they appear to be a bit unrealistic. I think I may stick with the resource pack, the mocks and actual exams case studies.

Eiriu

Does anyone know where to download the 2010 mock?

Or the 2011 sims mock?


Cheers!

figrolls

2011 sims mock and solution

ferike1

You know it really would be fantastic if the Institute could get every single case (including mocks and past papers) and answer in one consolidated place.

Everyone here is really helpful but it really shouldn't be up to us to go case hunting.

Maybe they should consider the use of an external IT specialist (sorry couldn't resist).

princesslolly

My last post was actually meant to be about the Daymoo case and Vortech case, does anyone know where to get them? thanks a mill

Szewinska

princesslolly wrote: »

My last post was actually meant to be about the Daymoo case and Vortech case, does anyone know where to get them? thanks a mill

yes i was looking for these too but have been unable find too

froggatt2011

ferike1 wrote: »

You know it really would be fantastic if the Institute could get every single case (including mocks and past papers) and answer in one consolidated place.

Everyone here is really helpful but it really shouldn't be up to us to go case hunting.

Maybe they should consider the use of an external IT specialist (sorry couldn't resist).

:D:D:D:D:D

mrduffy

What reference material are people bringing in.

To be honest I have nothing to reference bar the notes, books and case studies.

It would have been great had to institute summarised reference material for exams

ferike1

So here is what I did

I printed off the notes from the guy/girl who came first

I reviewed the solutions to the cases after I did them and added in my own handwritten points that I found important that seem to be across many cases and things I need to remember myself.

I will also bring in the IFRS book for disclosures/quick reference and my auditing standards book for the ES standards and audit report section.

I will probably have certain chapters from F5, F9, P4, P5 books on standby for formula's but that is backup. Apart from that nothing.

reo49

ferike1 wrote: »

So here is what I did

I printed off the notes from the guy/girl who came first

I reviewed the solutions to the cases after I did them and added in my own handwritten points that I found important that seem to be across many cases and things I need to remember myself.

I will also bring in the IFRS book for disclosures/quick reference and my auditing standards book for the ES standards and audit report section.

I will probably have certain chapters from F5, F9, P4, P5 books on standby for formula's but that is backup. Apart from that nothing.

What about your six pack?

Jame Gumb

I'm going in with a black pen and a copy of the Locust Coffee case...

figrolls

Ugh I just want these to be over with, I feel so unmotivated at this stage and am just reading case thinking theres no way in hell I'd ever come up with an answer like that!

wheatser

Hey all,

In the Indicator 3 of the Runways case the solution states that the companys average billings per client is €757,000.

Anyone know how they got this figure? I'm sure it is something simple but I just cant figure it out.

Thanks in advance.

Eiriu

Anyone concerned with the subjectivity of some of the solutions given.

In Sample case 1 core case, debt finance is much cheaper than equity when you take account of the company's real rate of tax.
Also interest cover is really good. Is an entity's appetite for debt not subjective?Look @DCC. The solution recommends equity finance!

Also the solution doesn't make an effort to compute NPV based on the assumption that profit levels will continue @ a level similar to current values.This would be a conservative assumption to make given that one can usually allow for growth and post acquisition synergies. If one takes account of terminal value it has a substantial affect on the valuation.

Also in relation to the swap. Am I right in thinking this is above and beyond what will be required?

I would also have expected an indicator on due diligence.

And the other indicator to focus on strategy rather than change management.

ferike1

My sixpack, that goes everywhere, sadly won't help in the exam.

Jame - your comment me burst out laughing. This case will go down in history.

And yes there is A LOT of subjectivity but looking at the mock 2012 solution there was a note on the front that these are the SUGGESTED solutions and a well reasoned argument can get points. However finding indicators where are none will get you nothing.

Szewinska

MPBC123 wrote: »

I see in the solution direct materials are to be pared back to 2008 levels - really how are we supposed to know to do that??

I'm looking at this case. Given you don't appear to ask for help on any of this can you tell me why the management charge is down to 2300 now from 4000 and also how you know what the staff levels are ie gone from 200 to 125. Head is wrecked looking at this.

Szewinska

wheatser wrote: »

Hey all,

In the Indicator 3 of the Runways case the solution states that the companys average billings per client is €757,000.

Anyone know how they got this figure? I'm sure it is something simple but I just cant figure it out.

Thanks in advance.

I will look at my notes when im next them again and look for you. I had a look at this case so hopefully i made a note of it

figrolls

wheatser wrote: »

Hey all,

In the Indicator 3 of the Runways case the solution states that the companys average billings per client is €757,000.

Anyone know how they got this figure? I'm sure it is something simple but I just cant figure it out.

Thanks in advance.

the closest I could get to figurin this out way

total revenue less refueling = 85.5m

total contracts less refuelling = 112

where 85.5m / 757K = 12.9458

so perhaps they accidentally divided by 113 and rounded?

thats the nearest I could get with that!

MPBC123

Szewinska wrote: »

I'm looking at this case. Given you don't appear to ask for help on any of this can you tell me why the management charge is down to 2300 now from 4000 and also how you know what the staff levels are ie gone from 200 to 125. Head is wrecked looking at this.

As far as I can remember, these were just assumptions made. Think it says that in the solution. How we are supposed to know this tho, I honestly don't know!!:(

supernova84

Jame Gumb wrote: »

I'm going in with a black pen and a copy of the Locust Coffee case...

I'll go in with my Locust Addictive Drink (LAD) in my hand.

wheatser

figrolls wrote: »

the closest I could get to figurin this out way

total revenue less refueling = 85.5m

total contracts less refuelling = 112

where 85.5m / 757K = 12.9458

so perhaps they accidentally divided by 113 and rounded?

thats the nearest I could get with that!

Maybe that is it but surely they couldnt have made a mistake like that as the figure is used to compare the divisions.

reo49

ferike1 wrote: »

My sixpack, that goes everywhere, sadly won't help in the exam.

You better do a few sit ups during the exams so you don't lose it!

ferike1

http://www.boards.ie/vbulletin/showthread.php?t=2056660202&page=9

It's doing just fine

Thanks for the concern.

Szewinska

MPBC123 wrote: »

As far as I can remember, these were just assumptions made. Think it says that in the solution. How we are supposed to know this tho, I honestly don't know!!:(

the mangement charge reduction may well be but I think there must be some reason as to the reduction in the staff in two divisions. it states in the solution under 2b that tiny gardens ltd has been operating at efficiency levels above 100%. how do we know this??