FAE September 2012

reo49

silverwatch wrote: »

is anyone using the Derry Cotter books? Starting to panic a bit about financial:(

Yeah finished it last week, handy enough. Same stuff keeps coming up after a while.

chursy

Has someone got a template sheet done up covering all types of reports. Would be great if you can please share.

reo49

chursy wrote: »

Has someone got a template sheet done up covering all types of reports. Would be great if you can please share.

Try this:

"Type of report"

To:
From:
Re:
Date:

Insert a load of caveats.

Eiriu

Anyone get the fear before correcting an exam! Did the mock 2011 sims one there.....bricking it!!!!!!

I dunno if anyone finds this helpful, but I eased off case studies for a while and spent a bitta time building up my competencies, helped a bit. You'd be a bit wrecked for study after doing a case study in the morning!!!

Just look @ each area individually over 5 days!!Do derry cotter book, tax sample questions from revision work ect,ect.!

whytenc

Does anyone know the acc treatment for consignment inventories-for both sides of the transaction? Came up in one of the sample papers and I didnt have a clue...cant seem to find the proper drs and crs for it anywhere.
Thanks

supernova84

whytenc wrote: »

Does anyone know the acc treatment for consignment inventories-for both sides of the transaction? Came up in one of the sample papers and I didnt have a clue...cant seem to find the proper drs and crs for it anywhere.
Thanks

There's a good question in the Black Bay Boots case in Derry Cotter on consignment inventory

whytenc

supernova84 wrote: »

There's a good question in the Black Bay Boots case in Derry Cotter on consignment inventory

Oh thanks will look it up

levi

Just looked at the Eco Cartridge case, are we expected to pull a 'typical' multiple for a valuation based on earnings or am I wrong in thinking that's unreasonable? I keep thinking I'm missing a page of the case where it tells you DCC plc has paid for a number of UK distribution businesses over the past year.

Also should I know what QR codes are off the top of my head... Ugh I think I've hit a wall although that rant has helped!

Username2011

levi wrote: »

Just looked at the Eco Cartridge case, are we expected to pull a 'typical' multiple for a valuation based on earnings or am I wrong in thinking that's unreasonable? I keep thinking I'm missing a page of the case where it tells you DCC plc has paid for a number of UK distribution businesses over the past year.

Also should I know what QR codes are off the top of my head... Ugh I think I've hit a wall although that rant has helped!

QR codes?!

levi

They're those 3D bar codes as far as I can make out but it was in the solution that you had to appreciate the usefulness of them in order to gain competent...

MPBC123

Yea think theyre those barcodes u can scan with ure fone & they take u to the company's website

ferike1

Yeah great to see that I wasn't the only person who got confused when I saw that.

It just said QRs, infuriating. Not QR codes which would make more sense.

Jame Gumb

More ridiculous stuff.

I have no idea what a QR Code is, nor should I have to. If God forbid I end up FC in some company and the IT person is going on about QR Codes, I'd just politely interrupt him/her and ask them to go through it again "sans jargon".

Same with cloud computing. We shouldn't need to know anything other than what it is. In the real world, an FC would simply ask the IT person to explain in layman's terms what exactly is required.

More dangerous in my view to have an accountant who thinks they know IT sticking his or her oar in when it should be left to the experts. I'm sure that Mark Zuckerberg doesn't start lecturing Facebook's CFO on IAS 38.

EDIT: Just to clarify, are QR Codes those square black and white sort of barcodes that you see in ads that you can take a picture of with your iPhone and then get to the relevant company's website? Cheers. EDIT2: They are. Thanks Google

faer2203

Hey guys, question on directors loans, i know its illegal of it in excess of 10% of net assets, just looking at Tidy Homes, and there is a director loan account payable and receivable, which one does the 10% rule apply to?

Flange/Flanders

faer2203 wrote: »

Hey guys, question on directors loans, i know its illegal of it in excess of 10% of net assets, just looking at Tidy Homes, and there is a director loan account payable and receivable, which one does the 10% rule apply to?

Receivable. Directors loans owing by the company are ok. But then there's the thing about interest being paid to directors on those loans and the surcharge thing.

haribo12

In relation to the tax elective , I was wondering are there any summery notes going around

Would really appreciate it if someone could send me a link

Thanks in advance

Ex 88

Eiriu wrote: »

Anyone get the fear before correcting an exam! Did the mock 2011 sims one there.....bricking it!!!!!!

I dunno if anyone finds this helpful, but I eased off case studies for a while and spent a bitta time building up my competencies, helped a bit. You'd be a bit wrecked for study after doing a case study in the morning!!!

Just look @ each area individually over 5 days!!Do derry cotter book, tax sample questions from revision work ect,ect.!

Just wondering how long the Derry Cotter book took u to do? I'm going to try get it done this weekend but think I'm a bit optimistic

ferike1

Yup, the 2010 paper seals it

The institute do not live in the real world

To amend the budget you ( a junior management accountant) suggest the directors take a 75% pay cut for the year as there will be staff redundancies and no pay increases. This made me laugh so hard. In what universe does this happen?

Could you imagine if you suggested that to the partners in the Big four firms? I think after the tears of laughter have been wiped away they *might* let you go home early for giving them such a good laugh.

feel so stupid

Does anyone feel like me and haven't a clue how they got so far. I haven't a clue how I passed Cap2. I don't remember a thing. I don't have much of a tech knowledge across all subjects and seem to be getting bogged down in case studies.. Just over two weeks...what am I suppose to do????

Jame Gumb

feel so stupid wrote: »

Does anyone feel like me and haven't a clue how they got so far. I haven't a clue how I passed Cap2. I don't remember a thing. I don't have much of a tech knowledge across all subjects and seem to be getting bogged down in case studies.. Just over two weeks...what am I suppose to do????

Have an "Irish" Locust coffee...

MPBC123

feel so stupid wrote: »

Does anyone feel like me and haven't a clue how they got so far. I haven't a clue how I passed Cap2. I don't remember a thing. I don't have much of a tech knowledge across all subjects and seem to be getting bogged down in case studies.. Just over two weeks...what am I suppose to do????

Feeling exactly the same, I feel like I haven't learnt a thing in the time I've been off.

Eiriu

Ex 88 wrote: »

Eiriu wrote: »

Anyone get the fear before correcting an exam! Did the mock 2011 sims one there.....bricking it!!!!!!

I dunno if anyone finds this helpful, but I eased off case studies for a while and spent a bitta time building up my competencies, helped a bit. You'd be a bit wrecked for study after doing a case study in the morning!!!

Just look @ each area individually over 5 days!!Do derry cotter book, tax sample questions from revision work ect,ect.!

Just wondering how long the Derry Cotter book took u to do? I'm going to try get it done this weekend but think I'm a bit optimistic

You could definitely get it done in a weekend, or maybe do half of it see how ur getting on and do more if required. I also believe that studying in four hour blocks is also a good idea.

yybaby2011

Can someone please upload Solutions for the cases below as I can't find them?Thanks

Marlborough House Limited
Tekron
Canny Milking Equipment Limited

supernova84

I've just finished downsizing all my notes into two folders. One with BL and PM notes and relevant information from all the cases. Second containing notes from Audit, Finance, Tax & IT. I'll do a case or two each day and read through my folders for next couple of weeks so I know where everything is. I'll bring into exam my two folders, Derry Cotter case study books and a framed copy of the Locust case signed by Bill Williams for inspiration.

7upfree

MPBC123 wrote: »

Feeling exactly the same, I feel like I haven't learnt a thing in the time I've been off.

I'm exactly the same. I've been off since 20th June and might as well of only finished yesterday with the amount I know. I'm getting a but better at picking the right indicators but getting worse at answering them :-( haven't got a clue

chursy

Flange/Flanders wrote: »

faer2203 wrote: »

Hey guys, question on directors loans, i know its illegal of it in excess of 10% of net assets, just looking at Tidy Homes, and there is a director loan account payable and receivable, which one does the 10% rule apply to?

Receivable. Directors loans owing by the company are ok. But then there's the thing about interest being paid to directors on those loans and the surcharge thing.

Loan to directors
- cannot be more than 10% of net assets companies act - auditors to report to odce
- in the company the loan must be recorded at a gross amount. So say 20000 loan given to director. Gross amount is 25000 (20K/.8). The 5 k (25-20) must be paid to revenue as tax but it's more of a deposit cause you get it back once the director pays the loan. If the director doesn't pay back, the loan technically is a dividend then. And you don't get your tax back.

Loan from directors
- if a close company - lower of 13% of the loan or net assets is only allowed as a deductible expense. The remainder is treated as a distribution. The company must pay dwt on the remainder amount. The director gets the credit in his statement.
- no limit on this

Acc7777

Has anyone done the OBC valuation finance indicator in the 2010 FAE Sim paper?

I have one or two issues with the PE based valuation for Silverturn Meats and was hoping someone could perhaps shed some light.

Issue 1

In the Appendix to the solution it states the following:

Year 5
Profit increase 84,312
Savings 40,000

---

Total 139,926

This obviously doesn't tot and I presume the profit increase should be 99,926.
If I'm missing something here please let me know.

Issue 2

I'm having trouble reconciling the profit increase figures I calculated to what is in the solution.

I got the same figures as the solution for year 1 of 61,972.80 (154,932*0.4) and roughly the same figure for year 2 of 79,325 ((154,932+61972.80)*1.08 - 154,932)

However ever years 3 to 5 are calculated on an 8% increase on the additional profit i.e.

Year 3 79,325*1.08 = 85,671
Year 4 85671*1.08 = 92,524
Year 5 92,524*1.08 = 99,926 (which reconciles issue 1)

On the basis of the calculations for years 3 to 5 I would have thought that to be consistent the profit increase figure for year 2 should have been 61,972.80*1.08 instead of increasing the total profit by 8%

Or that the calculations for years 3 to 5 would be based on total profit as opposed to additional.

To be honest if this was in one of the resource pack solutions etc I wouldn't have cared too much and just chalked it up to errors but since its an actual past paper solution I feel like it's much more likely that the solution is correct / I'm missing something.

ferike1

I've had a minor epiphany with these exams. All about planning your answer out. Might seem obvious but before I would start writing as soon as I had identified the indicator, usually missing out on some point. NOW I HAVE A STRATEGY! Somewhat relaxed. Now to revise some technical material.

7upfree

ferike1 wrote: »

I've had a minor epiphany with these exams. All about planning your answer out. Might seem obvious but before I would start writing as soon as I had identified the indicator, usually missing out on some point. NOW I HAVE A STRATEGY! Somewhat relaxed. Now to revise some technical material.

I too discovered planning is the best way to do it. Unfortunately for me my technical knowledge is severely lacking and my motivation is at an all time low. Here's hoping next week I can be more productive.

ferike1

I and I am sure many others have found areas that repeatedly come up

Cash extraction
Asset/share sale
Bad Corporate Governance
Due Diligence/Funding
Strategic plans (can't really prepare as varies by company)
KPIs

Look through the past answers for the repeating stuff to save yourself time.