FAE September 2012

aca101

chursy wrote: »

What i am usually worried about is, the fact that you spend alot of time getting the information together/Planning the answer/ etc. Eventually may struggle getting things down in the report/memo properly within the prescribed time.

Something that i did for a comprehensive paper the other day was

While Reading the case
Picked up the indicators
wrote one line ( for the indicator) - Left blank spaces so i have like 8 indicators over 4 pages may be. So while I read the appendixes/other information provided I was putting down points that may be relevent for each indicator.

In the end you have all the relevent facts for each indicator at one place and you are not going up n down the case looking for facts to back up! something that you may have read somewhere! Many people can do that! i cant!

I'm doing something similar, I find it's the best way to avoid missing out on something in the case.

Re the plan, I'm thinking I'll sketch it out on my own paper rather than in the booklet. I hate flicking back through the booklet looking for my plan and then flicking forward again to my answer, like to have the plan laid out in front of me while I'm writing.
I'm not sure an answer plan would be taken into account by whoever's marking the paper, I mean the requirements for RC, C, HC are fairly well set out, dunno how they'd take a plan into consideration. What do ye think?

supernova84

Per section (24) of email we got today regarding exam instructions -

Students are encouraged to plan their answers before commencing to write, and to try to present them in the correct order.

Students should leave some blank pages at the start of their answer to a Case Study to facilitate the insertion of an introduction, summary, table of contents, etc., after they have completed drafting their answer.

General neatness and the manner of setting out answers will be taken into consideration in the marking of scripts.

Mavic09

funkymonkey9 wrote: »

The case is set in 2009 so relief is still available,the shares in the holding company are being sold,one of it's subsidiaries is a rental company so yeah not a trading company,the other subsidiary is a property development company so is developing and selling properties so is a trading company,most of the revenue in 2009 is being made in the investment company so would that mean that the group would be considered non trading overall?therefore the interest relief shouldn't be available?

I thought there was an implied assumption in this case that the value of the shares of a property rental/ investment group derives the greater part of their value from specified assets (i.e. Irish Land and buildings) thus excluded from the relief available under s.626B.

chursy

aca101 wrote: »

I'm doing something similar, I find it's the best way to avoid missing out on something in the case.

Re the plan, I'm thinking I'll sketch it out on my own paper rather than in the booklet. I hate flicking back through the booklet looking for my plan and then flicking forward again to my answer, like to have the plan laid out in front of me while I'm writing.
I'm not sure an answer plan would be taken into account by whoever's marking the paper, I mean the requirements for RC, C, HC are fairly well set out, dunno how they'd take a plan into consideration. What do ye think?

Well to be honest would you be planning it out when you are reading it so that means you have to do it on your writing pad. I dont think it makes sense switching over to the notebook midway and end up with notes in two placed. I am going to just stick it whatever am i working with me i.e rough paper.

okdune

notanocelot wrote: »

okdune wrote: »

I wish I was an auditor before these exams - as audit just boggles me totally.

Could I please ask and audit swot what key topics I should have covered - broadly speaking. I have so many notes and have read the book from cover to cover - but pointers as to the key areas would be so so appreciated.

Terrified of falling down in audit.

Thanks so much.

Happy to help anyone on the Finance side of things in return!

Every time there's a mention of a related party transaction, say that the firm will need to search for additional undisclosed related party transactions. ISA 550 is the one for that.

Every time a client proposes doing something wrong, i) explain why it's wrong with reference to the accounting standard/company law, ii) give the impact it'll have on the audit report if it's not adjusted.

Controls are huge and they always want lots of examples.
Here's a list of controls I typed up which I'm going to bring into the exam. For CAP 2 I had lots of photocopies from the book but it's quicker to read this way.

Thank you so so much. This is the logic I just don't have. I have read and sort off learned everything off, but unlike say Finance I don't have the necessary wit with audit.

You note is really helpful - I really appreciate it.

funkymonkey9

Mavic09 wrote: »

funkymonkey9 wrote: »

The case is set in 2009 so relief is still available,the shares in the holding company are being sold,one of it's subsidiaries is a rental company so yeah not a trading company,the other subsidiary is a property development company so is developing and selling properties so is a trading company,most of the revenue in 2009 is being made in the investment company so would that mean that the group would be considered non trading overall?therefore the interest relief shouldn't be available?

I thought there was an implied assumption in this case that the value of the shares of a property rental/ investment group derives the greater part of their value from specified assets (i.e. Irish Land and buildings) thus excluded from the relief available under s.626B.

S.626b is not relevant in this case I don't think,the father is selling shares in the holding company,not in the separate subsidiaries,I don't see mention of it in the solution anyway but could be wrong!

7upfree

notanocelot wrote: »

okdune wrote: »

I wish I was an auditor before these exams - as audit just boggles me totally.

Could I please ask and audit swot what key topics I should have covered - broadly speaking. I have so many notes and have read the book from cover to cover - but pointers as to the key areas would be so so appreciated.

Terrified of falling down in audit.

Thanks so much.

Happy to help anyone on the Finance side of things in return!

Every time there's a mention of a related party transaction, say that the firm will need to search for additional undisclosed related party transactions. ISA 550 is the one for that.

Every time a client proposes doing something wrong, i) explain why it's wrong with reference to the accounting standard/company law, ii) give the impact it'll have on the audit report if it's not adjusted.

Controls are huge and they always want lots of examples.
Here's a list of controls I typed up which I'm going to bring into the exam. For CAP 2 I had lots of photocopies from the book but it's quicker to read this way.

Thanks for posting that it's really well laid out. I'll definitely be printing that and bringing it into the exam

levi

Username2011 wrote: »

Hi guys,

In sample paper 1, sim 1 Autoparking they are expensibg franchise costs which would normally be an intangible. There's no mention of it in solution. Any one else cone across this?

Auto parking are purchasing the use of the franchise I think so it's not their asset to capitalise. So it'll be an intangible in avenue 12's accounts as they own the franchise.

Auto parking are just expensing the cost of the use of the franchise. I suppose itd be the same for whoever runs McDonald's in Dublin, they dont own the brand just pay to use it. Please correct me if I'm wrong, I just did this question yday and that was my understanding...

Daizy0

Millyhow1986 wrote: »

Hi all, I was just wondering if anyone had any advice for study for management accounting? I've pretty much done the case studies but seriously worried bout man acc and the cases in the MABF book seem way too long and complex for something we might get asked

Any advice is greatly appreciated!!!

Liam in cgs said that the mgt / finance cases in the fae books r too technical & some of d topics covered arent in the syllabus

Accrual Intentions

notanocelot wrote: »

Every time there's a mention of a related party transaction, say that the firm will need to search for additional undisclosed related party transactions. ISA 550 is the one for that.

Every time a client proposes doing something wrong, i) explain why it's wrong with reference to the accounting standard/company law, ii) give the impact it'll have on the audit report if it's not adjusted.

Controls are huge and they always want lots of examples.
Here's a list of controls I typed up which I'm going to bring into the exam. For CAP 2 I had lots of photocopies from the book but it's quicker to read this way.

Life saver!

Username2011

levi wrote: »

Username2011 wrote: »

Hi guys,

In sample paper 1, sim 1 Autoparking they are expensibg franchise costs which would normally be an intangible. There's no mention of it in solution. Any one else cone across this?

Auto parking are purchasing the use of the franchise I think so it's not their asset to capitalise. So it'll be an intangible in avenue 12's accounts as they own the franchise.

Auto parking are just expensing the cost of the use of the franchise. I suppose itd be the same for whoever runs McDonald's in Dublin, they dont own the brand just pay to use it. Please correct me if I'm wrong, I just did this question yday and that was my understanding...

No that makes perfect sense. Thanks so much!

Siobhang4

7upfree wrote: »

Thanks for posting that it's really well laid out. I'll definitely be printing that and bringing it into the exam

Notes are very useful. Thanks for sharing. Can use all the help we can get at this stage and sadly that may not even be enough

supernova84

Daizy0 wrote: »

Liam in cgs said that the mgt / finance cases in the fae books r too technical & some of d topics covered arent in the syllabus

Any areas in particular he mentioned? There's a good chance we'll get an indicator on company valuations anyway.

7upfree

Siobhang4 wrote: »

7upfree wrote: »

Thanks for posting that it's really well laid out. I'll definitely be printing that and bringing it into the exam

Notes are very useful. Thanks for sharing. Can use all the help we can get at this stage and sadly that may not even be enough

I certainly need all the help I can get. This forum has been a great help, we're all in the same boat so hopefully we can all get through it.

ferike1

Im thinking break even or transfer pricing for PM.

I don't know how applicable this is but for some reason I feel that we will be presented with a company in some sort of financial distress. I downloaded a working paper that states empirically the companies that have turned themselves around start with an overhaul of senior management (CEO/Chairman). This sends the right signals to banks/creditors/investors that the company is willing to change.
Next is cost and operating asset reductions. (cutting overheads, minimising inventory etc.)
Divesting weak SBUs/assets - very common strategy
Acquiring a company that will enhance the competitive advantage of the firm - in another industry where growth is faster. Or investing what capital they have in R&D (this is more medium/long term, once the necessary steps have been taken).
Cutting dividends (also empirically popular),(watch out for signalling effect)/issuing rights/new equity.
Debt restructuring - offering convertible bonds

Above all inaction is the worst possible thing (of course), as is poor implementation of these strategies.

Hopefully might come in handy.

ferike1

On a side note. Did the dreaded sample paper 1. Wasn't too bad! A bit of confidence and planning goes a long way guys. We have all put in the work and should approach the exams like such.

funkymonkey9

Just looking at enver plastics here,I had to jump straight to the solution as I had no clue where to begin,if that came up in the exam,do people think they would be able to attempt it?never in a million years would I be able to come up with the solution,is that just me?

Acc7777

Millyhow1986 wrote: »

Hi all, I was just wondering if anyone had any advice for study for management accounting? I've pretty much done the case studies but seriously worried bout man acc and the cases in the MABF book seem way too long and complex for something we might get asked

Any advice is greatly appreciated!!!

6.10 Assess the implications for the management accountant function in new product design and development


I think something on this might come up. Looking at the competency statement seems like the other areas have been covered in the 2010 or 2011 FAE papers.Doesn't seem to be much in the book on it but I downloaded this CIMA report today. Best I got at the moment, anyone else have decent notes on this?

Think they could link it in with a marketing indicator since that is the only area of BL that hasn't been asked yet.

ferike1

I think that area is also life-cycle/target costing

Acc7777

ferike1 wrote: »

I think that area is also life-cycle/target costing

Hopefully!

Life cycle / target costing is specifically mentioned in 6.8. of the competence statement though. Seems strange to add on 6.10 if it's already covered by 6.8
but then again I wouldn't be too surprised.

I notice in the exam regulations e-mail they sent out that you can't ask for another booklet - "Students are expected to manage their answer books" What's the story with that? I actually did run out of room in my answer booklet in the APM mock.

Username2011

Globaltech
Has anyone looked at the sources of finance for a valuation solution for Globaltech (primary indicator 2)

In it i says that the debt of 2m represents 61% of total debt and equity and amounts to 2.5 times EBITDA for 2008. Just wondering how they figured this out because when I recalculate it, it's no where near this.

Thanks!

BESman

ferike1 wrote: »

On a side note. Did the dreaded sample paper 1. Wasn't too bad! A bit of confidence and planning goes a long way guys. We have all put in the work and should approach the exams like such.

Sample Paper 1 is grand, it's Sample Paper 2 that's pretty tough. The sims aren't bad though.

ferike1

Acc7777 wrote: »

Hopefully!

Life cycle / target costing is specifically mentioned in 6.8. of the competence statement though. Seems strange to add on 6.10 if it's already covered by 6.8
but then again I wouldn't be too surprised.

I notice in the exam regulations e-mail they sent out that you can't ask for another booklet - "Students are expected to manage their answer books" What's the story with that? I actually did run out of room in my answer booklet in the APM mock.

Ha, maybe they are saving on paper. I hate the answer booklets though, with the one side being block paper and the other lined paper. You can't really use both sides for writing and the majority of the paper is words not calculations. I ran out of space too.

Also there seems to be a good bit of over lap on competencies. I mean I am just thinking about this logically. If you are a management accountant you will want to minimise wastage and add value at each stage of a new product to ensure costs are as low as possible while maximising profit. That overlaps with target costing. How else would a management accountant contribute to new product development. Oh I forgot this is the institute, so as the management accountant you should probably suggest that the colour scheme attract a certain target segment and to ensure that IT features are implemented (regardless of the product) because IT is important (and you are also an IT expert), so you can access Twitter from the new fridges the company is making!

Siobhang4

Acc7777 wrote: »

Hopefully!

Life cycle / target costing is specifically mentioned in 6.8. of the competence statement though. Seems strange to add on 6.10 if it's already covered by 6.8
but then again I wouldn't be too surprised.

I notice in the exam regulations e-mail they sent out that you can't ask for another booklet - "Students are expected to manage their answer books" What's the story with that? I actually did run out of room in my answer booklet in the APM mock.

This was queried in the wind up class, paul said you can ask for a second booklet but will have to be nearly out before doing so... can't be requesting it at the start... seems to be quality not quantity with these... getting rc and c is very specific...

Eiriu

The standard of some of the mocks is a joke along with error ridden and subjective nature of the solutions. Its a relief that the standard of the real exams from 2010 2011 is a lot better.

thetrainee

FAE Exam Notification Letter 2012‏

As you may already be aware, the Final Admitting Examination is being held from Tuesday 4th September to Thursday 6th September inclusive. . . .

As I may be aware??? ha ha ha

Jame Gumb

thetrainee wrote: »

FAE Exam Notification Letter 2012‏

As you may already be aware, the Final Admitting Examination is being held from Tuesday 4th September to Thursday 6th September inclusive. . . .

As I may be aware??? ha ha ha

Do you reckon anyone read the email and went "F..K! I thought the exam was 23 November not the results!"?

ferike1

Guys I think may mark that date in my calender.

Thank God for the aces at the institute. Wouldn't know which way was up without them.

Jame Gumb

ferike1 wrote: »

Guys I think may mark that date in my calender.

Thank God for the aces at the institute. Wouldn't know which way was up without them.

I'll be 3 weeks into my new role at Locust Coffee by 23 November...Bill said 10k uplift for passing Core and 10k for passing Elective. Small equity stake if both passed. Watch out Starbucks...

ferike1

See he is smart, because those share options will incentivise you in the long term (not just short term aggressive earnings management). Also it is tax effective if it is a revenue approved scheme.

Sharp as a tack that Bill.

He could also get this guy in for marketing and promotions