FAE September 2012

funkymonkey9

faer2203 wrote: »

Has anyone done the finance and mgmt acc book? looks like a waste of time at this stage!!

Haven't attempted any case from it and don't intend to! Just yesterday I flicked through the solution book and tabbed little things like advantages and disadvantages of ABC, description of life cycle costing, features of good budgeting etc. Doesn't take long as most of the book is tables of figures and calculations! Probably not overly necessary at this stage since you prob have this info sorted.

I just hadn't looked at lifecycle or target costing and there's a couple of cases that give brief descriptions of what they are, benefits etc so could be handy if your stuck

Moorstown

ferike1 wrote: »

Invoice discounting is when you get cash for credit sales. You get cash for each invoice you draw up (discounted obviously). So even if you haven't been paid you get cash. This is dangerous and frowned upon because you become dependent on it quickly.

The difference between this and factoring is that the responsible for collecting the debtors is up to the factoring company.

Thanks very much, just one other thing. Does mean that our debtors have been reduced by the amount that we received from Invoice Discounting or is it still included in debtors meaning that Building Fixes Limited actually have negative Debtors of €1.7m?

Username2011

Basic FR question that my fried head can't deal with!
If you are making a dividend from a company is it simply:

Dr Income Statement - div expense €x
Cr Dividend liability - SOFP €x

Thanks!

7upfree

I just give up. I'm sick of studying si what happens happens :-)

faer2203

Username2011 wrote: »

Basic FR question that my fried head can't deal with!
If you are making a dividend from a company is it simply:

Dr Income Statement - div expense €x
Cr Dividend liability - SOFP €x

Thanks!

Yeah thats if its made during the year and if paid cr to bank,
if its after year end, dont adjust (non adjusting event) but in the next year accounts
Dr Retained earnings
Cr Bank

Szewinska

ferike1 wrote: »

Lol @ drugs

You are Dermot McDermot, recently qualified ACA.

Your local drug dealer Charlie Finnegan is currently operating as a sole trader. Due to recent agressive acquisitions he has grown substantially and is now the fastest growing operator in South Dublin. He has come to your capacity as a financial advisor. Charlie says to you a on a windy Sunday. "Listen Bud, I don't know anything about keeping my boys happy, they are looking to go to rival gangs, what sort of HR policies should I have in place to make them happy? Don't worry about the tax implications, I have my tax boys looking at that".

He hands you some notes in a hurry because he sees some gaurds walking past (Appendix 1) This is a breakdown of contribution per division. Cocaine, Meth, Heroin, Hash and E. "Bud, before I go, I was thinking about implementing some sort of KPI's but I am not sure how to go about it, think you could give it a bash?"

I have some foreign 'investors' looking to invest in my operation but I don't have a long term strategic plan. Design one for me will ya?

Finally before running off he yells back, I buy most of my stuff from South America (Appendix 2). What sort of risks am I exposed to?

As you look at your notes. You realise it will be a long evening. "No knitting for me tonight, guess my knitting company will just have to wait".

love it

ferike1

Moorstown wrote: »

Thanks very much, just one other thing. Does mean that our debtors have been reduced by the amount that we received from Invoice Discounting or is it still included in debtors meaning that Building Fixes Limited actually have negative Debtors of €1.7m?

Sorry man, that is the extent of my knowledge. I know what you mean but don't know what the case is.

froggatt2011

supernova84 wrote: »

I think my conclusion here was that in Bay Trading it's the first time they're coming to your advisory practice for advice whereas in Thorpe you provided advice before. Or maybe it was just because in Bay Trading it was specifically asked for in that separate email.

When you put it like that it makes perfect sense. Thanks

supernova84

Just a tip from previous experience/inexperience. If you feel yourself struggling for time on day 2 and come across an indicator in an area you know you have already answered well in just drop down a few bullet points and move on because time is of the essence in these exams.

Likewise if you feel you've made a hash of an indicator in day one, bear this in mind that you will need to spend a little more time in this area next time it comes up.

froggatt2011

ferike1 wrote: »

Lol @ drugs

You are Dermot McDermot, recently qualified ACA.

Your local drug dealer Charlie Finnegan is currently operating as a sole trader. Due to recent agressive acquisitions he has grown substantially and is now the fastest growing operator in South Dublin. He has come to your capacity as a financial advisor. Charlie says to you a on a windy Sunday. "Listen Bud, I don't know anything about keeping my boys happy, they are looking to go to rival gangs, what sort of HR policies should I have in place to make them happy? Don't worry about the tax implications, I have my tax boys looking at that".

He hands you some notes in a hurry because he sees some gaurds walking past (Appendix 1) This is a breakdown of contribution per division. Cocaine, Meth, Heroin, Hash and E. "Bud, before I go, I was thinking about implementing some sort of KPI's but I am not sure how to go about it, think you could give it a bash?"

I have some foreign 'investors' looking to invest in my operation but I don't have a long term strategic plan. Design one for me will ya?

Finally before running off he yells back, I buy most of my stuff from South America (Appendix 2). What sort of risks am I exposed to?

As you look at your notes. You realise it will be a long evening. "No knitting for me tonight, guess my knitting company will just have to wait".

Fantastic Would not surprise me in the slightest to see a similar case creep into the resource pack for next year. Thanks for the much needed giggles.

SJay

Ex 88 wrote: »

Mother of god I just did the first case in Sample Paper 1! The length of the solution is insane I was pushed for time and didn't get near what was required down on the page in 80min! Anyone else feel like that? I thought I was doing ok and was full of confidence yesterday just want to jump out the feckin window now!!!!!

I tried the sample papers today also- the standard is ridiculously difficult! I regret looking at them - so demotivating!

ferike1

froggatt2011 wrote: »

Fantastic Would not surprise me in the slightest to see a similar case creep into the resource pack for next year. Thanks for the much needed giggles.

No but see the anti money laundering stuff would have to be taken into consideration.

Flange/Flanders

This struck me today, I did the 2011 comprehensive, the indicator about the finance directors approving his own bonus. Well the way I answered it was in the middle of the corp gov indicator. As in I mentioned about a renumeration committee, and then went into a big spiel about what was wrong with the present renumeration system. So my question is do the indicators have to be listed out separately or is it a thing that it doesnt matter where its laid out, as long as you have it noted somewhere on the paper? Cheers

Username2011

Flange/Flanders wrote: »

This struck me today, I did the 2011 comprehensive, the indicator about the finance directors approving his own bonus. Well the way I answered it was in the middle of the corp gov indicator. As in I mentioned about a renumeration committee, and then went into a big spiel about what was wrong with the present renumeration system. So my question is do the indicators have to be listed out separately or is it a thing that it doesnt matter where its laid out, as long as you have it noted somewhere on the paper? Cheers

Not to worry! The FAE board report specifically says that people often combine indicators or split one indicator into like 2/3. So long as you refer to it, you're getting the marks. Remember that the solution given to us is just an example of a highly competent solution. Many different ways to approach it/structure it so as long as you are hitting the key points and dealing with them correctly, where you address them doesn't matter.

levi

Flange/Flanders wrote: »

This struck me today, I did the 2011 comprehensive, the indicator about the finance directors approving his own bonus. Well the way I answered it was in the middle of the corp gov indicator. As in I mentioned about a renumeration committee, and then went into a big spiel about what was wrong with the present renumeration system. So my question is do the indicators have to be listed out separately or is it a thing that it doesnt matter where its laid out, as long as you have it noted somewhere on the paper? Cheers

They'll find the answer they want wherever you've put it down on the paper - you don't have to have the same layout as the solution. The exam report is pretty clear on this - if you haven't read it, read it, I found it a great help!

Edit: Someone beat me to it!

Ex 88

Flange/Flanders wrote: »

This struck me today, I did the 2011 comprehensive, the indicator about the finance directors approving his own bonus. Well the way I answered it was in the middle of the corp gov indicator. As in I mentioned about a renumeration committee, and then went into a big spiel about what was wrong with the present renumeration system. So my question is do the indicators have to be listed out separately or is it a thing that it doesnt matter where its laid out, as long as you have it noted somewhere on the paper? Cheers

As far as I know from lectures and looking over my lecture notes it doesn't matter whether you split out the indicators or answer them together,,, within reason though! Obviously you can't just do one long answer for each case but if you do answer two indicators together they'd have to give you credit ! I did the exact same thing as you in that case

Foxtrot Tango

faer2203 wrote: »

Yeah thats if its made during the year and if paid cr to bank,
if its after year end, dont adjust (non adjusting event) but in the next year accounts
Dr Retained earnings
Cr Bank

Sorry, not sure this is correct.
Dividends (paid) are a distribution of retained earnings so , as far as I know, don't go anywhere near the SOCI - they are dealt with in the statement of changes of equity, so it's always the latter journal ie:
Dr RE
Cr Bank / provision to pay etc

but I could be wrong .. !

costacurta

Siobhang4 wrote: »

Use solutions to study it. its in organic beef company 2010 paper.

comes up in other case study aswell. Check the finance notes attached to this forum.

Does anyone have a copy of this case study? I dont seem to have it and cant see it in the attachments to the thread

figrolls

It one of the questions in the 2010 sims paper

Ex 88

SJay wrote: »

Ex 88 wrote: »

Mother of god I just did the first case in Sample Paper 1! The length of the solution is insane I was pushed for time and didn't get near what was required down on the page in 80min! Anyone else feel like that? I thought I was doing ok and was full of confidence yesterday just want to jump out the feckin window now!!!!!

I tried the sample papers today also- the standard is ridiculously difficult! I regret looking at them - so demotivating!

Here we go... Going to look at sample paper 2 (sims) wish me luck! Just doing them to practice timing

Whiplash85

Could someone please post up Sean Dalys notes from sessions 1 and 2.Think they are summary notes on directors duties and company law.I am doing APM so have no access to the elective audit notes.

costacurta

figrolls wrote: »

It one of the questions in the 2010 sims paper

Great thanks.

Going around with my head up my bum now for about a week at this stage

tt1

What are the two Irish annex provisions we are required to audit?

Think it's something to do with the audit committee, brain is fried, I can check it out tomorrow if no one else has replied by then.

Think its 5.1 and 5.2 of the irish annex the auditor is required to review. But remember because of isa 720a we will as auditors have to look at any other narrative the directors input into the annual report regarding the irish annex as it is "Other information" in the annual report and we have to look at it for any inconsistencies regarding it and the financial statements!!

Tis great being auditors!!

figrolls

tt1 wrote: »

What are the two Irish annex provisions we are required to audit?

Think it's something to do with the audit committee, brain is fried, I can check it out tomorrow if no one else has replied by then.

Think its 5.1 and 5.2 of the irish annex the auditor is required to review. But remember because of isa 720a we will as auditors have to look at any other narrative the directors input into the annual report regarding the irish annex as it is "Other information" in the annual report and we have to look at it for any inconsistencies regarding it and the financial statements!!

Tis great being auditors!!

But only if its issued as part of the financial statements or in a document with it, if its a seperate report ISA 720 doesnt apply

LR987654

Anyone got a nice summary of all the breaches we should be reporting and to which government bodies?

Acc7777

LR987654 wrote: »

Anyone got a nice summary of all the breaches we should be reporting and to which government bodies?

Statutory reporting obligations of auditors in Ireland

Reporting of indictable offences under the companies acts
Report to ODCE (Office of the Director of Corporate Enforcement)
Section 194 of the Companies Act, 1990 as amended by section 74 of the Company
Law Enforcement Act, 2001

Reporting of theft and fraud offences
Report to the Garda Siochana
Section 59 of the Criminal Justice (Theft and Fraud Offences) Act, 2001

Reporting of tax offences
Report to the Revenue Commisioners
Section 1079 Taxes Consolidation Act, 1997

Reporting of suspected money laundering offences
Report to the Garda Siochana and the Revenue Commisioners
Section 32 of the Criminal Justice Act, 1994

LR987654

figrolls wrote: »

But only if its issued as part of the financial statements or in a document with it, if its a seperate report ISA 720 doesnt apply

were obliged to report on 5.1 and 5.2 and if they are addressed in Dir's report.

ferike1

Acc7777 wrote: »

Statutory reporting obligations of auditors in Ireland

Reporting of indictable offences under the companies acts
Report to ODCE (Office of the Director of Corporate Enforcement)
Section 194 of the Companies Act, 1990 as amended by section 74 of the Company
Law Enforcement Act, 2001

Reporting of theft and fraud offences
Report to the Garda Siochana
Section 59 of the Criminal Justice (Theft and Fraud Offences) Act, 2001

Reporting of tax offences
Report to the Revenue Commisioners
Section 1079 Taxes Consolidation Act, 1997

Reporting of suspected money laundering offences
Report to the Garda Siochana and the Revenue Commisioners
Section 32 of the Criminal Justice Act, 1994

As evidenced by the recent Mick Wallace shambles in real life you can report whatever you want and nothing will be done about it :mad:

7upfree

ferike1 wrote: »

Acc7777 wrote: »

Statutory reporting obligations of auditors in Ireland

Reporting of indictable offences under the companies acts
Report to ODCE (Office of the Director of Corporate Enforcement)
Section 194 of the Companies Act, 1990 as amended by section 74 of the Company
Law Enforcement Act, 2001

Reporting of theft and fraud offences
Report to the Garda Siochana
Section 59 of the Criminal Justice (Theft and Fraud Offences) Act, 2001

Reporting of tax offences
Report to the Revenue Commisioners
Section 1079 Taxes Consolidation Act, 1997

Reporting of suspected money laundering offences
Report to the Garda Siochana and the Revenue Commisioners
Section 32 of the Criminal Justice Act, 1994

As evidenced by the recent Mick Wallace shambles in real life you can report whatever you want and nothing will be done about it :mad:[/]

You hit the nail on the head there.

I wonder if we did have to report something in the case and it was fairly substantial could you just put in " ah look don't worry about it there only interested in coming after you if you owe them small money. You owe them €5 mil so they won't bother with you" " and don't even attempt to make an arrangement and pay it all back that makes it worse they'll stick ya in jail for six years, just give them the two fingers and nothing will be done"

I wonder would the institute appreciate it :-D

ferike1

The CEO embezzled a couple million? Ah sure forget about it. Just make sure to pay your TV license

If anyone wants really good notes PM me.