FAE September 2014

JoanH

I'm getting bogged down on this whole asset/trade sale vs share sale thing. Do we have to do a CT calc for both or just for an asset/trade sale only?

galway321

JoanH wrote: »

I'm getting bogged down on this whole asset/trade sale vs share sale thing. Do we have to do a CT calc for both or just for an asset/trade sale only?

For the most part an asset sale is never recommended as it means the gain is double taxed. Lay out the calc for the gain on the sale of assets/trade and also for the sale of shares.
Remember the profits from a asset/trade sale are still in the company. You will be taxed again when you extract them from the company.

A Share sale puts cash in your hand directly and can use more reliefs - Retirement relief etc.

I haven't come across a case to date where an asset/trade sale is recommended over a share sale.

JoanH

Great thanks Galway123. That makes things much clearer.
Oh how I wish this was over....

Not a tall

galway321 wrote: »

For the most part an asset sale is never recommended as it means the gain is double taxed. Lay out the calc for the gain on the sale of assets/trade and also for the sale of shares.
Remember the profits from a asset/trade sale are still in the company. You will be taxed again when you extract them from the company.

A Share sale puts cash in your hand directly and can use more reliefs - Retirement relief etc.

I haven't come across a case to date where an asset/trade sale is recommended over a share sale.

Also, if the shares are sold by a company it could qualify for participation exemption. This would mean there would be no CGT for the selling company once the conditions are met.

womandriver

galway321 wrote: »

Has anyone got the solution to the leathers of Ireland case? The case was posted on here a few weeks ago but I can't find a solution to it.
Thanks

Ekels

For audit indicators (at core and elective), I find myself able to identify the risks but less able to design procedures to address the risks. Does anybody have any quick pointers on how they normally approach this?

galway321

Ekels wrote: »

For audit indicators (at core and elective), I find myself able to identify the risks but less able to design procedures to address the risks. Does anybody have any quick pointers on how they normally approach this?

PQA document is useful here.

I usually list out the assertions relevant to each risk and try to give a test for each one tailored from the PQA document.

littlemiss123

Anyone else feeling completely unprepared but at the same time don't care anymore...:mad:

JoanH

Yes. That's me 100%

acastudent

littlemiss123 wrote: »

Anyone else feeling completely unprepared but at the same time don't care anymore...:mad:

Same here . I just found new respect for people who pass both . Honestly I don't know how did they do it ?
I don't think I know more now than before study leave and it scares me .

vnervous

I'm currently in bed watching big bang theory. Genuinely thought I was going to pass out from exhaustion earlier. Needed a days break need to have energy for the last stretch this week .

PhilipLuke

Did anyone do the cross marking cases? Hamcam and logicmed are they worth doing?

The Little Fella

littlemiss123 wrote: »

Anyone else feeling completely unprepared but at the same time don't care anymore...:mad:

Sick of going over the same garbage from last year. This exam feels like it's trying to test my ability to be the ultimate jack of all trades. Apart from corp gov and ethics, business leadership is a pile of ****.

littlemiss123

acastudent wrote: »

Same here . I just found new respect for people who pass both . Honestly I don't know how did they do it ?
I don't think I know more now than before study leave and it scares me .

I know! I wasn't this daunted going into the CAP 2 exams! I thought the week before the exams I would be up the walls, stressed and studying crazy hours when in fact I'm more relaxed now that I was 10 weeks ago! I just don't care anymore, I just want them over!

vnervous wrote: »

I'm currently in bed watching big bang theory. Genuinely thought I was going to pass out from exhaustion earlier. Needed a days break need to have energy for the last stretch this week .

Ah that is perfectly acceptable, everyone knows their limits and needs to take some time out! I went out friday and saturday night and spend most of yesterday recovering...that'll show you how much I care about these exams anymore haha!

littlemiss123

The Little Fella wrote: »

Sick of going over the same garbage from last year. This exam feels like it's trying to test my ability to be the ultimate jack of all trades. Apart from corp gov and ethics, business leadership is a pile of ****.

These exams are 80% exam technique, 20% actual accounting knowledge. I know technically excellent people who have failed so I can only assume their exam technique/timing was what caught them.

House of Wolves

Anyone else just think BS when they are writing about BL?

Tyrone2014

Has anyone tried the Sample Paper 2?

30 Pages of answers........

The Little Fella

littlemiss123 wrote: »

These exams are 80% exam technique, 20% actual accounting knowledge. I know technically excellent people who have failed so I can only assume their exam technique/timing was what caught them.

It's time like this i ask myself why didn't i do medicine

Dellboy2007

The Little Fella wrote: »

It's time like this i ask myself why didn't i do medicine

I know, right? So annoyed now I turned down my position in Harvard Law and Yale quantum physics.

littlemiss123

The Little Fella wrote: »

It's time like this i ask myself why didn't i do medicine

Or become a teacher.

They knew what they were doing when they filled out that CAO form....

vnervous

Sample paper ?

PhilipLuke

In the Hamcam cross marking paper how is anyone in their right mind supposed to work out the contribution for year 2 from the figures presented!!!

If a junior gave me that garbage I would kick him out the door of the office and half way down the street!!

The Little Fella

PhilipLuke wrote: »

In the Hamcam cross marking paper how is anyone in their right mind supposed to work out the contribution for year 2 from the figures presented!!!

If a junior gave me that garbage I would kick him out the door of the office and half way down the street!!

Someone has to correct the crap public accountant's work

IR1SH RANG3R

Quick question: What are the quick ways to work out materiality again? I know it's something like 2% of Net Assets or 5% of revenue or something like that? Need to stick these in the audit section so I can have them to hand!

Tyrone2014

vnervous wrote: »

Sample paper ?

Yeah the two comprehensive Sample Papers on the student portal, heads fried looking at the second paper.

PhilipLuke

The Little Fella wrote: »

Someone has to correct the crap public accountant's work

Paul Monohan is on to them lads!!

vnervous

Can't see them ? Where bouts exactly??

galway321

littlemiss123 wrote: »

Or become a teacher.

They knew what they were doing when they filled out that CAO form....

I know what they'll be doing right about now though - drawing the dole

Tyrone2014

I can't seem to find them, I printed them off about a month ago and not to sure where they were located on the portal.

vnervous

Anyone have these sample papers ??? If so can u post them please. They don't appear to be on the portal anymore

galway321

vnervous wrote: »

Anyone have these sample papers ??? If so can u post them please. They don't appear to be on the portal anymore

Go to the homepage for this thread (click the accountancy link at the top left of your screen - scroll down till you find this thread)

Click the attachments icon on the right hand side to get a list of all attachments on this thread - the sample papers are on there.

Ekels

2010 core solutions for comp and sim not on the website? I e-mailed the Institute already but to no avail. Could anybody be so kind as to upload?

Accountant81

IR1SH RANG3R wrote: »

Quick question: What are the quick ways to work out materiality again? I know it's something like 2% of Net Assets or 5% of revenue or something like that? Need to stick these in the audit section so I can have them to hand!

1-2% of turnover or total assets
5-10% of PBT or net assets

Ie 4 measures

PhilipLuke

Can anyone tell me where the contribution of 200 and 400 come from in indicator 2 in Hamcam please

LOccitane

PhilipLuke wrote: »

Did anyone do the cross marking cases? Hamcam and logicmed are they worth doing?

I've done LogicMed just because of the fact that ISA 610 is examinable this year. Not sure if that's the CORE or AAE - I've lost count at this stage. I'm pretty sure it's new on the CORE?

I left the Actual Final Papers 2013/2012 as the last thing to do and I have a question on the CORE COMP 2013 - can anyone please help? Because when I read the solution it fundamentally changed my answer :mad:

In relation to the EYESPY Project Cash Flow projections... We take the Cash (Post Tax) Saving of the Capital Allowances arising from the investment in Plant & Machinery of EUR 5,500,000. However, where in the Cash Flow Projections do we even consider financing this outlay? The Bank Pitch solution references as a positive that we can fund the working capital requirements from reserves... But where do we consider the Fixed Assets outlay? It is not even referenced....

I know that the CF Projections are on a Product Cost/Revenues only basis; but the FA Investment is a specific, incremental and relevant cash outflow as part of the Project decision from my reading and the Product Cash Flows are adjusted for the impact of Capital Allowances...? Thanks.

LOccitane

Accountant81 wrote: »

1-2% of turnover or total assets
5-10% of PBT or net assets

Ie 4 measures

Page 74 of the AAE Book:

PBT - 5 to 10%.
TOTAL REVENUE - 0.5 to 1%.
TOTAL ASSETS - 0.5 to 1%.
EQUITY - 1% to 2%.
NET ASSETS - 0.5 to 1%.

Remember, where there are adverse or disproportionate changes in Profit performance or a reduction in the Asset base relative to the average of Prior Years; it is generally more prudent to use a blended average of PBT for the previous three years for the purposes of Materiality benchmark application.

Nothin but the Truth

LOccitane wrote: »

I've done LogicMed just because of the fact that ISA 610 is examinable this year. Not sure if that's the CORE or AAE - I've lost count at this stage. I'm pretty sure it's new on the CORE?

I left the Actual Final Papers 2013/2012 as the last thing to do and I have a question on the CORE COMP 2013 - can anyone please help? Because when I read the solution it fundamentally changed my answer :mad:

In relation to the EYESPY Project Cash Flow projections... We take the Cash (Post Tax) Saving of the Capital Allowances arising from the investment in Plant & Machinery of EUR 5,500,000. However, where in the Cash Flow Projections do we even consider financing this outlay? The Bank Pitch solution references as a positive that we can fund the working capital requirements from reserves... But where do we consider the Fixed Assets outlay? It is not even referenced....

I know that the CF Projections are on a Product Cost/Revenues only basis; but the FA Investment is a specific, incremental and relevant cash outflow as part of the Project decision from my reading and the Product Cash Flows are adjusted for the impact of Capital Allowances...? Thanks.

Are you not goin to the bank to get the 5,500,000 and then buy the equipment? The bank just want to know when there goin to get there money back.

Dellboy2007

I'm not surprised they are getting rid of HR. What a waste of a subject. IMP as well, what were the institute really thinking? I know the role of accountants is becoming more diverse since introducing ERP systems but come on! What company is going to go to their accountant about what to include on a bloody website?

In saying that, I'm glad that it's IMP this year and not MA! Lolacaust

LOccitane

Nothin but the Truth wrote: »

Are you not goin to the bank to get the 5,500,000 and then buy the equipment? The bank just want to know when there goin to get there money back.

Thanks! I've been overthinking it and just missed that simple point..! That is, that's the amount we were going for in the first place! Thanks again.

Nothin but the Truth

LOccitane wrote: »

Thanks! I've been overthinking it and just missed that simple point..! That is, that's the amount we were going for in the first place! Thanks again.

No problem, I'll let you off this time as its the final week of exams

myshirt

Pretty much me now.

Don't ask why I'm not wearing pants.

Debs23

Is there much point on wasting time on costing if it was on last years core?

Nothin but the Truth

Debs23 wrote: »

Is there much point on wasting time on costing if it was on last years core?

No point whatsoever, they dnt repeat themselves. Its intersting to look at Paul Monaghans predictions of 3 audit indicators if FAE exams dnt repeat themselves. Is it goin to be the exact same number of indicators for each subject as last years exam? It wud seem impossible for this to happen so only option is to increase PM by 1 and make it 9 in the comp or 8 in the comp and 5/4 split for the 2 sims.

Mark1916

I'm spending tomorrow (or most of it) on management accounting covering off target costing budgeting and variances and a couple of other things, management is tough to study for it's almost an "on the day" sort of topic!

Dellboy2007

Mark1916 wrote: »

I'm spending tomorrow (or most of it) on management accounting covering off target costing budgeting and variances and a couple of other things, management is tough to study for it's almost an "on the day" sort of topic!

Not trying to be smart but didn't target costing come up last year? Budgeting could definitely be an area that comes up.

Mark1916

Dellboy2007 wrote: »

Not trying to be smart but didn't target costing come up last year? Budgeting could definitely be an area that comes up.

Apologies I meant transfer pricing! Good spot!

m1ck007

This is what i think may come up in day 1. Consol, audit of consol, transfer pricing, change mgt, cg, group losses, cant think of anything else

vnervous

Its he nice if it did come up like that.....what you thinking on CG ?

m1ck007

Dont know, something on the role of the audit or remuneration committee. Heard our paul goin on about it once.

ashmcg9

Could someone please explain what exactly the decile and sufficiency rankings mean? I got a decile 2 and sufficiency 7 in the mocks for core and not sure if that's a good or bad thing?