FAE September 2014

iwishihadaname

For audit Im not sure I did great - talked about additional things auditors will look for eg cashflow statements, plans etc. Said there probably is a material uncertainty because of cashflow problems and bank restructuring and this should be disclosed in the note and an emphasis of matter. Enough for an RC, anyone?

Torres999

Was it deffo IMP and not BL?

iwishihadaname

Torres999 wrote: »

Was it deffo IMP and not BL?

I'd think it was a BL one aswell

Mark1916

iwishihadaname wrote: »

For audit Im not sure I did great - talked about additional things auditors will look for eg cashflow statements, plans etc. Said there probably is a material uncertainty because of cashflow problems and bank restructuring and this should be disclosed in the note and an emphasis of matter. Enough for an RC, anyone?

I took two things from the audit q - audit report implications and was the note sufficient, I had to redraft the note an then say there would be EOM in the audit report if they disclosed all information if they didn't would give rise to an adverse opion and possible affect the restructuring deal so your one the button!

Torres999

iwishihadaname wrote: »

I'd think it was a BL one aswell

I'm hoping it's IMP cos I didn't get it done and messed up strategy

galway321

What journals did people throw down for FR? Something along the lines of this I hope

Cr Goodwill 3,000
Cr Net Assets 14,000
Cr SPLOCI - PL 18,000
Dr Bank/recv 20,000
Dr Invest Ass 15,000

Torres999

galway321 wrote: »

What journals did people throw down for FR? Something along the lines of this I hope

Cr Goodwill 3,000
Cr Net Assets 14,000
Cr SPLOCI - PL 18,000
Dr Bank/recv 20,000
Dr Invest Ass 15,000

Same journal figures were different can't remember what, all a blur

vnervous

Lads - participation exemption???

myshirt

If I came out of there knowing I done my best, I'd accept it. But to come out having left so much behind me, not good enough.

Last year core comp got a bad reaction day 1; but this paper was incredibly fair to be honest to the board.

The winners today will be those that managed the nerves. I think absolutely fantastic opportunity there on that paper if you managed the nerves. Standard on those indicators likely to be high amongst bulk of 1,300 students.

iwishihadaname

vnervous wrote: »

Lads - participation exemption???

Holding co is exempt from cgt on disposal of sub if certain conditions are met.

Torres999

vnervous wrote: »

Lads - participation exemption???

Yeah that's what I based my whole answer on

vnervous

Ok I Dont feel so bad now....still gutted over finance . No time....10 mins and brain just couldn't so the calcs ! Sick ! Need a nice finance ind. Tomorrow....

iwishihadaname

Best thing about this exam is if you think you did bad on an area there's still time to turn things around. Going in with a cool head tomorrow!

myshirt

DR Bank
DR Receivable
DR Investment in Associate
CR Goodwill
CR Net Assets
CR SPLOCI - P+L

But didn't write that down!

Torres999

iwishihadaname wrote: »

Best thing about this exam is if you think you did bad on an area there's still time to turn things around. Going in with a cool head tomorrow!

Massive BL needed

LOccitane

galway321 wrote: »

What journals did people throw down for FR? Something along the lines of this I hope

Cr Goodwill 3,000
Cr Net Assets 14,000
Cr SPLOCI - PL 18,000
Dr Bank/recv 20,000
Dr Invest Ass 15,000

Exact same except for I think I might have (wrongly) recorded a post Acq increase in the Net Assets prior to disposal. I thought there was some info given about that... Can't really remember now. Only difference being computed a different gain as a result.

IR1SH RANG3R

For FR I took it that we just had to talk about the bunis sale, calculated the gain on disposal have the journals and said they had to account for it as an associate. Didn't bring FR into anything else because I didn't think it was being asked!

m1ck007

IR1SH RANG3R wrote: »

For FR I took it that we just had to talk about the bunis sale, calculated the gain on disposal have the journals and said they had to account for it as an associate. Didn't bring FR into anything else because I didn't think it was being asked!

Same here.

Torres999

Like surely if you calculate the disposal well and included the deferred payment give decent good journal and mention onerous leases OR IFRS 5 you'd be close

barbie_j

FR- IFRS 3 for goodwill, IFRS 10 for disposal of shares (60%), talked about control lost, gave journals + mentioned IAS 1, equity method will be adopted after disposal, roughly listed IFRS 5 disclosure requirement.

Finance- mentioned options, money market, forward, and did rough calculations. and concluded that forward is the best as it would generate 20m+. a bit worried as i think the calc were wrong…

Tax- talked about share sale vs assets sale, and listed some points from the book ( vendor's perspective column) combined with the case. mentioned participation exemption conditions one by one, and also the buildings is less than 50% on the balance sheet (20m compare to 30m other assets), hence participation exemption is available. tried to do a rough calculation of the assets sale and show them i know how to calculate the double tax hit, failed ….. waste 5 mins! but concluded that share sale is the best and asset sale would hardly to reach 50m

Strategic analysis- Financial analysis: i don't know what the examiner was looking for, hence i just tots all losses and roughly split by 'total loss' and 'unavoidable loss'.
non-financial analysis: analysed the 3 stores, and concluded that s1 should be closed immediately and looking for subletting, mentioned IAS 17,
s2 should be kept, as north of the city has great development potential compare to the fully occupied south side,
keep s3 as job market is great and business district could afford slightly high quality food, mentioned Marks & spencer.
and for the last 'requirement', i just say the current format is not ready for lenders, but fair enough for that stupid board

Transfer pricing- was a bit of shock to me TOO. i was expecting a bit calculation etc, but no. talked about the current market value crap and suggested how to identify the ideal transfer price, and what else to consider. copied two paras from grinds school notes and is very regretting now.. maybe i shouldn't copy anything!

Online sale-as others said, not sure it is an IMP or Marketing indicator, but i was thinking of TESCO the whole time! grinds school mentioned the club card thing so i threw that.
basically they are looking for two issues: how to get the info? and how to use the info?
so i said ask them to complete club card info, doing a surgery ( together with reward, and if it was TESCO, possibly a BLACK BANANA, haha)
then to get the preference of each online customer,
also mentioned that the IT system need to be updated to get a 'filter' function and deliver the summary report, and appoint an IT champion.

CG - not a great answer!! only got 15 mins, and haven't drawn up the executive summary. just threw ceo+chairman can't be the same jerk, m molly already on board for 12 years and should be subject to re-election, chairman meets NEDs separately, and should appoint INED, performance shouldn't be based on profit ( link to transfer pricing) and randomly mentioned schedule A of CG code…

Audit- not too great. mentioned That papa should gave more details and randomly got a sentence from grinds school notes- think it was mgt's responsibility, but in a very short sentence, love it.
then mentioned what the auditors are likely to assess the basis by themselves in line with isa 570.
finally said- if the directors are willing to change, then unqualified report, if not, qualified report with Disclaimer or Adverse, depends on the auditors work, not ours.

myshirt

Torres999, that's you over the line yeah.

Anyone who got an RC in AAFRP, there you go, back on par in one swoop.

Glas134

In relation to tax... Did anybody say that the share sale isn't attainable as there was a massive latent gain on the buildings ... Cost 1mil disposal 20mil, so the purchaser would want a big discount on the shares price

joebloggs88

Tricky1979 wrote: »

Prob a good pt. I didn't do a swot. Raging now.

Did we need to do a swot? It asked for financial and non financial factors. Don't think it was leading you to do a swot.

iwishihadaname

Glas134 wrote: »

In relation to tax... Did anybody say that the share sale isn't attainable as there was a massive latent gain on the buildings ... Cost 1mil disposal 20mil, so the purchaser would want a big discount on the shares price

Didn't say that but it is a decent point! They have to look at answers on their merit aswell (i hope)

barbie_j

Glas134 wrote: »

In relation to tax... Did anybody say that the share sale isn't attainable as there was a massive latent gain on the buildings ... Cost 1mil disposal 20mil, so the purchaser would want a big discount on the shares price

i mentioned that. if so, the price would be significant lower than they expected. it is a huge con of share sale.

Shorty11857

Glas134 wrote: »

In relation to tax... Did anybody say that the share sale isn't attainable as there was a massive latent gain on the buildings ... Cost 1mil disposal 20mil, so the purchaser would want a big discount on the shares price

Yup that's what I said, still said to go with share based sale because they asked for the best tax solution but did leave a note saying it's probably unlikely to happen

LOccitane wrote: »

Exact same except for I think I might have (wrongly) recorded a post Acq increase in the Net Assets prior to disposal. I thought there was some info given about that... Can't really remember now. Only difference being computed a different gain as a result.

Yeah I assumed the post-acquisition increase was already accounted for. Although in hindsight I probably should have stated that but that's what I get for leaving it till last, dreadful decision that

barbie_j

joebloggs88 wrote: »

Did we need to do a swot? It asked for financial and non financial factors. Don't think it was leading you to do a swot.

attempted to do but failed, not enough info i think:eek:

galway321

Glas134 wrote: »

In relation to tax... Did anybody say that the share sale isn't attainable as there was a massive latent gain on the buildings ... Cost 1mil disposal 20mil, so the purchaser would want a big discount on the shares price

Tax is not my strong point but if the purchaser pays full market price and you as seller avail of the participation exemption does not not 'clear out' the latent gain?

As I said I'm not strong on tax so looking for clarification?

m1ck007

Going to go in and tackle finance first tomorrow, followed by any bl then the rest in no particular order.

Shorty11857

galway321 wrote: »

Tax is not my strong point but if the purchaser pays full market price and you as seller avail of the participation exemption does not not 'clear out' the latent gain?

As I said I'm not strong on tax so looking for clarification?

The gain happens when the purchaser sells the buildings themselves, they have the base price you bought them at. So if they buy the shares and sell the building the base price is 1m, if they buy the building and sell it in future the base price is 20m.

BigMawn12

My FR today was shocking. Got a C in AAFRP so hope that softens the blow. Need to have a good day tomorrow. Not even opening a book tonight. What's the point.

Nermal

Here's hoping Hodgson gets an opportunity to wheel out his trusty three-stage framework at some point. When all you have is a hammer...

barbie_j

BigMawn12 wrote: »

My FR today was shocking. Got a C in AAFRP so hope that softens the blow. Need to have a good day tomorrow. Not even opening a book tonight. What's the point.

there is nothing to be worried about, like you already had a C in your bag, and that is the advantage! just stay positive!

barbie_j

dunno to treat the online sales an IMP or BL? anyone??

myshirt

My FR was shocking because of nerves!

My FR last year was shocking because my FR was shocking!

Sooooo hard to swallow!

IR1SH RANG3R

For the disposal of Frenco I said that asset sale is the best for quick cash which they need but they wouldn't get 50m after tax. Said with participation exemption in share sale may get nearer 50m after tax but that it'd take too long. So I said I was worried that they wouldn't get 50m in time and linked it into the going concern indicator for audit??

tresb26

surely there will be an ethics tomorrow somewhere and now that we know it's coming tomorrow it's a good chance to get a C for BL...

PhilipLuke

I only looked at the strategic analysis from a financial perspective as when I read over it my head was gone and I thought thats what it said!!!!


Also made a pure bags of finance and IMP/Marketing

Audit was poor but did redraft the disclosure note

Just took me too long to read and plan

barbie_j

IR1SH RANG3R wrote: »

For the disposal of Frenco I said that asset sale is the best for quick cash which they need but they wouldn't get 50m after tax. Said with participation exemption in share sale may get nearer 50m after tax but that it'd take too long. So I said I was worried that they wouldn't get 50m in time and linked it into the going concern indicator for audit??

oh my God, it is such a good point! i never thought of that!

galway321

Shorty11857 wrote: »

The gain happens when the purchaser sells the buildings themselves, they have the base price you bought them at. So if they buy the shares and sell the building the base price is 1m, if they buy the building and sell it in future the base price is 20m.

Thanks Shorty - I assumed (incorrectly it appears) as they were paying full price for the shares that the cost price for the buildings would be €20m and could be used for subsequent sales.

Hoping now that stating share sale is the best best option and availing of participation exemption is enough to get RC!!

TheDoctor

Really want to go all Paul Monahan on ethics tomorrow

"I shall use the well established Hodgsons Three Stage Model"


Feeling ethical baby!

Shorty11857

IR1SH RANG3R wrote: »

For the disposal of Frenco I said that asset sale is the best for quick cash which they need but they wouldn't get 50m after tax. Said with participation exemption in share sale may get nearer 50m after tax but that it'd take too long. So I said I was worried that they wouldn't get 50m in time and linked it into the going concern indicator for audit??

I made a really small passing reference to this in my audit answer

Really wish we had more time for the exam, 4:30 feels like a lot until you're actually in there sitting it

galway321

Would 2 C's be enough for BL?

Feel like I nailed Corporate Governance today and hoping for ethics tomorrow - If I got C's in both would that be enough? Strategy was a disaster for me today.

Dreaming of sunshine

galway321 wrote: »

Would 2 C's be enough for BL?

Feel like I nailed Corporate Governance today and hoping for ethics tomorrow - If I got C's in both would that be enough? Strategy was a disaster for me today.

I'm gonna say you might need three, most seemed to have fared well with CG today. I'm definitely aiming for 2/3 more anyway.

Nermal

Shorty11857 wrote: »

Really wish we had more time for the exam, 4:30 feels like a lot until you're actually in there sitting it

I genuinely don't understand the 'take an hour+ for planning' people. You've 4 hours to write and 8 indicators. Nearly every one of those indicators seemed to me to take near on a solid half hour of writing. Your planning is done in your half hour reading time. Maybe an additional ten minutes.

BigMawn12

Nermal wrote: »

Here's hoping Hodgson gets an opportunity to wheel out his trusty three-stage framework at some point. When all you have is a hammer...

Hahaha

Mark1916

galway321 wrote: »

Would 2 C's be enough for BL?

Feel like I nailed Corporate Governance today and hoping for ethics tomorrow - If I got C's in both would that be enough? Strategy was a disaster for me today.

I'd imagine 2 will be enough to get you over the line!

lowenstein

what are people thinking on BL indicators tomorrow? cg and strategy done with 50/50 imp/marketing. does that mean has to be change and ethics? or would they give a second strategy indicator??? So annoyed at myself for missing that line about operating losses.

ASOT2012

what are people thinking on finance tomorrow?

Dreaming of sunshine

lowenstein wrote: »

what are people thinking on BL indicators tomorrow? cg and strategy done with 50/50 imp/marketing. does that mean has to be change and ethics? or would they give a second strategy indicator??? So annoyed at myself for missing that line about operating losses.

I'm expecting Ethics and another strategy indicator (though i'll be delighted if anything except strategy appears!!!)