FAE September 2014

ASOT2012

Nermal wrote: »

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.

It takes at least half an hour to read the case properly without even getting stuck into planning

Aidodub87

Nermal wrote: »

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.

I spent two hrs planning and reading it twice today!

2014DCR

Could have done with another hour at least! Despite "practicing" questions under time constraints it is just never the same as the real thing... depressed. Transfer pricing answer was a total mess.

Just looking at some of the points re the 3 stores. I took it from a different angle in so far as the lease on 2 of the properties was up in 2017 and they had been negotiated at the top of the market in 07. My financial analysis was poor but based on same I suggested keeping Store 1 open and renegotiating lease terms in 2017. Still an attractive location/demographics etc.

Close Store 2 as projected growth low.

Change sales mix at store 3 and review performance on a quarterly basis.

Looks like I was way off!

maninblack

Made such an unholy mess of it today. Devastated

It's more the fact I knew the stuff and the pressure and nerves just got to me. Like, my transfer pricing answer was a sprawling mess and I'd generally be comfortable with TP and any of the mgmt accounting topics.

In general, I felt the timing to be pretty crazy. When I've practiced cases before, I've generally just spent 30 min reading, then 60 min planning. But when I was about 40 mins into the plan I just knew I had to pull the plug as there was no way I was going to get all the consolidation points nailed down in 20min for example. The first 2 indicators (console and strategy) took me a solid hour. I fell behind on my time and was constantly trying to make it up. Wrote two thirds of a page on tax, just literally bullet points on the participation exemption which was SO frustrating as I had so many other valid points in my head but literally just WAS NOT time to get them down on paper.

As for that finance indicator, holy crap, didn't know WHAT to do. ended up just giving generic advantages/disadvantages for forwards/futures/options. fairly terrible and most likely an NC.

Overall, thought the paper was far tougher than last year and it's touch and go for me now given the RC I got in the AAFRP. Really is 50/50 now. Still going to give it everything I have in the morning but pretty down about today

kookies

I completely let myself down on that paper. Mentioned the participation exemption and thought better of it and scrapped it -Said share sale was better though
Finance went ok went with the forward contract.
Mentioned onerous leases but didnt conclude on the overall assessment did a quick strategic analysis
set out audit implications stated that mgmt had to include futher detail if not implications
Mentioned ifrs 10 messed up the journals got a hc in the interim
the rest i answered but overall i feel like im finiahed with as regards core!
If tomorrow doesnt go exceptionally well im done for!

redgerry 86

Anyone get a profit on disposal of 5,750?

suref

Just realised I recommended converting at the spot rate for finance..well ain't I stupid lol. Hopefully with half decent workings and I suggested a few ways to get the other 60m that needs to be raised il get the rc.

For strategy I may have taken a stupid view in closing all 3, just noted losses for 4 years is quite long and gave a recent high court case of rent review in Dublin. Then talked absolute waffle about unemployment and helping them find jobs etc, reassuring others ie creditors and other employees and also trying to get them to go to other stores/online. Would love to get a sneaky green in there -bl would be mg weak point

Nermal

redgerry 86 wrote: »

Anyone get a profit on disposal of 5,750?

I *think* I got 8,750 and definitely forgot to reverse goodwill of 3M.

So sounds plausible to me.

arnie_ni

redgerry 86 wrote: »

Anyone get a profit on disposal of 5,750?

Something like that, the sp was 20 000 mil and fv of 40 percent less gwill on acq which was 3750 or something less fv na which was 25 odd from memory. did anyone discounted the money received in 3 months to present value? I mentioned it should be but there was no discount factor given so I didn't think you could

maninblack

Anyone else say to keep all 3 open?

I said that OK, it's loss making, but the situation is improving

mentioned the onerous leases and the fact that we're already committed to sunk costs here irregardless.

Store 1 = we're going to directly lose 1.5mil to a competitor. poor from a group perspective to lose any territory from a competitor.
Store 2 = took an ethical approach to this. how can we promote 'luxury for all' when we pull the plug on a disadvantaged area?
Store 3 = unwise to close an outlet in a prime location such as a business park. being undercut by discount stores. maybe change our approach? raise TP and then promote the luxury aspects of the brand?

I dno, was kinda talking out of my ass on the strategic aspects of that one tbh and heard a lot of people saying to scrap all 3 stores which had me worried.

LOccitane

redgerry 86 wrote: »

Anyone get a profit on disposal of 5,750?

Yes. Exactly what I got. But the marks are going for Methodology so I would think any of the answers I've seen on here are substantially correct and will be getting at least a C if not higher.

@ MainBlack - I know exactly how you feel. As of tonight I'm 'in the clear just about' on PM/Tax/Audit. Finance is marginal and I feel I'm looking at a Red in IMP/BL.

I absolutely need BL to go really well tomorrow. I was super happy with the plan today but it definitely robbed me badly of time later on. Again, I hope the plan gives merit as I had solid points to address on each indicator.

Tomorrow I'm cutting the plan time and I'm willing so sacrifice length on RC indicators in favour of BL.

From last year; it seems to me that people got through with 2/4 C's on BL/PM but nothing is certain....

Best of luck tomorrow folks! :-)

ashmcg9

redgerry 86 wrote: »

Anyone get a profit on disposal of 5,750?

Yes I did

galway321

redgerry 86 wrote: »

Anyone get a profit on disposal of 5,750?

Could you post how you got that figure?

redgerry 86

My problem is I may have calculated profit right but treated it as a discontinued operation and disclosed as a discontinued op. Hopefully I'll get partial credit! Fr is very hard when u r stuck for time as u can misread something which alters ur whole approach to a standard

arnie_ni

redgerry 86 wrote: »

My problem is I may have calculated profit right but treated it as a discontinued operation and disclosed as a discontinued op. Hopefully I'll get partial credit! Fr is very hard when u r stuck for time as u can misread something which alters ur whole approach to a standard

That's the correct treatment, there was an identical question in the Derry cotter book, think it was case 11 or something

danko2012

ashmcg9 wrote: »

Yes I did

I did also.

On tax is the participation exemption wrong?

Also on finance was it risky for them to go with futures contracts as the 23 million isn't guaranteed so if deals through they are royally screwed? Hence I went for the option?

Happy with FR/Finance. Ok with strategy, Imp, tax. Found TP a bit odd. Need a good audit as although I hit the main points I think it was very rushed so prob hit an RC but got 6 yellows last year and failed so not settling for RC's this year!

Also need a good BL as my CG was a bit rushed too so def didn't get a C there

JoanH

Well I messed up quite spectacularly there
PM Dr sploci 5750 instead of cr so journals didn't balance
Tax - totally forgot to mention participation exemption
CG-asked why there was separate meeting for INED and ED. Seems that's perfectly normal!!!!
Never mentioned about your wan not being independent
Strategy - forget about it. Pure mess
IMP - waffle
Finance - small bit of waffle on hedging. No calcs!!
Audit - never made mention of any EoM.
And as for onerous leases....didn't even see it as an issue!

I need tomorrow to go perfectly

redgerry 86

Net sale proceeds = 20 million
Carrying amount = [17 million *60%] = 15

Less
goodwill at acq (17-14) = (3)
Assets - liabilities = (26.25)

Profit on disposal = 5750

tresb26

thoughts for tomorrow? I'm thinking 8 or 9 between the two...

2 BL (1 Ethics), 1 IMP, 1 Finance, 1 Tax, 1 Audit and 2 FR

House of Wolves

Really tough paper today but fair in many ways. Timing disaster.

Thought of onerous leases when writing the strategy stuff but then forgot to include, face palm!

Just wondering is it still possible to pass tomo if you got NC in finance today? Made a dogs dinner of it so need to sort it tomo.

maninblack

House of Wolves wrote: »

Really tough paper today but fair in many ways. Timing disaster.

Thought of onerous leases when writing the strategy stuff but then forgot to include, face palm!

Just wondering is it still possible to pass tomo if you got NC in finance today? Made a dogs dinner of it so need to sort it tomo.

Yep, I'm in the same boat pal. To quote Paul M "You cannot fail on 1 indicator". I'm fairly nailed on for an NC for my pitiful attempt at finance today. I know I need green in Finance tomorrow so I'll be going for in guns blazing and doing it first!

vnervous

I'm exactly the same with finance - just need to Be positive and give it a good lash tomorrow

Debs23

tresb26 wrote: »

thoughts for tomorrow? I'm thinking 8 or 9 between the two...

2 BL (1 Ethics), 1 IMP, 1 Finance, 1 Tax, 1 Audit and 2 FR

Should there not only be 1 FR is we had 2 PM today then the AARFP?

2014fae

How are ppl approaching timing tomorrow?reading both cases in half hour or just the one?

myshirt

2014FAE, whatever you have been doing to date, stick with it.

Mark1916

Debs23 wrote: »

Should there not only be 1 FR is we had 2 PM today then the AARFP?

Who knows! Id say at least 1 FR 2 audit 2 BL 1 IMP 1 Tax 1 finance

cookie24

Best of luck to everyone

maninblack

Please god it's 2 finance. half tempted to insert a hand written apology for my attempt at that hedging bullcrap today

ashmcg9

2014fae wrote: »

How are ppl approaching timing tomorrow?reading both cases in half hour or just the one?

I reckon I will read both cases in half an hour, pick out the indicators and do a brief plan of first case, then go straight into the first case. Then when I'm finished, I'll re-read the second case, brief plan and then go straight in. Don't want to spend as much time planning tomorrow.

kenner24

maninblack wrote: »

Please god it's 2 finance. half tempted to insert a hand written apology for my attempt at that hedging bullcrap today

Yea it went terribly for me...and i put that indicator first cos she said it was to be a priority....but shouldnt have. It ruined the paper for me! Spent bout 40mins on it and still only 2 pages and just felt awful about it throughout whole paper!

But sure it 75percent of us feel the same way about it............

ashmcg9

By the sounds of it, everyone did badly in the finance indicator today so they can't bring us all down. We just need to be sure and nail the finance indicator tomorrow and give it more time than other indicators.

smurfette20

Really upset after today. Didn't get to finish the financial reporting indicator, by the sounds of it I royally messed up the tax indicator and I didn't give the other indicators the time they needed.

Very reassuring that the majority felt the same way about the time constraints and that the pressure and nerves got to some on the day.

I just don't see how I can pass PM based on today's performance and an RC AAFRP.

I have a feeling the pressure is going to get to me tomorrow too now.

Shorty11857

onestly I was incredibly nervous today too, then while I was reading the case study my desk collapsed, and I had to pick up all my notes off the ground, for some strange reason that calmed me down, I also cursed out loud that helped too

smurfette20

Shorty11857 wrote: »

onestly I was incredibly nervous today too, then while I was reading the case study my desk collapsed, and I had to pick up all my notes off the ground, for some strange reason that calmed me down, I also cursed out loud that helped too

Shorty, I think we're sitting near enough to each other! Unless more than one desk collapsed today!!!

tresb26

Debs23 wrote: »

Should there not only be 1 FR is we had 2 PM today then the AARFP?

you could be right, that was the case last year anyways...

donnem33

are people studying tonight or just trying to relax and go in to the exam fresh in the morning?

GR3YFOXXX

Shorty11857 wrote: »

onestly I was incredibly nervous today too, then while I was reading the case study my desk collapsed, and I had to pick up all my notes off the ground, for some strange reason that calmed me down, I also cursed out loud that helped too

Seen that lol. Felt seriously bad for you.

jny107

Holy hell I hate reading this! Why do I do this to myself! I know I did ok in some areas but appear to have waffled in others. Some people are very confident on this thread...

PhilipLuke

What I learnt from today is that the mocks are on far too early and the gap between the mocks and the real thing is too long!!

It would be better if we had more time to study for the mocks and if they were closer to the real thing I don't think I would have been as nervous today

acastudent

So disappointed can't even breath

Strategy messed up big time
Imp rushed although I think it was marketing
Tax - didn't calculate CGT only mentioned participation relief
FR subsidiary to associate okish
Audit ok
Finance calculated 3 scenarios only to find out at the end that it was 23 not 24 receuvables
Corp gov was ok although missed that independent part
Transfer pricing waffled a lot

Roll on tomorrow . Best of luck everyone !!!!

bikeman1

Well today was a complete eye opener for me. Way way too much to do in the time allowed. Could have done with 2 more hours!

FR: Made a disclosure for onerous lease per IAS 37. Didn't do so well on the Sale of shares in the subsidiary, didn't get it right, made an attempt at the journals, left this to near the end, as it was eating up time. I think I am going to be relying very heavily on my HC in AAFRP!

Transfer Pricing. Said the current system is totally wrong. MELBIN only sells to the group and makes own brand therefore should not be compared to other manufacturers. I said that cost basis should be the only way for transfer pricing and MELBIN should not be assessed on profitability but other factors. The board need to treat MELBIN like a manufacturing arm with no profit/loss each year. Different transfer prices for different stores (based on profitability/managers) had to stop etc.

Audit: Said there was definite going concern issues, that the auditors would have to get certainty that the bank will continue to support. Made a point about the timeline the audit had to be completed and signed off before 28th Feb and that the auditors will need to be aware of this, and said if we had an audit committee that they would ensure the year end audit would, which is vital for the bank, was completed on time.

BL: Corporate Governance was very good. I would say I got a competent there at least. Did a nice table of the problems and the solutions. (Paul would be happy!)

I took the Facebook & Twitter indicator more as an online Marketing (BL than IMP). Gave examples of like & share on Facebook of store promotions extra. Said that the brand should promote it's image of luxury and develop the image for customers without customers having to spend a fortune. Hire a marketing expert to use "pull" tactics to increase.

Strategy. Said keep all three stores. There was a note "early exit of the lease is not permitted..." Took this as the cost of the remainder of the lease would have to be paid out regardless. With the marketing drive, the upturn in the economy and change to the transfer pricing, the projections could be better than expected. Also a brief tax note that losses in these stores can be offset to other stores that are profitable, thus reducing CT.

Tax: Didn't mention participation exemption. Not happy with that. Went through the difference between Share Salve v Asset Sale. No VAT on asset sale. Stamp Duty 1%/2%. Don't know if it was enough for a RC without participation exemption.

Finance: Made a balls of this! Said with the interest premium that hedging 23m for just 4 weeks was not cost beneficial and that there was no expectation that FX rate would change so much in the next 28 days, and the options were not the best.

For me tomorrow:

IMP - 2, BL - 1(Ethics), Audit - 2, Finance - 1, FR - 1, Tax - 1.

Best of luck for Day 2!

lowenstein

sounds good bikerman fair play. i had a similar thing about competitions requiring tagging jenso or #jesson abd having to enter your details to get more infoon demographics but didnt say anything about using the info unfortunately. if hat was a bl indicator didnt have enough for a c i woudnt say. Re tax if you calculated the cgt and said woudnt have net 50mill reckon that would be enough for rc?

TheDoctor

Desk

TheDoctor

Desk collapsed about 5 minutes before the exam started, not ideal, but not the worst time as mentioned above

tumbledown

Gutted - what's killing me is that paper wasn't crazy hard but I just went to pieces and didn't see things or else ran out of time.

On reflection I would gladly sit 6 different exams rather that have everything lumped in and miss things and mess up in that fashion.

Siiigh - battle away tomorrow I suppose. Good luck to everyone

m1ck007

God knows what Cr*p will appear tomorrow. Any ideas what finance indicator will be?

Aidodub87

m1ck007 wrote: »

God knows what Cr*p will appear tomorrow. Any ideas what finance indicator will be?

Hopefully maybe a valuation

acastudent

Aidodub87 wrote: »

Hopefully maybe a valuation

Any predictions on Tax????

20 Times 20 Times

I dont think you needed to mention IFRS5 today - see Para 32 of the standard.

The subsidiary only worked out of 7% of the irish revenue.

I fecked up finance only spoke about one option - Money Market did small calculation - advised noting else = NC

Aidodub87

acastudent wrote: »

Any predictions on Tax????

Maybe retirement relief... Hard to know... From a group perspective today, EIIS last year.... What else?