FAE 2017

jus_tin4

mel7284 wrote: »

Does anyone have the 2014 mock paper or access to it?

2014 isn't available as the course changedin 2015,it isn't really useful to us from what I know! ICD would be of more use

jus_tin4

CAIgirl wrote: »

Does anyone have notes on NCI? Also think intangible assets may come up.hasnt been asked in a while

I have some, what exactly are you looking at? Impairment of good will?

mel7284

jus_tin4 wrote: »

2014 isn't available as the course changedin 2015,it isn't really useful to us from what I know! ICD would be of more use

Yes I am aware of that, there seems to be a lot covered on the core paper, would have liked to have a quick read of it !!!!

CAIgirl

jus_tin4 wrote: »

I have some, what exactly are you looking at? Impairment of good will?

Yeah that would be great.just like a formula to calculate it and how to incorporate stuff like goodwill. I know there is question on Finn on NCI. Theres not any other questions is there?

jus_tin4

CAIgirl wrote: »

Yeah that would be great.just like a formula to calculate it and how to incorporate stuff like goodwill. I know there is question on Finn on NCI. Theres not any other questions is there?

I don't have too many questions on this either but I'm hoping the additional notes on consol I got from cap 2 will help as well as the consol book from cap 2! Sorry if this is no use! Maybe someone else will have something better!

MrSzyslak

Haven't seen CAT come up in any case to date bar a quick reference to it am I wrong in that?. Not in the tax planning book for FAE core either.

Don't feel like going over old CAT notes now :-(

jus_tin4

MrSzyslak wrote: »

Haven't seen CAT come up in any case to date bar a quick reference to it am I wrong in that?. Not in the tax planning book for FAE core either.

Don't feel like going over old CAT notes now :-(

Im just bring in my CAP 2 book just in case but i don't think there will be much detail on it similar to VAT really, more of a mention that an in depth topic. I feel like 2/3 party swaps might come up, then the typical cash extraction..... Im hoping these FAES are okay!

CAIgirl

If we could get a similar paper to 2016 it would be okay. think tax is gonna be some group reorganisation or sales of shares

heretothere

jus_tin4 wrote: »

I feel like 2/3 party swaps might come up, then the typical cash extraction..

What is a 2/3 party swap? I'm hoping for a sale of shares or cash extraction. I am also hoping for a lot of luck on the day!!!
Possibly entrepreneurial relief since it's new this year

DonnaCap2

heretothere wrote: »

What is a 2/3 party swap? I'm hoping for a sale of shares or cash extraction. I am also hoping for a lot of luck on the day!!!
Possibly entrepreneurial relief since it's new this year

2/3 party swaps are when a trade in a company is transferred to another company in exchange for shares.

In a 2 party swap the company disposing of the trade gets shares in the company that has bought the trade. (the shares are the compensation/payment)

In a 3 party swap its the shareholders/owners of the company disposing of the trade that receives the shares in the new company.

You need to consider

VAT - transfer of business relief
SD - Potentially 2%, relief under S.80 - Conditions and clawback
CGT/CT - Potential chargeable gain on transfer of assets, relief under S615 for a company / S587 for shareholder - Conditions and clawback/new base cost.

jus_tin4

DonnaCap2 wrote: »

2/3 party swaps are when a trade in a company is transferred to another company in exchange for shares.

In a 2 party swap the company disposing of the trade gets shares in the company that has bought the trade. (the shares are the compensation/payment)

In a 3 party swap its the shareholders/owners of the company disposing of the trade that receives the shares in the new company.

You need to consider

VAT - transfer of business relief
SD - Potentially 2%, relief under S.80 - Conditions and clawback
CGT/CT - Potential chargeable gain on transfer of assets, relief under S615 for a company / S587 for shareholder - Conditions and clawback/new base cost.

Please tell me your doing tax elective. If not, I'm screwed :cool:

DonnaCap2

jus_tin4 wrote: »

Please tell me your doing tax elective. If not, I'm screwed :cool:

I am, but reorg's are also on core too I think! (But maybe not the VAT & Relief - I'm not sure)

I would think it's probably more likely that if it's asked at all that it won't go into much detail.

Jsmac67

Praying for no consolidated cash flows or FX consolidations 😅

Mark_23

How are people bringing all their material in?

MrSzyslak

Luggage case with wheels!

Emzj

Is everyone bringing in all lecture notes, cases, exam papers and textbooks?

I don't think I will even fit all my folders/books in one suitcase!

s15r330

Emzj wrote: »

Is everyone bringing in all lecture notes, cases, exam papers and textbooks?

I don't think I will even fit all my folders/books in one suitcase!

Better to have them than be looking for them!

AtticusFinch86

Don't think I'll bother bringing in anything other than a folder with my summary notes. Really can't see me having the time to consult anything else.

What are you all doing now in terms of study? I've not been doing much the last week other than reading 2 my notes on 2 subjects a day and an overview of the types of questions that have been asked in those areas. It's been mind numbing and I haven't been able to do much more than 3-4 hours a day.

I haven't looked at a case since last sunday and I'm really hoping it doesn't come back and bite me in the arse.

heretothere

I bought a hard plastic box in woodies it has wheels. I'm brining books for comfort but judging by how I've been working to date I'll mostly just use my A folder

Humour Me

I am bringing my A folder, my CAP 2 SFMA folder which includes my CAP 1 notes for both subjects (Finance is a weakness for me timewise) my audit standards book, tax book and CGS business leadership book.

Reading over my tax notes this evening and will look at FR consolidations and IAS12 tomorrow and that's it. My brain refuses to do anymore and I just want to get the exams over with now.

Humour Me

Forecast for tomorrow is for pouring rain, make sure you have all your notes wrapped up watertight

Catherine3006

I put all my books into the suitcase there now and I cannot lift the thing now! FAE is nothing but stress!

jus_tin4

Make sure your there earlier too if your driving! The mocks were a disaster for parking the first day! And with the changes in town it could mess up traffic in other parts! I'm bringing in everything tbh or close enough. I will be using my summary notes mostly, but I'm not going to take a chance or needed to check something and then not have brought it!

AgentZigZag

Best of luck tomorrow all! Out of interest, how do we think Consolidation will rear its ugly head?

Paulacc

AgentZigZag wrote: »

Best of luck tomorrow all! Out of interest, how do we think Consolidation will rear its ugly head?

When it comes to consolidation questions, I don't think we can rule anything out. I'm hoping it's something like a business combination achieved in stages.

Humour Me

Good luck to everyone tomorrow.

jus_tin4

Here is hoping for a nice comp to get the confidence up! Best of luck!

s15r330

Lying awake since fecking 4.40. Good luck all

Lyra Fangs

What did people think of today?

jus_tin4

Lyra Fangs wrote: »

What did people think of today?

Not a bad paper, consol ****ed me as well as time a bit. But overall I thought it was reasonable!

CAIgirl

Bl was awfuk I thought

ACASlayer

CAIgirl wrote: »

Bl was awful I thought

What happened?

Humour Me

The paper was straight forward enough, I got caught for time on the Finance indicator, left the consolidation indicator till last and didn't get it finished. Need FR to go my way tomorrow.

chazzy100

Did people use Hodgsons framework for the last indicator on ethics? I didn't really cop it as a BL indicator but I referenced the ethical standards. The case referred to an external framework so I wasn't sure if it meant the ethical standards or Hodgsons...

Thechats

Consol and acq had me so confused!!

Humour Me

chazzy100 wrote: »

Did people use Hodgsons framework for the last indicator on ethics? I didn't really cop it as a BL indicator but I referenced the ethical standards. The case referred to an external framework so I wasn't sure if it meant the ethical standards or Hodgsons...

Ethical standards all the way, the audit partner advised you to include in your report and the client was referencing the audit fees.

The ethical standards appear under Audit and Business Leadership in the competency statement.

MrSzyslak

chazzy100 wrote: »

Did people use Hodgsons framework for the last indicator on ethics? I didn't really cop it as a BL indicator but I referenced the ethical standards. The case referred to an external framework so I wasn't sure if it meant the ethical standards or Hodgsons...

I didnt use Hodgons either.

I just referenced the ethical standards aswel was it BL?

AtticusFinch86

Lyra Fangs wrote: »

What did people think of today?

Definitely didn't find it to be a bad paper. Probably in line with last years in terms of the standard of it.

I'd be very disappointed not to be picking up the 2 C's in BL and FR in that paper. Thought the FR ones were handy enough. Didn't mind the BL ones either although the ethics question caught me off-guard. I didn't know how to approach it when it asked for an "ethical framework" as I couldn't see how the structure of "Hodgeons 3 Steps" would allow me to address the issue. I ended up just assuming that it have meant to use the ethical standards per the ISAs and used those to answer it.

Did anyone get a "bargain purchase" on the acquisition? The tax losses pushed me into that territory, otherwise It'd have been g/will.

Struggled a bit on time but managed to get everything answered eventually. Didn't have time for any executive summaries or to transpose my plan into the exam script

satnavadays

Consol confused me but just looking at Derry book and its practically copy and pasted note 1 and note 2. Really need FR to go good tomorrow

chazzy100

Humour Me wrote: »

Ethical standards all the way, the audit partner advised you to include in your report and the client was referencing the audit fees.

The ethical standards appear under Audit and Business Leadership in the competency statement.

Yeah seems ethical standards were the way to go. Good to hear!

Thechats

What date did anyone use for the acq date?

AtticusFinch86

Thechats wrote: »

What date did anyone use for the acq date?

Don't remember being given one, you were just told it would be after the 31st July so I took that to mean near the end of 2017

MrSzyslak

Really not sure how it went an kicking myself in certain areas when reading back over it. I ran out of time in the end and had 15mins left for management accounting - billing rate which I definitively got NC on.

Not sure about what I attempted I have outlined it before.

(1) Recording the new building and borrowing costs (IAS16 and IAS23). Thought this was fine

(2) NPV calculation. I just incorporated there WC and reconstruction costs added back depreciation and apply 10% . There was probably loads for other addbacks I missed I was unsure?

(3) IFRS3 - Calculated Goodwill using notes in Appendix2 and then journals to record in consol - feel like I missed something relevant. Goodwill was around €1m?

(4) Tax Losses was this very straight forward?. Buying losses in Toolow. Server reconstruction division was irrelevant as they did not intend to continue.
Relief c/f at 12.5% in same trade only and 25% for case V. Reference loss buying provision?

(5) Billable rate - made a mess of. Its MA? correct?

(6) PESTEL - incorporated appendix 4 and some info at start of case. Mentioned Volatility of the rand

(7) Auditors continue with Toolows or use groups. I gave AD and Dis - I concluded they should use groups especially after first year. Gave procedures from acquisition. Used solution from Mock paper I think.

(8) Audit fees and consulting work. Referenced ES5 and ES4. Didnt use any other Framework.

I am worried all around tbh. Any thoughts on the above?

I know I definitely got NC in Management so I need to go over notes later.

jus_tin4

MrSzyslak wrote: »

Really not sure how it went an kicking myself in certain areas when reading back over it. I ran out of time in the end and had 15mins left for management accounting - billing rate which I definitively got NC on.

Not sure about what I attempted I have outlined it before.

(1) Recording the new building and borrowing costs (IAS16 and IAS23). Thought this was fine

(2) NPV calculation. I just incorporated there WC and reconstruction costs added back depreciation and apply 10% . There was probably loads for other addbacks I missed I was unsure?

(3) IFRS3 - Calculated Goodwill using notes in Appendix2 and then journals to record in consol - feel like I missed something relevant. Goodwill was around €1m?

(4) Tax Losses was this very straight forward?. Buying losses in Toolow. Server reconstruction division was irrelevant as they did not intend to continue.
Relief c/f at 12.5% in same trade only and 25% for case V. Reference loss buying provision?

(5) Billable rate - made a mess of. Its MA? correct?

(6) PESTEL - incorporated appendix 4 and some info at start of case. Mentioned Volatility of the rand

(7) Auditors continue with Toolows or use groups. I gave AD and Dis - I concluded they should use groups especially after first year. Gave procedures from acquisition. Used solution from Mock paper I think.

(8) Audit fees and consulting work. Referenced ES5 and ES4. Didnt use any other Framework.

I am worried all around tbh. Any thoughts on the above?

I know I definitely got NC in Management so I need to go over notes later.

For the audit, sorta thought they were getting at group audit so went that way!

I didn't copy the business leadership but meantions ES4 and the threat and safe guards.

Need to pick up FR and business leadership tomorrow.

The MA indicator was straightforward I think! I took me a bit to wrap my head around what it was looking for tho so it close me in other areas.

Consol was a disaster for me anyways.

Tax I just talked about loss relief given it expected profits in 2018 and group loss relief 🙈Hopefully it gets me the bc 🙈

Let's hope tomorrow can make up the weak areas today!

s15r330

AtticusFinch86 wrote: »

Definitely didn't find it to be a bad paper. Probably in line with last years in terms of the standard of it.

I'd be very disappointed not to be picking up the 2 C's in BL and FR in that paper. Thought the FR ones were handy enough. Didn't mind the BL ones either although the ethics question caught me off-guard. I didn't know how to approach it when it asked for an "ethical framework" as I couldn't see how the structure of "Hodgeons 3 Steps" would allow me to address the issue. I ended up just assuming that it have meant to use the ethical standards per the ISAs and used those to answer it.

Did anyone get a "bargain purchase" on the acquisition? The tax losses pushed me into that territory, otherwise It'd have been g/will.

Struggled a bit on time but managed to get everything answered eventually. Didn't have time for any executive summaries or to transpose my plan into the exam script

I got bargain purchase but I think i'm wrong in how I got there.
Not a bad first paper. Made a bit of a balls of the breakeven stuff

MrSzyslak

s15r330 wrote: »

I got bargain purchase but I think i'm wrong in how I got there.
Not a bad first paper. Made a bit of a balls of the breakeven stuff

How did you get a bargain purchase? Looks like I made a complete mess of it.

It was stated not to include the losses wasnt it

s15r330

MrSzyslak wrote: »

How did you get a bargain purchase? Looks like I made a complete mess of it

I honestly can't even remember, once I leave an exam i'm lucky in that I can not think of it, i've been known to forget to check results on the day!

But I wouldn't worry, 99% sure I was wrong in how I got it.

Yeh it was

AtticusFinch86

MrSzyslak wrote: »

How did you get a bargain purchase? Looks like I made a complete mess of it.

It was stated not to include the losses wasnt it

If I remember rightly, I got it as follows

Consideration €2m

Net assets purchased - (1250 + 250 for FA + 100 for compensation - 70 for business review + 500 for extinguished loan+ circa 200 for tax losses c/f)

s15r330

AtticusFinch86 wrote: »

If I remember rightly, I got it as follows

Consideration €2m

Net assets purchased - (1250 + 250 for FA + 100 for compensation - 70 for business review + 500 for extinguished loan+ circa 200 for tax losses c/f)

I got something similar actually now I see that, without the tax loss.

Jsmac67

How did people get on with the finance indicator? Was the redundancy costs a year 1 or zero expense?