FAE 2017

Deilginis_1

Thought today was ok. Need to do as best I can in the FRs as didn't get the C in the AAFRP

1. Fr- IAS16/23 indicator was fine . Seemed like a C+P job of part of Tefler (I think) case Fromm cotter book
2. Finance - indicator seemed ok. Did anyone incorporate tax into this? It said tax was payable one year in arrears . So I just calculated EBITDA and added back Depreciation and charged 12.5%.
3. FR - IFRS3 seemed straight forward. I didn't read the question right and thought that Toolow owed 250k rather than were receiving it. Hopefully not enough to go down to a BC .
4. MA - seemed very easy but assume I missed some of the question. Just calculated annual wages, added to fixed costs and divided by total annual hours? Anything else to this?
5. BL - South Africa - PESTEL analysis - seemed ok.
6. Tax - I went through the general stuff here on tax losses here followed by loss buying anti avoidance provisions. Answer I was referencing seemed to indicate that losses wouldn't be available for offset against future profits , but not sure this was the case for BSS.
7. Aud - I went through the advantages /disadvantages of retaining Toolows auditors (similar to mock). Then jotted down a few points on what the group auditors additional work would be (was on one of the cheat sheets going around).
8. BL/Aud? - just referenced ES4 and not ES5 unfortunately - probably just Bc. Thought this was an audit indicator myself but general consensus is that it was BL

MrSzyslak

Deilginis_1 wrote: »

Thought today was ok. Need to do as best I can in the FRs as didn't get the C in the AAFRP

1. Fr- IAS16/23 indicator was fine . Seemed like a C+P job of part of Tefler (I think) case Fromm cotter book
2. Finance - indicator seemed ok. Did anyone incorporate tax into this? It said tax was payable one year in arrears . So I just calculated EBITDA and added back Depreciation and charged 12.5%.
3. FR - IFRS3 seemed straight forward. I didn't read the question right and thought that Toolow owed 250k rather than were receiving it. Hopefully not enough to go down to a BC .
4. MA - seemed very easy but assume I missed some of the question. Just calculated annual wages, added to fixed costs and divided by total annual hours? Anything else to this?
5. BL - South Africa - PESTEL analysis - seemed ok.
6. Tax - I went through the general stuff here on tax losses here followed by loss buying anti avoidance provisions. Answer I was referencing seemed to indicate that losses wouldn't be available for offset against future profits , but not sure this was the case for BSS.
7. Aud - I went through the advantages /disadvantages of retaining Toolows auditors (similar to mock). Then jotted down a few points on what the group auditors additional work would be (was on one of the cheat sheets going around).
8. BL/Aud? - just referenced ES4 and not ES5 unfortunately - probably just Bc. Thought this was an audit indicator myself but general consensus is that it was BL

Pretty much the same as yourself.

For the IFRS3 I treated the 500 loan pay down as a liability instead of an asset, thats why I didnt get bargain purchase :-( and didnt include the 70k as I thought this shouldn't be recognized yet under ias37

I did that for Management indicator too, but then I thought it was too straight forward and put a line through it and did some stupid calculation and ran out of time, they might still mark my first attempt as I left it clearly visible.

Humour Me

The management indicator kind of confused me too. I calculated the billing rate with the mark up and the break even hours and revenue. I felt like the indicator should have asked for discussion or advice but I couldn't think of anything relevant and was pushed for time so moved on.

satnavadays

Did eveyone post individual journals for consol? Say increase in revaluation to PPE and deferred tax. I calculated the goodwill and journals and did provisions but raging I didn't write down the journals for note 1 and 2.

I did the same with management accounting. Seems too straight forward and ran out of time at the end.

AtticusFinch86

satnavadays wrote: »

Did eveyone post individual journals for consol? Say increase in revaluation to PPE and deferred tax. I calculated the goodwill and journals and did provisions but raging I didn't write down the journals for note 1 and 2.

I did the same with management accounting. Seems too straight forward and ran out of time at the end.

I can't remember now but I'm almost sure I did. Think it mentions to do it. I'd say if you were strong elsewhere though it could be enough to get the C. But they can be fussy about the journals

satnavadays

AtticusFinch86 wrote: »

I can't remember now but I'm almost sure I did. Think it mentions to do it. I'd say if you were strong elsewhere though it could be enough to get the C. But they can be fussy about the journals

Yeah looked at it again and it said to give journals. Fairly sure Paul Monaghan said at one stage need journals for the C. I won't mind but I knew them and all but when I did goodwill I moved on. Oh well just to nail FR tomorrow...

Catherine3006

Having seen what came up today does anyone have any feelings on topic areas for tomorrow?

I think something narrative-y will be coming for management accounting but zero ideas for the others.

MrSzyslak

Catherine3006 wrote: »

Having seen what came up today does anyone have any feelings on topic areas for tomorrow?

I think something narrative-y will be coming for management accounting but zero ideas for the others.

Yeah thinking KPI's or budgets.

I am trying to study notes but literally so drained!

Everyone else the same?

Not sure weather an early night would be more beneficial

AtticusFinch86

MrSzyslak wrote: »

Yeah thinking KPI's or budgets.

I am trying to study notes but literally so drained!

Everyone else the same?

Not sure weather an early night would be more beneficial

I'd say get an early night. If you get up early and look at some summary notes it'll be fresher in the mind. I've no intention of looking at anything today. Cannot be arsed. I hope to get a decent nights sleep and look over some notes tomorrow

Catherine3006

Yes, so tired after today feel guilty about not doing anything but at the same time I'm so tired its not productive!

Think I'll be getting up early and having a quick look over a few things.

Best of luck tomorrow everyone!

dakerrymo

Does anyone know if 2 BC's will pass u on audit, tax, etc.? Or do u have to get one C...?

satnavadays

dakerrymo wrote: »

Does anyone know if 2 BC's will pass u on audit, tax, etc.? Or do u have to get one C...?

Fairly sure 2 BCs is enough for a pass. BL and FR need the C's

dakerrymo

Ok thanks a mill, puts my mind at ease somewhat:)! Best of luck to all tomorrow 👌

Lyra Fangs

I thought it was quite a difficult paper but almost purely from a time perspective - if I'd had another half hour it might have been another story.

Ind 1 - IAS 16/23 - this was handy enough - pretty much from the Derry book
Ind 2 - NPV analysis - really wasn't sure if it was just a straight up NPV or some other cashflow related method of company val - incorporated the wc and investment added back dep and deducted tax in the following year for each year - my commentary was weak though because it was my last indicator - fingers crossed for BC.
Ind 3 - Acquisition - just got goodwill of 50k because I didn't think they should provide for the review (?) for 70k
Ind 4 - Tax - hate tax - struggle with even the basics - said all but the construction loss could be c/fwd but the group couldn't use the losses - didn't even dawn on me to mention the anti-loss provision
Ind 5 - PESTEL - did a bit of waffling for this honestly - made sure to mention everything in the appendix anyway (and some from the case talking about the two south african clients)
Ind 6 - Audit - uh - group audits - wasn't quite sure if they wanted ad/dis AND procedures for Forest and Co? Just through down 2 of each and detailed some procedures from a past paper - setting materiality, understanding entity bla bla bla hope this was right
Ind 7 - Billing rate - dam this threw me - got 55 euro for the billable rate and calculated BE but the whole flexing thing? Varied the hours by 10% and 20% but didn't get time to do it for the billing rate - just really wasn't sure what they wanted
Ind 8 - Ethics - what a woeful indicator - i remember people having an issue with an ethics indicator before because they couldn't figure out what it was mapped to but at least they were auditors in that case - found it odd why we were dealing with an audit ethical issue as consultants but just went with the ESs - I feel the reference to threats and safeguards were meant to push us in that direction - am almost afraid the solution will be - oh but we're not the auditors so the audit partner shouldn't be asking you to do that :p

Hoping I at least got one C in FR and BL and maybe a BC in 2/4 of the other subjects - will have to seriously step up my game for MA, AU and tax tomorrow

dakerrymo

General opinion on today?

Lyra Fangs

dakerrymo wrote: »

General opinion on today?

Thought today was a much more reasonable paper, made a couple of stupid mistakes due to pressure of exam like forgetting to finish a journal or leaving out info I had planned to write - just got distracted.

No majorly challenging indicators though the management accounting one was quite time consuming.

I couldn't figure out if they business plan and swot were two separate BL indicators or not but I went with separate anyway.

s15r330

Was the 500k recovered an adjusting event?

Lyra Fangs wrote: »

Thought today was a much more reasonable paper, made a couple of stupid mistakes due to pressure of exam like forgetting to finish a journal or leaving out info I had planned to write - just got distracted.

No majorly challenging indicators though the management accounting one was quite time consuming.

I couldn't figure out if they business plan and swot were two separate BL indicators or not but I went with separate anyway.

I went seperate too and threw down a page about the lack of financial management expertise just incase.

MrSzyslak

Was it an operating or finance lease. I panicked at the end and gave both solutions. How would that be marked

s15r330

MrSzyslak wrote: »

Was it an operating or finance lease. I panicked at the end and gave both solutions. How would that be marked

I went with finance, copied from a past solution, hopefully it was right

Jsmac67

Quick one!

For the money you received post year end and provided for, does this mean you should've reversed the provision in place at year end as we now know the balance was in fact receivable?

Lyra Fangs

Jsmac67 wrote: »

Quick one!

For the money you received post year end and provided for, does this mean you should've reversed the provision in place at year end as we now know the balance was in fact receivable?

For the provision question I:

- Reversed the 1st under IAS 10 adj PBSE
- Provided for 150k of the second the remainder being next years problem IAS 10 IAS 37
- Provided for 250k of the legal case and 250k disclosed as cont liab
- Didn't provide for redundancy as no detailed plan etc IAS 37

Lyra Fangs

s15r330 wrote: »

I went with finance, copied from a past solution, hopefully it was right

Went with finance too, fixed their journal, did the disclosures all the works...forgot to capitalise the asset and recognise the fin lease :mad: I knew it I just got so distracted making sure I answered all the different parts and thinking of all the indicators I still had to get through...uh if I fail on that

MrSzyslak

Lyra Fangs wrote: »

For the provision question I:

- Reversed the 1st under IAS 10 adj PBSE
- Provided for 150k of the second the remainder being next years problem IAS 10 IAS 37
- Provided for 250k of the legal case and 250k disclosed as cont liab
- Didn't provide for redundancy as no detailed plan etc IAS 37

Same as this.

I got NC in the AAFRP. So I really need a strong FR.

I think the consol yesterday was RC. The IAS16 and IAS23 question yest was C.

So it might all hinge on the sale and lease back. I think I answered it okay and but I gave it for both a finance lease and then operating lease at the end when I panicked. It wasnt very clear in the question.

FD mentioned boosting reserves an I thought an P&L hit, an operating lease? which makes no sense on my part

MrSzyslak

For the credit control, late payment procedure.

Was that like offering a discount or some other measure. I mentioned offering a discount and a penalty/interest for late payment but I was unsure

Lyra Fangs

MrSzyslak wrote: »

For the credit control, late payment procedure.

Was that like offering a discount or some other measure. I mentioned offering a discount and a penalty/interest for late payment but I was unsure

I had some basic notes on late payment procedure so I went with them and it was essentially - stop sales, send letter/email, call them, visit them, forceful letter, threaten litigation, take legal action - i just fleshed it out a bit.

The way it was presented made it seem like late payment procedures was like an established topic or something

Lyra Fangs

MrSzyslak wrote: »

Same as this.

I got NC in the AAFRP. So I really need a strong FR.

I think the consol yesterday was RC. The IAS16 and IAS23 question yest was C.

So it might all hinge on the sale and lease back. I think I answered it okay and but I gave it for both a finance lease and then operating lease at the end when I panicked. It wasnt very clear in the question.

FD mentioned boosting reserves an I thought an P&L hit, an operating lease? which makes no sense on my part

I think that was the prompt for us to say no actually you still own the prop so you must defer the profit - think that applies for both fin and op lease.

dakerrymo

Lyra Fangs wrote: »

I think that was the prompt for us to say no actually you still own the prop so you must defer the profit - think that applies for both fin and op lease.

Did anyone say anything about the €250 lease over 50 years being very expensive release of capital funds..? I said that the cost of receiving the €7m was €12.5 and didn't make sense, I released the profit into the p&l over the 50 year period from deferred income.. used the 2015 Pebob solution... I'm hanging on sale and leaseback too for FR C!!

Faecanditate

For sale and lease back I accounted for the sale and gain on sale. Then accounted for the lease as finance lease (pv of payments is like c. 12m and 50 years so it's finance lease). So dr asset cr finance lease obligations. Also it was acquired at year end so did full year depreciation as is allowed in first year regardless of date acquired.

Jsmac67

dakerrymo wrote: »

Did anyone say anything about the €250 lease over 50 years being very expensive release of capital funds..? I said that the cost of receiving the €7m was €12.5 and didn't make sense, I released the profit into the p&l over the 50 year period from deferred income.. used the 2015 Pebob solution... I'm hanging on sale and leaseback too for FR C!!

I noticed this too. I thought that maybe the accepted 7mil for the building which was substantially less than the value of total lease payments.

I then assumed the fair value of the finance lease was the same value as the minimum lease payments i.e 12.5 mil

Recognised PPE and a finance lease of 12.5 mil and ammortised the gain on the initial PPE disposal over the 50 years.

Think there were a few errors in how the questions was put together that'll give rise to a wide range of answers/approaches. For example, you could assume a fair value of 7mil too.

MrSzyslak

dakerrymo wrote: »

Did anyone say anything about the €250 lease over 50 years being very expensive release of capital funds..? I said that the cost of receiving the €7m was €12.5 and didn't make sense, I released the profit into the p&l over the 50 year period from deferred income.. used the 2015 Pebob solution... I'm hanging on sale and leaseback too for FR C!!

I used example from the Derry Cotter book never did Pebob so didnt know about it.

Was there disclosures specific for sale and lease back I couldnt find any in my disclosure notes so I just mentioned finance lease stuff and put in a narrative about the transactions, its looking like BC for me on this one and the consol yesterday :-(

MrSzyslak

Jsmac67 wrote: »

I noticed this too. I thought that maybe the accepted 7mil for the building which was substantially less than the value of total lease payments.

I then assumed the fair value of the finance lease was the same value as the minimum lease payments i.e 12.5 mil

Recognised PPE and a finance lease of 12.5 mil and ammortised the gain on the initial PPE disposal over the 50 years.

Think there were a few errors in how the questions was put together that'll give rise to a wide range of answers/approaches. For example, you could assume a fair value of 7mil too.

Definitely one for the Casi report

Faecanditate

How are people feeling about BL? Not too confident. Questions are too general so hard to know. Especially with a pestel on south africa!

dakerrymo

When they asked for Disclosures did they want the action drafting of the Disclosure note or just its contents, said I was ignoring the lease due to the value of it not corresponding to €7m... never did journal or anything.. oh please god that doesn't push me down to BC, I couldn't cope with doing these again!!!!!!!!!!!

Jsmac67

I wouldn't worry about missing the odd point in a FR indicator. They're difficult and require many steps, you don't need 100% in each issue to get C. The examiners know results often hinge on FR and scripts are marked accordingly.

s15r330

Jsmac67 wrote: »

I wouldn't worry about missing the odd point in a FR indicator. They're difficult and require many steps, you don't need 100% in each issue to get C. The examiners know results often hinge on FR and scripts are marked accordingly.

I really hope so!

dakerrymo

s15r330 wrote: »

I really hope so!

Me too!!!!!

Stern1234

I thought the leases was a bit ambiguous. Made a stupid mistake and thought the lease began on 1 August so just did journals for disposal and talked about it being a finance lease and deferring the gain over the life of the life. I need the C in FR so quite worried about it now

dakerrymo

Nothing to be done about it now!!!!!! CASSI report and hope for the best!

s15r330

How do you give CASSI feedback?

Faecanditate

s15r330 wrote: »

How do you give CASSI feedback?

They'll send an email after the exams with a link to a survey I think anyway.

Humour Me

Stern1234 wrote: »

I thought the leases was a bit ambiguous. Made a stupid mistake and thought the lease began on 1 August so just did journals for disposal and talked about it being a finance lease and deferring the gain over the life of the life. I need the C in FR so quite worried about it now

I assumed the lease began on 1st August too as the company would have depreciated the building prior to the disposal. I just outlined the finance lease recognition journal and gave the journals that would recognise the deferred income over the lease period to be recognised in the future FS.

For tax I gave the R&D expenditure, R&D capital expenditure for the buildings and capital alllowances, did I miss anything?

Also was anyone else surprised to see SWOT after we had PESTEL yesterday?

Alfred Borden

Anyone find MA tough over the two days?

Qwert6

Didn't anyone think it was an operating lease?

Humour Me

I stated that I was classifying it as a finance lease because the lease was 50 years which was substantially the useful life of the asset.

I wonder if you give reasons for why you are classifying it as a finance or operating lease, the examiner will give the marks if you have presented the correct accounting treatment? There is a precedent for this, in 2015 (I think) there was an indicator on IAS 40. Some students assumed an office building was the head office and treated the reval increase under IAS 16. The examiner confirmed in the exam report that students who applied IAS 16 correctly were not penalised.

Something to mention on the CASSI report.

Lyra Fangs

Someone mentioned to me but did anyone notice that all the sfma indicators were essentially cap 1 stuff? Costing, breakeven, wc management and NPV

jus_tin4

Any one mention how there did seem to be any board/FD the second sim? I'll be also hinging on the FR indicators. Feeling I will fall down there tbh!

I forgot the cap all until 5 min from end so sorta just threw something down as had the R&d done

Pool17

Howd people find Bl?

Humour Me

Lyra Fangs wrote: »

Did anyone notice that all the sfma indicators were essentially cap 1 stuff? Costing, breakeven, wc management and NPV

I actually pulled out the management accounting book then I got home (I didn't bring it today) and checked it for target costing, 4 pages in the whole book! I thought the MA indicators were a bit waffling. Today's was a bit better but it was so specific.

james83

i did the same thing, stated assumptions and it seemed clear that risks and rewards over ownership had been transferred. it was unclear and open to interpretation, but i think proceeding along the Finance lease way was the better option. i would imagine that as long as you stated assumptions, whatever method you followed through with will allow a Competent score

james83

Pool17 wrote: »

Howd people find Bl?

very straight forward, SWOT was very easy and incorporating the Business plan seemed very straight forward. i would expect a lot of HC answers, i can't see how people cant get to C by applying 8 specifics points to both SWOT and the Business plan