FAE Mock Core Comprehensive

Ilovechoc

Sat the FAE Mock today - just wonderin what everyone thought? I thought it was wierd the way a not for profit organisation came into it e.g. I presume universities are exempt from income tax but if they are receiving income from one of their trading companies should they pay tax on it?

Also what was the story with the financial reporting requirements? - that was confusing - I brought IAS 40 in and said that because it was an operating lease the university had to record the land at fair value and then brought the deferred tax implictions on the revaluation in and prior year adjustment because it was a change in policy. The SPV was really confusing I hadnt time for calculations just mentioned that borrowing costs could be capitalised and discussed construction contracts I think sale and leaseback came in here but was unsure.

Cant belive we have to wait another few weeks for the results its too late by then because this is a strange exam you could think you are flying but have completely messed it up without knowing!

ahtfulal

have a look at the fae new autumn exams how is everybody feeling thread

0433225

I made the assumption (very possible it was completely wrong) that as the land changed to investment in the current year that there would be no retrospective adjustments - just treat the increase in value as a revaluation when changing from cost model to fair value model. I was getting the sense that the SPV and TBIs scenario was all off balance sheet financing - it seemed like the subsidiary never sold the property, something about them being forced to buy it back at the request of either TBIs or Metro?

naboh12

Has anyone actually received there mock results yet? Some joke at this stage now in august with just over three weeks to exams and no sign of them or explanation from the institute as to when they will arrive