FAE AAFRP Exam 2011

John2005

Appears to be one or two mistakes in the first few solutions of the AAFRP Toolkit.
Can anyone confirm this. I have just looked at the first 10 questions (1.1 - 1.10) and i think the following solution should be:

Solution 1.2 Dr SOCI 18,000 / Cr SOFP 18,000

Solution 1.7 Dr SOCI 760,000 / Cr SOFP 760,000

Solution 1.8 Dr SOCI 260,000 / Cr SOFP 260,000

Solution 1.9 Dr SOFP 500,000 / Cr SOCI 500,000


Anyone else agree??

Dell2009

would not surprise me if all answers were wrong. There are no workings for some answers in the book which makes it even more difficult to follow.

LouiseLowry

I've only looked briefly at the toolkit but yes I think solution 1.2 is wrong.

I will have another look and let you know if i'm coming up with the same errors.

Louise

Gametime

Hi all,

I'm resitting FAE Core this year and so have to sit the continuous assessment exam at the end of March. My issue is I dont have the toolkit textbook for the exam or access to the sample paper, anyone any ideas how I can get the textbook and/or the sample paper? Any help would be great! cheers

ahtfulal

Gametime wrote: »

Hi all,

I'm resitting FAE Core this year and so have to sit the continuous assessment exam at the end of March. My issue is I dont have the toolkit textbook for the exam or access to the sample paper, anyone any ideas how I can get the textbook and/or the sample paper? Any help would be great! cheers

I'm in the same boat. As far as I know ya have to register for the exams first(closing date 4th Feb) and then they'll send it out. Haven't registered yet myself but thats what I think!

Any idea if we get a new resource pack this year seeing that they changed the combined code and are there any new case studied etc...

Also won't they have to give us a new tax book as the one we used last yr was the 09/10 edition?

Is there many people doing that revision course? If they're gonna put up all the lectures online is there any point signing up?

noveltea

That the sample paper

Gametime

Cheers NovelTea, greatly appreciated for popping the sample paper up.

I'm thinking a lot of the same things as u ahtfulal, concerned about not having up to date info and being at a disadvantage come exam time. I've yet to pay for the exam resit yet, keep thinking they'll ring me up and say "we've decided to pass you, it was simply an oversight and we've realised business leadership is a load of *$£!" lol

I'm not sure about them giving us a new resource pack, I've had a look through this years and most of it seems the same as ours from last year apart from the new combined code. All the cases appear to be the same as the ones used last year too which I was little surprised about as I thought they'd make the effort to improve the quality of cases.

A new tax book would be useful however I reckon if most of the theory remains the same then we should be ok as there was very little calculation involved with the tax, however they could change it this year.

I'm giving the revision course a miss, after looking through the overview of it it seems really we'd b paying simply just to sit the mocks in July as I cant imagine the lectures they're putting on for us will be any different than the ones we sat through last year.

Students in my office up here in Belfast who're sitting FAEs this year dont seem to have received the toolkit textbook either, seems a bit hit and miss if you get one. Really want to get one though, even checked the CAI's online book store and it wasnt on there

Cheers

ahtfulal

Oh so ya can't do the mocks unless you register for the revision course? I didn't know that, kinda wanted to do the mocks.

Dell2009

Seems to be plenty of mistakes in both questions and solutions, not surprising. How is everyone getting on with it?

Corrections to these are attached.

Rickyroma

ahtfulal wrote: »

I'm in the same boat. As far as I know ya have to register for the exams first(closing date 4th Feb) and then they'll send it out. Haven't registered yet myself but thats what I think!

Can confirm that once you are registered for the repeats the Toolkit will be sent out to you.

Dell2009

The solution suggests that Cleanco plc is an Associate of Hedge plc.

However, "the shareholding of this new company, Cleanco plc, is owned 50% by Hedge plc and 50% by Hog plc..."

Therefore, is Cleanco plc not a Joint Venture with Hedge plc.?

Should the solution be Disclosure (a) instead of Disclosure (b)?

0162

Gametime wrote: »

keep thinking they'll ring me up and say "we've decided to pass you, it was simply an oversight and we've realised business leadership is a load of *$£!" lol

Same as that Gametime. Lol.

I gave in and signed up for the revison course though.

Hope it's worth it.

Vaioer

Did anyone watch that tutorial that the put up for this?

Er, what help was the history of double entry and the random film clip all about.

Looks like getting a hold of sample disclosure and possibly a CAP1 Double Entry book may be useful.

ahtfulal

This link might be some help for disclosures. Haven't done a thing for this yet, just got my book and it looks like ya need to be fairly well up on the standards. Will the Dery Cotter books be any good for this exam?

http://www.iasplus.com/standard/standard.htm

Rickyroma

Dell2009 wrote: »

The solution suggests that Cleanco plc is an Associate of Hedge plc.

However, "the shareholding of this new company, Cleanco plc, is owned 50% by Hedge plc and 50% by Hog plc..."

Therefore, is Cleanco plc not a Joint Venture with Hedge plc.?

Should the solution be Disclosure (a) instead of Disclosure (b)?

Can anyone shed some light on this?

Is this an error?

Errors and mistakes, while a fact of life, are easily the most frustrating aspect of study.

If we make this thread a first port of call when faced with an uncertainty then this should help to identify and rectify any issues as soon as possible and should significantly reduce the stress of studying. Last year the SFMA continuous assessment thread had over 49,000 views - thats a lot of expertise.

Also, if the consensus is that the toolkits/sample papers contain an error, we can ask the CAI to amend them and send an update to ALL students (to be fair the Errata sheet already sent by the CAI has saved most people quite a lot of heartache).

Vaioer

ahtfulal wrote: »

This link might be some help for disclosures. Haven't done a thing for this yet, just got my book and it looks like ya need to be fairly well up on the standards. Will the Dery Cotter books be any good for this exam?

http://www.iasplus.com/standard/standard.htm

Athful,

Thanks for that.

Does anyone know if there is a similiar thing but which just lists the disclosures required?

Saint Sonner

I'm a repeater!! :mad:

Can anyone help me. How much of the FR syllabus will be tested in this exam? I take it not all the course has been covered yet.

I NEED TO GET THE FINGER OUT!!!!

p13

Saint Sonner wrote: »

I'm a repeater!! :mad:

Can anyone help me. How much of the FR syllabus will be tested in this exam? I take it not all the course has been covered yet.

I NEED TO GET THE FINGER OUT!!!!

Same here. Though having done last years exam I don't see point of this continuous assessment. Do I fail whole of FAE if I miss indicators here? I would assume they would tell you before you waste another summer studying!

Saint Sonner

p13 wrote: »

Same here. Though having done last years exam I don't see point of this continuous assessment. Do I fail whole of FAE if I miss indicators here? I would assume they would tell you before you waste another summer studying!

Was thinking exactly the same myself! Its very odd!!! Continuous assessment can be useful if theres a value for it but with no value whats the point?

ahtfulal

Think its like one FR indicator.

Does anyone know how this exam is weighted? 15 questions and the last 5 there are marks for your workings, so would I be right in saying that section 3 has more weighting attached.

Just can't get motivated to look at the pack and sample papers!

Saint Sonner

ahtfulal wrote: »

Think its like one FR indicator.

Does anyone know how this exam is weighted? 15 questions and the last 5 there are marks for your workings, so would I be right in saying that section 3 has more weighting attached.

Just can't get motivated to look at the pack and sample papers!

When you say pack is that the toolkit book? or am i missing something?

ahtfulal

Saint Sonner wrote: »

When you say pack is that the toolkit book? or am i missing something?

Yes the book, the one with all the mistakes

SL10

John2005 wrote: »

Appears to be one or two mistakes in the first few solutions of the AAFRP Toolkit.
Can anyone confirm this. I have just looked at the first 10 questions (1.1 - 1.10) and i think the following solution should be:

Solution 1.2 Dr SOCI 18,000 / Cr SOFP 18,000

Solution 1.7 Dr SOCI 760,000 / Cr SOFP 760,000

Solution 1.8 Dr SOCI 260,000 / Cr SOFP 260,000

Solution 1.9 Dr SOFP 500,000 / Cr SOCI 500,000


Anyone else agree??

Hey,

I've just started studying for this today and I definitely think you are right on Solution 1.7

For 1.2 I'm not too sure. Are they recognising the loss now? So it is crediting the I/S and debiting the B/S.

I'm surprised they havent picked up on these mistakes in the Errata but maybe 1.7 is supposed to read 1,000,000 rather than 500,000

SL10

Also 1.8 & 1.9 have been corrected in the Errata

instofhorror

SL10 wrote: »

Also 1.8 & 1.9 have been corrected in the Errata

For my peace of mind, can anyone confirm the book is still riddled with errors, even with the latest adjustments to it?

I dont have it on me at the min, so cant provide exact references, sorry, but:

In section 1, the q regarding revenues with 4 different parts, they have all the income in receivables, but £5k was received up front, so surely should be in bank?

Also, in the question in section 1 about the aeroplanes, the planes were brought into use on 1 March, i.e. depreciate for 10 months. In the answer, they depreciate for 9.

Am I correct on these? Also, are there more? Its head wrecking doing a q, checking a sol, then spending hours trying to work out why you're wrong, when you arent.

Staggering incompetence, and doesnt bode well for the exam itself.

Ciara471

I just have a question about section 3, question 3.3. When calculating the impairment for the Head Office I thought the recoverable amount was 200,000 and the carrying value was 255,000 giving an impairment of 55,000. However in the solution the carrying value is just 250,000 (the property, plant and equipment amount excluding receivables and payables). Does anyone know why the total figure of 255,000 isn't used here. For Organic Jam and Preserves and Organic Sauces they used the total figures.

Any help appreciated!

levi

Can anyone actually say what is the result of failing this assessment?

I hope I don't but at the same time I'd like to know what the result is. Does it mean I can't miss an indicator in the actual exams in August?

Hackysack

No, I don't think it's as severe as you need to get all of the indicators, you just have to get more of them than the others (as you'd have 'missed' one with this exam).

I feel like a bit of an idiot with this question but on Q. 1.4 - 1.6, I honestly can't seem to recalculate the 1,500,000 that they're referring to.

I take 20,000,000 * 10% * 10/12 = 1,666,667.
I know if I take 20,000,000 * 10% * 9/12 = 1,500,000. But they say that they begin to use the asset on 1/3/10.

Can anyone tell me where i'm going wrong with this? It's probably a very silly thing i'm missing out with.

instofhorror

Hackysack wrote: »

No, I don't think it's as severe as you need to get all of the indicators, you just have to get more of them than the others (as you'd have 'missed' one with this exam).

I feel like a bit of an idiot with this question but on Q. 1.4 - 1.6, I honestly can't seem to recalculate the 1,500,000 that they're referring to.

I take 20,000,000 * 10% * 10/12 = 1,666,667.
I know if I take 20,000,000 * 10% * 9/12 = 1,500,000. But they say that they begin to use the asset on 1/3/10.

Can anyone tell me where i'm going wrong with this? It's probably a very silly thing i'm missing out with.

I've pointed out same above - def mistake. The other item I mentioned above was me being incorrect, but there are numerous other mistakes throughout the book, the inst have confirmed

tommyjin83

instofhorror wrote: »

I've pointed out same above - def mistake. The other item I mentioned above was me being incorrect, but there are numerous other mistakes throughout the book, the inst have confirmed

Hey guys,

I think the solutions is correct here, at bottom of page 7 reads " ..the aircraft fleet will have a residual value of $2,000,000..."
Therefore, the Depn calcu will be that ( 20,000,000-2,000,000)*10%*10/12=1,500,000

Hope this helps.:)

PS - (Not trying to help the Institute out here, and the toolkit is still riddled with errors and lots of clarifications needed)

PB1982

Is this exam open-book?

SL10

The email we got from the institute yesterday indicated that it is. I really have to knuckle down and do some study

Blyn_87

Hello,

I was just wondering if you thought it is correct to time apportion the depreciation considering that IAS 16 states that depreciation of an asset shall commence when the asset is in the present condition and location available for its intended use by management. Which according to this question is 1 January 2010 as there is no indication that further work is required on it to bring it into its working condition.

Thanks

Hackysack

Yes but I think the thinking is that until the asset is in working condition, there is no probability of obtaining future economic benefits (which is what an asset should have, in order to meet the criteria of being an asset). Until March 1st, there's no future economic benefits associated with the asset since it's not in use so to speak.

That's my understanding behind it in anycase.

Also thanks for pointing that out Tommy!

Blyn_87

ok thanks a mill!

does anyone want to explain the solution to 3.17 (toolkit) I know the first part of this solution is incorrect - i.e. the debits and credits should be the other way around for elminating unrealised profit - I have confirmed this is incorrect with the Institute.

BUT , the second part of the solution is correct, and I don't understand the adjustment or the reason for the adjustment. If anyone could explain it to me.............

Hackysack

Haha, was just going through Section 2 there.

Anyone else reckon that there'll be some rake of guesswork involved in Section 2?

ManwitaPlan

Q 2.18 Motion PLC.

In the disclosure (d) it says assets are amortised over their useful life of 7 years.

Surely it should be 8? It seems 8 has been used in calculations. Mistake?

Hackysack

Yes, it should be 8. It was corrected in a recent Errata sheet.

flapps

Anyone help me on Q 1.16. Miranda Plc

Where does the 175K adjustment to Equity come from? and why wouldn't there be a liability in the accounts to show the options issued?


Thanks

Stabshauptmann

Dell2009 wrote: »

The solution suggests that Cleanco plc is an Associate of Hedge plc.

However, "the shareholding of this new company, Cleanco plc, is owned 50% by Hedge plc and 50% by Hog plc..."

Therefore, is Cleanco plc not a Joint Venture with Hedge plc.?

Should the solution be Disclosure (a) instead of Disclosure (b)?

No, the solution is correct. Joint ventures need to have equal control, and Hog appoints more of the BoD

Stabshauptmann

flapps wrote: »

Anyone help me on Q 1.16. Miranda Plc

Where does the 175K adjustment to Equity come from? and why wouldn't there be a liability in the accounts to show the options issued?


Thanks

You're answering your own question. The Cr to equity represents the "liability" for shares issued.

The 175 figure is ((25eur * 400 * 100) * 70%) / 4 years

Stabshauptmann

Rob2011 wrote: »

Cheers SL10. Was struggling with that working. Can anybody explain 1.11 journal entries? I understand the concept of impairment reversal but i don't quite understand the post for 158. What happened tithe 474 posts - is that corect?

The impairment can only be reversed to a max of 474k (Depreciated historical cost - carrying value).

No change to SOCI as it is correct
Cr goodwill as you cannot reverse a goodwill impairment
Dr Identifiable Assets 158k to bring the total to 474k.

Hope that helps.

flapps

Cheers..

Hackysack

Stabshauptmann wrote: »

The impairment can only be reversed to a max of 474k (Depreciated historical cost - carrying value).

No change to SOCI as it is correct
Cr goodwill as you cannot reverse a goodwill impairment
Dr Identifiable Assets 158k to bring the total to 474k.

Hope that helps.

That makes sense, but there's one thing that puzzles me about that question. If you make the adjustments that are in the solution you have the following journals

Dr:
Identiable Assets - 316,000 (per question) + 158,000 (per solution) = 474,000

Cr:
SOCI - 474,000 (per question) + 158,000 (per Solution / cancelling of the G/W reversal) = 632,000

The totals of the DRs & CRs don't match. Am I missing something else?

Stabshauptmann

The original adjustments are 474 Dr, and 474 cr. The solution is to take 158 debited to the goodwill in error and debit it to the identifiable assets.

The finished product is still 474 dr and cr

Clanno

cant anyone help me on 3.6

why is the profits 250,000 ?
why are they using the figures from prior years?
eg) bank figure should be 1200,000 why deduct 800,000 from 2009 if your calc 2011 figures...
also the amount recoverable on contract why deduct 1.9m.... I am confused? would appreciate if anyone cud shed some light on this?

Clanno

really dont like IAS 11 - 3.7 any ideas where 12,500,00 comes from?

Dell2009

As per the toolkit the solution is Disclosure (d).

Can anyone please explain where the loss of 600 is coming from?

Any help appreciated.

draccount

Can anybody explain the following:

a) 1.14, the charge to SoCI
b) 1.23
c) 2.8, the 600k loss

instofhorror

draccount wrote: »

Can anybody explain the following:

a) 1.14, the charge to SoCI
b) 1.23
c) 2.8, the 600k loss

Ok, I was incorrect re the deprn charge for the aeroplanes in part 1, but this is definitely incorrect -this is one of the other errors not on ther errata sheet, but which the institute have confirmed. It should read a loss of 1m.

p13

Gametime wrote: »

Cheers NovelTea, greatly appreciated for popping the sample paper up.

I'm thinking a lot of the same things as u ahtfulal, concerned about not having up to date info and being at a disadvantage come exam time. I've yet to pay for the exam resit yet, keep thinking they'll ring me up and say "we've decided to pass you, it was simply an oversight and we've realised business leadership is a load of *$£!" lol

I'm not sure about them giving us a new resource pack, I've had a look through this years and most of it seems the same as ours from last year apart from the new combined code. All the cases appear to be the same as the ones used last year too which I was little surprised about as I thought they'd make the effort to improve the quality of cases.

A new tax book would be useful however I reckon if most of the theory remains the same then we should be ok as there was very little calculation involved with the tax, however they could change it this year.

I'm giving the revision course a miss, after looking through the overview of it it seems really we'd b paying simply just to sit the mocks in July as I cant imagine the lectures they're putting on for us will be any different than the ones we sat through last year.

Students in my office up here in Belfast who're sitting FAEs this year dont seem to have received the toolkit textbook either, seems a bit hit and miss if you get one. Really want to get one though, even checked the CAI's online book store and it wasnt on there

Cheers

same here mate, business leadership !
Firstly the new set up is not fair, having to repeat EVERYTHING despite only failing business leadership.
Secondly, having sat the exams, I dont understand why all this work is needed for ONE indicator in ONE of the six subject areas, when you can still fail overall in another subject area.
Thirdly, the Institute are the incompetent crowd with so many errors ALWAYS in their text books