FAE 2017

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?

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?