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FAE 2016

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  • #182
    connect1988
    Registered Users, Registered Users 2 Posts: 9 ✭connect1988


    ROCE = 81,000 plus adj for Property increase of 56,000 (80m - 24 on b/s) less LT Borrowings of 28,350 = 108,650. 1915/108,650 = 1.76%, this is half year results so a full year would be 3.52%.

    Hope this helps.


  • #183
    Legwinski
    Registered Users, Registered Users 2 Posts: 799 ✭✭✭Legwinski


    Niamhmon wrote: »
    Does anyone know why the solution to Raven calculates ROCE using PAT instead of PBIT? How did they calculate Capital Employed as well?

    Also, where are we supposed to find industry norms for P/E Ratios, ROCE, etc?

    This might help also...
    http://www.boards.ie/vbulletin/showpost.php?p=96574792&postcount=499


  • #184
    ALDon88
    Registered Users, Registered Users 2 Posts: 2 ✭ALDon88


    Hey there folks! Just wondering if there is anyone that could send me on the mock core papers and solutions for 2016 ?? I am a repeat student and I am looking for additional cases to work through. Thanks :-)


  • #185
    emsy315
    Registered Users, Registered Users 2 Posts: 5 ✭emsy315


    connect1988 wrote: »
    ROCE = 81,000 plus adj for Property increase of 56,000 (80m - 24 on b/s) less LT Borrowings of 28,350 = 108,650. 1915/108,650 = 1.76%, this is half year results so a full year would be 3.52%.

    Hope this helps.

    Was also wondering about Raven solution- why is the adjustment for long term borrowings needed? I had thought capital employed was debt+equity or total assets less current liabilities? Also wondering why PAT is used instead of PBIT if anyone has any idea?


  • #186
    PunkFreud
    Registered Users, Registered Users 2 Posts: 308 ✭✭PunkFreud


    emsy315 wrote: »
    Was also wondering about Raven solution- why is the adjustment for long term borrowings needed? I had thought capital employed was debt+equity or total assets less current liabilities? Also wondering why PAT is used instead of PBIT if anyone has any idea?

    I recall an email from the Institue, just before last year's CAP2 Exams. Essentially it doesn't matter, once you make it clear what you're doing. You can use PBIT, PAT, or PBT - once you give reason (it can depend on the industry/company). Same goes for the capital element.

    Let's remember that they don't care for this nitty gritty in FAE. They want to see your explanations, thought process, and a balanced argument... Not whether you used an ever so slightly different figure than the marking scheme.


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  • #187
    Uncle Mclovin
    Registered Users, Registered Users 2 Posts: 693 ✭✭✭Uncle Mclovin


    What are peoples suggestions for studying audit for the core? I have done case study but feel this is my weakest area. Any recommendations would be appreciated.


  • #188
    y0ssar1an22
    Registered Users, Registered Users 2 Posts: 19,324 ✭✭✭✭y0ssar1an22


    Hey guys/gals,

    Anyone know what the story with IFRS 15 is? There's no mention of it in the competency statement, but it comes up a lot in Derry Cotter's financial reporting case study book.

    Thanks


  • #189
    y0ssar1an22
    Registered Users, Registered Users 2 Posts: 19,324 ✭✭✭✭y0ssar1an22


    ALDon88 wrote: »
    Hey there folks! Just wondering if there is anyone that could send me on the mock core papers and solutions for 2016 ?? I am a repeat student and I am looking for additional cases to work through. Thanks :-)

    PM sent


  • #190
    Obrieski
    Registered Users, Registered Users 2 Posts: 457 ✭✭Obrieski


    y0ssar1an22 wrote: »
    Hey guys/gals,

    Anyone know what the story with IFRS 15 is? There's no mention of it in the competency statement, but it comes up a lot in Derry Cotter's financial reporting case study book.

    Thanks

    IFRS 15 is not on our competency statement and so should be ignored. We deal with IAS 18 as part of the course.
    That's the approach I'm taking but of course, if things go badly, nice to have an excuse up the sleeve ;)


  • #191
    CAstudent
    Registered Users, Registered Users 2 Posts: 41 ✭CAstudent


    Obrieski wrote: »
    IFRS 15 is not on our competency statement and so should be ignored. We deal with IAS 18 as part of the course.
    That's the approach I'm taking but of course, if things go badly, nice to have an excuse up the sleeve ;)

    Also my approach, not sure why it's in the Cotter book.


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  • #192
    ACA2015
    Registered Users, Registered Users 2 Posts: 43 ✭ACA2015


    IFRS 15 was on the statement then pulled I think. It's on the CAP 2 statement, so I'm guessing that's why he has it there. I think the CAP 2 people use the same book and Cotter would have made it with the up to date standards in mind.

    I could be wrong but I think it was pulled because of the AARFP being moved forward. I don't think they had their ducks in a row for it in time and it's not in the standards books provided (as well as possible confusion with existing audit text books?).

    The confusion over it would make you hope neither revenue or construction contracts come up. Either way, I will be raging if Construction Contracts come up. One of my weakest areas and the mock was ridiculously hard. IAS 18 is just too easy to exam so has to come up in audit or FR for me


  • #193
    y0ssar1an22
    Registered Users, Registered Users 2 Posts: 19,324 ✭✭✭✭y0ssar1an22


    I emailed Paul Monahon about IFRS 15 but he is yet to get back to me. I'm also ignoring but bringing in some notes on it just in case.

    Hoping someone may be able to clarify something for me.....

    why are credit notes such a big deal in auditing? How can they be used to mis-state the accounts? surely its an easy check to see if they are legit ----> compare the invoice with corresponding bank lodgement, the excess of lodgement over invoice should equal credit note.

    Thanks


  • #194
    PunkFreud
    Registered Users, Registered Users 2 Posts: 308 ✭✭PunkFreud


    y0ssar1an22 wrote: »
    I emailed Paul Monahon about IFRS 15 but he is yet to get back to me. I'm also ignoring but bringing in some notes on it just in case.

    Hoping someone may be able to clarify something for me.....

    why are credit notes such a big deal in auditing? How can they be used to mis-state the accounts? surely its an easy check to see if they are legit ----> compare the invoice with corresponding bank lodgement, the excess of lodgement over invoice should equal credit note.

    Thanks

    I think it's unlikely Paul will get back to you, at this late stage. He said in the exam review session that once he's reviewed the exam paper (which I suspect he has), he can't respond to queries.

    The competency statement is black and white: IFRS15 is not examinable.


  • #195
    Risteard
    Registered Users, Registered Users 2 Posts: 2,698 ✭✭✭Risteard


    Also I'm almost certain that we got an email/announcement about IFRS 15 not being examinable but can't for the life of me find it.


  • #196
    Squareball2010
    Registered Users, Registered Users 2 Posts: 80 ✭✭Squareball2010


    Risteard wrote: »
    Also I'm almost certain that we got an email/announcement about IFRS 15 not being examinable but can't for the life of me find it.

    Just had a look as I too remember an email re IFRS 15 and happened to find it and it clears up what we already knew I think which is Comp Statement clearly states IAS 11/18 examinable and IFRS15 is not (despite what DCs book contains) - it stated:

    That there is a discrepancy in respect of IAS 11, IAS 18 and IFRS15 between the Competency Statement and the Addendum to Competency Statement, and that students are reminded that, as always the Competency Statement takes precedence and it is to this document that students should refer for examinable material


  • #197
    Masterxd
    Registered Users, Registered Users 2 Posts: 7 ✭Masterxd


    Risteard wrote: »
    Also I'm almost certain that we got an email/announcement about IFRS 15 not being examinable but can't for the life of me find it.

    The Examinations department have asked that a clarification be issued to students in respect of IAS 11, IAS 18 and IFRS 15. There is a discrepancy between the Competency Statement and the Addendum to Competency Statement. This discrepancy is regrettable and students are reminded that, as always the Competency Statement takes precedence and it is to this document that students should refer for examinable material.


    Kind regards,

    The FAE team

    Email received in June


  • #198
    ACA2015
    Registered Users, Registered Users 2 Posts: 43 ✭ACA2015


    y0ssar1an22 wrote: »
    I emailed Paul Monahon about IFRS 15 but he is yet to get back to me. I'm also ignoring but bringing in some notes on it just in case.

    Hoping someone may be able to clarify something for me.....

    why are credit notes such a big deal in auditing? How can they be used to mis-state the accounts? surely its an easy check to see if they are legit ----> compare the invoice with corresponding bank lodgement, the excess of lodgement over invoice should equal credit note.

    Thanks

    It's unlikely you'll ever get an invoice corresponding with a lodgement. Maybe for a service orientated business like a bar where revenue would be recognised daily based on a lodgement.

    Most post year end cash receipts you would expect would come in the terms you've set (i.e. 30 days payment you owe X relating to Y, Z.. invoices), but it really isn't that simple. What you also need to consider is that potentially the customer could, post year end, decide to make a prepayment to you or could pay you still with issues over faulty products not entirely sorted out, but they have a good relationship so keep up payment and wait until the credit note situation is sorted. As such when you as the auditor look at the lodgements you might think that's grand as lodgements =/> the balance, but in reality a credit note was issued a month later which really should bring your current year sales down. Credit notes are another way to test the existence of revenue/receivables around year end. Most manufacturing/service type company should have a provision (or documentation discussing the need for a provision) for this type of thing which the auditor would expect to see and be able to test. CNs should like invoices have some sort of sequential numbering which you can test against the system.


  • #199
    CAstudent
    Registered Users, Registered Users 2 Posts: 41 ✭CAstudent


    What's everyone focusing on for the final week? Kind of crunch time now...

    I still have the updated exam papers to do so will look at those and probably some of the FR cases. Likely do a few hours of elective today or tomorrow and then all core.


  • #200
    superb choice of username
    Registered Users, Registered Users 2 Posts: 140 ✭✭superb choice of username


    CAstudent wrote: »
    What's everyone focusing on for the final week? Kind of crunch time now...

    I still have the updated exam papers to do so will look at those and probably some of the FR cases. Likely do a few hours of elective today or tomorrow and then all core.

    This stress gave me a massive migraine so had to take nearly two days off. Back at it slowly today though.

    Like you, have a few more papers to go through. Really trying to focus on simplifying my answers. When looking at the solutions, they are fairly basic, but dunno why my brain wants to try make it complicated :/ I think at this stage, there isn't really any more time for learning of technical knowledge, instead it is more about exam technique.

    So last week, last few exam papers, maybe take a day to reorganise/condense notes, but the main thing is trying to keep the head on straight and fight the temptation to panic!!


  • #201
    PunkFreud
    Registered Users, Registered Users 2 Posts: 308 ✭✭PunkFreud


    CAstudent wrote: »
    What's everyone focusing on for the final week? Kind of crunch time now...

    I still have the updated exam papers to do so will look at those and probably some of the FR cases. Likely do a few hours of elective today or tomorrow and then all core.

    It's squeaky bum time now, so I'm focusing on maintaining my routine - doing cases, exercise, and eating healthy.

    In terms of study, I'm doing the final few exam papers and going through the competency statement for the final time, to make sure I've covered everything.


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  • #202
    mccabe1987
    Registered Users, Registered Users 2 Posts: 3 ✭mccabe1987


    Hi does anyone have a breakdown of cases and what they cover in a readable format.

    Thanks.


  • #203
    WhatYaSay
    Registered Users, Registered Users 2 Posts: 113 ✭✭WhatYaSay


    Hi Folks,

    Hope everyone is keeping the head!
    I'm repeating APM and just wondering if there was a new Steps case issued this year, can't see one on the portal.

    Cheers!


  • #204
    Masterxd
    Registered Users, Registered Users 2 Posts: 7 ✭Masterxd


    What topics do people think have a higher chance of coming up? I know budgeting, variances, plcs have been mentioned a good bit..


  • #205
    Xlami
    Registered Users, Registered Users 2 Posts: 732 ✭✭✭Xlami


    Think hotel industry is a cert to come up. Also have been focussing strongly inventory audit as it's overdue to be asked.

    Mind you that's only a needle in the haystack of the competency statement.

    But sure if you throw enough **** at the wall some will stick.


  • #206
    robbieb1024
    Registered Users, Registered Users 2 Posts: 26 ✭robbieb1024


    Hi folks,

    Hope you're all getting on well in the last week.
    Just a quick FR question to pick your brain!

    Company X leases an investment property to Company Y on an operating lease. In the books of Company X:

    IAS 40 would say to hold the property at FV (no depreciation), but
    IAS 17 would say to continue to depreciate the leased asset.

    Any idea which standard would take precedence in this situation?

    Good luck
    Rob


  • #207
    15YemenRoad
    Registered Users, Registered Users 2 Posts: 44 ✭15YemenRoad


    robbieb1024 wrote: »
    Hi folks,

    Hope you're all getting on well in the last week.
    Just a quick FR question to pick your brain!

    Company X leases an investment property to Company Y on an operating lease. In the books of Company X:

    IAS 40 would say to hold the property at FV (no depreciation), but
    IAS 17 would say to continue to depreciate the leased asset.

    Any idea which standard would take precedence in this situation?

    Good luck
    Rob

    So Company X would be the lessor in this situation?
    IAS 17 isn't examinable from the lessor's perspective so I'd go with IAS 40 there.


  • #208
    m1ck007
    Registered Users, Registered Users 2 Posts: 573 ✭✭✭m1ck007


    Masterxd wrote: »
    What topics do people think have a higher chance of coming up? I know budgeting, variances, plcs have been mentioned a good bit..
    Consolidation, terp and hodgons.


  • #209
    Nearly Qualified Accountant
    Registered Users, Registered Users 2 Posts: 3 ✭Nearly Qualified Accountant


    Hi guys,

    I'm repeating the Tax elective for the second time. I passed the core first time two years ago. I don't really know how I passed. I think the one piece of advice I will give is that a lot of it is common sense and to you have your notes, past papers and the case studys tabbed and know where things are.

    On the tax elective has any one else noticed there is a mistake in the core tax book and notes and the elective about the share buy-back. In the core text and core notes on of the requirements to qualify for CGT is to be resident or ordinarily resident in Ireland. The elective text the requirement is to be resident and ordinarily resident. The Core book and notes are wrong. The same mistake has been in the book for the past few years so I don't know how it hasn't been noticed.

    I've gone through all the past papers and the mocks and still unsure how I will do. Its taking me ages to answer the questions. I'm finding it hard to fully go through a question without stopping or getting distracted. The solutions are quite heavy with info, it's hard to tell how much is required in some of the answers.

    Also, has anybody got a summary sheet for the tax elective. I have one but it was on and older thread here from few years and is quite out of date. I have the updated summary sheets from cap 2 revision which are a big help if anybody wants them.

    Thanks.


  • #210
    HelloYoungBoy
    Registered Users, Registered Users 2 Posts: 237 ✭✭HelloYoungBoy


    robbieb1024 wrote: »
    Hi folks,

    Hope you're all getting on well in the last week.
    Just a quick FR question to pick your brain!

    Company X leases an investment property to Company Y on an operating lease. In the books of Company X:

    IAS 40 would say to hold the property at FV (no depreciation), but
    IAS 17 would say to continue to depreciate the leased asset.

    Any idea which standard would take precedence in this situation?

    Good luck
    Rob

    You don't depreciate an operating lease. Only a finance lease


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  • #211
    Rusty91
    Registered Users, Registered Users 2 Posts: 32 ✭Rusty91


    Hope everyone is getting on well.

    Just wondering what area of finance & mgt are likely to be focused on. Finance and mgt are my weakest at this stage. Any recommendations? How has anyone else prepared for these areas?

    Also in terms of exam technique, how long do people spend planning. I find a half hour on top of reading time eats into writing time especially if the indicator isn't too straightforward.


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