FAE 2017

Lyra Fangs · 23-08-2017 02:55PM

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 · 23-08-2017 02:57PM

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 · 23-08-2017 03:05PM

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 · 23-08-2017 03:08PM

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 · 23-08-2017 03:13PM

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 · 23-08-2017 03:15PM

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 · 23-08-2017 03:39PM

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 · 23-08-2017 03:43PM

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 · 23-08-2017 03:46PM

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 · 23-08-2017 03:46PM

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 · 23-08-2017 03:48PM

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 · 23-08-2017 03:52PM

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 · 23-08-2017 04:01PM

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 · 23-08-2017 04:09PM

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 · 23-08-2017 04:23PM

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 · 23-08-2017 04:25PM

s15r330 wrote: »

I really hope so!

Me too!!!!!

Stern1234 · 23-08-2017 04:36PM

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 · 23-08-2017 04:38PM

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

s15r330 · 23-08-2017 04:43PM

How do you give CASSI feedback?

Faecanditate · 23-08-2017 04:44PM

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 · 23-08-2017 04:45PM

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 · 23-08-2017 04:53PM

Anyone find MA tough over the two days?

Qwert6 · 23-08-2017 05:16PM

Didn't anyone think it was an operating lease?

Humour Me · 23-08-2017 05:30PM

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 · 23-08-2017 05:34PM

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 · 23-08-2017 05:37PM

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 · 23-08-2017 05:40PM

Howd people find Bl?

Humour Me · 23-08-2017 05:41PM

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 · 23-08-2017 05:42PM

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 · 23-08-2017 05:46PM

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

FAE 2017

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