CAP 2 Exams 2012

HeinekenTicket · 22-06-2012 11:02AM

lauma wrote: »

Add back or deduct any loss/profit generated from disposal of non-current
assets, or from non-operating activities, as this will be treated under the
Investing or Financing activities.

Just to clarify, it is the proceeds of a disposal that are included in the investing activities, not the profit or loss on disposal.

ecos88 · 22-06-2012 03:12PM

HeinekenTicket wrote: »

Just to clarify, it is the proceeds of a disposal that are included in the investing activities, not the profit or loss on disposal.

Yeah its the proceeds from the sale that are included in the investing activities

muzzyizzet · 22-06-2012 08:16PM

Anyone have any advice for the best way to go about studying audit? Have given it very little time and I'm almost at panic stations now!

When I look at solutions the answers almost seem too obvious so I find it hard to sit down and actually learn them! Can only really afford to devote one full day to it tomorrow so I need to make sure it's productive!

EDudder · 22-06-2012 08:57PM

I'm the same, but I'm not too paniced about it.

Still have too much to do on the others. I'm planning on just stating the obvious as much as possible.

Badly need some kind of miracle advice on tax though. I'll be able to hit it sunday and monday, but I have to completely turn it around in them two days.

Shane732 · 23-06-2012 12:53PM

Jes*s the more I look at the SFMA papers the more I begin to think that it'll be with the grace of God that I pass this exam.

It's absolutely ridiculous, you might as well make it up as you go along.

What was the pass rate in the SFMA paper in previous years?

Here's hoping variances come up - at one stage I was hoping they wouldn't come up and now I'm begging for them to come up!

mrsoneill · 23-06-2012 03:49PM

HeinekenTicket wrote: »

Just to clarify, it is the proceeds of a disposal that are included in the investing activities, not the profit or loss on disposal.

the profit or loss has to go into operating activities.

Shane732 · 23-06-2012 03:57PM

mrsoneill wrote: »

the profit or loss has to go into operating activities.

What do you mean? The profit/loss is added back and the proceeds are taken account of.

ted2767 · 23-06-2012 04:03PM

mrsoneill wrote: »

HeinekenTicket wrote: »

Just to clarify, it is the proceeds of a disposal that are included in the investing activities, not the profit or loss on disposal.

the profit or loss has to go into operating activities.

The profit or loss on disposal is deducted/added back and dealt with in investing activities.
Why?

Because the are not operational activities of the company which is what you are trying to arrive at

Shane732 · 23-06-2012 04:14PM

ted2767 wrote: »

The profit or loss on disposal is deducted/added back and dealt with in investing activities.
Why?

Because the are not operational activities of the company which is what you are trying to arrive at

No........ Because the profit/loss isn't a cash inflow or outflow!

ted2767 · 23-06-2012 04:26PM

Shane732 wrote: »

ted2767 wrote: »

The profit or loss on disposal is deducted/added back and dealt with in investing activities.
Why?

Because the are not operational activities of the company which is what you are trying to arrive at

No........ Because the profit/loss isn't a cash inflow or outflow!

Correct but you still have to get it out of operational activities.
Obviously any sales proceeds are a cash flow which will be included in investing activities.
The purpose of a cash flow statement is after all to break down cash flows into their constituent elements i.e. operational, investing and financing

myshirt · 23-06-2012 05:34PM

Does anybody have a pdf with ratios listed in it?

Like a one or two pager that just lists the formulas?

lauma · 23-06-2012 05:57PM

lauma wrote: »

I was looking over competencies for SFMA and I don’t seem to have any notes or questions in regards to this topic:

2.6 Company in difficulty
Recognise a financially troubled entity
Evaluate, advise of or propose on options available (e.g. cease
trading, refinancing, full or partial sell off ) from the perspective of the
company’s stakeholders

Can someone please post here and share your notes/questions.

Thanks in advance!

Bump

Have no idea how approach these type of questions? Do we have to use valuation methods like assets / earnings .. And based on findings make suggestion . Or is there other method?
Thanks

Shane732 · 23-06-2012 06:42PM

lauma wrote: »

Bump

Have no idea how approach these type of questions? Do we have to use valuation methods like assets / earnings .. And based on findings make suggestion . Or is there other method?
Thanks

There's a couple of past questions on it, I think there's one in Autumn 2009 but don't quote me on that!

It's you're looking at a liquidation situation you're valuing based on net assets incorporating cost of liquidation etc....

It all depends on the options available to the company at the time.

SFMA is a load of boll*x!!!

ted2767 · 23-06-2012 07:29PM

Shane732 wrote: »

lauma wrote: »

Bump

Have no idea how approach these type of questions? Do we have to use valuation methods like assets / earnings .. And based on findings make suggestion . Or is there other method?
Thanks

There's a couple of past questions on it, I think there's one in Autumn 2009 but don't quote me on that!

It's you're looking at a liquidation situation you're valuing based on net assets incorporating cost of liquidation etc....

It all depends on the options available to the company at the time.

SFMA is a load of boll*x!!!

The solution for the same aid question is a f**king disgrace.

Cannot for the life of me see where the figures are coming from but am not suprised one bit the institute are a joke.

Shane732 · 23-06-2012 08:01PM

ted2767 wrote: »

The solution for the same aid question is a f**king disgrace.

Cannot for the life of me see where the figures are coming from but am not suprised one bit the institute are a joke.

I'm surprised at how bad the SFMA papers are.

Some of the stuff is just make it up as you go along.

lauma · 23-06-2012 08:50PM

It's just ridiculous how much stuff we should review for SFMA and FR. Just when I think I am ok the next minute I am lost completely

Shane732 · 23-06-2012 10:13PM

lauma wrote: »

It's just ridiculous how much stuff we should review for SFMA and FR. Just when I think I am ok the next minute I am lost completely

Consolidations and Cashflows for FR and then hope to wade your way through the rest!

EDudder · 23-06-2012 11:09PM

It seems once you have a general grasp of the sfma topics theres not much you can do until the day. Anyone else think that?

Which is good in some ways but leaves it a bit too up to luck to be fair.

Personally I prefer the idea of it being the way it is, and applying your knowledge with common sense as opposed to marks based 100% on the complex calculations etc. It's not perfect though.

The past paper solutions are terrible.

Clarise123 · 24-06-2012 12:22PM

Hi Guys,

In relation to Mergers and Acquisitions, I am just wondering can anyone help me out on a point.

There are 3 options for financing, cash, shares and debt. I am confused about the debt option. It is simply that the bidding company issues debentures of there own to purchase the target company or is do they take over debt already in target company in exchange for shares in that company??

I would love someone to clarify this for me..

Thanks...

ted2767 · 24-06-2012 12:25PM

Clarise123 wrote: »

Hi Guys,

In relation to Mergers and Acquisitions, I am just wondering can anyone help me out on a point.

There are 3 options for financing, cash, shares and debt. I am confused about the debt option. It is simply that the bidding company issues debentures of there own to purchase the target company or is do they take over debt already in target company in exchange for shares in that company??

I would love someone to clarify this for me..

Thanks...

What question are you referring to?

Clarise123 · 24-06-2012 02:11PM

ted2767 wrote: »

What question are you referring to?

Its not a question, just a general query..

Thanks..

ted2767 · 24-06-2012 02:29PM

Clarise123 wrote: »

ted2767 wrote: »

What question are you referring to?

Its not a question, just a general query..

Thanks..

Well I guess the normal situation would be that the bidding company would issue debt to finance the take over the business or offer a share or cash consideration or perhaps a combo of all of the above.

Bull & Bear is a good question its either summer or autumn 2011 and the solution is actually correct!

Glas134 · 24-06-2012 07:11PM

Hi Guys,

in relation to Financial reporting Mock 2012 could anyone post the solution for me, would really appreciate it cant find it anywhere on the website.

Thanks and good luck to everyone!

Anerak · 24-06-2012 07:37PM

Glas134 wrote: »

Hi Guys,

in relation to Financial reporting Mock 2012 could anyone post the solution for me, would really appreciate it cant find it anywhere on the website.

Thanks and good luck to everyone!

This is it

Glas134 · 24-06-2012 07:41PM

Thanks a million!! :-)

Anerak wrote: »

Glas134 wrote: »

Hi Guys,

in relation to Financial reporting Mock 2012 could anyone post the solution for me, would really appreciate it cant find it anywhere on the website.

Thanks and good luck to everyone!

This is it

Clarise123 · 25-06-2012 05:46PM

Hi guys,

Just another quick question - SFMA Summer 2011 - Question 3 - Part b (i).

In the solution, they say 2,000,000 shares as oppose to 1,000,000 in the question..

Should it not be 1,000,000 shares regardless of the nominal value of .50c??

Thanks

figrolls · 25-06-2012 05:48PM

Best of luck to everybody with CAP2's this week!

lauma · 25-06-2012 06:19PM

Clarise123 wrote: »

Hi guys,

Just another quick question - SFMA Summer 2011 - Question 3 - Part b (i).

In the solution, they say 2,000,000 shares as oppose to 1,000,000 in the question..

Should it not be 1,000,000 shares regardless of the nominal value of .50c??

Thanks

Well €1000 50cnt shares that is 2000 shares in number not in € . Maybe I am missing what are you actually asking ?

lauma · 25-06-2012 06:33PM

Best of luck guys in your Tax exam tomorrow !

ted2767 · 25-06-2012 06:47PM

Best of luck to everybody tomorrow everybody

CAP 2 Exams 2012

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