FAE September 2013

elizabeth28 wrote: »

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sample exam Papers should be attached on this forum

elizabeth28

Lol2013 wrote: »

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Hi lol - thanks but i not looking them - i was replyin to some1 else

i am looking for the sample exam papers and solutions that are in the reference of cases studies

thanks

Lol2013 wrote: »

So are you saying it is possible for a group to be listed while the subsidiary is not?

I actually don't know

Can someone actually clarify this I'm actually going crazy thinking about it.

Was Mayflower Ireland not listed???

Also does anyone know how they accounted for vouchers in mid west oil case

Thanks

donkey10

Lol2013 wrote: »

So are you saying it is possible for a group to be listed while the subsidiary is not?

I actually don't know

U would assume that subsid should be listed if parent is...but Has anyone any other take on this?

Padkir

donkey10 wrote: »

U would assume that subsid should be listed if parent is...but Has anyone any other take on this?

I'm not sure of the actual rules about it, but I'm just using common sense here. If a group is listed, surely the stock exchange rules extend to the entire group, not just the parent company?

If you have a group that has 50 subsidiaries and the parent has 100m turnover a year but each of the subsidiaries have 10m turnover a year, then >80% of the group turnover is coming from the various subsidiaries.

If I were an investor / shareholder, I'd want to know that the best practice governance and controls procedures are in place across the entire group, no?

so_bored.com

Is anyone still feeling that they cant get a good attempt at some cases??
Really feeling like this is a losing battle! Not getting any better at cases

AB6891

Padkir wrote: »

Pity the Premiership had to come back before September... Awful hard to concentrate on study!

Tell me about it, I was reading about 'latent gains' earlier on today and all that came into my head was Leighton Baines Haha....

How sad is that!!!!

kb6536

donkey10 wrote: »

U would assume that subsid should be listed if parent is...but Has anyone any other take on this?

subsidiaries of public companies don't have to be listed... HSBC, RBS, Barclays, Telefonica (ie o2) all have private subsidiaries.. prob loads more

if you think about it's strategy - organisin your operations and limiting risk to an extent. i've seen private subsidiaries of public companies go into liquidation and the plc carries on

There are cases where parent is plc and sub is Ltd. Think tekron and enver Plastic are two such cases of this helps

walshing

finished for day, day off tomorrow...............heading out for the day, dont think ive ever been so excitied about leaving the house!

so_bored.com wrote: »

Is anyone still feeling that they cant get a good attempt at some cases??
Really feeling like this is a losing battle! Not getting any better at cases

Yes totally understand. And feel your pain

srm23

Really behind on the Audit Elective, any advice on what to cover to do for it at this stage?

thinking of just going through the cases from the institute site, the ones off the planning schedule e.g. ebony, dexter mulligan all the way through

then doing all the past papers and mocks?
i didnt do bad in the 2013 mock but it seems there is a lot of specific things that weren't asked on it.

Lol2013 wrote: »

Can someone actually clarify this I'm actually going crazy thinking about it.

Was Mayflower Ireland not listed???

Also does anyone know how they accounted for vouchers in mid west oil case

Thanks

Fair value of the redeemable amount of vouchers should be in deferred revenue as a provision.
Any consideration received should be recorded less the fv of voucher received.
Assumed then dr revenue cr deferred revenue as in provision for any liability of a redeemable voucher? Hence the fair value taken off consideration?

donkey10 wrote: »

U would assume that subsid should be listed if parent is...but Has anyone any other take on this?

That's not correct at all. The vast majority of listed companies have private limited companies sitting underneath them somewhere in there group structure.

Some paper I was looking at recently, think it was 2012, involved a reorganisation of two companies into a holding company structure. The holding company obtained a listing while the two companies underneath remained limited private companies.

As each day passes it's getting tougher to study. I spent some time today on IAS's didn't touch a case today.

upnorthchick wrote: »

Fair value of the redeemable amount of vouchers should be in deferred revenue as a provision.
Any consideration received should be recorded less the fv of voucher received.
Assumed then dr revenue cr deferred revenue as in provision for any liability of a redeemable voucher? Hence the fair value taken off consideration?

How do we account for the issued vouchers ie the j/e
Why are we recording redeemed vouchers as revenue eg say I issued a voucher for 20euro. I'll dr p/l cr voucher as a liability. So if someone comes in and buys an item say 100euro and wants to use the 20euro voucher i'll

Cr rev 100
DrBank 80
Dr voucher liability 20

I don't think that makes sense???

Or the voucher is not a liability but as you say a deferred revenue

It's so confusing

Surely then we would dr bank money received for vouchers then credit provision? Then those redeemed dr provision credit revenue?

So taken the fact you buy voucher at 20 record it like Dr bank credit provision

Then use voucher for 100 purchase
Dr provision 20
Dr bank 80
Credit revenue 100

Suarez20

hi, just wondering what are the implications for a plc if they receive a qualified audit opinion? do they have to report to anyone or announce at a s/h meeting - just trying to be ready for any different scenarios that might come up

Would you not have to inform the bank?SH will find out at agm.

Mark1916

Suarez20 wrote: »

hi, just wondering what are the implications for a plc if they receive a qualified audit opinion? do they have to report to anyone or announce at a s/h meeting - just trying to be ready for any different scenarios that might come up

Say nothing and give yourself a big pay rise!

Tricky1979

hi folks, anybody looked at the Tekron case of late?

regarding indicator one - in the solution there is no mention of the costs in 2012 such as transport and delivery, admin salaries, travelling, marketing etc in the 2013 budget. surely these would also be present in 2013?

or is the approach as in the solution that you take a purely incremental approach correct?

thanks

upnorthchick wrote: »

Surely then we would dr bank money received for vouchers then credit provision? Then those redeemed dr provision credit revenue?

So taken the fact you buy voucher at 20 record it like Dr bank credit provision

Then use voucher for 100 purchase
Dr provision 20
Dr bank 80
Credit revenue 100

bUT HOW WOULD YOU RECORD AN Issued voucher.

The point of a voucher is that it's for free

Which was why I was recording issued voucher as
cr prvision of voucher in CL 20
DR P/L provision for voucher 20

Then when that person with the 20 euro voucher comes in they buy somn for 100euro
you
dr bank 80
cr provision in sofp 20
cr rev 100

bUT that means the initial 20 would have to have been reorded in revenue as a debit in p/l

AAAAAAAAAARGH
This is driving me crazy

upnorthchick wrote: »

Hold on so you pay 20 for a voucher you obviously dr bank? And credit provision? Is thatnot the issued voucher?

Sorry I'm retarded. Yes they are free so dr p n l provision and credit provision aka deferred revenue.
Sorry :-(

kt22

Just a quick Q re appendices- when ye are reading the cases, do ye read the appendix when it is referred to in the case or do ye read through the whole case before referring to the appendices? So like if it said meeting notes are in appendix A; would you go and read them immediately or continue and read the appendix at the end. I usually read through but i'm just wondering how other people approach this. I tend to take off in a rant scribbling notes as I go along and by the time I get to the appendices I realise half of them aren't relevant cause there looking for something else! I'm a disaster with time so I really need a plan!

upnorthchick wrote: »

Sorry I'm retarded. Yes they are free so dr p n l provision and credit provision aka deferred revenue.
Sorry :-(

No no you are not lol.
wHERE IN THE p/l would the provision go...WOULD it be in revenue cos if it is not the journal below of cr rev with 100 would mean revenue is overstated

The reason I ask is if the person gives us the voucher of 20euro after buying 100euro worth of goods
and I record the transaction in the following manner
CR REV 100
DR PROV FOR VOUCHER IN CURRENT LIAB 20
DR Bank 80

Sorry bout this..that question is just doing my head in lol

Lol2013 wrote: »

bUT HOW WOULD YOU RECORD AN Issued voucher.

The point of a voucher is that it's for free

Which was why I was recording issued voucher as
cr prvision of voucher in CL 20
DR P/L provision for voucher 20

Then when that person with the 20 euro voucher comes in they buy somn for 100euro
you
dr bank 80
cr provision in sofp 20
cr rev 100

bUT that means the initial 20 would have to have been reorded in revenue as a debit in p/l

AAAAAAAAAARGH
This is driving me crazy

Assuming you're giving a free voucher worth, say, €20 with a purchase its necessary to attribute a cost to the vouchers based on the likely % of vouchers not redeemed at the period end and turnover of sales on which vouchers were issued.

You defer the amount until voucher is redeemed or no longer valid.