2013 CAP2 Discussion Group

Imported but wrote: »

FYI For SFMA CA, my understanding (based on the attached) is that it

• Contains both CAP 1 & CAP 2 Material
• Area 1 – Typically taken form CAP 1 Finance Syllabus (Competency Statement)
• Area 2 – Typically taken form CAP 1 Management Accounting Syllabus (Competency Statement)
• Area 3 – Typically a research element taken from CAP 2 SFMA Syllabus (Competency Statement)

So - unless it's changed since last year - there could be some CAP2 theory (from the first few sessions perhaps) in there as well.
Can anyone clarify if it's changed?

from the competency statement:

Practical case study assignment:
Main case study narrative is released 4 weeks in advance.
Case study is expected to focus on:
o Areas covered by CAP1
o Some new areas from CAP2 (candidates expected to research these areas themselves: self-directed learning)
On the day of the assessment, candidates will be provided with the original narrative, the requirements and supplementary material to the case study (if needed).

I wonder what areas these will be? Hopefully some theory but ROCE will be on. Hopefully no yield/mix variances.

I have query re jan13 paper for FR Q1. the depreciation for buildings is 61350 in solution worked out o total cost of 1227000 should it not be worked out on 1007000 and have depn of 50350? Am i missing something here
Any help appreciated x

Help me please. The more I study the more confused I'm getting and now my brain is all scrambled.

TR in the SoFP: Is this equal to TR - (old Bad debt provision + movement on new provision)?

I am doing may 2013 Q2, and trying to figure out how they got the net result of crediting TR 25000?

Louised86 wrote: »

Hi will the discount factors be provide in the exam or will you have to bring them in with you? Thanks

I'm gonna presume you get them, but I'm bringing in a copy to be safe.

y0ssar1an22 wrote: »

Question in relation to NPV:

sometimes the finance costs are not included as a cash outflow, because the repayments are reflected in the WACC. Do you ever/when do you include finance costs as a cash outflow?

Hi
Did you get an answer for this? I always gathered that finance costs are a financing decision and included there whereas npv is an investment decision so no finance related costs should be included

TAA_ICAI wrote: »

Hey y0ssar1an22,

I think the Trade Rec 25,000 Credit is made up of the following:

Credit Sales 475,000 Note 2 -[600-100=500-(500*.05)]
Bad Debt W/O (20,000)
Receipts (480,000) Note 6[560-80]
Bad Debt Rec 5,000 Note 5&6
Bad Debt Rec (5,000)
(25,000)

Hope this helps ...

i figured that might be the case. I guess the confusion came from me including the opening TR of 450000 as well. Is this ignored?

TAA_ICAI wrote: »

Hi y0ssar1an22,

Yea I think its just the change that's included in the net adj journal but if you had to inc TR fig in the SOFP it would be the net of 450+(25)-13.5-7.75=403.75 (I think) but I don't think this is req in this Q.

Thanks alot. That had me freaking out yesterday.

TAA_ICAI wrote: »

Hey Everyone,

What are you guys bringing into the SFMA exam?

Don't want to bring too much/too little - Is anyone bringing the books?

Not sure if I will as I doubt they will add much value ...

I'm bringing in my Finance and MA notes/folder from last year, and the SFMA notes I have from this year.
I've never looked at the books so for me they would be pointless.

TAA_ICAI wrote: »

Hey Everyone,

What are you guys bringing into the SFMA exam?

Don't want to bring too much/too little - Is anyone bringing the books?

Not sure if I will as I doubt they will add much value ...

Good luck everyone. My advice based on when I did this SFMA assessment last year: I made the mistake of thinking the open-book format would mean there would have to be an element of looking up some theory so I prepared in the wrong way completely by trying to have to hand everything that could come up, instead of just having the answers to the obvious questions written out for reference. So, I ran out of time altogether in the exam, screwed it up completely, because I hadn't practiced the calculations.
So, if you're like me and you're trying to get prepared for this quickly, then just make some assumptions on what will be asked, and *practice writing it out*. Time is a huge factor in both these assessments.

TAA_ICAI, I would advise that you don't forget your books - bring them both, along with your workings on the case study. Leave the books on the floor by your desk during the exam perhaps. The back of Ward has discount rate tables in appendix 4 (PV) and 5 (Annuity) at if nothing else, you might need these.

*EDIT* As per JAS30 above bring the CAP2 SFMA toolkit too. Has *excellent* sample answers in there, from about page 130 onwards. Gold.

FYI the suggested solution from the very first exam (Jan 2011, Lately Limited) is worth a read on the explanations of the variances in the operating statement, maybe make a few notes from that, I think our price/usage variance on the Beef is likely to be a similar situation to the Marble in that case, maybe also adding the effect on labour cost. Obviously if the cut of meat is cheaper it will take more time to prepare and lead to more wastage.
Someone already posted a link to where you can download the past papers.

Just a side note - it's kind of annoying that the people who write these cases are unable to do a little bit of reality checking before they put the numbers in. Have any of them ever bought beef that you'd use in a stew? I wonder if any of them have even been to a butcher or supermarket? A restaurant would not be paying 45 euro per kg of beef. Perhaps a third of that at the most. I guess it's just numbers in the end, but it annoys me...

Noonster wrote: »

For the FR paper, are people putting much effort into practising consolidation questions?? Or do you think that it is likely to be restricted to some journal entries as per previous years?? I presume that in theory a full question could come up as far as it was covered in CAP1

I'm gonna do 2-3 full consol questions from the CAP 1 notes.

are the dublin exams taking place where that cap 2 introductory financial reporting exam took place in the RDS in october? I know theres a few different entrances into the RDS.

Just says RDS Simmonscourt on the CA website.

Imported but wrote: »

It's away from the main complex, top of diagram here http://www.rds.ie/index.jsp?p=102&n=129

thanks for putting that up. I just presumed they are on the same place as the CAP1's.

Looking forward to getting these out of the way!

Expecting a tricky FR paper, not as best prepared as I'd like with juggling work but hopefully it goes well enough.

miii wrote: »

Is it just me r was that an awful paper?! Depressed was terrible not prepared at all

Fr was a disaster cash flow and 30 marks consol question was a disaster

FR - Did ok in first question but if was very long, left with bout 30 mins for questions 2&3. Paniced a bit and started puttin in figures without showing d workings as i hadnt time and i know some were wrong. Would have been better off leaving out d casflow statement and moving on. If nothing else it was a lesson learned on time management. Wud be happy with anything over 4% out of d 10.

SFMA went ok.