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© Chartered Accountants Ireland 2014
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© Chartered Accountants Ireland 2014
FAE 2015
Welcome to FAE
The purpose of this document is to provide you with information that will assist you on your FAE journey.
There is quite a bit in it, but it is important to read as it contains information you need at the beginning of your
FAE year, rather than at the end!
Contents
1.
Key Tips ........................................................................................................................................................ 5
2.
Programme Outline ...................................................................................................................................... 8
3.
FAE STEPS – Steps to Success ................................................................................................................ 10
4.
Important documents you will need ............................................................................................................ 11
5.
Cumulative Principle and knowledge gap analysis .................................................................................... 12
6.
Take Responsibility .................................................................................................................................... 13
7.
Online recordings that need to be watched at the start of the course ........................................................ 13
8.
Integrated Case Studies ............................................................................................................................. 14
9.
Reflecting on FAE 2014 .............................................................................................................................. 14
10. Technical Standards and FR BITES........................................................................................................... 15
11. AAFRP Assessment ................................................................................................................................... 16
12. Peer Group Learning .................................................................................................................................. 16
13. Mock Exams – Important things to note ..................................................................................................... 17
14. Past Papers and where to find them .......................................................................................................... 18
15. FAE Book Distribution ................................................................................................................................ 18
16. My contact details – are they correct? ....................................................................................................... 19
17. Navigate the website ................................................................................................................................. 20
18. Reasonable Accommodations .................................................................................................................... 25
19. Attendance – Certificate of Due Participation ............................................................................................. 25
20. FAE Contacts.............................................................................................................................................. 27
APPENDICES ................................................................................................................................................... 28
Appendix 1: FAE STEPS ................................................................................................................................... 29
Appendix 2: FAE 2014 Core Issues Mapped to FAE Cases ............................................................................. 31
Appendix 3: Coverage of technical standards at FAE & comparison to CAP2 ................................................. 32
Appendix 4: Using the Attendance App ............................................................................................................. 33
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MY CHECKLIST:
Tick, if done:
I have read this document in full
I know where to find my timetables
I have watched all online pre-Christmas sessions
I have checked that I have all the FAE books
I made sure my contact details on CAI’s files are correct
I have my Integrated Cases booklet
I know what FAE STEPS - Steps to success is
I have set up my Peer Group
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1. Key Tips
FAE is a tough year. It is not easy, but it is very doable! Every student who presents for FAE has the
ability to be successful. We will provide the tools; it is up to you to use them.
Top tips for FAE success
1. Give yourself every chance to pass - engage with the programme and attend lectures
2. Go to the Integrated Workshops
These are not recorded and the learning benefits of the sessions cannot be replicated. This
what the FAE is all about!
is
3. Ensure you read Cotter: Problem Solving and the FAE.
This text is designed to assist you in preparing for integrated case studies. It focuses on the skills
required to correctly identify, analyse and solve problems in a manner that will be rewarded in the
exam.
4. Review recordings in a timely manner.
Where you miss a lecture view the recording in a timely manner. You may have great intentions to
view missed lectures tomorrow, but we all know that tomorrow never comes!
Don’t put yourself in the position where you have a mound of recordings to get through; you will
simply begin to feel out of control as the volume creeps up on you.
5. Little and often is the way to go at FAE.
Keep up with lectures, cases, and additional tools, like the FAE STEPS. Pick a case and attempt it
over a given week – read it on Monday, pick out the indictors on Tuesday, attempt some indicators on
Wednesday, Thursday &/or Friday. It takes approx. 30 minutes to read a case and 20 minutes to
attempt an indicator. You will be surprised at how much you will get through by small time
investments over the year. Small time investments now will really make things much easier for you at
the back end of the year.
6. Set up Peer Groups NOW: The sooner the better.
7. Attempt FAE STEPS when they are made available and review the solution/recordings.
Students who did this last year stated that they got an early “Kick” into realising how different the FAE
exam is. They found the initial STEP cases very difficult but said that by the time latter cases were
made available they were beginning to come to grips with the whole concept of case studies,
integrated thinking and application of knowledge. This resulted in greater productivity and better use
of their time over their study leave. And also increases confidence.
8. Produce mind maps, summary sheets or cheat sheets
These will assist you in the run up to the exam in September. Do it over the year as you
study/address topics. It will certainly help you focus over your study leave and will increase
the
time available to you to focus on and attempt case studies.
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9. Practice, practice, practice
Practice as many Case Studies as you possibly can in preparation for the FAE. The FAE exam is a
Case Study based exam and the more cases you attempt the more you will be able to
 Recognise issues
 Know how much to write and when to stop,
 Think in an integrated manner required for FAE
 Reach depth
 Plan your answer and structure your solution
 Know how best to spend your time.
 Feel in control
Once you’ve completed a practice case, review the solution and make notes for your “A folder” in order to
ensure you can easily track and access material you have covered. The organisation of topic specific notes is
a valuable exam strategy to ensure you can quickly reference issues raised in a case study – e.g. lists of
corporate governance failures and corresponding recommendations for improvement, a model of change
management which can then be applied to a given scenario.
The key here is to have summary information and frameworks that you can quickly access and then apply to
the case study being examined. DO NOT be tempted to regurgitate standards, audit processes, strategy
models or other frameworks without specifically referencing the case study at hand.
10. Replicate the exam in advance
Before you present for the FAE you should sit a past exam or attempt at least one case study in an
exam type setting, under exam time pressure. This is the most valuable use of time and will be hugely
beneficial to you. How you perform is largely irrelevant, that fact that you have sat a paper, or done a
case study, within exam time constraints will prepare you well.
Make mistakes; spend too much time on one indicator, run out of time! The earlier you do this the
more time you will have to improve your exam technique and rectify identified weaknesses. Don’t wait
until the exam to learn this – it will be a costly lesson!
11. Sit the Mocks
You need this experience before you go into the exam in September. It doesn’t matter if you pass or
not. The benefit of the Mocks is the experience and the feedback you get on your attempt. Past FAE
students state that this was the most valuable experience.
12. Take some time out for you!
The FAE year is a busy year and it is important that you stay on top of things. That applies as much to
your wellbeing as it does to your study. It is true that the two go hand in hand; when you feel
prepared, you feel in control and as a result you feel less stressed. It is important however to take
some time out of your busy schedule and to make time for you! Play the sports you like, go to your
book club, play your music, go out with friends. Do whatever helps you unwind – you need time out. I
cannot emphasise how important this is.
You cannot shut yourself away from now until next
September. It is vital that you look after your health and wellbeing.
13. Shout early!
If you run into difficulties please let us know at the earliest opportunity. We are here to help and every
year we do as much as we can to assist students. We can deal with issues if we know about them
early. There is little we can do if you contact us too late.
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14. You get what you put in
This is a very true saying and it is very true for FAE. If you put in the work you should get the results.
There is a huge difference between disappointment and regret. If you put in the required work for
the FAE and you are unsuccessful you will of course be very disappointed, but you will have no
regrets. If you do not put in the work and fail the FAE then you will have a lot of regrets! It is far
easier to get over a disappointment than deal with regrets. So don’t have any!
15. Keep things in perspective
As with everything, it is important to keep things in perspective. These exams are important. However
if you are not successful it is not the end of the world. You will not be the first students to fail the FAE
and you certainly won’t be the last! The sun will set in the evening and will rise again in the morning. It
is important that you realise this and do not put too much pressure on yourself.
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2. Programme Outline
Overview of FAE
The objective of the FAE exam is to assess candidates’ total competency. The FAE education programme is
designed to integrate the knowledge, skills and values derived from earlier studies and the work environment.
With the exception of Business Leadership, technical updates and some other elements of the FAE
programme, there is little (totally) “new” material at FAE.
What is new at FAE is the manner in which you use the knowledge you have accumulated through previous
studies, work and the FAE programme.
The FAE exam is very different to exams you have sat to date. The case studies give no specific
requirements, there are no specific mark allocations and subjects are not examined in the ‘silo’ format that you
are used to. Building on content examined at CAP1 and CAP2, FAE assumes your knowledge and tests
your understanding and application of that knowledge in a real business type scenario. You will be
expected to think like a professional, in an integrated manner, and give professional analysis and advice
expected of a Chartered Accountant.
There is no way to cram the skills required to be successful at FAE. It takes time and practice to be able to
analyse and answer case studies in the manner required. Engagement with the programme is key to
achieving this.
The FAE exam contains two elements:
 FAE Core
 FAE Elective
Details of both are given in the Introduction of the Competency Statement (see Section 4 on important
documents)
SUPER SIX
The FAE Core Syllabus is made up of what is known as the “Super Six”. These are the 6 main competency
groups outlined in The Competency Statement. All of the Super Six will be examined over the two days of the
FAE Core exam, and you will be expected to integrate knowledge, experience and skills across all six
technical areas when answering the case studies presented in the FAE examination.
Each Super Six has a weighting attached, indicating the approximate representation of that competency in the
FAE Core exam.
1.
2.
3.
4.
5.
6.
Super Six
Audit & Assurance
Business Leadership
Corporate & Individual Tax Planning
Finance
Financial Accounting & Reporting
Management Accounting
Weighting
10-15%
20-25%
10-15%
10-15%
25-30%
10-15%
It is important to note that the Super Six has been realigned for the 2015 examination. Therefore, you will
need to be mindful of this if you are using materials from prior years obtained from previous FAE students .
The FAE Core education programme is developed around each of the Super Six.
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The FAE Education Programme:
st
st
It is important to note that the FAE Education Programme commences on the 31 October/1 November and
runs until mid-July 2015. The Pre-Christmas lectures are very important. You will be:





Introduced to the whole concept of Integrated Case studies and the integration process
Introduced to Business Leadership (totally new for all students)
Introduced to Cross Marking
Given an overview of the full FAE course and how it has changed for 2015
Presented with new technical material
Word of Warning:
Be careful of prior FAE students advising you that you do not need to go to lectures before Christmas. The
Pre-Christmas programme has changed and FAE programme 2015 will commence on Day 1. In previous
years, the lectures before Christmas were a general recap of material (backward looking). Last year the
programme changed significantly. The pre-Christmas sessions are now very much forward looking focussed
on the FAE exam.
You will miss two months of your programme if you do not attend lectures etc. held in November and
December. The Post-Christmas lectures follow-on from where they left off before Christmas.
Lectures and Integrated Case Workshops
Lectures are presented for each of the super six in a single discipline structure. Lectures will be delivered
ONLINE or in the traditional format (Face to Face) in a lecture hall.
Online Lectures:
For 2015 a number of sessions have been moved Online. The Online material covers topics and areas that
can be successfully addressed using an online forum. This allows the time at lectures to be used in a more
relevant, constructive manner.
Face to Face (F2F) lectures:
We believe that it is a better use of your time, where possible & appropriate, to use the face to face (F2F)
sessions to apply the knowledge learned from the ONLINE sessions to mini-scenarios, questions, cases, etc.
It will be assumed that you will have completed the necessary ONLINE sessions, and/or viewed the recording
of previous lecture sessions (if you did not attend the lecture) BEFORE they present at the F2F lectures.
Online material will not be recapped during the lecture. Therefore it is important to refer to your
Planning & Delivery Schedule to establish if you are required to have viewed ONLINE sessions before
your next lecture.
Where an area is deemed to be complicated, or is new at FAE, delivery will be mainly in the form of lectures.
F2F lectures are recorded. It is recognised that lots of students are very busy with work and life and that it is
not always possible to attend lectures. Recordings will be made available subsequently on the student
website with a schedule of upload dates given.
We encourage all students to attend as many lectures as possible, as there is no substitute to actually being
present in the room. If you cannot attend a lecture we strongly advise you to watch the recorded session as
soon as possible (see above re regions). Do not let the number of recorded sessions to be watched to build
up. The weeks go by fast and you will get left behind.
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Integrated Case Workshops
FAE core is examined through integrated cases covering a number of indicators across the Super Six. You
are expected to think like a professional accountant and integrate knowledge, experience and skills when
presenting solutions to the scenarios presented in an FAE case study.
Knowing how to identify indicators, integrate knowledge, think in a professional manner across all of the
technical areas, and produce a solution that is suitable in structure and content requires a lot of guidance, and
even more practice.
This is the purpose of the Integrated case days (and the cross marking workshops). There are 8 Case
workshops over the course of the FAE Programme; 6 are of an integrated nature and cover exam type cases,
and 2 are teaching cases specific to Business Leadership.
The importance of attending workshops cannot be over-emphasised.
It is important to note that Integrated Case days, Cross marking Sessions and Workshops are not
recorded
Each year the FAE Board highlights “reaching depth” as an area of concern. Achieving depth involves
understanding the requirement, demonstrating the appropriate technical knowledge (as applied to the case)
and providing a tailored response that reflects this knowledge. Fully understanding how to reach depth, and
avoid common pitfalls can only be achieved by going to your case workshops and practicing as many cases
as you possibly can between now and September 2015.
Appendix 2 maps the 2013/14 programme to the 2014 exam. It is clear to see that students who attended
the case days and engaged in the programme and practiced cases would have been in a good position to be
successful at FAE. Every indicator that was examined at FAE Core 2014 could be mapped back to cases that
addressed the same or a similar issue.
You need to give yourself every opportunity to pass the FAE. Do you really want to be here again next year
simply because you did not engage with the programme or put in the work required to pass FAE?
3. FAE STEPS – Steps to Success
FAE STEPS was a new initiative for 2014 and it worked particularly well. The Feedback to us, and also to
CASSI, was that FAE STEPS was very well received; students found it very beneficial. We recommend that
students get together, where possible, and attempt the FAE STEPS cases in peer groups. The learning
benefits of this approach are significant and last year students stated that they found this approach enjoyable.
Please refer to Appendix 1 for further details of the FAE STEPS – Steps to success.
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4. Important documents you will need
There are four very important documents you will require from day one!
1. The FAE Core and FAE Elective Competency Statement 2014/2015 (the Competency
Statement), AND the Addendum to the Competency Statement 2014/2015 (The Addendum)
 Download from the student website (http://students.charteredaccountants.ie)
 This document is your Bible.
 If something is contained in the competency statement then it is examinable!
 It is very important that you understand the contents of this document. It is amazing how
many students do not refer to this document until the back-end of the year.
2. The Planning & Delivery Schedule (P&D)
 Download from the student website (link above). You need this document immediately.
 The Planning & Delivery Document outlines the entire education programme for FAE.
 You will need to refer to it before every lecture/workshop.
 The P&D is broken down by Super Six. It gives detail of
o what each lecture or workshop will address (Session outline),
o what preparation, if any, is required before you attend your session,
o The texts and resources you will need
o Suggestions for follow-up work/study to assist you in your studies.
 It also refers you to ONLINE sessions that you will be required to complete, and the
timing of when you should have completed them.
 A Session is ½ day (two Sessions = 1 day)
 The P&D is referenced back to the Competency Statement i.e. each session is mapped
back to the competency it addresses.
 You will use this document throughout the year. It is also a good revision tool.
3. YOUR course Timetable
 Available on the student website.
 Your timetable is specific to YOU. What timetable you are following will depend on your
FAE group allocation. You cannot chop and change timetables - not because we do not
want you to go to other lectures, but because all timetables run differently and the “next
lecture” timetabled for another group may not necessarily be the “next lecture” timetabled
for you; it may be a lecture you have already attended!
 The timetable outlines the lectures (date, subject, venue, lecturer, Session no., etc.) for
the entire year. The Pre-Christmas lecture timetable is now available. The post-Christmas
timetable will be made available in December.
 We do try to keep the published timetables “fixed”. However, factors outside our control
may occasionally arise. Where a timetable is changed, we will notify you and update the
online timetable. Be mindful that if you are printing your timetable at the beginning of the
year it may not be the most up to date version.
4. The FAE Board Report
The FAE Board report contains commentary on each year’s FAE exam. It serves as a formal
reflection of exam performance and also offers invaluable advice to students sitting upcoming
exams. The FAE Board use the report to highlight areas of concern, common mistakes made by
students and areas that will continue to receive focus in the examination. You should note that
the FAE Board expects you to be familiar with the content of (at least) the last year’s report and
tend to be less forgiving of recurring mistakes which have been noted in their reports.
The FAE exam often revisits areas previously highlighted in the FAE Board Report
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5. Cumulative Principle and knowledge gap analysis
The cumulative principle firmly applies at FAE. What does this mean?
You should fully know and understand technical standards and all material covered at previous levels. It is
assumed that you can draw on previous learning and tailor it to specific business scenarios presented in the
FAE exams.
The FAE lectures cannot, and will not, re-teach content you have covered at CAP1/CAP2 or M.Acc level.
You either passed your CAP2 exams, or received exemption resulting from successful completion of the
Masters in Accounting exams. Therefore you should already know and fully understand what you have
studied, and been tested on, to date.
How do I take stock of where my understanding of CAP1 / CAP2 / M.Acc materials is?
At the beginning of the FAE Programme:
1. Go through the CAP2 Competency Statement – available on the student website.
2. M.Acc students need to map the CAP2 competencies back to the Masters in Accounting notes to
ensure everything was covered.
3. Look at the competencies outlined for CAP2, including the list of technical standards (Audit and
Financial Reporting), and ask yourself, do you really understand what is covered here?
4. It is up to you, the student, to identify any gaps in your own knowledge and understanding, and to
take measures to fill those gaps. Revise past notes, if necessary and seek assistance from a study
group.
5. There are a number of ONLINE tools to assist you in determining whether you have a solid
understanding of certain topics. It is suggested that you avail of these tools. Refer to Section 7 on
online recordings.
YOU should perform your own knowledge gap analysis at the beginning of the year, and take
appropriate action to fill any identified gaps. Otherwise you will be on the back foot from the
outset.
You may have passed CAP2 / M.Acc exams by learning standards and notes off by heart. You WILL NOT
PASS FAE this way. At FAE you will not be asked to regurgitate standards or paragraphs from a book. The
FAE requires a very different skill set. Knowledge can be learned, skills need to be developed. The FAE
focuses on the latter.
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6. Take Responsibility
YOU need to take responsibility for your own learning. That means engaging in the education programme! As
shown above and in Appendix 2, the students who engaged in the FAE programme and did their work would
have been in a good position to pass their FAE exams in 2014.
There is absolutely no reason why every student presenting for FAE 2015 cannot be successful. You have
been successful thus far. It is entirely up to you to give yourself every opportunity to perform well at FAE.
Unlike some Universities, there is no enforced “Bell Curve” when it comes to FAE Exam results; a given
number of students do not have to pass the FAE, and likewise, a given number of students do not have to fail
the FAE. Therefore, you are not in competition with each other. The benefit of this is that students can (and
should) work together to your mutual benefit. Pool resources, spread the study load - you can all pass
together!
However, do not become complacent because “no one else” is going to lectures, or practicing cases. This
does not mean that you need not go to lectures or practice cases. Remember, you can all fail together too!!
7. Online recordings that need to be watched at the start of the course
Please refer to session outline on the P&D document
Corporation & Individual Tax Planning ROI
Republic of Ireland
Northern Ireland
Session 1 Intro to Tax Course, Income Tax
Session 2 CGT for Individuals
Session 4
Online Session – Finance Act 2013 2014
Finance
Session 1 & 2
Working Capital Management/Share Valuation/Dividend
Policy/Cost of Capital/ Sources of Finance/ Risk management/
Investment Appraisals
Financial Accounting & Reporting
Sessions 1, 4, 5
FR BITES
Various IFRS/IAS that you need to be very familiar with.
Management Accounting
Session 2
Overview of Management Accounting.
Role of Management Accountant / Cost Accounting / CVP & Breakeven / Pricing
decisions/ Decision making / Process Costing / Performance Measurement /
Variances / Divisional Performance measurement / Transfer Pricing
It will be assumed that you have watched the above sessions BEFORE you commence the FAE
Programme.
There are a number of other ONLINE Sessions. These should be watched as and when outlined in the
Planning & Delivery document.
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8. Integrated Case Studies
There are 8 Case Study days scheduled for 2015; 6 Integrated Case Study Workshops and 2 Business
Leadership case workshops. Please refer to the Planning & Delivery Schedule for the names of the cases that
will be addressed on each case day.
You must read the cases and make an attempt at addressing the Indicators in advance of the Case day. It is
important that you do this to get the full value out of each case day. The lecturer will assume that you have
read the cases in advance and will not re-read them at the beginning of the case day.
In light of the changes to the Super Six and the weightings per the Competency Statement there are two
additional case days scheduled for 2015 (Last year there were 6 case days in total). The Shannon Day is an
integrated case day focusing primarily on Financial Accounting and Reporting and Management Accounting,
given the increased weighting for both for FAE 2015. The Foyle case day is a Business Leadership teaching
case day with a strong focus on Strategy. Business Leadership elements for 2015 have a strong strategy
focus and hence it was felt that an additional case day would help cement a better understanding for students.
The case studies required for these case days are included in the “Integrated Case Study Workshop” pack
that will be distributed to you in December/early January. You need to bring this pack to every case study
workshop. Suggested solutions will be uploaded to the student portal immediately after the case day has
concluded for your group.
Please also refer to the information given on Integrated Case Studies at Section 2 above.
Integrated case days are not recorded. They are very interactive sessions and are not conducive to being
recorded. We cannot stress strongly enough how important these case days are. The FAE Core Exam, after
all, is Integrated Case Studies.
You can know all the technical material in the world and still fail FAE. As stated above, there is a skill to
presenting solutions to FAE case studies and these can only be developed through attending the Case Study
Workshops, doing the cases in FAE STEPS and practicing as many cases as you possibly can. It is only
through a lot of practice, and making mistakes, that you get a feel for what the FAE Board means by “reaching
breadth” and “reaching depth”. Case studies will also help you to direct your study to the areas where you
require further work.
There are a significant number of cases to practice in your “Self-study case” pack (will be distributed at the
same time as the Integrated Case Study Workshop pack).
9. Reflecting on FAE 2014
Students who prepared well, engaged in the FAE programme and practiced the case studies available to
them would have fared well in the FAE 2014 exam. Every topic/indicator that was presented in the FAE Core
exam this year can be mapped back to various cases on the FAE Programme that covered the same or
similar topic. Students should have been relatively pleased with the FAE Core exam overall if they put in the
work. Please refer to Appendix 2 which clearly shows how preparation is key to FAE Success, and how
important it is to engage in the education programme, attend case days, attempt FAE STEPS and practice,
practice, practice case studies.
Each year the FAE Board prepares a report on the FAE Examination and students efforts in respect of the
exam papers – FAE Board Report.
The FAE Board Report is a hugely informative document and is necessary reading for all FAE students. It is
available on the Student Website and students are advised to make themselves very familiar with the contents
of, not just this years’ Board Report, but also the FAE Board reports of past years. The Board gives an
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overview of student performance per paper and per indicator, and highlights areas of concern and areas
where they felt students performed well. If the Board are concerned about any aspect of performance at FAE
they will continue to address such areas in future FAE Exams. Fore warned is to be fore armed!
You should download the FAE Board Report 2014 when it becomes available (After the FAE Results are
published). Previous FAE Board Reports are currently available for download.
10. Technical Standards and FR BITES
All of the Technical Material examinable at FAE is clearly outlined in the Competency Statement.
For Financial Accounting and Reporting standards there is a new ONLINE offering for FAE 2015, called FR
BITES
FR BITES presents little tutorials or sessions on various IFRS/IAS. Students can use FR BITES for various
purposes:
1. To complete specific ONLINE sessions referred to in the P&D schedule for Financial Accounting and
Reporting
2. To assist you in “taking stock” of where you are currently at in terms of your technical knowledge and
understanding
3. To recap on technical standards that you are competent in but would like a refresher to re-familiarise
yourself with the contents of same – this is particularly useful for M.Acc students who may not have
looked at a standard in 18 months.
4. To revise in preparation for the AAFRP Assessment in April.
You can dip in or out of FR BITES as necessary. FR BITES does not aim to reteach technical standards in
depth but recaps on the salient aspects of the standards and aims to assist in developing a good
understanding of what the standard is about and what is says. At FAE students do not need to know the
IFRS/IAS off by heart. A true understanding of standard is what is required at FAE. The student also needs to
go further and think of the impact of the standards in the broader context.
You should refer to standards throughout their study and not rely solely on notes and textbooks for the detail
of the standards. Certain examples, additional guidance and specific applications of the standard which may
appear in the AAFRP or main FAE exam may not be covered in supplementary materials: i.e. notes / text
books.
Where the IFRS/IAS has been well covered at CAP2 and nothing more can be added to improve a good
comprehension of the contents of the standard, students should revise their previous materials.
Appendix 3 shows a list of the Financial Reporting Standards and references each standard to FR Bites,
lecture sessions or supplementary notes. It also compares the level at which the standards are examinable at
FAE and CAP2.
You will not be asked to regurgitate the Standards so there is no need to learn them off by heart. It is
important to really understand the technical standards for FAE and be able to apply them to any given
scenario in a case study.
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11. AAFRP Assessment
There is one piece of Interim Assessment at FAE – Advanced Application of Financial Reporting Principles
th
exam –, which will be held on 25 April 2015.
The assessment combines technical financial reporting with key skills of analysis & judgement.
The result of the AAFRP exam represents the equivalent of ONE financial reporting indicator towards the FAE
exam. It is important that students keep weighting of the AAFRP exam in perspective.
In 2014, many students focused solely on AAFRP through March and April, to the detriment of the other
lectures and case study workshop which prepared students for the remaining 17-19 performance indicators
contained in the FAE exam. This approach is very short sighted; it did not produce an increase in the AAFRP
results but it did put those students at a distinct disadvantage when preparing for the main FAE exam.
Also, please be careful of advice given from outside bodies in relation to what can and cannot come up on the
AAFRP exam. Any of the technical standards, per the Competency Statement, are examinable. The lecture
notes, AAFRP toolkit and CAI notes are sufficient to successfully complete the AAFRP exam. An additional
AAFRP revision session has been scheduled for 2015 for any student who feels that he/she requires
additional assistance for AAFRP.
Timing is essential in the AAFRP exam as well as the main FAE exam. The AAFRP assessment is 1 hour
and 30 minutes long. This time needs to be used wisely to obtain the best possible result. Students who
spend too long on certain questions at the expense of attempt others struggle to achieve a competent grade.
Students should ensure they attempt all questions on the paper.
12. Peer Group Learning
It is our experience that students produce the best results when they work in Peer Groups. This approach will
be used during the Blackwater Case day and in other integrated workshops. We strongly suggest that
students approach the FAE STEPS cases in Peer Groups. The feedback from prior FAE students is that this
is what works best! It is amazing what you can learn from others. Also, you are less likely to “not do” work if
there are others relying on your contribution, therefore Peer Groups force a certain (good) discipline on
students. It also adds a slight social dimension to your study. It is up to you how formal or informal your Peer
Groups are.
Our experience also shows that students who work together feel far more in control of the workload they are
faced with at FAE. As a result the stress levels tend to be less, especially over the duration of the summer
study leave. I cannot emphasise enough how important keeping on top of the stress levels is for your
wellbeing!
As stated above, the CAI exam results are not forced to a bell curve i.e. there is no set pass or failure rate that
must be achieved year on year. The pass rate is as good as the students who take the exam. Therefore, it is
in your interest if you work together. Lighten your load, spread the work! Peer Groups facilitate such sharing.
We recommend that you align yourself to other students and set up a peer group now. Students who do not
have the wide network that students in the larger firms have, should make it their business to align themselves
with others in their lecture groups for this purpose.
Attempt Case Studies together, divide up work and produce summaries or cheat sheets that then can be
copied and shared. You are not in competition with each other. Use this to your advantage. Help each other.
You are all well capable of passing the FAE together!
Set up Peer Groups NOW. Share the workload, keep stress levels low, learn from each other and enjoy the
company of your peers.
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© Chartered Accountants Ireland 2014
13. Mock Exams – Important things to note
By now you will appreciate the differences between the FAE and other exams you have sat to date. The
Mock Exams are an extremely important part of your education. Prior year students have consistently rated
the mocks as hugely valuable to their studies. The experience gained by the process is more valuable than
whether or not you pass the mock exam. There are three primary benefits gained by engaging with the mock
exams:
1. Endurance. Three days of 4.5 hour examinations requires mental and physical stamina. The mock
st
exams are an excellent practice run. Do not let September 2015 be the 1 time you sit new Core &
Elective papers under exam conditions.
2. Feedback. The mocks give you valuable feedback on your performance. Your scripts are heavily
commented on, and critically you will find out which areas you are comfortable with, and which you
need to apply more focus to.
3. Positioning. The result of your mock exam will inform you where your attempt lies in relation to the
rest of the population, and how close (or far) you were from meeting the standard required to pass.
These two pieces of information provide you with information to focus the remainder of your studies.
The Mock exams are available to any first time FAE student as part of the FAE Programme. You will be
automatically enrolled to present for the Mock Exams. You do not need to fill out a separate Mock Exam
registration form.
The dates of the Mock Exams 2015 are as follows:



FAE Core Comprehensive
FAE Core Simulation
FAE Elective
Tuesday 30th June 2015
st
Wednesday 1 July 2015
nd
Thursday 2 July 2015.
You will be automatically registered to sit the Mock exams in the same centre as you attend your lectures
(Study Centre) i.e. If you attend lectures in Dublin then you will be registered to sit your Mock exams in the
RDS in Dublin. If you attend your lectures in e.g. Cork/Belfast then you will be automatically registered to sit
your Mock exams in the exam centres in Cork/Belfast.
If you are happy with this (i.e. you want to sit the Mocks in your study centre) then you need to do nothing
further.
However, if you want to change your mock exam location (i.e. sit the Mock Exams in a different centre to
where you attend lectures) then you must tell us, i.e. If you attend lectures in Dublin but are going home to
Waterford to study for your FAE and you want to sit your Mock exams in Waterford/Kilkenny Centre then you
must complete the MOCK EXAM SURVEY that will be sent out to all FAE students in March 2015.
If you do not complete the Mock Exam Survey and you present yourself at a different centre your will not be
accommodated and will not be allowed to sit the exam.

In 2014 we had an unacceptable level of students arriving at different Mock Exam Centres. This
caused significant disruption and in some cases the venue was unable to hold the number of students
who presented for the Mock exam. We cannot accommodate unexpected students.
Also, refer to Section 16 below – Please ensure the address on record is the address to which you want your
corrected Mock exam scripts sent. Scripts sent to an incorrect address will be (obviously) lost.
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© Chartered Accountants Ireland 2014
N.B. Main exams.
Registration for the final FAE Exam in September is completely separate to registration for the MOCK
exams.
Therefore, when you complete the MOCK Exam Survey to change your exam centre for the Mocks it does
NOT change the exam centre for your actual FAE Exams. You will receive communication from the Exams
about the preferred centre for the actual Exams. The two processes are separate.
14. Past Papers and where to find them
Past exam papers can be found on the Website. However be careful

Original Past papers are made available by the Exams Department and include the FAE Board
Report which extremely valuable commentary on exam performance. You should read prior year
FAE Board Reports. However, the papers and solutions contained therein are the original papers
that were examined on the date in question and do not include any updates for subsequent technical
or syllabus changes. For education purposes, please ensure you refer to the Updated Past papers
referenced below.

Updated Past papers and Mock papers are uploaded by the FAE Education Team and can be found
under “Updated Past Exam Papers” AND “Updated Past Mock Exam Papers” on your student portal
page.
It is important that you do not get confused between the two. The Updated versions will clearly state that
they are “Updated to the Competency Statement 2014/2015”.
Past papers will be technically updated to the Competency Statement 2014/2015 as follows:
 Past Papers – Updated going back 3 years
 Past Mock Papers – Updated going back 1 year
Many of the other prior past papers and mock cases are used for lecture delivery and as such will be updated
accordingly, and made available as part of course notes and materials.
15. FAE Book Distribution – Ensuring you have your materials
When you collect / receive your books:





Please check you have all the books you should have received
If you are missing any book you need to contact Terri Gray ASAP
(Terri.Gray@charteredaccountants.ie)
Arrangements will be made to furnish you with a copy of the book
st
The very last day for informing the Institute of any books you might be missing is strictly 31
January 2015.
Please do NOT contact the institute after this date if you discover you are missing books
- You should have checked your books immediately as requested
- You will not be furnished with a new copy after this date
- You can purchase the book through the website at your own cost after this date
- There will be NO exceptions to this
- The onus is on YOU to immediately ensure that you have received all of your books
Check you have all your books. If you are missing books you MUST inform Terri Gray at CAI before
31 January 2015. A copy will be sent to you. After this date Books will only be available through the
website shop, at your own cost.
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© Chartered Accountants Ireland 2014
16. My contact details – are they correct? Helping us serve you
Every year we have problems communicating important details to students because their contact details are
incorrect. Corrected Mock Exam scripts and examination details are sent to the postal address that is
currently on file.
It is possible to resend printed information to another address. However, in relation to corrected Mock scripts,
once they are posted they cannot be retrieved and there is nothing that we can do about it. The onus is on
you to ensure that your address on record is current.
Also please make sure that the address on file reflects the address to which you want communication to be
sent. If you are in rented accommodation but want your examination details, and your Mock exam script to be
sent to your home address then the address on file must reflect same. This is very important.
Please ensure that all of your contact details are up to date, and if they change during the year you
must amend them as follows:
Phone & email contact – you can change these details through your “Personal profile” on the student portal
page. Please check to ensure that these details are correct.
Please note that prior to going on study leave it is absolutely essential that your email address is your
personal email address that you check regularly. This is the primary form of communication with students
approaching exams and you may miss important updates if your email address is set to your work address. It
may be beneficial to set this to you personal email address for the entire year.
Postal Mailing address: If you have changed your address recently, or do so during the year, you MUST
inform us via email to studentqueries@charteredaccountants.ie (You cannot change your mailing address via
the portal page).
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© Chartered Accountants Ireland 2014
17. Navigate the website Where can I find stuff??
- The timetable
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© Chartered Accountants Ireland 2014
The Planning & Delivery Schedule
The Competency Statement & Addendum
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© Chartered Accountants Ireland 2014
FAE Board Reports
Core and Elective Course notes
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© Chartered Accountants Ireland 2014
Past Papers (Updated versions)
Emails & Notices
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© Chartered Accountants Ireland 2014
Personal Profile (Update your contact details)
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© Chartered Accountants Ireland 2014
18. Reasonable Accommodations
The Institute has a reasonable accommodations policy, which is managed through the disability officer. It is
important that special accommodations are communicated in advance and in accordance with the
st
Reasonable Accommodations Policy & Closing Dates (see website for details from 1 December 2014). If
you need to speak to someone in relation to this, please call Sonya O’Reilly on 01 637 7303 or email
disabilityofficer@charteredaccountants.ie .
19. Attendance – Certificate of Due Participation
It is our hope that this document has demonstrated the direct benefit of engaging with the education
programme. The Institute constantly monitors and adapts the education based on our judgement and on
student and firm feedback. Likewise, there is ongoing liaison with CASSI who regularly suggest ways in
which to improve the student experience and quality of the education programme.
However, over the course of the 2012/13 and 2013/14 academic years, the Institute has noted decreasing
participation rates on the FAE programme, particularly in the January – May period. While most students
have busy work lives and some can struggle with balancing many competing interests, engagement with the
education programme leading to the FAE examination is vital.
The Institute is examining longer term options to encourage or reward engagement on the FAE programme
however it is important to address any issues for the upcoming academic year. The Education Delivery
Committee has approved the introduction of a Certificate of Due Participation in the 2014/2015 academic
year.
The purpose of introducing the Certificate of Due Participation is threefold:
 To encourage attendance at key exam focussed lectures during the earlier stages of the academic
year.
 To inform students and those with interest in a student’s education of their progress
 To highlight instances where the Institute believes a student is insufficiently prepared to sit the FAE
Examination based on input to the education programme
Mandatory Lectures
st
The certificate will be awarded based on attendance at lectures until the 1 May. In order to be awarded a
Certificate of Due Participation attendance must be recorded at a minimum of 75% of the proportion of below
th
lectures which take place for their group until the 30 April 2015:
 Integrated Case Days max 7 days
(14 sessions)
 AAFRP workshops
max 1 day
(2 sessions)
 Elective Lectures
max 5 days
(10 sessions)
While the above lectures are deemed mandatory, they do not indicate that other lectures are of lesser
importance. The requirement above represents a maximum of 34% of the total FAE course and students
should not expect to pass the FAE examination without full engagement with the whole programme.
Recording of attendance
Attendance at lectures is recorded by way of the Attendance App. Please refer to Appendix 4.
Should you not be in possession of an internet enabled device listed above, or encounter a technical issue in
recording your software, you must make this known to:
 Dublin – Support staff in library or reception
 Other centres – your lecturer
They will ensure your attendance is captured and recorded appropriately. It is vital that you do this on the
day of your lecture. No consideration can be given to issues raised retrospectively. It is your responsibility to
ensure that your attendance is logged.
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© Chartered Accountants Ireland 2014
Reporting the status of a student’s Certificate of Due Participation
th
Following the 30 April, attendance at the above sessions will be compiled and reported to students and,
where relevant, recognised training firms. The report will detail attendance at each session and an overall
percentage attended.
The report will highlight to firms students whose attendance at the prescribed lectures is less than 75% and
who the Institute believe are insufficiently prepared to sit the FAE Examination based on input to the
education programme.
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© Chartered Accountants Ireland 2014
20 FAE Contacts
If you have any queries or issues related to the FAE education programme please contact us.
General queries should be directed to the FAE inbox: FAE@charteredaccountants.ie
If you wish to speak to one of the FAE Education team specifically the contact details are as follows:
Karen Russell
Karen.russell@charteredaccountants.ie
+353 1 523 3948
Odharnaith Coyne
Odharnaith.coyne@charteredaccountants.ie
+353 1 523 3935
If you have a query in relation to the FAE exam (including the AAFRP interim assessment), please contact:
Audrey Carter
faeexam@charteredaccountants.ie
+353 1 637 7201
Sonya O’Reilly
disabilityofficer@charteredaccountants.ie
+353 1 637 7272
We will be happy to assist you.
We wish you the very best of luck with your FAE studies.
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© Chartered Accountants Ireland 2014
APPENDICES
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© Chartered Accountants Ireland 2014
Appendix 1: FAE STEPS
FAE STEPS – Steps to Success.
Before Christmas you will be exposed to two Case Study Workshops and one Cross Marking session. The
case study workshops will take into account where you were at in terms of their technical proficiencies and
your limited knowledge of integrated cases. The emphasis will be on identification of indicators, solving the
problem at hand and thinking in an integrated manner.
FAE STEPS will build on this and will present YOU with the opportunity to build on the lessons learned from
the pre-Christmas workshops, and to practice the relevant skills while they are still fresh in your minds; all the
time practicing the problem-solving skills necessary at FAE.
How will FAE STEPS be rolled out?
FAE STEPS is a series of progressive cases that will be published for students on a given date per month, as
indicated below. A brief recording will also be made available at that time to assist you with your study focus.
Each case will address, what we believe to be, exam driven scenarios with a focus on Financial Accounting &
Reporting, Management Accounting, Auditing and Business Leadership that have been highlighted by the
FAE Board. The cases will be progressive in terms of difficulty and required solutions, continually developing
your ability to recognise performance indicators, plan your approach and format your solutions.
The suggested solution, together with a recording explaining the solution, will be made available to students
approx. 2 weeks after the release of the case study (Dates stated below).
The Integrated Case Study and Cross Marking Workshops are generally the most popular sessions at FAE,
and arguably the most important. We hope that all of you will take the STEPS towards developing a better
case study approach and hence will be in a good position in the run up to the FAE exam.
How to approach FAE STEPS
Students can attempt the cases by themselves, however we would encourage a peer group approach,
whereby students attempt the case and discuss the indicators and issues with other students. Ideally students
will get together and also mark each other’s scripts based on the guidance given online with the solution.
There are additional learning benefits to working in groups; working together will encourage debate, which in
turn will reinforce your own understanding, and expose you to other thought processes and approaches. The
feedback from last years’ students was extremely positive.
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© Chartered Accountants Ireland 2014
Ideally Students should


Attempt the STEP cases when they are made available (i.e. in the month in which they are uploaded
to the students website)
Make an attempt before the solution is available (Everything looks easier when you see the solution!!)
The students from last year who attempted the cases each month said that it was very beneficial. It gave
them the time and space to really understand what integrated cases are all about, how to identify the
indicators, how to plan a solution and, very importantly, how much to write and when to stop. Therefore they
were very well placed when they went on study leave.
The planned schedule for FAE STEPS is as follows:
Month
Case Name
Case
published
Recorded
Solution
Type of case
Jan 2015
Tower
30th Jan 2015
13th Feb 2015
SIM
Feb 2015
Merlo
27th Feb 2015
13th March 2015
SIM
March
2015
Manor
20th March
2015
3rd April 2015
SIM
April
2015
No Steps case will be released this month. Students will be provided with preparatory AAFRP
material to complete.
May 2015
Elective
Specific
8th May 2015
22nd May 2015
Elective SIM (one for each Elective)
June
2015
Raven
29thMay 2015
19th June 2015
COMP (Exam standard, covering all
6 areas of FAE Core)
What happens Post-Mock?
4 new cases will be published weekly over 4 weeks in July/August. You will be able to download the cases
and attempt them as part of your preparation for the FAE during study leave. Solutions will be published the
following week and recordings explaining the solution will also be available. This was rolled out in 2014 and
worked extremely well; those students, who took the opportunity to attempt the cases and subsequently
looked at the recordings and solutions, found the process very beneficial.
The Case Study Packs also provide ample opportunities for you to practice cases. Every student will be
furnished with a copy of the Integrated Case Study pack and the Self-study Case pack in Dec/Jan.
The more exposure you have to case studies and problem solving in an integrated manner, the better
prepared you will be for the exam next September. FAE STEPS offers YOU the opportunity to gain exposure
in a progressive and manageable way. If you take these small STEPS then the climb to the finish will not
be daunting.
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© Chartered Accountants Ireland 2014
Appendix 2: FAE 2014 Core Issues Mapped to FAE Cases
The below maps the FAE Core exams to the education programmes, demonstrating where issues raised in the exam were covered in the programme.
Exam
Super Six
subject
Description
STEPS cases
Teaching cases
Core
PM
Transfer pricing
FMJ
Enver
T
Tax on disposal of
subsidiary
Corporate governance
– Board of Directors
BL
SIM 1
SIM 2
Mocks and
cross
marking
Mayflower
Greene Thorpe
Valentine
Morker Primus
eflashfashions
GPO Woodburn
GEMS
Mayflower
Flexi Tool
Ham Cam
Southern
Fisheries Tech
Tek
A
Going concern and
note disclosure
PM
F
Accounting for
disposal of subsidiary
Foreign exchange
BL
Strategic options
IMP
Use of website
BL
Strategic options
MiTo Lucky
Star FMJ
F
Invoice discounting
DeVere
Cheezit
PM
Revenue recognition
Sham Rock
Liquidity
Now
IMP
Value of IP
A
Responsibilities of
directors
SWOT analysis
Lucky Star
Valentine
Eflashfashions
PM
Management accounts
and interim reporting
Sham Rock
T
R&D tax reliefs
Morker Elite
eflashfashions
Bay Trading
Stent Up
BL
DeVere
Self-study
pack cases
Mayflower
Logic Med
Enver
MiTo Lucky
Star FMJ
Lowland
Skanda Morker
Elite Stent Up
Moto Bay
Trading Thorpe
Lowland Primus
Elite Tekron
Moto Skanda
Lowland
Skanda Morker
Elite Stent Up
Moto Bay
Trading Thorpe
PEA Liquidity
Now
Talon
Ham Cam
Woodburn
X2X
PEA Liquidity
Now
Breezy Sail
Housing
Finance Talon
Talon
Liquidity
Now
31
PEA
Woodburn
Cheezit
Metro Stormy
Beach
Versatile
Imaging
Quancore
Breezy Sail
Metro
Swetter
Metro
Southern
Fisheries
© Chartered Accountants Ireland 2014
Appendix 3: Coverage of technical standards at FAE & comparison to CAP2
FINANCIAL ACCOUNTING & REPORTING
International Financial Reporting Standards
IFRS 1
IFRS 2
IFRS 3
IFRS 5
IFRS 7
IFRS 8
IFRS 9
IFRS 10
IFRS 11
IFRS 12
IFRS 13
IAS 1
IAS 2
IAS 7
IAS 8
IAS 10
IAS 11
IAS 12
IAS 16
IAS 17
IAS 18
IAS 19
IAS 20
IAS 21
IAS 23
IAS 24
IAS 27
IAS 28
IAS 32
IAS 33
IAS 34
IAS 36
IAS 37
IAS 38
IAS 39
IAS 40
IAS 41
Conceptual Framework for Financial Reporting
IFRS 1 First-time adoption of IFRSs
IFRS 2 Share-based Payments
IFRS 3 Business Combinations
IFRS 5 Non current assets Held for Sale and Discontinued Operations
IFRS 7 Financial Instruments: Disclosures**
IFRS 8 Operating Segments
IFRS 9 Financial Instruments**
IFRS 10 Consolidated financial statements
IFRS 11 Joint arrangements
IFRS 12 Disclosure of interests in other entities
IFRS 13 Fair value measurement
IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 7 Statements of Cash Flows
IAS 8 Accounting policies, changes in accounting estimates and errors
IAS 10 Events after the reporting period
IAS 11 Construction Contracts
IAS 12 Income Taxes
IAS 16 Property, Plant and Equipment
IAS 17 Leases **
IAS 18 Revenue
IAS 19 Employee benefits **
IAS 20 Accounting for Government Grants and disclosure of
Government assistance.
IAS 21 The Effects of Changes in Foreign Exchange Rates **
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 27 Separate Financial Statements
IAS 28 Investments in Associates and Joint Ventures
IAS 32 Financial Instruments: Disclosure and Presentation**
IAS 33 Earnings per Share
IAS 34 Interim Financial Reporting
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 39 Financial Instruments: Recognition and Measurement**
IAS 40 Investment Property
IAS 41 Agriculture
Local GAAP (UK & Ireland) - NEW for 2015
FRS 100
FRS 101
FRS 102
Will be covered on a standard by standard basis.
FR BITES LECTURE Supplementary
SESSIONS
Notes
√
√
√
2/3
6&7
√
2&3, 7
√
√
2/3
6
√
6
√
6
√
6
√
√
7
√
Competency Statements
FAE
CAP 2
U A
I
U A
I
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
2/3
√
√
√
√
√
√
*
*
*
*
*
*
*
*
2/3
2/3
√
√
√
√
6
6
2/3
*
*
*
*
*
√
2/3
*
√
√
*
*
*
*
32
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Understanding of Standards are further developed through Financial
Accounting & Reporting mini-scenarios in Session 8, and through FR
case studies in Sessions 9-13
*
*
*
*
*
*
*
*
7
√
√
√
√
√
*
*
*
*
*
*
*
*
*
© Chartered Accountants Ireland 2014
Appendix 4: Using the Attendance App
The Institute supports the reporting of attendance of students in training contract to recognised training firms
by way of an Attendance App. Students who came through the CAP2 route will be familiar with this. M.Acc
students will need to make themselves familiar with the Attendance App and the procedures to ensure their
attendance is recorded.
If you wish to have your attendance at lectures recorded, you will need to avail of one of the following:
iOS Attendance App:
https://itunes.apple.com/ie/app/attendance-cai/id772191935?mt=8
Android Attendance App:
https://play.google.com/store/apps/details?id=com.lph.attendance
HTML Attendance website:
checkin.charteredaccountants.ie
The HTML attendance website can be accessed on your smartphone, laptop, tablet or any other WiFi enabled device (only when connected to your lecture venues’ Wi-Fi network), or by using the computers in
CA House Dublin and Belfast.
There are further details on using the Native Attendance App on the student website under ‘General
Information’.
Please note that you must complete your check-out using the same system you use to check-in (i.e. Native
App or HTML)
The native Attendance App has undergone extensive development and testing and should provide the
quickest, easiest way to record attendance. However, please note that it is your responsibility to ensure
you your attendance is captured.
If, at a particular lecture, you have difficulty using the Attendance App for any reason, you must give your
details to the lecturer, or CAI staff member, detailing the difficulty you are experiencing. These details will then
be forwarded to the Student Services team ensuring your attendance is correctly recorded and relayed to your
training organisation. We cannot accept these messages unless they come through the lecturer or CAI staff
member.
33