Category Archives: CPA CFE

CPA CFE September 2018

 

CPA Canada Common Final Exam 2018

CPA Canada Common Final Exam 2018 consists of…

  • Capstone 1
  • Capstone 2
  • Common final exam

(a)  Day 1   (b)  Day 2   (c)  Day 3

Capstone 1:

  • A group assignment among 6-7 students
  • A case analysis of around 45-50 pages
  • Individually need to present with markers
  • The case is related to day 1 final exam
  • All students mostly get through in this work

Capstone 2:

  • A group assignment among 6-7 students
  • A case analysis of around 45-50 pages, role base
  • Individually need to submit the reply
  • The case is related to day 2 final exam
  • Student should select his role from Performance Management, Finance, Audit and Taxation in advance
  • Mostly all students pass this module

Day 1:

  • one case analysis of 4 hour duration (about 50 pages) based on enabling competencies related with ethics , problem solving, leadership and communication skill.
  • This is an extension of Capstone 1 case with different scenario. The focus is not on technical competencies but ethics, big picture and problem solving.
  • Answer should be based on a) situation analysis b) analysis of major issues c) conclusion and advise d) effective communication with holistic approach ( i.e. from all aspects)
  • Student need to separately pass this exam
  • Grade is either pass or fail

Day 2:

  • one case analysis of 5 hour duration (about 50 pages) based on technical competencies related with financial accounting, management accounting, and chosen role
  • Answer should be depth in financial or management accounting and in selected role
  • Grade will be for each issue, a) not address b) Just identify c) reaching competent d) competent e) competent with distinction
  • Day 2 will be graded combine with day 3

Day 3:

  • Three case analysis of total 4 hour duration based on technical and enabling competencies
  • Answer should be depth in financial or management accounting
  • Answer should be integrated with breath of other courses like taxation, audit, strategy and governance
  • Grade will be for each issue, a) not address b) Just identify c) reaching competent d) competent e) competent with distinction
  • Day 3 will be graded combine with day 2

Day 2 & 3:

To pass day 2 & 3, student should write answer with

  • Sufficient with aggregate all issues….Level 1
  • Depth in MA or FR ……Level 2
  • Depth of issue in selected role…Level 3
  • Breath of issues …..Level 4

Students must reply satisfying all 4 level in all major issues

Passing grade /limit will be decided for each exam by CPA Exam Board

Students should be familiar with all technical course are to pass this exam.

  • Financial Accounting
  • Management Accounting
  • Finance and Financial Planning
  • Taxation
  • Audit
  • Strategy & governance

Students also should have mastery and expertise knowledge in preparation of financial statements for all legal entities in Canada like Private , Public , Not for Profit corporation and Government.

Students will be provided with two booklets, one for case exam and other for rough work.  Students will also get CPA Canada HB and Income tax act (valid up to Dec 31 2017) PDF version.

To pass this exam, student should have a through technical knowledge along with applicability of related accounting standard in the final exam.

Exam questions are little complicated and  students should remain very careful about what exactly is the requirement.

CPA want a reasonable professional judgement  which student should have under normal circumstances. Speed and accuracy are equally important. Time constraint will be observed by the students particularly in Day 3.

To pass this exam at first attempt, students should know the techniques of writing this exam. They need proper guidance to approach this exam with some practice and feedback for improvement from a expert tutor.

Professionally qualified students from India & Pakistan in particular, need some more efforts to understand Canadian taxation law and accounting standard.

If you require expert guidance and coaching, contact www.beyond.coach.

Tutor Paresh Desai CPA-CGA, CMA(USA) FCMA(INDIA) …..he has also published exclusive book CFE Technical Guide 2018…his cell no 6475056648

 

 

 

 

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Going for IPO

Implications of going for IPO

Many time students are required to identify the competency of going for equity finance option. Students are required to be very careful reading the case facts, environment and circumstances presently face by the company. Examine all relevant indicators like consistent profitability and growth factors related to previous years. Students should go in more depth of the issue and discuss all relevant factors before jumping to go for the decision. See the following possible factors from Accounting, Finance, Audit and Taxation perspectives.

 Look into the existing business environment, bottom line and future prospectus for the company, SWOT analysis and or MD & A will be useful tools for managerial decision. Examine the implication form long term and short term point of view

 Need to check about loss of control on account of issue of new shares

 From audit perspective, audit cost will increase on account of more users and reporting of extra requirement due to IFRS. This is also on account of preparation of prospectus and consent of auditor before publishing interim financial statements. More accurate and reliable
financial information is required due to more users. IT system may need to be updated
and or revised.
 High cost of underwriter, advertisement, and cost related with listing requirement

 Applicability of IFRS, comparative information for earlier year and requirement of additional

information in the notes to Financial Statements
 Option for fair valuation of Property, Plant and Equipment and its impact on financial statements and on share price
 Tax payable method of accounting is not allowed in IFRS, and as such future lax assets/liability will be worked out and recorded in FS

 Small business deduction will not be available which may impact higher income tax rate

 

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Problem Solving and Professional Judgment

This is one of the competency, CPA had to come across in real work situation. As a controller or as a CEO, CPA had to take several decisions to run the company smoothly to reward its stakeholders.
He is required to use professional judgment from the variety of collected information. CPA students will face this competency in their final exam in case analysis.

Following process is important for resolving this issue-

• Define the problem and obtain initial understanding around the issue
• Divide the problem in different parts or sub-heading to facilitate in-depth analysis
• Exercise professional judgment in order of priority. Examine the sensitivity of the issue and
its material impact
• Evolve multiple options and or a single option
• Perform appropriate analysis
• Collect variety of relevant information
• Integrate information to find the right solution
• Recommend and then justify the conclusion from the collected case facts, develop decision
criteria and then finally recommend the right solution to take correct management decision

Student should follow above approach for solving this competency in the exam. Problem should be with integrative effect affecting other course area if any from financial and non-financial information.

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