POLL – Paper P6 June 2010 exam was … Post your comments here

yeah we had to calculate…

I didn’t do a calculation for capital allowences, I just allowed the whole amount as it would be covered by the AIA, but I don’t know if that was right.

I felt the exam was far too time pressured, there just wasn’t enough time to think logically and make sence of what you were being asked to do, especially in the compulsory section of the paper.

Does anyone feel the same or is it just me?

I am not sure if Im right but I allowed only 50 000 of AIA capital allowances as I thought it was restricted for group companies to one allowance only to be allocated to the ones they wish.I applied 40% FYA to the balance.Is that correct?

Found the paper far too time pressured and structured in an even more confusing way than UK tax law itself. Self-studying with little exposure to tax to this extent as I work in industry.
Have never found anything so tedious and illogical in my life.
Did it because I was exempted from F5 but will be studying F5 and P5 for December any day. The thought of resuming P6 study again would drive me to drink.

My main problem with this P6 exam is that too often I am unable to understand exactly what the examiner is asking for. I believe that most students who do this paper do not lack the required knowledge and skill, but we are just not able to apply those skills as there is a lack of clarity in the requirements.

I do not know about you all, but I find them difficult to decipher in most cases.

What are your thoughts?

@sashwa said:
should we calculate CA for the 1st question on office furniture and office computer and equipment?

I think we should.

@pjacres said:
Any thoughts on the 12 part IHT computation anyone? What was the point of that?

Also does anyone know what the specific requirements for senior accounting staff per FA 2009 were? Not covered in my notes as far as I can see. Everyone I asked couldn’t answer the question that was asked and wrote some general thoughts on errors instead.

I calculated IHT on these 12 options:
option 1: lifetime gift, value of property 450,000 and he dies in Dec 2012
option 2: lifetime gift, value of property 450,000 and he dies in Dec 2014
option 3: lifetime gift, value of property 600,000 and he dies in Dec 2012
option 4: lifetime gift, value of property 600,000 and he dies in Dec 2014
option 5: lifetime gift, value of property 900,000 and he dies in Dec 2012
option 6: lifetime gift, value of property 900,000 and he dies in Dec 2014
option 7: property in will, value of property 450,000 and he dies in Dec 2012
option 8: property in will, value of property 450,000 and he dies in Dec 2014
option 9: property in will, value of property 600,000 and he dies in Dec 2012
option 10: property in will, value of property 600,000 and he dies in Dec 2014
option 11: property in will, value of property 900,000 and he dies in Dec 2012
option 12: property in will, value of property 900,000 and he dies in Dec 2014
Rory Fish wrote an article on Finance Act 2009 in student accountant in Sept 2009 and there was a paragraph in it about senior accounting officers:
“Rules have been introduced that oblige the senior accounting officer of a large company or group of companies to:
¤ ensure that the company establishes and maintains tax accounting arrangements that enable its tax liabilities to be
calculated accurately
¤ provide an annual certificate to HMRC to the effect that appropriate accounting arrangements were in existence together with an explanation, where necessary, of any inadequacies. “

@royalnck said:
I calculated IHT on these 12 options:
option 1: lifetime gift, value of property 450,000 and he dies in Dec 2012
option 2: lifetime gift, value of property 450,000 and he dies in Dec 2014
option 3: lifetime gift, value of property 600,000 and he dies in Dec 2012
option 4: lifetime gift, value of property 600,000 and he dies in Dec 2014
option 5: lifetime gift, value of property 900,000 and he dies in Dec 2012
option 6: lifetime gift, value of property 900,000 and he dies in Dec 2014
option 7: property in will, value of property 450,000 and he dies in Dec 2012
option 8: property in will, value of property 450,000 and he dies in Dec 2014
option 9: property in will, value of property 600,000 and he dies in Dec 2012
option 10: property in will, value of property 600,000 and he dies in Dec 2014
option 11: property in will, value of property 900,000 and he dies in Dec 2012
option 12: property in will, value of property 900,000 and he dies in Dec 2014
Rory Fish wrote an article on Finance Act 2009 in student accountant in Sept 2009 and there was a paragraph in it about senior accounting officers:
“Rules have been introduced that oblige the senior accounting officer of a large company or group of companies to:
¤ ensure that the company establishes and maintains tax accounting arrangements that enable its tax liabilities to be
calculated accurately
¤ provide an annual certificate to HMRC to the effect that appropriate accounting arrangements were in existence together with an explanation, where necessary, of any inadequacies. “

Just didnt have the time .. i knew the 12 possibilities.. and 21 min for this question is NOT enough in exam conditions. figuring out the relation.. even writing the 12 solution if you knew the answer would i guess take 15 to 20 min..

i guess i made 4 options and then saw the time and proceeded to the next question. if i didn;t i would have left a whole lot of papper

@mykekal said:
Hi, did anyone attempt the section 2 question that speaks about sale of 20% shares by Vine to her store manager for $64,000.00. If yes, how did you arrive at the base cost of the shares?

Yes I did that question and I did the calculation for the capital gain on the incorporation using Incorporation relief and ER and calculation the value of the shares as a part consideration for the sale of the business.

wow..Rory Fish really doesn’t know we only have 3 hours and 15 minutes.. had to read the LONG questions 2 or 3 times…sigh.

@ksusha said:
I thought equipment only qualifies for 40% FYA on the expenditure between 6.04.09-05.04.10 as per ACCA notes, so I only applied 20%WDA, after AIA was i wrong?

Yeah i was just about to mention this, ksusha you did it absolutely right and i also followed the same approach.

i attempted 3rd and 4th