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Ok I managed to do it via PayPal. I think the payment earlier didn’t go through so hope the second one did now!

Thanks again

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Thank you! I’ll do it that way as I wanted to donate a bit more than I did.

Could I email the same email address just to check if the one earlier went through? I didn’t want to post my email on here haha.

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I still found it hard….. pray I pass!

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Thanks John that helps. I have seen your lectures before but I’ll watch again just to recap. Sorry I got it wrong!

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This is for Lirio Co. should have added.

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Thanks John. I tried calculating the subsidy benefit net of tax but the figure I got was slightly different to what the answer says if you did the benefit and tax relief loss bit separately. I wasn’t sure if that was more because of rounding.

In any case like you said I guess if you make a mistake you only lose a few marks. I feel more comfortable with the net of tax option.

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I forgot to add, I hope we still get marks in case we do the subsidy benefit net of tax? In case we forget to do the tax relief lost? Just not sure when to use it.

Thank you!

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Hi John

Sorry if obvious but I’m getting confused with why there is a separate tax relief lost calculation for the apv bit of Tippletine Co. when I look at other exam questions, they’ve only calculated the tax shield and subsidy benefit. And also when calculating the subsidy benefit Ive usually seen it as net of tax but they don’t do that in this question.

Appreciate any guidance in advance!

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Hi John

Apologies I should clarify. I meant the question Lirio Co. Please see the below link for when when someone asked you a question about the forward rate being used. I thought it was ok to use but then got stuck on whether you need an extra step for any gain or loss on futures.

https://opentuition.com/topic/lirio-co-question-1-marjun-2016/

Thank you for your help

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I was looking at an older post where you mentioned the examiner allows you to use the forward rate in your answer. So if I end up with 0.8651 as the potential futures price on 1 June, doesn’t that mean I need to include an additional step to show the potential gain or loss compared to what I got the future for at 0.8656 in March?

I can see why we refer to 0.8656 again when we note the futures price on 1 June to then calculate the spot rate but just got confused on what would happen if we decide to use the forward rate. I have watched your lecture and thought there are examples where we have to do this.

Sorry if this is a stupid question!

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I watched one of your lectures where you have the company on the left hand side and the counter party on the right. I’m able to understand how they get to the outcome of 4.94% for Keshi but am getting confused on how if we use the method you show us in the lecture, what would you see on the right hand side column for the bank counter party. What would they end up paying in total?

Would the counter party owe Libor + 0.06 before fees? Sorry if silly question. Was trying to apply your general method when you show how to calculate currency swaps to this question and got lost on what is paid by the counter party like what would they owe Keshi and what would be their net payment. The answer doesn’t really tell you but would help me see how i can apply your methodology in the lecture to this exam question.

Thank you!

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No worries 🙂 In that case if either approach is OK would you be able to show an example on how I would get the same answer for year 1 for instance for Burung? Because when I tried to tax the full amount 10.50 x 0.2, I get 8.4 (10-2.1) but adding back the tax saving (0.2 x 8) leaves me with 10. I feel I did something horribly wrong there ha…and wasn’t sure if it was to do with the tax loss point you made.

It looks to me doing the tax working separately appears safer too!

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Hi John – It was in the Bpp kit but realised that they added back the tax saving in Fubuki not the annual tax allowance. If the difference in approach between Fubuki and Burung is because there are tax losses for the latter question, apologies where can I see this in the question or answer for Burung co? The cash flows appeared positive from year 1 for Burung.

Thank you again for your help!

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Hi John – Apologies I’m still struggling with the capital allowance piece though I have watched your lecture and gone through some past papers and would be so thankful for your assistance before the exam this Friday.

For Burung Co, I know you mention that nowhere in the cash flows has depreciation been subtracted so we don’t have to add back the capital allowance. I checked another one of the ask the tutor threads where it was mentioned that in Fubuki we had to add it back in that question. However, when I looked at Fubuki, I can’t see where it was mentioned that depreciation had been subtracted. So now am unsure why we added back tax capital allowance for Fubuki but not for Burung Co.

I also took into consideration your point about how one of the methods of dealing with WDTA is to tax the full amount of the profit and add back the tax saving. When I tried to do this with Burung Co I got stuck. I wasn’t getting the same answers.

Would be so grateful for your help and sorry if I’m being super thick!!

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Hi there, if I sat the INT paper for SBR and changed my mind in future, is it possible to take an additional qualification or exam later on so that I can practice and become an audit partner in the Uk or is this my only chance? I’m just not sure now so was wondering if it’s something I can address later.

Thank you

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Hi Ken – Thanks for sharing how you would approach it. I guess I thought it was worth understanding in case we get a similar question but I hope we do not! I also thought the question was more about challenging the assumptions versus the numbers so hopefully not understanding that part wouldn’t have been a big issue.

Thanks again.

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Hi Ken – I understand where the 6.72% for example comes from for Stations C, D, G and I but don’t know how they got the below values in the final column.

If I take town C for example, it would be 22K x 44 per what you highlighted how the total monthly revenue is calculated. But how does it go from 11,616,000 (968, 000x 12 presumably) to 3,903,953? How does it work with the 6.72%? My other thought was whether you have to use the 6.72% to work out the new variance over the total population and then multiply that by spend and 12 (i.e. 7,392 for C x 44 x 12 = 3,902,976) but the numbers are slightly different.

3,903,953 – Station C
7,470,856 – Station D
10,456,776 – Station G
5,298,752 – Station I

On the second part, good to know I’m not going crazy! I did the same method as you and did not get 12%.

[acxdc]

Hi Ken

Thanks for the feedback. In that case, from your point of view, do you think doing this module would help people pass the new SBL module? Or can you still pass through past papers?

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