[adarsh1997]

Hello,

I’ve read the notes however, I am still having some difficulties to understand the idea behind.
Please help me on that.

Thanks.

[adarsh1997]

Also, I would also add, what’s the link between “sufficient taxable temporary differences” & “unused tax losses.”

Thanks

[adarsh1997]

Hello,

Thank your for your reply.

“A DT asset is created if we adjust for this temporary difference”

I am not sure that I’ve understood this part. Could you just briefly re explain it?

Thanks in advance.

[adarsh1997]

Hello

Thank for above.
Just one last thing. IFRS 13 states uses the phrase “inputs to valuation techniques”?
What does that mean?

Thanks

[adarsh1997]

Hello,

It’s actually from the BPP revision kit; Flowers Anytime

Thanks.

[adarsh1997]

Hello John,

Thank you for your reply.
Actually I am little bit confused. What we’ve calculated is the cum interest market value?
If so, what the use of using the cum interest market value. Isn’t the ex div market value the only value that we should take into account?

Thanks

[adarsh1997]

Hello John,

Thank you for your answer.

Therefore in this question working capital is regarded as well as the inflation on it is regarded as a cash outflow; and thus when we release both the working capital and it’s inflation?

Thanks

[adarsh1997]

Hello John,

Thank you for your answer.
Why do we need both of them if they give the same answer?

Thanks

[adarsh1997]

“leaving 1,800 of the POA still unpaid for a further 4 months until 31 January 2020”

Why income tax is not due as from 1 July 2018?

Thanks

[adarsh1997]

Thank you.

Therefore TTP + unconnected & less than 51% shareholding?

Thanks

[adarsh1997]

Got it. Thank you

[adarsh1997]

Hello,

Sandeep made a gift of £425,000 to a trust on 10 November 2018. No agreement has been made
about who will pay the inheritance tax (IHT) in respect of this gift.
What is the due date for payment of the IHT and who is primarily liable for its payment?
A The trustees are liable to make the payment by 31 May 2019
B The trustees are liable to make the payment by 30 April 2019
C Sandeep is liable to make the payment by 31 May 2019
D Sandeep is liable to make the payment by 30 April 2019

1. The answer is C.
2. In your reply above, you’ve mentioned that “The recipient of the gift is the trust administered by the trustees – therefore the trustees pay the tax out of the trust fund!”

3.However in the examiner’s report, it says that :
-The donor, Sandeep, is primarily liable for the tax due on a CLT and the due date
is the later of the following:
(i) Six months after the end of the month of transfer
(ii) 30 April after the end of the tax year of transfer

4. Please clarify.

Thanks

[adarsh1997]

1.To summerize all this, cost paid to third party by the employer is a taxable benefit.
2.If however, the employer provides “in-house” benefit then there is no benefit to the employee.

[adarsh1997]

The tax adjusted trading profit is £111,100

[adarsh1997]

I did read and watched your lectures but still has some difficulties to understand this rule

[adarsh1997]

Lecture 5, 10:12 mins

[adarsh1997]

It’s clear now. Thank you

[adarsh1997]

Hello,

Thank you for your answer.

May I know when will lectures on capital gains tax be available?

Thanks.

[adarsh1997]

Hello Chris,

Thank you for the answer.

What about the revaluation of $5M? Why we do not adjust for it? It’s non cash.

Thanks.

[adarsh1997]

Thank you for the answer.

So let’s say we have an inventory and it got destroyed by fire after the reporting period.
So this will be an adjusting event due to the fact the property was owned at the reporting date? Am I correct?

Thanks.

[adarsh1997]

Hello Chris,

Thank you for your answer.

I’ve got the point. Thanks for the clarification.

Could you explain how did they arrived at a balance of (500) which has been charged to P/L?

-From what I’ve done, I did managed to obtain the movement of $1900. But it we have a tax charge of $2,400(12,000 × 20%) , then this amount should be charge to the revaluation reserve, that is, a decrease in revaluation reserve.

– Therefore no amount should be charged to P/L due to the fact that the revaluation reserve has absorbed all the movement($2,400)

– So, how come there is a balance of (500) charged to P/L?

Thanking you in anticipation

[adarsh1997]

Let’s say we have an asset which costs $10,000 and a useful life of 5 yearsand we’ve received a government grant’s related to that asset of $5,000 and the condition is that we should not sell the asset for the next 5 years.

1. Assuming we are using the netting off method, we would record the asset as $5000(10000-5000).

2. Now let’s say after 3 years, we face with some problem and we decide to sell the asset.
– In our books, for the moment, we have the asset at a CV of of $2000(5000- dep of $3,000)

3. How we would deal with this repayment of the government grant?

[adarsh1997]

Hello Chris,

Thank you for your answer.

I am seizing the opportunity to clear some on my doubts on IFRS 15.

Step 4 states that we should allocate the transaction price.
– Could you explain why we should do so? Why can’t we record the stand alone?
Like in the example above, the stand alone price for the laptop is $200? Why not recording the amount?

Thanks.

[adarsh1997]

Hello Chris,

Need your help to tackle a question.

Burridge bought 30% of Allen on 1 July 20X4. Allen’s statement of profit or loss for the year shows a profit of $400,000. Allen paid a dividend to Burridge of $50,000 on 1 December. At the year end, the investment in Allen was judged to have been impaired by $10,000. What will be shown under ‘Share of profit from associate’ in the consolidated statement of profit or loss for the year ended 31 December 20X4?
A Nil
B $50,000
C $60,000
D $110,000

1. The answer is B.
2. The working in the book is a follows:
30% × $200,000 ($400,000 × 6/12) – $10,000 = $50,000.

3. My issue is that why the dividend of $50,000 has not been deducted from the post acquisition profit($200,000)?
– Above you’ve said that,”any dividend that has been paid is a distribution of retained earnings and hence we only record our share of what is left.”

[adarsh1997]

Hello Chris,

Thank you for the answer.

What effect does the finance costs/investment income have on the consolidated retained earnings(working 3)? Do we need to increase reduce the parent’s retained earnings because we’ve reduced investment income and increase the sub RE because we’ve reduced finance cost?

Thanks

[Author]

Posts