[asmaalhemairi]

You make it clearer for me , but in this case why based on that the auditor didn’t give a qualified opinion given that its material to FS

[asmaalhemairi]

Actually they mention the same treatment in Q2b , but why in QA they calculate the materiality based on the CV and not based on the misstatement?

[asmaalhemairi]

Thanks

[asmaalhemairi]

Thank you . Clear now

[asmaalhemairi]

Thank you sir , very clear

[asmaalhemairi]

And also not sure of the marking scheme , please assist on that !

Is it 1.5 per issue ?

[asmaalhemairi]

Thanks alot .

[asmaalhemairi]

Oh i got it know , they are making an assumption, ( may need to recognize more impairment)

[asmaalhemairi]

Thank you so much .

[asmaalhemairi]

How the answer will be different if it was at the start of the audit / while doing the audit and not at completion stage?

[asmaalhemairi]

q2) if the debt capacity increase to 1200 m ( half of the finance is in from debt and half from subsidies gov loan ) , the tax shield on both debt and subsidies loan will be based on the increase capacity ?

[asmaalhemairi]

This is clear for me , but I want to know if tax is payable in arrears is that going to affect the calculation ?
So if tax of year 1 will be paid in year 2, shall we consider tax effect on Sales on year 2 only ?

[asmaalhemairi]

Thank you sir , its clear now . Yes The question is not from BBP revision kit , I found it on an online website !

Thanks again.

[asmaalhemairi]

Sorry its Digunder not Digular

[asmaalhemairi]

I found them thanks alot 🙂

[asmaalhemairi]

Thanks , were can I find the past papers solve in OpenTuition regard p2 ( SBR )

[asmaalhemairi]

Ok now clear , thanks alot !

[asmaalhemairi]

Thanks sir for your quick reply,

In Amberle Co Dec 2018 they used the net amount of 80 m to calculate the tax shield .

Please assist
Thanks again

[asmaalhemairi]

Thanks for you quick reply ,

Another question If the project raise the debt capacity of the company ( we will calculate the tax shield based on the raised debt capacity) but what about the subsidies loan . Example if a company have initial investment of 8 million ( 2 million will be funded from a long term loan 6% redeemable after 4 years and 6 million from subsidies loan at a rate of 4.5%) and the project is expected to increase the debt capacity to 20 million
Tax 30%

For the calculation of tax shield of loan interest ( we will based our calculation on the 20 million )

But for the purpose of calculating the tax shield and subsidy benefit we will based the calculation on the 6 million ??

[asmaalhemairi]

Got it ! Thank you so much for your prompt reply ..

[asmaalhemairi]

can you ex[lain for me how they calculate the assets , liability amount for this question?

[asmaalhemairi]

Sorry it was my mistake!
the answer is D but I typed a wrong assets amount

D. Assets 2575 less liabilities 975 equals capital 1600.

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