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I dont think under frs102 an intangible asset can have indefinate life can it? I thought there was a max 10 years
I found it quite tricky!
The goodwill calculation i worked backwards to figure out the cash paid but i think i forgot to revalue the associate to the fair value before including that in.
I selected to treat the contract over two years and defer half of it which im now kicking myself over as the control of asset hadn’t passed so i dont think thats right!
I didnt know much what to put about the intangible life i said something like using data from subs, competitors or from the competitors but for six points this was very hard and i wasnt sure id ever seen anything about how to decide that!
Sme was a suprise aswell as integrated reports – the paper was heavily written and not many calculations!
Im now thinking did i put 5% and confuse it with ER! So many possibilities ! Will have to see how results day turns out to find out i guess
Yeah precisely! I mean if you go in another direction hopefully theyll give you follow through marks if youve backed up what youre saying kind of thing.
Oof i missed the fact theyd dropped below the 10% i put theyd owned more than that for 12m in the last 6 years so they qualified!
Hey you cant win them all i guess !!
For martha yeah it was for the saving i agree i just presumed she might pay dracian tax on the rental income from the uk so i put that shed save that amount too.
Oh damn i didnt remember that about vat annual groups, i think youre right! I waffled on for ages about that too haha oops!!
For the close companies, its a close company when theres five or fewer shareholders or for any amount (not
just five) when theyre directors and associates, so i added Dorian, his dad and the other 5 and it came to just over 50 so meant they had control – i cant remember the exact amounts
I got lucky with this one as id read this in the morning before the sitting!
There were some pretty niche little questions to be fairI did the same exam as you conor,
Q1
I had the same answer for building 1 and 2 but as 6 years hadnt passed for building 3 i thought there would have been a degrouping charge and therefore the asset would be valued at the market rate.Had the same answer for ethics too, about separating teams and not sharing any confidential info
I forgot the aea on the iht question which im now kicking myself about, funny what the pressure does to my brain what a silly error to make!
Q2
I was sure for dtr either, there was a note in the memo about it too but i didnt understand what it was implying! I added 29% of the rental income back as tax saved presuming she wont have to pay that if she gifts the house.Q3
I also went for rollover relief, i apportioned the gain to 1/4,l that was immediately taxable and also i think she only reinvested 83 not the whole 85 so i chucked the 2k as chargeable immediately too then the rest as rollover, not sure how correct that was.I knew for the forklift about rollover relief but didnt make a point about it which on reflection i should have noted that!
Any reason why you put annual vat wasnt allowable? I put down if they were under the turnover 1350.. limit and up to date itd be good to go .
Q4
For close companies its any no of directors and their associates and the other shareholder was his dad, which i presumed is an associate so that took them over 50% and they therefore have control.I put the taxable benefits as income benefit but youre right on close companies think theyre taxed as distributions
I thought the last bit was about corporation tax filing so mentioned about 100 penalty for late submission then 100 again after 3 months but if this was about vat i was completely on the wrong path ahhaa
Overall abit of a tough exam for timing and not sure i wrote enough points but it wasnt as bad as i was dreading beforehand !
I got the revised balance sheet too, just had to follow what they said and adjust the cash, loan, the main calcs was to calculate the revised trade recvable / payable/ inventory figure from the increased rev/cogs using the days given. Then add the profit to the reserves, i was like woah when i first looked at it but after i worked it through it balanced. The theory q after that though about working cap inv policy etc i was abit stuck on though i rambled my way through it
Thankyou so much for posting these, will help greatly for my last few days of revision, really appreciated !
I also had the sfp consolidation. I got about 9000 roughly for bargain purchase. To calculate the net assets at acquisition you take the retained earnings on the report and add the lossbforbthe 6 months of the yeaer of 5000 (because its a mid year aquisition) mine balanced but I know I showed the bargain purchase incorrectly but never mind figure I may only lose a point or so hopefully
I calculated the same for the gain on rollover relief, but isnt the rollover relief about the elements of the proceeds which are reinvested so from (i think it was) 600k odd, only part of it relating to PM machinery was rolled over , and the other part immediately chargeable as its normally only on pm, land bulidings etc for companies!
The group element I jsut explained that it needed to be a 75% subs too. Then had to explain the depreciating deferred gain timing as it was an asset under 25 years I think.For the corp tax question re interest, I found this really confusing too I apportioned the loan interest to the expenditure ratios then just made it up abit for the adjustments as to what I thought looked sensible.
For the IHT I thought that although the reliefs covered it, it could be sensible for them to give the 325000 to their children as if they live for longer the property value might increase and therefore the estate not be covered by the allowances. and they can benefit from taper relief (i didnt think this part was if they die soon, that was relevant to the q before!) hope I wasnt on the wrong path…
Yeah thats the one i had too! Then a question on group rollover and the depreciating assets deferring time!
I had alot of IHT questions. Section C consisted of a nice calculation of calculating taxable income but a really unusual one about rollover olrelief conditions and transferring through a group. Luckily i’d revised this so feel alright about it but i wasnt expecting that style. Another part was about the tax saving if a self employed person made pension contributions and another about transferring gains to a partner and the saving on that, both of which seemed pretty straightfoward but maybe i missed something! Did anyone else get the same qs?
Hey,
Just a quick question, I cant obviously see any of the tutorials on Capital gains, are they hidden in some of the other videos or will they be uploaded soon and if so, around what date?
Thanks in advance,
Bea
@ervlin said:
How come you guys have questions about ROI and RI? I didn’t have those qs at all. My section C qs was about transfer pricing, marginal cost & revenue thrn pricing strategy.I had the same questions as you. Think ACCA must have a question bank that randomly assigns the questions to make sure theres no questions spotting and to avoid cheating. Thats my guess anyway
@simspetya said:
Lily
Please tell us what exactly had to be done about the police officeThe questions was to discuss the performance of the police force using the three value for money Es
@darciecoco said:
I seemed to get quite different questions…!I got a variance one but not about bikes, but it was really hard (and I was fairly confident with variances). 2nd one was about musical instruments costings / mark ups. 3rd one was about a florist using minimax regret and decision trees. Haven’t seen anyone with these questions…!
C questions were optimal pricing / marginal revenue and marginal costing and about three EE’s.
@darciecoco said:
I seemed to get quite different questions…!I got a variance one but not about bikes, but it was really hard (and I was fairly confident with variances). 2nd one was about musical instruments costings / mark ups. 3rd one was about a florist using minimax regret and decision trees. Haven’t seen anyone with these questions…!
C questions were optimal pricing / marginal revenue and marginal costing and about three EE’s.
@darciecoco said:
I seemed to get quite different questions…!I got a variance one but not about bikes, but it was really hard (and I was fairly confident with variances). 2nd one was about musical instruments costings / mark ups. 3rd one was about a florist using minimax regret and decision trees. Haven’t seen anyone with these questions…!
C questions were optimal pricing / marginal revenue and marginal costing and about three EE’s.
I got the same questions as you, when I saw the question on value of perfect information my mind just went blank! I think I put 1000 which was the difference between the worse and best profit of EV. I complemtely blanked on how to calculate Marginal revenue in the section C question which I am now kicking myself about!!
Yeah the MR after having looked at it (after the exam) seems pretty simple, you just add one more unit as if you sold one more after (from what I understood), seemed like pretty easy marks. I think with the stress I forgot MR=MC for some reason and just waffled the discussion part as to why they are signifcant. For the pricing/ output I just chose the one with the highest profit when deducting the Revenue from Total costs.
Not a clue what the answer was for that variance question is though, I hope someone will give us the answer it was really bugging me!
This was my first ACCA exam and I didnt realise the questions on Sect C differed for everyone in the exams, my section C questions didnt have an revised budget to do as others are talking about here, it was all about the 3 E’s and MR=MC did anyone have similar questions? I was gutted because id spent so long revising the complicated techniques that I didnt even know how to calculate marginal revenue!
I thought I knew variances off by heart but got really stuck on the labour rate planning variance as there didnt seem to have the actual hours used and I couldnt see how to figure this out from the info given? Anyone get stuck on the same question (section B). Think i put 160000 adverse but it was just a guess!
