[Roli]

Hi Mike,

Thank you for your explanation. However, I still struggle with answer to my question no 2.

I understand that NBV is 400 – less tax written down value which is 0 (because we got allowance of 600). Financial Statements show an asset of 400 so we will need to pay tax when the asset is recovered/sold in the future hence there is a deferred tax liability of 100 in 2004.

In 2005 this deferred tax is released (DT Def Tax Liab in SOFP 100, CR P/L Def Tax Expense100). So why it shows (50) ?

In 2006 there is no temporary difference so why it also shows (50) ?

Could you show me double entries for this transaction?

Thank you for help in advance.
Roland

[Roli]

Hi Neilsolaris,

I am not sure. In one topic someone said that P4 is the hardest of all. In another topic students mentioned that P5 examiner deliberately tries to fail students by being ambiguous in his questions and scenarios.

I am not a native English speaker so I prefer number crunching to play of words.

I feel lost at the moment and I am not sure what to do. I wanted to sit P2 but due to personal circumstances I won’t be able to do it due to lack of time and P2 is tough… Therefore I was looking for an alternative.

My thinking is as follows:

1. P2 sit in Sep 2016
2. P5 – would be ok because I have just sat P3, but a bit afraid of this examiner
3. P6 – will do it later Maybe Dec 2016 or March 2017
4. P4 – not in line with my current job, but I have always enjoyed finance and I am not afraid of formulas and calculations.

Any ideas?

[Roli]

One more question. I came across some strange comments about P5 examiner and about his ambiguous approach in his questions. I know that all exams are difficult, but is P5 a bit special because of the attitude of this new examiner?

Taking this into account would P4 be a safer choice?

[Roli]

Thank you very much seagoat. At least I know what I am fighting against this June :))

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