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No Capital allowances.
Just include the asset as an addition, then disposal. This will leave either a balancing allowance or a balancing charge
Hi mate,
If there is no FII and the company is eligible for marginal relief, then you can calculate the CT due in two ways.
1) using the marginal relief formula i.e. TTP x Main rate of CT, minus Marginal Relief, or
2) multiply the profits which are within the small co limit (£300,000) by the Small Co rate (20%) and multiply the remainder of the profit using the marginal rate. Add the two figures.Hi,
I’ve just come across this now – I’m sure you have passed this exam now so this may be irrelevant to you, however it may help someone else who may be reading this.
In the linked article, the dividend income is taxed at 10% as in both strategies B & C, the total taxable income is below the Basic Rate threshold – A) £31,100 B) £31,377. The BR threshold of the year in question was £32,010.
Agree with the above.
4c)
I will only add (to clarify) that the Housing division is now just a ‘cost centre’ and therefore it’s ‘costs’ of £8617 should not be added across. (I think the model answer could have been clearer by not included this figure on the ‘profit’ line)Thanks for that.
I was just confused because the answer then goes on to discuss the dangers of outsourcing such as loss of control over quality etc. If I’m not mistaken, then the reason the answer mentions this is to show that the service division may be able to justify charging in excess of the market price of $200 as doing the work in-house will overcome these issues?Thanks admin, and thanks for all the stuff you put on here.. you’re THE man!!
Ps. do you think its a good idea to go through the F7 stuff again to help with F2, as I sat F7 in Dec 2010?
@vipin70 said:
i wrote only inherent risk. no controls were given, so control risk. but for me, audit responses in regard to audit planning, what to write for responses is not known to me. i wrote something something. i could identify the risks.i tried to apply it to the scenario.. for responses i wrote things like ‘the auditor will have to increase substantive tests in this area..”
I found this question to be the most difficult..
what did u guys put down for the question on audit risks and responses.. i think i really messed up on that one 🙁
I also put Disclaimer for Daisey as both sales affected profit & loss account and receivables affected BS and therefore pervasive. For the same question, what did u guys put down for ‘other audit procedures the auditor should undertake?’ (in relation to the virus)
If too much of the current assets are financed by short term sources, the company is operating an aggressive working capital policy.
Current assets should be divided into fluctuating current assets and permanent current assets. Permanent should be financed by long term sources and fluctuating by short term. This is a matching policy.
I think this ratio tells us how much of the company’s current assets are financed by short term finance (payables and/ overdrafts).
I would also like a copy of the BPP & Kaplan F9 mock exams. Please could you send to golam.rahim@btinternet.com
Thank you
