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I live in the UK acca and icaew are equally desirable in audit and any other roles. To enter into audit as a new trainee requires passing the strengths assessments and other tough screening processes which have nothing to do with either bodies.
Query 1
Illustration 1 Chapter 9 states that Gross income is shown as £25,000 in the tax computation less occupational pension of £1,000. My query is, why is occupational pension not shown on the proforma income tax computation in chapter 2. I know the BR (20%) personal pension is not shown since it is automatic and only shown for HR & AR tax payers.
Query 2
There is a rule that states that individuals who invest into pension schemes are entitled to tax relief for the contributions they make into the scheme limited to:
(i) 100% of relevant earnings (employment income, trading profits & FHLs)
(ii) £3,600 of gross earnings (to those without relevant earnings)There is also another rule on Pension annual allowances annual allowance stating that most an individual can save into their pension schemes before having to pay tax is £60000.
Am seeing a conflict in these two rules. The first one limits tax free contributions to 100% of relevant earnings while another caps tax free contributions to £60000 per year.Apologies for my silly questions.
Is it possible to seat for US CPA exams from the UK or one needs to travel to USA to write the exams?
Guys is copying and paste of risk /deficiency/control allowed. Someone said you have to edit the copied material from the scenario to get the 0.5 mark.
@deftoneseire07 /ANYONE who still remembers the sales and purchases controls on the last question. Was there a control on sequentially numbered documents either on sales or purchases controls?
Was operating loss an indicator for going concern problem in that Sec A multiple chose question with many selections?
@katiewebb I did the market values. I used the market values given on rights issue. I think market value per share was $1.20. Book value per share was $0.5. There was also market value of debt (mkt value per 100 of bond) but I can’t remember the market value of each 100 bond. But I know I did the wrong thing because someone said the question was similar to the one in the December 2023 mock and book values were used.
@katiewebb in Sec C qstn 2 part a or first part were we supposed to calculate gearing using book values or market values.
@katiewebb I also did both but someone I talked to said he did one because the question said discuss the benefit of equity or debt in a stock market. I am also confused. Because I discussed around 2 points for each for 8 marks if I knew it was one needed I was gonna put more points for one side.
Anyone who found the question in section C which said discuss the benefits of rights issue or loan notes in a stock market. Did it require discussing both rights issue and loan not or you choose and discuss 1 only?
@josukegiorno10 your answer might be correct. Our papers will all be slightly different for each person or region I think. My question didn’t have buffer inventory. So don’t worry.
My business valuation in section A had calculating the value for irredemmable preference shares and not loan note like others.@leep2310&@junaid98 I think our papers were slightly different. My business valuation had valuation of irredemmable preference shares given the dividend and cost of preference shares. I don’t remember valuation of loan notes. My working capital question had Annual inventory demand as 1800000 current order 300000 holding cost per unit per year $1.00 order cost per order $2250. Current inventory mgt cost was (1800000/300000 × $2250) + (300000/2 × $1.00) = 163500
Inventory cost according to EOQ was 90000. The answer is supposed to be 73500 (saving)
The first question on working capital needed the calculation of networking capital.
Confirm If these were the sane questions for you.The business valuation question in section B was okay but did it have any calculations? I don’t remember any calculations from that question. If they were calculations please remind me.
I did the same thing. But the second part of the question on real interest and nominal interest was didn’t have much to say for 8 marks.
That question was terrible for a last question in an exam. You have to think hard when the exam is almost time up. I don’t think I will get any mark on those 12 marks.
Anyone with an idea on the section A sensitively analysis question. Sensitivity to savings options answer were for A around 20K, another around 13k, another around 2k and another around 4k
Then there was loan note conversion in sec A again option A while said conversion premium was around $500 other options I don’t remember.
My 2nd qstn in section C was disaster. The first 12 marks required calculation of Gearing, interest cover EPS in 1 yr for both favorable and unfavorable where there was rights issue or loan note issue.
I don’t think I will get any mark on those 12 marks.@John Moffat Sir if If payments to suppliers are delayed then payables (which are a current liability) increases, there by increasing working capital. But isnt inventory from suppliers shown in the current assets will also increase, thereby maintaining the balance of working capital?.
