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@Pohziliang96Malaysia2 &@jonnhy138
I’m starting SBR I would be happy if you share any summary notes or material you used to hillaryjohns85@gmail.com
@study123@
I don’t think the SBA figure was supposed to be unused on the CGT since we had no separate figures for land and building on the retail unit and warehouse but mentioning this was the point just to earn marks for professional skepticism and maybe also comment that this can be offset against the group income to also earn business acumen marks.
I never did all this and I know those are some marks I left and never earned. I think on my resit I will be better prepared for this papers and other professional papers. This was my first professional paper.Was there SBA on the 8 marks group question in section B which asked for explanation of base costs for warehouse and retail unit?
You did well. I made a lot of mistakes, close to 10 mistakes across the whole paper. On the question of comparing including someone as an employee vs as a partner I only used Income tax and NIC to compare the two option and did not include the salary and profit paid to the partner in the cost comparison. I thought the cost referred to in tax is always the tax cost. I also forgot to also calculate and include the balancing allowance/charge since the question said the main pool was nil after the gift. I could’ve done better but time pressure messes up everything.
I did the same on the base cost of the warehouse but I don’t think it’s correct. We missed the aspect of pre-entry losses since the asset was acquired from while in the previous group the base cost is reset to the market value at entry and pre entry loss is the disposal to the unconnected party less the market value at entry point. I just discovered that because am already preparing for March 2026 reseat.
I did the same on the base cost of the warehouse but I don’t think it’s correct. We missed the aspect of pre-entry losses since the asset was acquired from while in the previous group the base cost is reset to the market value at entry and pre entry loss is the disposal to the unconnected party less the market value at entry point. I just discovered that because am already preparing for March 2026 reseat.
In the first question in section B on choosing the best option on whether to admit an additional person as an employee or partner. If the person was to be admitted as an employee he was supposed to be given a laptop and after being given a laptop the main pool balance was going to be nil. Does it mean we were supposed to calculate the balancing charge?
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.
