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I got a question about how CLIMATE CHANGE affects IMPARIMENTS and PROVISIONS.
Personally I don’t like this kind of very general questions that tend to rewards people are good at making up things rather than those who studied well…Dominico incurred the following expenditure on a new factory constructed to be used in his business during the year ended 31 March 2023:
Land 100,000
Levelling of land 10,000
Factory building 280,000
Planning permission 3,500
What is Dominico’s structures and buildings allowance for the year ended 31 March 2023?ANSWER
3,625
Qualifying expenditure
Levelling of land 10,000
Factory building 280,000
Total qualifying expenditure 290,000
Structures and buildings allowance:
£290,000 x 3% x 5/12 3,625DOUBT? why 5/12!??! I don’t see any time apportionment to be done…
This is the full question, but in general I have seen this topic of the accounting date choice popping up a few times and I have a hard time understanding what difference it makes..
This scenario relates to two requirements.
On 6 April 2022, Simon commenced employment with Echo Ltd.
On 1 January 2023, he commenced in partnership with Art, preparing accounts to 30 April.
The following information is available for the tax year 2022-23:
Employment
(1) During the tax year 2022-23, Simon was paid a gross annual salary of £23,700.
(2) Throughout the tax year 2022-23, Echo Ltd provided Simon with living accommodation.
The company had purchased the property in 2007 for £89,000, and it was valued at £143,000 on 6 April 2022.
The annual value of the property is £4,600.
The property was furnished by Echo Ltd during March 2022 at a cost of £9,400.
The living accommodation is not job related.
(3) On 1 December 2022, Echo Ltd provided Simon with an interest-free loan of £84,000, which he used to purchase a holiday cottage.
Partnership
(1) The partnership’s tax adjusted trading profit for the four-month period ended 30 April 2023 is £29,700. This figure is before taking account of capital allowances.
(2) The only item of plant and machinery owned by the partnership is a motor car which cost £18,750 on 1 February 2023.
(3) Profits are shared 40% to Simon and 60% to Art. This is after paying an annual salary of £6,000 to Art.
The motor car has CO2 emission rate of 155g per kilometre. It is used by Art and 40% of the mileage is for private journeys.
Property income
(1) Simon owns a freehold house which is let out furnished.
The property was let throughout the tax year 2022-23 at a monthly rent of £660.
(2) During the tax year 2022-23, Simon paid council tax of £1,320 in respect of the property.
He also replaced the property’s washing machine during March 2023.
The old washing machine was sold for £70, being replaced by a washer-dryer costing £970.
The cost of a similar washing machine would have been £730.
(b) State TWO advantages for the partnership of choosing 30 April as its accounting date rather than 5 April.(2 marks)on the practice platform..
yes I read.. I would expect the RNRB to be computed..Hi,
I received an email from ACCA “By now you should be practising exam questions to time – make sure you complete the new pre-June a mock exam on the practice platform”I think they mean “pre-SEPTEMBER”, but if I check on the platform I find only the mock 1, mock 2 and specimen. Last quarter a new mock appeared few days before the exam and it was useful to practice on something new.
Do you know if they will add one? (I don t think so at this point in time…)
thanks
Passed: 56.
Frankly speaking I am happy I passed but I was surprised by the low score… my average so far was 83.5 over 5 exams. AA indeed appears to be a challenging exam which can show some surprises. Now I will be afraid to consider AAA as my optional…
is there really no possibility to have any additional info about how I scored? (section A/B… etc)
77 Pass
I was very scared by section C, when I tried it at home I often committed mistakes.. but it went welleleni92 wrote:What did you guys reply on the director’s bonus not disclosed on the FS?
I also would like to know about the correct answer… anyone knows?