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Oh yeah Q1 was remittance basis and double taxation relief, I done some calcs and lots of discussion then the personal service company bit i think did OK here with the calc, 5% penalty, strip out NIC and income already taken, ignore dividends. The bit about implications of divideds and Corp tax for the company threw me a bit, I said divs ignored to avoid double taxation, and Corp tax not paid as pay all profits in deemed pa had never really thought about this before and had just learned the proforma.
2) Same as most x loss group, y no group and z consortia
Then there was bit about Integrity for 5 marks, and conflict of interest just waffled on about code of ethics and hmrc
3)Got losses with the painting after doing a part disposal calc for the cost, so no cgt, but pet for iht? Then talked about that
The 1St set of shares I dont recall getting a loss but can’t remember what I did get
There was more to this question that I’ve totally forgot now.
BPR and advantage of making life transfer
Q5 SIPS bit and calc how much more salary a guy should be paid to cover extra costs of renting and travel to work, think just worked out the costs then salary by factoring in I.T and NIC to get amount.
For the houses in Q5 I said if keep house 1 as ppr then it gets the PPR and letting relief.
If doesn’t keep house 1 as PPR then it will get no PPR relief on sale but still get letting relief, again total guesses wasn’t sure if letting relief only on PPR property 🙁
I wasn’t too sure on the rollover relief either, I said if the chosen structure was the first with the 80%/10%/10% was the one chosen then a gains group for roll over relief would exist and 2/3 of the proceeds could be rolled over. I said to pick the first building which had the highest chargeable gain, not convinced this is right but I had to rush and complete the question
For the companies I think only the first scenario resulted in a loss group with the Artix 80% and Drizz (something like that) the next one I said had no groups or Consortium relief as no one owned >75% and Mr Cates was a sole trader not a company so can’t be in a group, then the third scenario I said was a Consortium as the two companies had more 5% but none had >75% no idea if this is correct was pretty much guessing as not great on groups
Can anyone remember the questions? I got so stressed out that its all a blur to me
I did 1,2,3,5
In 1 remember doing the Deemed payment calc for last part, Was 2 the Loss groups and roll over reliefs? 3 was mainly IHT and CGT and 5 can’t remember at all now lol
I think I said gearing and profit margin bad at showing capital utilisation as gearing just shows the amount of debt relative to equity nothing about how it is utilised and profit margin just shows profit relative to revenue again nothing about how capital is utilised. Said roce would be better as shows how effectively capital employed is turned into profit.
Said exactly same for brand awareness
For c) I talked about life cycle costing and how cant determine the success of new products in introduction phase when revenue not at full potential and costs still high for establishing. Then noticed also in split out of costs the fixed costs of employee training had been included in cost of new products but these were fixed and so not relevant
For B they were more Economic and Efficient but less effective than comparable companies? Overall failing at value for money I put. Used Dr salary/patients for economy, No. Patients per doctor for efficiency, and % patients readmitted for effectiveness
It’s all a blur now and Q2 and 3 have merged in my head
for the loyalty program I focused on the scenario mainly, they lost customer data before risk of same again, Investment was 4M and revenue only 1.5 risk of failure if not a success, Can’t monitor purchases in restaurant so can’t tell how many points are being used and therefore can’t estimate how successful the scheme is, How to process information I.e useless if system not able to process and interpret. Also useless if can’t establish process of validating the info, useful info must be Accurate, complete, timely ect. If not then wrong decisions will be made on it ect. Think these were some of the points I made
Thoughts on Q2? Didn’t like it focusing only on threats of new entrants for so many marks. Then to evaluate the Kpis suggested by the auditor, was tricky. I basically evaluated each against the 3 csf suggested by the company and think I found mainly bad points for each, this what you all did?
It was an annoying exam for me, I had all models and ratios learned inside out, better than I have done for any other exam, but my application isn’t so great, you don’t get a chance to just show what you know, never get to just describe then apply a whole model the apply to the scenario. Tough exams for me but answered Q1 well think, hope enough to get through. Good luck all.
@rogman228 said:
Yes though you may lose some marks for not showing the workings.I figured the marking scheme was as follows:
5 ratios
1/2 mark for each 2016 ratio
1/2 mark for each 2015 ratio2 points/comments made on concerns from each ratio at 1 mark per point made.
So in summary 5 ratios give 5 marks then 2 comments on each ratio at 1 mark each.
Just my guess of course.
I’m hoping that’s not the case as I also didn’t bother with writing the formulas, I just quickly worked them on my calculator and used my results in the answer. There was an answer in the BPP txt book to a similar question and they did’t show the calculations, rather just start talking about the answers. I think at P3 level its assumed that you know these ratios and how to do very basic maths so more important how you apply these
Thought question 1 was OK with the pestle and porters,
Question 2 I didn’t like that the software company didn’t seem in too bad a state, it would have been easier if they were worse, I found profit ratios had worsened but receiveable and payable days had improved, main concern was that they had both increased long term debt and cut back much of their work force, I thought this suggested they may have used their savings in wages and dent finance to pay off their large payables. Anyone else take this line?
Software focused on Fit for purpose, ease of use, security features, compatibility with other systems, strength of software company for maintenance and updates, training
Q3) Said difference of project was one off not planned business, different from main strategy, to take a new unforseen opportunity
Then I described each stage of the project, what I found hard was relating it back to the scenario which question asked, didn’t much like their project, also got confused as I thought the business case was part of the PID not a separate document
@almoosawi4 said:
Just quick question, Q1 (b) it was asking about P&L vs OCI and recycling process. Or it was about types of pensions?I know 1C) was about the pension scheme and how the directors were worried about increase from 10-15 and how they planned to use creative accounting to have the pension costs go through oci which would increase operating profit and this is what their bonus was on, basically think you had to say the scenario and then talk about it being unethical ect.
1)b) I literally had no idea what this wanted, something about different Ifrs for small entities. 0/8 for me
What the heck was part 1 b wanting? It was about the new rules for SMEs and to tell management about them. I found it frustrating as what limited knowledge I had of this the question already told you. 0/8 for me here.
What was the trick on the product sale bit in question 1)? As simple as take off the 6m already included in revene and replace with the discounted price Revenue for the 13m units, and then take off the money lost for thr defective goods?
Did anyone get a gain on disposal of subsidiary of 13M? So I said it was a gain the group of 13m and a loss to the now associate of 13m. Didn’t know what to do here but so I took the 14M that it said had already been included away and replaced with the 13M for group revene and then included the 13m as a loss in the now in the now associate company who got 60% of the loss and then 40% of the loss came back to the group.
Was lucky for checking examiner articles on Ifrs 13 given half a chan was the only bit of exam I felt I knew the right answer for.
@christa316 said:
I am getting confused since it seems people are jumping between 1 n 3 so fast..someone mentioned the increase in the fv instruments for the parent went to oci. Then the revaluations at acquisition also went to oci. I was saying only post acq revaluations go to oci.. But even if… Based on the question the financial instrument was fv through Pn LSurley someone know the best approach for question 2. I think the points being argued for Q 1 and 3 would make only a mark or 2 different? But theres a 15 mark question not yet discussed
Lol did anyone answer q2 if so what did you do for it? Seems like everyone wants to talk about the finer points of 1 and 3 only
@soniasameersohail said:
I think I’ll go crazy after reading all these replies now..I’ve messed up so bad in the exam..now I’m clueless if I should start preparing for f8 or continue with f7..f8 is all theory and I’m sure I’d flunk in that numerous tines before getting to other exams ??..Personal opinion only but F8 is many times easier than F7, maybe you could do both
@samirrules said:
https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/specimen-exams.htmlThere a link here showing a specimen f7 Acca paper for the computer based method. Hopefully this will help you get a better idea.
Thanks sami
@emo777 said:
Kevin, how much for mcqs?Not certain until I can see them all with options but I think maybe 10 or 11 on mcq.
Anyone know the correct approach for question 2? I estimate I’m sitting on about 40-45% excluding question 2 so I wish I could put my mind to rest that I’ve scrapped a pass or not, really could do without resitting this one lol but fear I may have to. Also anyone know the format of computer exams? Is it just going to be the same but with a computer?
Does anyone have more insight into question 2? Seems many others found the wording confusing about what it actually wanted myself included. Calculated Roce for each year for continued operation only, so from top section listed as continue operating 2016 I used the profit before tax given, added back finance costs/ share holder equity + non current liabilities. For 2016 did the same except took away the 9m from capital employed that was for the discontinued part.
Part b I then went on to calculate, gross profit margin, operating margin, gearing and current ratio, annoyingly there weren’t any big differences to assess between each year except for Roce and that was because of the discontinued operation which lead to higher Roce 2016 ,I calcled Roce again with discontinued back in capital employed and it was then it was a lower Roce in 2016. Done a paragraph on Profitability, liquidity and gearing, waffling on then a conclusion that no going concern issues despite decrease in Roce and also that need more info about rest of industry to draw a conclusion on the drop in Roce.
@emo777 said:
There was also a MCQ number 19 about lower acid test ration. I got D, used cash to buy materials and etcDarn can’t remember what the other options where, I think I remember the cash used was from overdraft or a loan or smt?