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What a good point; that didn’t even cross my mind but motor boat would not be exempt from CGT?
Q2 where there was a transfer of a building from A to B – I said it was at NGNL
Then it said if B buys another building then A will sell the exisitng building. I worked out the gain as normal without any degrouping charge/and the other calculation as It said A will sell it – not B will sell it?
There was a disposal of a property and motor boat in Q1 i think – did people work out the gain and apply PPR to reduce the gain?
Do the grade boundaries come down by ACCA if overall everyone did not perform too well?
There was a question on explain what Tusk needs to know when deregistering for VAT?
I only put that output tax needs to be charged to the NCA & Stock , that he has claimed input VAT on and that is it !
Is that what people wrote?
Hello All,
I found this exam was a disaster for me – not sue how you lot found it?
I have so many questions but i would like to start off by asking what did people write for Q1 where there are losses in the final tax yr and no terminal loss relief is to be claimed. Did you lot add the overlap to the loss in the final tax yr to achieve a bigger loss and then offset this against the other income in the previous tax yrs?
Was just thinking – For one of the questions where the 2 companies had joint control etc – and one of the parts was “under frs102 how would you deal with the site that they were planning on selling”
Did anyone write about HFS is not applicable under FRS102 and discounted operation from the sale needs to be reported seperately on the face of the p&l?
That land & building question – i said it should be treated under IAS 40 – Investment property?? Because it said they cannot find a use for it but it has appreciated in value.
Anyone else put the same?
What did everyone write regd what Solar Company should include in their sustainability report regd platinium and why is it helpful – can’t remember the exact question.
Was it me or did this exam feel like an SBL exam?!
Hello all,
Just wanted to write what i remember from my answers – Did anyone else write the same:
Q1) Business combination – it asked why is the acquired land and building not a business combination.
I said because only land and buildings was acquired and no input (i.e. employees were not acquired) which is part of the input, process and output in business concentration test.
Q3) Joint Operations – It said accordance to FRS102 how should the operation be treated. I said it would be a joint operation and each parties share should be accounted for in their individual accounts?? So i said their income, costs , assets liabilities all need to be recognised as per their holding.
– lower of stock vs NRV – i said the inventories should be held at the lower which i think was NRV? And then there was an impairment of $100k after the YE so as per IAS 10 adjusting subsequent events, stock value had to be reduced.
I can’t remember any of the other stuff.
Ethics question 2) i just said that the accountant should regularly undertake CPD training as only then she would know about the updated laws.
Not sure if anyone else got the same things?
Was there a subsidary acquired in the year? Missed this risk!! I hate how they said “do not include exchange rate risks” ?
There was not that many figures given to calculate materiality? The only materiality figure i calculated was for the expenditure of £75m on the ships…
What answers did people put down for the following questions;
Q1b) Audit procedures on the operating segment revenue.
Q3b) What is auditors responsibility in regards to chairmans statement and auditors report.
Q3a) regarding the change in Ifrs 16 policy, did people say that because no disclosure then must qualify opinion.
I do not understand when it says ‘Data analytics is a progression from using CAAT to perofrm Analytical procedures’
is it saying Data analytics is used to perform analytcial procedures or is it CAAT that is used to perform Analytical procedures?
Thanks Kim. Just to confirm, would i gain marks if i had a question that asked ‘write audit risks’ and i wrote the type of risk – e.g. Listed company so potentially management bias to boost the performance etc but i did not write that increases detection risk?
Do you have to mention what type of risks (inherent, control and detection risk) it effect for a question regd audit risks?
But for a question on ROMM i did not have to write about the inherent, control and detection?
Does anyone know how to complain to ACCA about this via the ACCA portal – i had the same issues about scrolling and also not being able to view the scenario and question at the same time!!!
There was a question i think in section A about the profit made which needed to be calculated by the lifecycle costs from the revenue given. However i also deducted the initial development cost – is that correct?
Section B was very hard – only question i could actually attempt was the MAXIMIN MAXIMAX uncertainty question but even for that i could not work out the payoffs for the month of August!!!
Section C i got Sales Mix and Quantity – For the sales mix i did Actual sales X Budget contribution and then the standard mix at budgeted contribution. – is that what people did ?
Another section C was on performance measurement on AIO – wrote so much crap here didn’t know if i did it correct!!!
For innovation objective i just said 40% of its employers believe AIO is a innovative company and also said that they have a innovation team that help members… BUT don’t know how correct this was!@gaby12 said:
Yes, pretty much I did the same, for Q1 -sole trader I used opening year rule to find out the trading profit for both years.
Than I did the income tax for the company case and compare the two taxes.
The bad debts VAT , yes is correct 6 month late when the bad debts is w/off. To improve cash flow- cash accounting scheme is preferable.
Capital goods scheme is right, but I calculated the Annual Adjustment VAT/10* (% year 2- %Year one ) and because it was a fall in % was a repayment to HMRC.
IHT question – yes it was a gift of unquoted shares so I did the calculation of diminuation value /combine with her husband. Value before gift less value after gift – I found out the taxable gift.
Then I said the BPR relief will apply because is a trading asset and was help for 12 months ( the % of shares doesn’t matter for unquoted shares ) is I remember well.I am not sure is correct but I hope I did enough to pass.
What did you say about patent roll over relief- I got confused as I know roll over relief is available for fixed assets ( qualifying assets as buildings, fixed plant and machinery ) so I am not sure what I was supposed to say.
I just mentioned there is a 4% cost allowance the company can claim annually.
The questions were not easy but much better than June 19 when I failed, so I really hope I am done now with tax.Best of luck
OOOPS for the IHT calculation, i worked out the value by doing only Emma’s shareholding before the gift multiplied by the Price of the % of shareholding ( I think it was like 50%) less the Price with the % holding after the gift (I think was 35% less)…
@gaby12 said:
Yes, pretty much I did the same, for Q1 -sole trader I used opening year rule to find out the trading profit for both years.
Than I did the income tax for the company case and compare the two taxes.
The bad debts VAT , yes is correct 6 month late when the bad debts is w/off. To improve cash flow- cash accounting scheme is preferable.
Capital goods scheme is right, but I calculated the Annual Adjustment VAT/10* (% year 2- %Year one ) and because it was a fall in % was a repayment to HMRC.
IHT question – yes it was a gift of unquoted shares so I did the calculation of diminuation value /combine with her husband. Value before gift less value after gift – I found out the taxable gift.
Then I said the BPR relief will apply because is a trading asset and was help for 12 months ( the % of shares doesn’t matter for unquoted shares ) is I remember well.I am not sure is correct but I hope I did enough to pass.
What did you say about patent roll over relief- I got confused as I know roll over relief is available for fixed assets ( qualifying assets as buildings, fixed plant and machinery ) so I am not sure what I was supposed to say.
I just mentioned there is a 4% cost allowance the company can claim annually.
The questions were not easy but much better than June 19 when I failed, so I really hope I am done now with tax.Best of luck
I am not sure about the patent roll over relief to be honest – I just said that the company will be able to claim roll over relief if it re-invests in a replacement asset within 3 years after selling old etc… NOT SURE?????
Did anyone do for part C the sale proceeds of the patent less the (60K Cost – 60K TWDV) and say the tax will be on that amount???
Well that was a hard exam to be fair!!! Few points that i want to speak about as i have been thinking about it all night and i need to let it out and see what other people wrote:
Q1) Sole trader VS Limited company – Did people say that he would be taxed at a higher rate if trading as a sole trader and then speak about the different rate bands whereas for a limited company he would be taxed lower at 19%. I also said if he was sole trader he would get the £11,850 PA.
I also said that dividends would not be taxable in the Limited company.I did not know what else to write!!!
In regards to the VAT question about claiming back VAT on impaired debt i said if it is 6 months late and he has written it off in his books he can claim back the VAT.
Q4) VAT – Capital goods scheme – I was confused here but explained that it should be part of the CGS as the building was >£250K and i worked out the initial input VAT recovery at 20% (full recovery) and at the sale, no VAT was charged so that was 0% and so he had an amount to pay to HMRC ???????
Q2) IHT – For the gift of the unquoted shares, did people work out the VALUE of this gift (By doing calculation of before and after gift shareholdings and multiply it by the relevant percentage) and then explained that there would be additional tax if Emma died within 7 years and just gave an example of the maximum IHT due if she died in 1 year…
Did anyone say anything about Business property relief being available as the shares were unquoted?
Best of luck to all!!!
I got the cash accounting self employed question – Did people add back the motor expenses and other stuff and just deduct the mileage expense?
Also was the answer to the tax on death estate 140K – Deduct the house from the total as it was left to the wife and tax at 40% – I guessed that there was no NIL RATE band left as it was all used up in lifetime gifts?
I had a VAT q regarding vat taxable output on the chaffeur ride and the hamper gift – How did people do this and what did they get?
For the 10 mark question C question did people get the q of working out NIC payable for sole trader and if she opened a company.
What did people do for this?Another question – For the car over 110g CO2 did you add back the monthly lease cost of £4k x 7 months and then add back 15% of this?
